IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v174y2022ics0040162521006260.html
   My bibliography  Save this article

The use of multi-criteria decision-making methods in business analytics: A comprehensive literature review

Author

Listed:
  • Yalcin, Ahmet Selcuk
  • Kilic, Huseyin Selcuk
  • Delen, Dursun

Abstract

Business analytics (BA) systems are considered significant investments for enterprises because they have the potential to considerably improve firms’ performance. With the value offered by BA, companies are able to discover the hidden information in the data, improve decision-making processes, and support strategic planning. On the other hand, because there are multiple criteria and multiple alternatives involved in most decision-making situations, multi-criteria decision-making (MCDM) methods play an important role in BA practices. Providing inputs to the components of descriptive or predictive analytics or being used as a decision-making tool for evaluating the alternatives within prescriptive analytics exemplify the roles. Therefore, the use of hidden information discovered by business analytics and the need for utilizing the right MCDM method for optimal decision-making made these two concepts inseparable. In this paper, in order to review the use of MCDM methods in BA, the subject of BA is investigated from a taxonomical perspective (descriptive, predictive, and prescriptive), and its connection with MCDM techniques is revealed. Similarly, MCDM methods are studied using two main categories, multi-attribute decision making (MADM) and multi-objective decision making (MODM) methods. Furthermore, tabular and graphical analyses are also performed within the proposed review methodology. To the best of our knowledge, this review is the first attempt that holistically considers the use of MCDM methods in BA.

Suggested Citation

  • Yalcin, Ahmet Selcuk & Kilic, Huseyin Selcuk & Delen, Dursun, 2022. "The use of multi-criteria decision-making methods in business analytics: A comprehensive literature review," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    • Handle: RePEc:eee:tefoso:v:174:y:2022:i:c:s0040162521006260
    DOI: 10.1016/j.techfore.2021.121193
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162521006260
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2021.121193?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wątróbski, Jarosław & Jankowski, Jarosław & Ziemba, Paweł & Karczmarczyk, Artur & Zioło, Magdalena, 2019. "Generalised framework for multi-criteria method selection," Omega, Elsevier, vol. 86(C), pages 107-124.
    2. Chen, Chialin & Achtari, Guyves & Majkut, Kevin & Sheu, Jiuh-Biing, 2017. "Balancing equity and cost in rural transportation management with multi-objective utility analysis and data envelopment analysis: A case of Quinte West," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 148-165.
    3. Javier Leiva & Rubén Carmona Pardo & José A. Aguado, 2019. "Data Analytics-Based Multi-Objective Particle Swarm Optimization for Determination of Congestion Thresholds in LV Networks," Energies, MDPI, vol. 12(7), pages 1-20, April.
    4. Perry Pei-Ju Yang & Soowon Chang & Nirvik Saha & Helen W Chen, 2020. "Data-driven planning support system for a campus design," Environment and Planning B, , vol. 47(8), pages 1474-1489, October.
    5. Benjamin R. Tukamuhabwa & Mark Stevenson & Jerry Busby & Marta Zorzini, 2015. "Supply chain resilience: definition, review and theoretical foundations for further study," International Journal of Production Research, Taylor & Francis Journals, vol. 53(18), pages 5592-5623, September.
    6. Qi Liu & Gengzhong Feng & Nengmin Wang & Giri Kumar Tayi, 2018. "A multi-objective model for discovering high-quality knowledge based on data quality and prior knowledge," Information Systems Frontiers, Springer, vol. 20(2), pages 401-416, April.
    7. Wenxiang Li & Ye Li & Jing Fan & Haopeng Deng, 2017. "Siting of Carsharing Stations Based on Spatial Multi-Criteria Evaluation: A Case Study of Shanghai EVCARD," Sustainability, MDPI, vol. 9(1), pages 1-16, January.
    8. Yasmin, Mariam & Tatoglu, Ekrem & Kilic, Huseyin Selcuk & Zaim, Selim & Delen, Dursun, 2020. "Big data analytics capabilities and firm performance: An integrated MCDM approach," Journal of Business Research, Elsevier, vol. 114(C), pages 1-15.
    9. David J. Hand & Heikki Mannila & Padhraic Smyth, 2001. "Principles of Data Mining," MIT Press Books, The MIT Press, edition 1, volume 1, number 026208290x, December.
    10. Demir, Emrah & Bektaş, Tolga & Laporte, Gilbert, 2014. "The bi-objective Pollution-Routing Problem," European Journal of Operational Research, Elsevier, vol. 232(3), pages 464-478.
    11. Roubens, Marc, 1982. "Preference relations on actions and criteria in multicriteria decision making," European Journal of Operational Research, Elsevier, vol. 10(1), pages 51-55, May.
    12. Kwok Tai Chui & Miltiadis D. Lytras & Anna Visvizi, 2018. "Energy Sustainability in Smart Cities: Artificial Intelligence, Smart Monitoring, and Optimization of Energy Consumption," Energies, MDPI, vol. 11(11), pages 1-20, October.
    13. Aghaei Chadegani, Arezoo & Salehi, Hadi & Md Yunus, Melor & Farhadi, Hadi & Fooladi, Masood & Farhadi, Maryam & Ale Ebrahim, Nader, 2013. "A Comparison between Two Main Academic Literature Collections: Web of Science and Scopus Databases," MPRA Paper 46898, University Library of Munich, Germany, revised 18 Mar 2013.
    14. Chao Fu & Weiyong Liu & Wenjun Chang, 2020. "Data-driven multiple criteria decision making for diagnosis of thyroid cancer," Annals of Operations Research, Springer, vol. 293(2), pages 833-862, October.
    15. Zhang, Hewei & Dong, Shaohua & Ling, Jiatong & Zhang, Laibin & Cheang, Brenda, 2020. "A modified method for the safety factor parameter: The use of big data to improve petroleum pipeline reliability assessment," Reliability Engineering and System Safety, Elsevier, vol. 198(C).
    16. Behzadian, Majid & Kazemzadeh, R.B. & Albadvi, A. & Aghdasi, M., 2010. "PROMETHEE: A comprehensive literature review on methodologies and applications," European Journal of Operational Research, Elsevier, vol. 200(1), pages 198-215, January.
    17. Mehdi KESHAVARZ GHORABAEE & Edmundas Kazimieras ZAVADSKAS & Zenonas TURSKIS & Jurgita ANTUCHEVICIENE, 2016. "A New Combinative Distance-Based Assessment(Codas) Method For Multi-Criteria Decision-Making," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 50(3), pages 25-44.
    18. Qi Liu & Gengzhong Feng & Nengmin Wang & Giri Kumar Tayi, 0. "A multi-objective model for discovering high-quality knowledge based on data quality and prior knowledge," Information Systems Frontiers, Springer, vol. 0, pages 1-16.
    19. Himanshu Sharma & Abhishek Tandon & P. K. Kapur & Anu G. Aggarwal, 2019. "Ranking hotels using aspect ratings based sentiment classification and interval-valued neutrosophic TOPSIS," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 10(5), pages 973-983, October.
    20. Sujatha Srinivasan & T. Kamalakannan, 2018. "Multi Criteria Decision Making in Financial Risk Management with a Multi-objective Genetic Algorithm," Computational Economics, Springer;Society for Computational Economics, vol. 52(2), pages 443-457, August.
    21. Patrick Mikalef & Ilias O. Pappas & John Krogstie & Michail Giannakos, 2018. "Big data analytics capabilities: a systematic literature review and research agenda," Information Systems and e-Business Management, Springer, vol. 16(3), pages 547-578, August.
    22. Kilic, Huseyin Selcuk & Yalcin, Ahmet Selcuk, 2021. "Comparison of municipalities considering environmental sustainability via neutrosophic DEMATEL based TOPSIS," Socio-Economic Planning Sciences, Elsevier, vol. 75(C).
    23. Ifaei, Pouya & Farid, Alireza & Yoo, ChangKyoo, 2018. "An optimal renewable energy management strategy with and without hydropower using a factor weighted multi-criteria decision making analysis and nation-wide big data - Case study in Iran," Energy, Elsevier, vol. 158(C), pages 357-372.
    24. Wei Ji & Shubin Yin & Lihui Wang, 2019. "A big data analytics based machining optimisation approach," Journal of Intelligent Manufacturing, Springer, vol. 30(3), pages 1483-1495, March.
    25. Mohammad Ali Baghapour & Mohammad Reza Shooshtarian & Mahdi Zarghami, 2020. "Process Mining Approach of a New Water Quality Index for Long-Term Assessment under Uncertainty Using Consensus-Based Fuzzy Decision Support System," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 34(3), pages 1155-1172, February.
    26. Morteza Yazdani & Pascale Zaraté & Edmundas Kazimieras Zavadskas & Zenonas Turskis, 2019. "A Combined Compromise Solution (CoCoSo) method for multi-criteria decision-making problems," Post-Print hal-02879091, HAL.
    27. Mehrbakhsh Nilashi & Abbas Mardani & Huchang Liao & Hossein Ahmadi & Azizah Abdul Manaf & Wafa Almukadi, 2019. "A Hybrid Method with TOPSIS and Machine Learning Techniques for Sustainable Development of Green Hotels Considering Online Reviews," Sustainability, MDPI, vol. 11(21), pages 1-21, October.
    28. Appelbaum, Deniz & Kogan, Alexander & Vasarhelyi, Miklos & Yan, Zhaokai, 2017. "Impact of business analytics and enterprise systems on managerial accounting," International Journal of Accounting Information Systems, Elsevier, vol. 25(C), pages 29-44.
    29. Ahani, Ali & Nilashi, Mehrbakhsh & Yadegaridehkordi, Elaheh & Sanzogni, Louis & Tarik, A. Rashid & Knox, Kathy & Samad, Sarminah & Ibrahim, Othman, 2019. "Revealing customers’ satisfaction and preferences through online review analysis: The case of Canary Islands hotels," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 331-343.
    30. Rezaei, Jafar, 2015. "Best-worst multi-criteria decision-making method," Omega, Elsevier, vol. 53(C), pages 49-57.
    31. Farid Bourennani, 2019. "Solving Heterogeneous Big Data Mining Problems Using Multi-Objective Optimization," International Journal of Applied Metaheuristic Computing (IJAMC), IGI Global, vol. 10(4), pages 18-37, October.
    32. Hashemi, Seyed Hamid & Karimi, Amir & Tavana, Madjid, 2015. "An integrated green supplier selection approach with analytic network process and improved Grey relational analysis," International Journal of Production Economics, Elsevier, vol. 159(C), pages 178-191.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kraus, Sascha & Kumar, Satish & Lim, Weng Marc & Kaur, Jaspreet & Sharma, Anuj & Schiavone, Francesco, 2023. "From moon landing to metaverse: Tracing the evolution of Technological Forecasting and Social Change," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    2. Tanrıverdi, Gökhan & Merkert, Rico & Karamaşa, Çağlar & Asker, Veysi, 2023. "Using multi-criteria performance measurement models to evaluate the financial, operational and environmental sustainability of airlines," Journal of Air Transport Management, Elsevier, vol. 112(C).
    3. Jingyuan Shi & Jiaqing Sun, 2023. "Prefabrication Implementation Potential Evaluation in Rural Housing Based on Entropy Weighted TOPSIS Model: A Case Study of Counties in Chongqing, China," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    4. Mahboobeh Golestanizadeh & Hadi Sarvari & Matteo Cristofaro & Daniel W. M. Chan, 2023. "Effect of Applying Business Intelligence on Export Development and Brand Internationalization in Large Industrial Firms," Administrative Sciences, MDPI, vol. 13(2), pages 1-13, January.
    5. Wu, Xingli & Liao, Huchang, 2022. "A Dempster-Shafer-theory-based entry screening mechanism for small and medium-sized enterprises under uncertainty," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    6. Witold Torbacki, 2021. "Achieving Sustainable Mobility in the Szczecin Metropolitan Area in the Post-COVID-19 Era: The DEMATEL and PROMETHEE II Approach," Sustainability, MDPI, vol. 13(22), pages 1-25, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Witold Torbacki, 2021. "Achieving Sustainable Mobility in the Szczecin Metropolitan Area in the Post-COVID-19 Era: The DEMATEL and PROMETHEE II Approach," Sustainability, MDPI, vol. 13(22), pages 1-25, November.
    2. Cinelli, Marco & Kadziński, Miłosz & Miebs, Grzegorz & Gonzalez, Michael & Słowiński, Roman, 2022. "Recommending multiple criteria decision analysis methods with a new taxonomy-based decision support system," European Journal of Operational Research, Elsevier, vol. 302(2), pages 633-651.
    3. Sarfaraz Hashemkhani Zolfani & Edmundas Kazimieras Zavadskas & Payam Khazaelpour & Fausto Cavallaro, 2018. "The Multi-Aspect Criterion in the PMADM Outline and Its Possible Application to Sustainability Assessment," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    4. Huchang Liao & Xiaomei Mi & Zeshui Xu, 2020. "A survey of decision-making methods with probabilistic linguistic information: bibliometrics, preliminaries, methodologies, applications and future directions," Fuzzy Optimization and Decision Making, Springer, vol. 19(1), pages 81-134, March.
    5. Davis-Sramek, Beth & Robinson, Jessica L. & Darby, Jessica L. & Thomas, Rodney W., 2020. "Exploring the differential roles of environmental and social sustainability in carrier selection decisions," International Journal of Production Economics, Elsevier, vol. 227(C).
    6. Bartłomiej Kizielewicz & Jarosław Wątróbski & Wojciech Sałabun, 2020. "Identification of Relevant Criteria Set in the MCDA Process—Wind Farm Location Case Study," Energies, MDPI, vol. 13(24), pages 1-40, December.
    7. Seyed Morteza Hatefi & Hamideh Asadi & Gholamreza Shams & Jolanta Tamošaitienė & Zenonas Turskis, 2021. "Model for the Sustainable Material Selection by Applying Integrated Dempster-Shafer Evidence Theory and Additive Ratio Assessment (ARAS) Method," Sustainability, MDPI, vol. 13(18), pages 1-23, September.
    8. Doumpos, Michael & Zopounidis, Constantin, 2011. "Preference disaggregation and statistical learning for multicriteria decision support: A review," European Journal of Operational Research, Elsevier, vol. 209(3), pages 203-214, March.
    9. Roman Vavrek, 2019. "Evaluation of the Impact of Selected Weighting Methods on the Results of the TOPSIS Technique," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(06), pages 1821-1843, November.
    10. Chandra Prakash Garg & Archana Sharma, 2020. "Sustainable outsourcing partner selection and evaluation using an integrated BWM–VIKOR framework," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(2), pages 1529-1557, February.
    11. Ridha, Hussein Mohammed & Gomes, Chandima & Hizam, Hashim & Ahmadipour, Masoud & Heidari, Ali Asghar & Chen, Huiling, 2021. "Multi-objective optimization and multi-criteria decision-making methods for optimal design of standalone photovoltaic system: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    12. Zhi Wen & Huchang Liao & Ruxue Ren & Chunguang Bai & Edmundas Kazimieras Zavadskas & Jurgita Antucheviciene & Abdullah Al-Barakati, 2019. "Cold Chain Logistics Management of Medicine with an Integrated Multi-Criteria Decision-Making Method," IJERPH, MDPI, vol. 16(23), pages 1-21, December.
    13. Mahmut Baydaş & Dragan Pamučar, 2022. "Determining Objective Characteristics of MCDM Methods under Uncertainty: An Exploration Study with Financial Data," Mathematics, MDPI, vol. 10(7), pages 1-25, March.
    14. Mladen Krstić & Giulio Paolo Agnusdei & Snežana Tadić & Milovan Kovač & Pier Paolo Miglietta, 2023. "A Novel Axial-Distance-Based Aggregated Measurement (ADAM) Method for the Evaluation of Agri-Food Circular-Economy-Based Business Models," Mathematics, MDPI, vol. 11(6), pages 1-27, March.
    15. Qi Liu & Gengzhong Feng & Giri Kumar Tayi & Jun Tian, 2021. "Managing Data Quality of the Data Warehouse: A Chance-Constrained Programming Approach," Information Systems Frontiers, Springer, vol. 23(2), pages 375-389, April.
    16. Željko Stević & Dragan Pamučar & Marko Subotić & Jurgita Antuchevičiene & Edmundas Kazimieras Zavadskas, 2018. "The Location Selection for Roundabout Construction Using Rough BWM-Rough WASPAS Approach Based on a New Rough Hamy Aggregator," Sustainability, MDPI, vol. 10(8), pages 1-27, August.
    17. Wu, Xingli & Liao, Huchang, 2023. "A compensatory value function for modeling risk tolerance and criteria interactions in preference disaggregation," Omega, Elsevier, vol. 117(C).
    18. Babak Daneshvar Rouyendegh & Kazim Topuz & Ali Dag & Asil Oztekin, 2019. "An AHP-IFT Integrated Model for Performance Evaluation of E-Commerce Web Sites," Information Systems Frontiers, Springer, vol. 21(6), pages 1345-1355, December.
    19. Cui, Yongfeng & Liu, Wei & Rani, Pratibha & Alrasheedi, Melfi, 2021. "Internet of Things (IoT) adoption barriers for the circular economy using Pythagorean fuzzy SWARA-CoCoSo decision-making approach in the manufacturing sector," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    20. Zhang, Jingshun & Hu, Jiayi & Wang, Xitong & Fang, Lien & Jin, Yi & Li, Muyang & Liu, Yangqing & Wu, Anna & Wang, Libin & Liu, Ruining & Zhang, Yi & Chen, Faan, 2023. "Quantifying transport safety success at the regional level: A guide to policy and practice on investment for G20," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:174:y:2022:i:c:s0040162521006260. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.