Multi-criteria decision making of brand innovation

Abstract

With the transition of globalization, competition among corporations has intensified due to the advancement of information technology (IT) and logistics. Taiwan has lost its competitive advantage of low cost owing to the rise of Brazil, Russia, India, and China (BRICs), the low production costs in these countries and the lack of natural resources in Taiwan itself. Therefore, Taiwan’s industrial structure should reform towards the higher added-value intellectual industry. In this research, we intend to find the key success factors for corporations to carry out brand innovation and hence act as a reference for future management strategy. We combine decision making trial and evaluation laboratory (DEMATAL) with analytic network process (DANP) to identify the important factors for brand innovation, sorted according to their relative importance. The result shows that the frequency of new product introductions, management skill, and the rate of the introduction of new products are the most important factors. The production process, production skill and equipment function, meanwhile, have less effect on brand innovation. Key words: Brand, innovation, key success factors (KSF), decision making trial and evaluation laboratory (DEMATAL), analytic network process (DANP).