Application of fuzzy analytical network process for the selection of best technological innovation strategy in steel manufacturing SMEs

The success of small and medium enterprises (SMEs) depends mainly on its ability to innovate. Earlier studies revealed that among various types of innovation, technological innovation is the most important. Selection of the best alternative for improving technological innovation thus gains vital importance and it is a multi-criterion decision-making (MCDM) problem. A model was developed for steel manufacturing SMEs to improve their technological innovation capability. The model employed fuzzy analytical network process (FANP) for the selection of the strategy for improving the technological innovation capability. The idea of applying FANP for the selection of best alternative to make an SME innovative is novel. By the developed model, studies were conducted in three small scale steel manufacturing enterprise. Among the four strategies, it was found that the best strategy for all the three organisations is the cooperation approach. Cooperation with other similar enterprises, cooperation with research and other technological institutions is found to be important for the SME. The result of the study is having utmost importance in framing the strategies for SMEs. It helps the decision makers of SMEs to create an organisational culture which can foster technological innovation.