Decision Making: Recent Developments and Worldwide Applications

484 Pages·2000·13.403 MB·English

by  D. H. Drury (auth.), Stelios H. Zanakis, Georgios Doukidis, Constantin Zopounidis (eds.)

Decision Making:
Recent Developments and Worldwide Applications
Applied Optimization
Volume 45
Series Editors:
Panos M. Pardalos
University of Florida, U.S.A.
Donald Hearn
University of Florida, U.S.A.
The titles published in this series are listed at the end of this volume.
Decision Making:
Recent Developments and
Worldwide Applications
Edited by
Stelios H. Zanakis
Florida International University,
College of Business Administration,
Decision Science & Information Systems Department,
Miami, Florida, U.S.A.
Georgios Doukidis
Athens University of Economics & Business,
Department of Management Science and Technology,
Athens, Greece
and
Constantin Zopounidis
Technical University of Crete,
Department of Production Engineering and Management,
Financial Engineering Laboratory,
University Campus, Chania, Greece
SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.
Library of Congress Cataloging-in-Publieation Data
Deeision making : recent developments and worldwide applieations / edited by Stelios H.
Zanakis, Georgios Doukidis, Constantin Zopounidis.
p. em. -- (Applied optimization ; v. 45)
A seIection of 31 papers representative of the 700 presented at the 5th International
Conference of the Deeision Seienees Institute held in Athens, Greece, July 4-7, 1999.
IncIudes index.
ISBN 978-1-4419-4839-7 ISBN 978-1-4757-4919-9 (eBook)
DOI 10.1007/978-1-4757-4919-9
1. Decision making--Data proeessing--Congresses. 2. Decision support
systems--Congresses. 3. Management infonnation systems--Congresses. 4.
Business--Data processing--Congresses. 5. Edueation--Data proeessing--Congresses. 6.
Environmental protection--Data proeessing--Congresses. 7. Health serviees
administration--Data processing--Congresses. 8. Mathematieal
optimization--Congresses. 1. Zanakis, S. H. II. Doukidis, Georgios 1., 1958-III.
Zopounidis, Constantin. IV. Decision Seienees Institute. International Meeting (5th:
1999: Athens, Greeee) V. Series.
HD30.23 .D3826 2000
658.4'03--de21
00-064701
ISBN 978-1-4419-4839-7
Printed an acid-free paper
AII Rights Reserved
© 2000 Springer Science+Business Media Dordrecht
Originally published by Kluwer Academic Publishers in 2000
Softcover reprint of the hardcover 1 st edition 2000
No part of the material proteeted by this copyright notice may be reproduced or
utilized in any fonn or by any means, electronic or mechanical,
inc\uding photocopying, recording or by any information storage and
retrieval system, without written pennission from the copyright owner
This volume is dedicated to our wives:
Eleni
Lina
Kleanthi
CONTENTS
EDITORIAL XI
1. MANAGEMENT INFORMATION SYSTEMS
Empirical assessment of information technology chargeback systems decisions 3
D.H. Drury
Lessons learnt from the successful adoption of an ERP: The central role of trust 17
D. Gefen
Simultaneous analysis of heterogenous databases on the web: The ADDSIA project 31
JM Lamb, C.R. Smart
2. EDUCATION INNOVATIONS & DISTANCE LEARNING
Decision support for the management of admissions to academic programs 49
K.s. Dhir, WH. Platt, G. Watts
The use of tacit knowledge in selection decisions in universities 65
MA. Barrett, L.K. Hort
3. INTERNATIONAL BUSINESS
Role of political violence in foreign direct investment decisions 83
H. Singh
On the stability of countries' national technological systems 97
W Nasierowski, F.J Arcelus
4. MARKETING
Marketing of differentiated fresh produce 115
G. Baourakis, E. Lassithiotaki, P.M Pardalos
A decision support system for the seller's return problem in the product line design 131
G. Alexouda, K. Paparrizos
VI11
5. FINANCE AND BANKING
Portfolio perfonnance measures: A brief survey and hypothesis testing 143
G.L. Ghai, T.E. Pactwa, AJ Prakash
A system dynamics model of stock price movements 157
P.L. Kunsch, M Theys, A. Chevalier, J-P. Iacopetta
Infonnation effects on the accuracy of neural network financial forecasting 173
S. Walczak
Is the Taiwan stock market efficient? 183
JP. Gupta, 1.M Pandey, Chen Chao-Fu
The dynamics of implied volatility surfaces 197
G. Skiadopoulos, S. Hodges, L. Clewlow
Application of non stationary Markovian models to risk management in
automobile leasing 213
D.L. Smith, Y. Wu, D. Matthew
6. OPTIMIZATION & DECISION MAKING
Decision making Under Various Types of Uncertainty 233
R.R. Yager
Decision aid in the optimization of the interval objective function 251
C.A. Antunes, J Climaco
A fuzzy extension of a mixed integer MOLP model for solving the power
generation expansion problem 263
G. Mavrotas, D. Diakoulaki
Management science for marine petroleum logistics 279
E.D. Chajakis
7. MULTI-CRITERIA DECISION ANALYSIS, AID & PRACTICE
Dealing with missing data in rough set analysis of multi-attribute and
multi-criteria decision problems 295
S. Greco, B. Matarazzo, R. Slowinski
Cardinal value measurement with MACBETH 317
C. A. Bana e Costa, J-c. Vansnick
Inferring a multicriteria preference model for rural development projects evaluation 331
E. Krassadaki, Y. Siskos
An adaptable framework for educational software evaluation 347
1. Stame/os, 1. Refanidis, P. Katsaros, A. Tsoukias, 1. Vlahavas, A. Pombortsis
ix
Assessing country risk using a multi-group discrimination method: A comparative
analysis 361
M Doumpos, K Pentaraki, C Zopounidis, C Agorastos
8. DECISION SUPPORT SYSTEMS AND INFORMATION TECHNOLOGY
RODOS: Decision support for nuclear emergencies 381
1. Bartzis,J Ehrhardt, S. French, 1. Lochard, M Morrey, KN. Papamichail,
K Sinkko, A. Sohier
DSS for the evaluation of national IT infrastructure investments: A study
of cable television in Greece 397
G.M. Giaglis, KM Manikas, V Pergioudakis, G.I. Doukidis, P. Miliotis
Global IT outsourcing decisions: Contract structure, negotiations, and global
deal teams 413
S. T Huhn, R.A. Holloway, B.A. Potter, R.A. Berry
Using Internet multimedia database information systems for decision
support in conservation planning 425
M Angelides, M.C Angelides
An interactive workload and risk balancing model and decision support
system for probationer assignment 443
JR. Baker, A.C Saydam, P.K Lattimore
9. HEALTH CARE PLANNING & HOSPITAL OPERATIONS
A goal programming scheme to determine the budget assignment among the
hospitals of a sanitary system 459
1.1. Martin, M.P. Lopez del Amo, R. Caballero, T Gomez, 1. Molina, F. Ruiz
A simulation model to evaluate the interaction between acute, rehabilitation,
long stay care and the community 475
E. El-Darzi, C Vasilakis, TJ Chaussalet, P.H. Millard
AUTHOR INDEX 487
EDITORIAL
Decision-making has become a complicated and integrated process, within a fIrm, an
industry and globally. The continuous advances in information technology and the rapid
changes in the international business environment, necessitate a change in the point of
view through which decision making problems are addressed. Academic researchers and
practitioners of business administration, management science and operations research are
now seeking to integrate the human factor and the existing practical experiences with the
sophistication achieved through the advances in research and technology, to gain
managerial and decision making efficiency. The accomplishment of this integration will
be a major breakthrough and thrust towards the improvement of the quality of decisions
taken within the business and public administration context.
Several international scientifIc associations have been formed to allow the
communication between academic researchers and professionals on issues relevant to the
aforementioned integration. Among them, the Decision Sciences Institute is an
interdisciplinary, international organization dedicated to the advancement of the science
and practice of education and research about business decisions. To pursue this mission,
the Institute facilitates the development and dissemination of knowledge in the diverse
disciplines of the decision sciences. The Institute provides an international forum for
presenting and sharing research in the study of decision processes across disciplines, in
both traditional and emerging areas of study. Specifically, the Institute seeks to defme the
scope of quantitative methods to functional and behavioral problems of administration and
the degree of sophistication that should be achieved by graduates of business schools.
The 5th International Conference of the Decision Sciences Institute with central theme
"Integrating Technology and Human Decisions - Global Bridges Into the 21 st Century",
was held in Athens, Greece, July 4-7, 1999. The publication of this book is made on the
occasion of this major international conference, and includes a representative cross section
of the seven hundred papers presented by many international participants from various
academic institutions and businesses around the globe.
The aim of the book is to present, in a complete edited volume, the most recent
developments in the field of decision making, for addressing managerial decision problem
in private and public organizations. The book covers a wide range of areas, which are
essential both from an academic and practical view point, such as finance, marketing,
transportation! logistics, production!operations management, information technology,
telecommunications, etc. Furthermore, the book emphasizes the presentation of
methodologies that can be used to support the decision making process, and their real
world applications in various settings, such as public and environmental affairs, health
care planning, hospitality management, entrepreneurship, privatization in transition
economies, international business, etc. These methodologies originate from the fields of
operations research and management science (optimization, multiple criteria decision
making, data envelopment analysis), information technology (management information
and decision support systems, outsourcing, internet and electronic commerce), artifIcial
intelligence (expert systems, neural networks, fuzzy sets) and statistics.
xii
The proposed book has several special characteristics and features: variety of decision
making fields and decision methodologies, highly recognized contributors from several
countries, a variety of applications, and a considerable number of survey/expository
papers. These characteristics ensure high quality and timely relevance,
international/global flavor, and significant contributions in advancing the academic
research and practice of decision making, through a comprehensive illustration of the
current status in this field and the highlighting of possible future directions.
The present volume includes 30 papers divided in nine major parts:
1. Management information systems.
2. Education innovations and distance learning.
3. International business.
4. Marketing.
5. Finance and banking.
6. Optimization & decision making.
7. Multi-criteria decision analysis, aid & practice.
8. Decision support systems and information technology.
9. Health care planning & hospital operations.
The first part of the book refers to recent contributions and impact of management
information systems in the operation of corporate entities and organizations. Drury
presents and discusses the results of a survey regarding the effectiveness of chargeback
systems in achieving organization goals. Gefen also conducts a survey to examine the role
of trust in consultants during the adoption of enterprise resource planning (ERP) systems.
The last paper of this part of the book, by Lamb and Smart reports on the development of
a statistical information system which can be used to analyze heterogeneous databases on
the web.
The second part of the book includes two papers related to education innovations. The
first paper by Dhir et al. introduces social judgment theory as a potentially useful
theoretical and methodological basis for understanding subjectivity in academic
administration. Barrett and Hort report the results of a study regarding the effects of
organizational culture on the selection of new members in university organizations.
The third part of the book includes two papers that deal with issues of major
importance within the new globalized international business environment. Singh explores
the role of political risk as a determining factor affecting foreign direct investments, while
Nasierowski and Arcelus examine the impact of globalization of business practices on the
policies dealing with the acquisition and development of countries' technological systems,
offering a rating of 45 countries in that respect.
Marketing is the major field of interest in the fourth part of the book. The paper of
Baourakis et al. presents the results of a consumer-based market survey conducted in
order to identify consumer behavior regarding greenhouse vegetables. Alexouda and
Paparrizos describe a decision support system that addresses the seller's return problem
during product line design, using genetic algorithms.
The fifth part of the book contains a series of issues related to modem financial and
banking management. Initially, Ghai et al. review the portfolio performance measures
developed in the international literature, including both the well-known mean-variance
measures as well as multi-factor measures. The paper of Kunsch et al. employs a systems