On the Decision Structures and Knowledge Discovery for ANP Modeling

Affiliation(s)

Department of Tourism Management, Ta Hwa University of Science and Technology, Taiwan.

Department of Business and Tourism Planning, Ta Hwa University of Science and Technology, Taiwan.

Department of Tourism Management, Ta Hwa University of Science and Technology, Taiwan.

Department of Business and Tourism Planning, Ta Hwa University of Science and Technology, Taiwan.

ABSTRACT

This paper proposes an integrative framework for network-structured analytic network process (ANP) modeling. The underlying rationales include: 1) creating the measuring items for the complex decision problems; 2) applying factor analysis to reduce the complex measuring items into fewer constructs; 3) employing Bayesian network classifier technique to discover the causal directions among constructs; 4) using partial least squares path modeling to test the causal relationships among the items-constructs. The proposed framework is implemented for knowledge discovery to a case of high-tech companies’ enterprise resource planning (ERP) benefits and satisfaction in Hsinchu Science Park,Taiwan. The results show that the proposed framework for ANP modeling can reach a satisfactory level of convergent reliability and validity. Based on the findings, pragmatic implications to the ERP venders are discussed. This study has shed new light on the long neglected, yet critical, issue on decision structures and knowledge discovery for ANP modeling.

Cite this paper

L. Lan, W. Wu and Y. Lee, "On the Decision Structures and Knowledge Discovery for ANP Modeling,"*International Journal of Intelligence Science*, Vol. 3 No. 1, 2013, pp. 15-23. doi: 10.4236/ijis.2013.31A003.

L. Lan, W. Wu and Y. Lee, "On the Decision Structures and Knowledge Discovery for ANP Modeling,"

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[31] W. W. Wu, “Choosing Knowledge Management Strategies by Using a Combined ANP and DEMATEL Approach,” Expert Systems with Applications, Vol. 35, No. 3, 2008, pp. 825-835. doi:10.1016/j.eswa.2007.07.025

[32] T. Christophersen and U. Konradt, “Development and Validation of a Formative and a Reflective Measure for the Assessment of Online Store Usability,” Behaviour & Information Technology, Vol. 31, No. 9, 2012, pp. 839-857. doi:10.1080/0144929X.2010.529165

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[34] J. Hulland, “Use of Partial Least Squares (PLS) in Strategic Management Research: A Review of Four Recent Studies,” Strategic Management Journal, Vol. 20, No. 2, 1999, pp. 195-204. doi:10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.0.CO;2-7

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[37] C. Ranganathan and V. Sethi, “Rationality in Strategic Information Technology Decisions: The Impact of Shared Domain Knowledge and IT Unit Structure,” Decision Sciences, Vol. 33, No. 1, 2002, pp. 59-86. doi:10.1111/j.1540-5915.2002.tb01636.x

[38] C. Fornell and D. F. Larcker, “Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics,” Journal of Marketing Research, Vol. 18, No. 3, 1981, pp. 382-388. doi:10.2307/3150980

[39] E. Jakobowicz and C. Derquennea, “A Modified PLS Path Modeling Algorithm Handling Reflective Categorical Variables and a New Model Building Strategy,” Computational Statistics & Data Analysis, Vol. 51, No. 8, 2007, pp. 3666-3678. doi:10.1016/j.csda.2006.12.004

[40] S. Shang and P. B. Seddon, “A Comprehensive Framework for Classifying the Benefits of ERP Systems,” Proceedings of Americas Conference on Information Systems (AMCIS 2000), Long Beach, 2000, pp. 1005-1014.

[41] K. F. R. Liu and J. H. Lai, “Decision-Support for Environmental Impact Assessment: A Hybrid Approach Using Fuzzy Logic and Fuzzy Analytic Network Process,” Expert Systems with Applications, Vol. 36, No. 3, 2009, pp. 5119-5136. doi:10.1016/j.eswa.2008.06.045

[42] J. Razmi, M. S. Sangari and R. Ghodsi, “Developing a Practical Framework for ERP Readiness Assessment Using Fuzzy Analytic Network Process,” Advances in Engineering Software, Vol. 40, No. 11, 2009, pp. 1168-1178. doi:10.1016/j.advengsoft.2009.05.002

[43] Y. H. Lin, H. P. Cheng, M. L. Tseng and J. C. C. Tsai, “Using QFD and ANP to Analyze the Environmental Production Requirements in Linguistic Preferences,” Expert Systems with Applications, Vol. 37, No. 3, 2010, pp. 2186-2196. doi:10.1016/j.eswa.2009.07.065

[44] J. K. Chen and I. S. Chen, “Using a Novel Conjunctive MCDM Approach Based on DEMATEL, Fuzzy ANP, and TOPSIS as an Innovation Support System for Taiwanese Higher Education,” Expert Systems with Applications, Vol. 37, No. 3, 2010, pp. 1981-1990. doi:10.1016/j.eswa.2009.06.079

[45] Y. H. Chang, W. M. Wey and H. Y. Tseng, “Using ANP Priorities with Goal Programming for Revitalization Strategies in Historic Transport: A Case Study of the Alishan Forest Railway,” Expert Systems with Applications, Vol. 36, No. 4, 2009, pp. 8682-8690. doi:10.1016/j.eswa.2008.10.024

[46] H. R. Yazgan, S. Boran and K. Goztepe, “An ERP Software Selection Process with Using Artificial Neural Network Based on Analytic Network Process Approach,” Expert Systems with Applications, Vol. 36, No. 5, 2009, pp. 9214-9222. doi:10.1016/j.eswa.2008.12.022

[1] T. L. Saaty, “Decision Making for Leaders: The Analytic Hierarchy Process for Decisions in a Complex World,” RWS Publications, Pittsburgh, 2008.

[2] E. H. Forman and S. I. Gass, “The Analytical Hierarchy Process: An Exposition,” Operations Research, Vol. 49, No. 4, 2001, pp. 469-487. doi:10.1287/opre.49.4.469.11231

[3] M. Bernasconi, C. Choirat and R. Raffaello Seri, “The Analytic Hierarchy Process and the Theory of Measurement,” Management Science, Vol. 56, No. 4, 2010, pp. 699-711. doi:10.1287/mnsc.1090.1123

[4] D. Y. Shee, G. H. Tzeng and T. I. Tang, “AHP, Fuzzy Measure and Fuzzy Integral Approaches for the Appraisal of Information Service Providers in Taiwan,” Journal of Global Information Technology Management, Vol. 6, No. 1, 2003, pp. 8-30.

[5] L. C. Leung, Y. V. Hui and M. Zheng, “Analysis of Compatibility between Interdependent Matrices in ANP,” The Journal of the Operational Research Society, Vol. 54, No. 7, 2003, pp. 758-768. doi:10.1057/palgrave.jors.2601569

[6] T. L. Saaty, “Decision Making with Dependence and Feedback: The Analytic Network Process,” RWS Publications, Pittsburgh, 1996.

[7] W. W. Wu and Y. T. Lee, “Selecting Knowledge Management Strategies by Using the Analytic Network Process,” Expert Systems with Applications, Vol. 32, No. 3, 2007, pp. 841-847. doi:10.1016/j.eswa.2006.01.029

[8] T. L. Saaty, “Relative Measurement and Its Generalization in Decision Making: Why Pairwise Comparisons Are Central in Mathematics for the Measurement of Intangible Factors: The Analytic Hierarchy/Network Process,” Review of the Royal Spanish Academy of Sciences, Series A, Mathematics, Vol. 102, No. 2, 2008, pp. 251-318. doi:10.1007/BF03191825

[9] T. L. Saaty, “Theory and Applications of the Analytic Network Process: Decision Making with Benefits, Opportunities, Costs and Risks,” RWS Publications, Pittsburgh, 2005.

[10] M. J. J. Wang and Y. J. Lee, “Applying the AHP Approach to Evaluate Human Sensitivity to Chromatic Light,” Behaviour & Information Technology, Vol. 16, No. 6, 1997, pp. 348-358. doi:10.1080/014492997119743

[11] T. L. Saaty, “Fundamentals of the Analytic Network Process,” The International Symposium on the Analytic Hierarchy Process, Kobe, 12-14 August 1999, pp. 48-63.

[12] C. H. Wu, S. C. Kao and L. H. Shih, “Assessing the Suitability of Process and Information Technology in Supporting Tacit Knowledge Transfer,” Behaviour & Information Technology, Vol. 29, No. 5, 2010, pp. 513-525. doi:10.1080/01449290903490666

[13] C. W. Lin and H. C. Chang, “Motives of Transfer Pricing Strategies: Systemic Analysis,” Industrial Management & Data Systems, Vol. 110, No. 8, 2010, pp. 1215-1233. doi:10.1108/02635571011077843

[14] J. Park, K. Shin, T. W. Chang and J. Park, “An Integrative Framework for Supplier Relationship Management,” Industrial Management & Data Systems, Vol. 110, No. 4, 2010, pp. 495-515. doi:10.1108/02635571011038990

[15] M. L. Tseng, R. J. Lin and H. P. Chen, “Evaluating the Effectiveness of E-Learning System in Uncertainty,” Industrial Management & Data Systems, Vol. 111, No. 6, 2011, pp. 869-889. doi:10.1108/02635571111144955

[16] C. W. Lin and C. H. Wang, “A Selection Model for Auditing Software,” Industrial Management & Data Systems, Vol. 111, No. 5, 2011, pp. 776-790. doi:10.1108/02635571111137304

[17] T. L. Saaty and L. G. Vargas, “Decision Making with the Analytic Network Process: Economic, Political, Social and Technological Applications with Benefits, Opportunities, Costs and Risks,” Springer, New York, 2006.

[18] T. L. Saaty and M. S. ?zermir, “The Encyclicon: A Dictionary of Decisions with Dependence and Feedback Ba- sed on the Analytic Network Process,” RWS Publications, Pittsburgh, 2005.

[19] T. L. Saaty and H. S. Shih, “Structures in Decision Making: On the Subjective Geometry of Hierarchies and Net- works,” European Journal of Operational Research, Vol. 199, No. 3, 2009, pp. 867-872. doi:10.1016/j.ejor.2009.01.064

[20] H. Lee, C. Kim, H. Cho and Y. Park, “An ANP-Based Technology Network for Identification of Core Technologies: A Case of Telecommunication Technologies,” Expert Systems with Applications, Vol. 36, No. 1, 2009, pp. 894-908. doi:10.1016/j.eswa.2007.10.026

[21] D. Carlucci and G. Schiuma, “Applying the Analytic Network Process to Disclose Knowledge Assets Value Creation Dynamics,” Expert Systems with Applications, Vol. 36, No. 4, 2009, pp. 7687-7694. doi:10.1016/j.eswa.2008.09.041

[22] W. W. Wu, “Linking Bayesian Networks and PLS Path Modeling for Causal Analysis,” Expert Systems with Applications, Vol. 37, No. 1, 2010, pp. 134-139. doi:10.1016/j.eswa.2009.05.021

[23] E. J. M. Lauria and P. J. Duchessi, “A Methodology for Developing Bayesian Networks: An Application to Information Technology (IT) Implementation,” European Journal of Operational Research, Vol. 179, No. 1, 2007, pp. 234-252. doi:10.1016/j.ejor.2006.01.016

[24] E. R. Hruschka and N. F. F. Ebecken, “Towards Efficient Variables Ordering for Bayesian Networks Classifier,” Data & Knowledge Engineering, Vol. 63, No. 2, 2007, pp. 258-269. doi:10.1016/j.datak.2007.02.003

[25] T. Wang, J. W. Touchman and G. Xue, “Applying Two-Level Simulated Annealing on Bayesian Structure Learning to Infer Genetic Networks,” 2004 IEEE Computational Systems Bioinformatics Conference Proceedings, Stanford, 16-19 August 2004, pp. 647-648. doi:10.1109/CSB.2004.1332531

[26] D. Temme, H. Kreis and L. Hildebrandt, “PLS Path Modeling: A Software Review,” SFB 649 Discussion Papers, Humboldt University, Berlin, 2006.

[27] M. Tenenhaus, V. E. Vinzi, Y. M. Chatelin and C. Lauro, “PLS Path Modeling,” Computational Statistics and Data Analysis, Vol. 48, No. 1, 2005, pp. 159-205. doi:10.1016/j.csda.2004.03.005

[28] M. J. Sanchez-Franco, “Exploring the Influence of Gender on the Web Usage via Partial Least Squares,” Behaviour & Information Technology, Vol. 25, No. 1, 2006, pp. 19-36. doi:10.1080/01449290500124536

[29] A. Serenko, N. Bontis and B. Detlor, “End-User Adoption of Animated Interface Agentsin Everyday Work Applications,” Behaviour & Information Technology, Vol. 26, No. 2, 2007, pp. 119-132. doi:10.1080/01449290500260538

[30] Y. F. Su and C. Yang, “A Structural Equation Model for Analyzing the Impact of ERP on SCM,” Expert Systems with Applications, Vol. 37, No. 1, 2010, pp. 456-469. doi:10.1016/j.eswa.2009.05.061

[31] W. W. Wu, “Choosing Knowledge Management Strategies by Using a Combined ANP and DEMATEL Approach,” Expert Systems with Applications, Vol. 35, No. 3, 2008, pp. 825-835. doi:10.1016/j.eswa.2007.07.025

[32] T. Christophersen and U. Konradt, “Development and Validation of a Formative and a Reflective Measure for the Assessment of Online Store Usability,” Behaviour & Information Technology, Vol. 31, No. 9, 2012, pp. 839-857. doi:10.1080/0144929X.2010.529165

[33] C. Fornell and F. Bookstein, “Two Structural Equations Models: LISREL and PLS Applied to Consumer Exit-Voice Theory,” Journal of Marketing Research, Vol. 19, No. 4, 1982, pp. 440-452. doi:10.2307/3151718

[34] J. Hulland, “Use of Partial Least Squares (PLS) in Strategic Management Research: A Review of Four Recent Studies,” Strategic Management Journal, Vol. 20, No. 2, 1999, pp. 195-204. doi:10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.0.CO;2-7

[35] B. H. Wixom and H. J. Watson, “An Empirical Investigation of the Factors Affecting Data Warehousing Success,” MIS Quarterly, Vol. 25, No. 1, 2001, pp. 17-41. doi:10.2307/3250957

[36] R. D. Anderson and G. Vastag, “Causal Modeling Alternatives in Operations Research: Overview and Application,” European Journal of Operational Research, Vol. 156, No. 1, 2004, pp. 92-109. doi:10.1016/S0377-2217(02)00904-9

[37] C. Ranganathan and V. Sethi, “Rationality in Strategic Information Technology Decisions: The Impact of Shared Domain Knowledge and IT Unit Structure,” Decision Sciences, Vol. 33, No. 1, 2002, pp. 59-86. doi:10.1111/j.1540-5915.2002.tb01636.x

[38] C. Fornell and D. F. Larcker, “Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics,” Journal of Marketing Research, Vol. 18, No. 3, 1981, pp. 382-388. doi:10.2307/3150980

[39] E. Jakobowicz and C. Derquennea, “A Modified PLS Path Modeling Algorithm Handling Reflective Categorical Variables and a New Model Building Strategy,” Computational Statistics & Data Analysis, Vol. 51, No. 8, 2007, pp. 3666-3678. doi:10.1016/j.csda.2006.12.004

[40] S. Shang and P. B. Seddon, “A Comprehensive Framework for Classifying the Benefits of ERP Systems,” Proceedings of Americas Conference on Information Systems (AMCIS 2000), Long Beach, 2000, pp. 1005-1014.

[41] K. F. R. Liu and J. H. Lai, “Decision-Support for Environmental Impact Assessment: A Hybrid Approach Using Fuzzy Logic and Fuzzy Analytic Network Process,” Expert Systems with Applications, Vol. 36, No. 3, 2009, pp. 5119-5136. doi:10.1016/j.eswa.2008.06.045

[42] J. Razmi, M. S. Sangari and R. Ghodsi, “Developing a Practical Framework for ERP Readiness Assessment Using Fuzzy Analytic Network Process,” Advances in Engineering Software, Vol. 40, No. 11, 2009, pp. 1168-1178. doi:10.1016/j.advengsoft.2009.05.002

[43] Y. H. Lin, H. P. Cheng, M. L. Tseng and J. C. C. Tsai, “Using QFD and ANP to Analyze the Environmental Production Requirements in Linguistic Preferences,” Expert Systems with Applications, Vol. 37, No. 3, 2010, pp. 2186-2196. doi:10.1016/j.eswa.2009.07.065

[44] J. K. Chen and I. S. Chen, “Using a Novel Conjunctive MCDM Approach Based on DEMATEL, Fuzzy ANP, and TOPSIS as an Innovation Support System for Taiwanese Higher Education,” Expert Systems with Applications, Vol. 37, No. 3, 2010, pp. 1981-1990. doi:10.1016/j.eswa.2009.06.079

[45] Y. H. Chang, W. M. Wey and H. Y. Tseng, “Using ANP Priorities with Goal Programming for Revitalization Strategies in Historic Transport: A Case Study of the Alishan Forest Railway,” Expert Systems with Applications, Vol. 36, No. 4, 2009, pp. 8682-8690. doi:10.1016/j.eswa.2008.10.024

[46] H. R. Yazgan, S. Boran and K. Goztepe, “An ERP Software Selection Process with Using Artificial Neural Network Based on Analytic Network Process Approach,” Expert Systems with Applications, Vol. 36, No. 5, 2009, pp. 9214-9222. doi:10.1016/j.eswa.2008.12.022