Optimal technology selection considering input levels of resource

Abstract

PurposeThe purpose of this paper is to propose an optimal technology selection (OTS) method considering technology alternatives' required input levels of resource, to help companies select an optimal technology.Design/methodology/approachThe proposed method clustered technology alternatives according to their required input levels of resource. After that, in each cluster, the proposed method used data envelopment analysis‐assurance region (DEA‐AR) and analytic hierarchy process (AHP) rating method to evaluate the efficiencies and priorities of the technology alternatives, respectively. Finally, combined scores of the technology alternatives were calculated. A company can choose a proper technology cluster, and then select the technology alternative with the highest combined score within the selected cluster as the optimal technology.FindingsThe results showed that the OTS method cannot only select suitable technology which accords with a company's actual input capabilities, but also provide a more accurate selection result.Originality/valueTraditionally, technologies are evaluated without considering the technologies' required input levels, and simply ranked for selection. However, there are differences between a company's actual resource levels and a selected technology's required input levels of resource. This study proposes an integrated method to evaluate technology systematically and provides a more reasonable selection process for selecting optimal technology.