Estimation of importance of innovative projects evaluation criteria by using Shannon entropy Cover Image

Szacowanie ważności kryteriów oceny ryzyka projektów innowacyjnych z wykorzystaniem entropii Shannon’a
Estimation of importance of innovative projects evaluation criteria by using Shannon entropy

Author(s): Katarzyna Rudnik, Anna Małgorzata Deptuła
Subject(s): Economy, Business Economy / Management
Published by: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego
Keywords: risk; innovation project; innovation; entropy; MCDM method

Summary/Abstract: The properly determination of the criteria importance is a major and also difficult step in the decision-making process, especially in the case of unstructured or poorly structured processes such as innovation processes. The aim of the paper is to analyse the application of the Shannon entropy method for estimating the importance of risk assessment criteria in the aspect of innovative projects. Because of the different ways of the risk assessments, the procedures for calculating weights based on evaluations in the form of real numbers and fuzzy numbers are presented. This is a more objective approach, because the weight of the criteria is calculated on the basis of the dispersion of assessments in the decision matrix, and not on the basis of subjective assessments of the criteria importance. However, the obtained weights are strictly dependent on the nature of enterprises implementing innovation and the analysed projects. The approach outlined in this article is used to determine the importance of general criteria for the risk assessment of innovative projects for different sizes of enterprises. The analysis shows that the period of project completion is the most important criterion for the risk assessment of innovative projects.

  • Issue Year: 2018
  • Issue No: 52/2
  • Page Range: 127-140
  • Page Count: 14
  • Language: Polish