OPERATIONALIZATION OF IMPORTANCE-PERFORMANCE ANALYSIS WITH NINE CATEGORIES AND TESTED FOR GREEN PRACTICES AND FINANCIAL EVALUATION

Author:

Ban Olimpia I.1ORCID,Droj Laurenţiu2ORCID,Tușe Delia A.3ORCID,Botezat Elena4ORCID

Affiliation:

1. Department of Economics and Business, University of Oradea, Oradea, Romania

2. Department of Finance-Accounting, University of Oradea, Oradea, Romania

3. Department of Mathematics and Informatics, University of Oradea, Oradea, Romania

4. Department of Management-Marketing, University of Oradea, Oradea, Romania

Abstract

The Importance-Performance Analysis is a widely used diagnostic tool in many fields of economic activity, such as: transport, health, construction, public food industry, finance, banking, sustainable activities, etc. Despite its use for over 40 years in many economic and social fields, this tool has some important drawbacks that affect the accuracy of managerial decisions. Over time, many variants for improving the standard Importance-performance matrix have been proposed. The aim of our research is to propose a method to solve one of the biggest problems of the standard Importance-Performance Analysis, respectively a method of boosting confidence in the positioning of attributes in the matrix. We use a mathematical method, inspired by classification theory tools, to apply the nine categories division of attributes in the importance-performance plane. Moreover, we introduce a level of confidence in a nine categories Importance-performance matrix, which helps the practitioners to prioritize a decision on attributes, according to the resources, managerial plan, competition, etc. We test and discuss the effectiveness of the new method on two studies: on the green practices in educational restaurant operations and on the financial performance evaluation.

Publisher

Vilnius Gediminas Technical University

Subject

Finance

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