1. Exploring R&D Influences on Financial Performance for Business Sustainability Considering Dual Profitability Objectives
- Author
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Min-Ren Yan, Gwo-Hshiung Tzeng, and Kao-Yi Shen
- Subjects
directional flow graph (DFG) ,lcsh:TJ807-830 ,Geography, Planning and Development ,lcsh:Renewable energy sources ,02 engineering and technology ,Plan (drawing) ,Management, Monitoring, Policy and Law ,internetwork relationship map (INRM) ,0502 economics and business ,0202 electrical engineering, electronic engineering, information engineering ,Economics ,Marketing ,multiple criteria decision-making (MCDM) ,lcsh:Environmental sciences ,lcsh:GE1-350 ,Soft computing ,research and development (R& ,Renewable Energy, Sustainability and the Environment ,business.industry ,lcsh:Environmental effects of industries and plants ,05 social sciences ,D) ,Environmental economics ,financial objective ,Multiple-criteria decision analysis ,variable-consistency dominance-based rough set approach (VC-DRSA) ,Dual (category theory) ,Core (game theory) ,lcsh:TD194-195 ,business sustainability ,research and development (R&D); multiple criteria decision-making (MCDM) ,Sustainability ,020201 artificial intelligence & image processing ,Profitability index ,The Internet ,business ,050203 business & management - Abstract
The importance of research and development (R&D) for business sustainability have gained increasing interests, especially in the high-tech sector. However, the efforts of R&D might cause complex and mixed impacts on the financial results considering the associated expenses. Thus, this study aims to examine how R&D efforts may influence business to improve its financial performance considering the dual objectives: the gross and the net profitability. This research integrates a rough-set-based soft computing technique and multiple criteria decision-making (MCDM) methods to explore this complex and yet valuable issue. A group of public listed companies from Taiwan, all in the semiconductor sector, is analyzed as a case study. More than 30 variables are considered, and the adopted soft computing technique retrieves 14 core attributes—for the dual profitability objectives—to form the evaluation model. The importance of R&D for pursuing superior financial prospects is confirmed, and the empirical case demonstrates how to guide an individual company to plan for improvements to achieve its long-term sustainability by this hybrid approach.
- Published
- 2017
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