Abstract
This article discusses two methods to measure the concept of local competitiveness: Principal Component Analysis (PCA) and Analytical Hierarchy Process (AHP). The goal of this analysis is to determine whether these two methods used in social sciences research lead to comparable model results. By non-parametric tests we show that there is a significant correlation between the PCA and AHP local competitiveness indexes. Thereafter, a developed mixed method examination of whether the methods can be used interchangeably is presented and illustrated with detailed examples of two mixed approaches. The mixed method confirms the correlation between the PCA and AHP models. However, the mixed modelling results indicate the utility of the PCA in the situation of a multicriteria local competitiveness data examination.
Highlights
The choice of a research method is determined by the type of data or its collection systems
In this article we focus on the structure of the local competitiveness models developed by the Principal Component Analysis (PCA) and Analytical Hierarchy Process (AHP) methods
We ask whether in the case of a local competitiveness model based on data of the same socioeconomic indicators, the Principal Component Analysis (PCA) or Analytical Hierarchy Process (AHP) deliver comparable results
Summary
The choice of a research method is determined by the type of data or its collection systems. The motivation behind developing the mixed methods approach is influenced by the paradigm of choices emphasized by Patton (1990) His concept refers to the choice of a research method determined by the type of research problem rather than by methodological appropriateness. In this way, the mixed methods approach serves for better analysis of the core of our study, i.e. the comparison of two multicriteria methods with different assumptions. According to the paradigm of choices, the research question and context dictate the choice of appropriate techniques and the degree of mixing methods in order to be able to answer the research question, argues Mason (2006) This introduction explaining the purpose of the paper is followed by the presentation of the developed local competitiveness models.
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