IDEAS home Printed from https://ideas.repec.org/a/wsi/ijitdm/v20y2021i03ns0219622021500255.html
   My bibliography  Save this article

A Novel Multi-Criteria Risk Matrix to Assist in the Strategy Formulation Process: The Case of SMEs

Author

Listed:
  • Jean-Marc Vasnier

    (Cesi Campus Saint-Nazaire, 1 Bd de l’Université, CS 70152, F-40603 Saint-Nazaire, France)

  • Mourad Messaadia

    (#x2020;Lineact Cesi Campus Rouen, F-76808 Saint Etienne de Rouvray, France)

  • Nicolas Maranzana

    (#x2021;Arts et Metiers Institute of Technology, LCPI, HESAM Université, F-75013 Paris, France)

  • Ameziane Aoussat

    (#x2021;Arts et Metiers Institute of Technology, LCPI, HESAM Université, F-75013 Paris, France)

Abstract

Small and medium-sized enterprises (SMEs) are the spine of the European economy and play a key role in adding value in all sectors of the economy. However, due to a lack of methodology and time, SME entrepreneurs struggle to formalize their strategies and too often remain ill-prepared to face today’s potential crises. This paper aims to propose a Risk Management (RM) tool to identify and assess the impact of risks on specific business strategic dimensions. The hypotheses and robustness of the model are tested using Monte Carlo simulation. The analysis shows that a reduced strategic risk matrix (size 4×4) could provide the same quality of information as a full strategic risk matrix (size 20×10) in about 80% of the cases, regardless of the weight of each criterion and the values of each risk factor. The results extend the limited use of RM tool in the field of SME Risk Management.

Suggested Citation

  • Jean-Marc Vasnier & Mourad Messaadia & Nicolas Maranzana & Ameziane Aoussat, 2021. "A Novel Multi-Criteria Risk Matrix to Assist in the Strategy Formulation Process: The Case of SMEs," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 987-1009, May.
  • Handle: RePEc:wsi:ijitdm:v:20:y:2021:i:03:n:s0219622021500255
    DOI: 10.1142/S0219622021500255
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219622021500255
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1142/S0219622021500255?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.

    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:wsi:ijitdm:v:20:y:2021:i:03:n:s0219622021500255. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijitdm/ijitdm.shtml .

    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.