The Hybrid MCDM Model for Risk Evaluation in Electronic Commerce Development

Abstract

This study applies a hybrid MCDM model for risk evaluation in EC development. First, the risk in EC development is formulated by the combined use of the MCDM (multi-criteria decision making) approach and a proposed five-step hybrid process, which incorporates the technique of ANP (analytic network process) and TOPSIS (technique for order performance by similarity to idea solution). The newly developed ANP will eventually yield the relative weights of the multiple evaluation criteria. Then the TOPSIS is adopted to rank the risk in terms of their overall performances. At last, an example is solved to illustrate the effectiveness and feasibility of the suggested model. The empirical study has demonstrated how the approach can be used for the risk evaluation in EC development.