Shen, K.-Y.; Yan, M.-R.; Tzeng, G.-H. Exploring R&D Influences on Financial Performance for Business Sustainability Considering Dual Profitability Objectives. Sustainability2017, 9, 1964.
Shen, K.-Y.; Yan, M.-R.; Tzeng, G.-H. Exploring R&D Influences on Financial Performance for Business Sustainability Considering Dual Profitability Objectives. Sustainability 2017, 9, 1964.
The influence and 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 integrated 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, was analyzed as a case study. Initially, more than 30 variables were considered, and the adopted soft computing technique retrieved 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.
business sustainability; research and development (R&D); multiple criteria decision-making (MCDM); financial objective; variable-consistency dominance-based rough set approach (VC-DRSA); internetwork relationship map (INRM); directional flow graph (DFG)
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.