Identification of critical success factors of ICT companies using the Fuzzy AHP method

Document Type : Original Article

Authors

• نصری NASRI ¹
• nasser safaie ²
• ALI EGHBALI ³

¹ M.Sc. in Industrial Engineering, K. N. Toosi University of Technology, Tehran, Iran

² Assistant Professor of Industrial Engineering, K. N. Toosi University of Technology, Tehran, Iran

³ M.Sc. in Industrial Management, College of Farabi, University of Tehran, Qom, Iran

https://doi.org/10.22067/erd.2022.69624.1029

Abstract

 

INTRODUCTION

   Information and communication technologies and their role in the economic growth of the country are one of the important concepts in sustainable development. In fact, information and communication technology are the motivation of globalization in the fields of culture, politics, economy, and society. This has a considerable effect on the advent of network society and inter-country awareness and it is the driving factor of global markets. According to the growth and development of academic research in the field of high technologies, SMEs play an important role in encouragement of entrepreneurship and economic prosperity in countries. Therefore, it is necessary to answer the question of what factors will lead to the growth and success of these companies in the field of information and communication technology.
 

THEORETICAL FRAMEWORK

   Information and Communication Technology (ICT) is the consequence of the interaction of three distinct parts of a computer: information, communications, and telecommunications. The computer sector is considered the hardware and supplier of equipment and tools for ICT. Data and information flow as other pronouns and raw materials within the network. Telecommunication is the third part, which is responsible for establishment of communication between the other two parts. What is ultimately the combination of the three parts is called "information," which is used in different areas. Critical Success Factors (CSFs) are essential tools for identification of the set of activities that need to be done in order to achieve your business goals and missions. (CSFs) are a limited number of key factors in which achieving results guarantees the competitive performance of the organization, and if the results obtained in them are not satisfactory, the efforts of the organization in the desired period of time will not be satisfactory. The organization's strategic goals and missions focus on the goals and what needs to be achieved; CSFs, on the other hand, focus on the most important factors influencing what and how to achieve.
 

METHODOLIGY

   This paper discusses "success" in information and communication technology (ICT) standards setting. The Fuzzy Analytical Hierarchy Process (FAHP) method was used to analyze data and prioritize the factors effective in the success of ICT’s companies. In this respect, 21 criteria in 5 different categories were extracted by using the expert’s opinion and previous research, and then were evaluated in the vicinity of the capital of Iran (Qom).
 

RESULTS & DISCUSSION

   Focusing on internal organization management and establishing cordiality atmosphere among the employees to enhance teamwork and increase trust between them are the most basic and the most important factors in critical success of a company. Broadly speaking, development from the technical, high financial income and marketing aspect is the consequence of correct organization and management of corporation and its employees that if focused, can be helpful for the business. One of the major differences between this research and the previous ones is using native effective factors and comparing them with general key factors in other countries. Results showed that in-company management factors, technological and marketing factors, financial costs, governmental policies, and native features were the most important main criteria. The employee involvement and team work, focus on the customer’s needs, the state of the economy, conflict of interest between governmental and private sectors, and industrialization of the province were chosen as the most important sub-criteria effective on the success of the ICTI’s companies. 
 

CONCLUSIONS & SUGGESTIONS

Intra-organizational factors are more important than external ones, such as the government’s policies, rules, and native features. It is worthwhile for the managers and founders of ICT firms to consider and prioritize these factors to be able to achieve success. For future research, the effect of the components on each other can be studied using ANP, and different methods such as SAW, TOPSIS, and ELECTRE can be used to prioritize the criteria. The results could be compared with each other. Studying the effects of local factors in other provinces of the country can also lead to different results.
  

Keywords

• ICT Industry
• Economic growth
• Fuzzy analytical hierarchy process
• Critical success factors

References

Alreemy, Z.; Chang, V.; Walters, R & Wills, G. (2016). Critical success factors (CSFs) for information technology governance (ITG), International Journal of Information Management 36(5), 907-916.

Canarella, G., & Miller, S. (2017). The determinants of growth in the U.S. information and communication technology (ICT) industry a firm-level analysis, Economic Modelling, 70(3), 259-271.

Carlucci, D & Schiuma, G. (2008). Applying the analytic network process to disclose knowledge assets value creation dynamics, Expert systems with applications, 36(4), 7687-7694.

Chen.H-C, C. C.-W., & W. C.-R. (2008). Using expert technology to select unstable slicing machine to control wafer slicing quality via fuzzy AHP. Expert Systems with Applications, 34(11), 2210–2220.

Choy Chong, S. (2006). "KM critical success factors: A comparison of perceived importance versus implementation in Malaysian ICT companies", The Learning Organization, 13(3), 230-256.

Chung, W.; Jo, Y., & Lee, D. (2020). Where should ICT startup companies be established? Efficiency comparison between cluster types. Telematics and Informatics, 56(3), 1-30.

Edquist, H.,&  Henrekson. M. (2017). Swedish Lessons: How Important are ICT and Rand to Economic Growth. Structural Change and Economic Dynamics, 42(3), 1-12.

Hong, J. (2016). Causal relationship between ICT R&D investment and economic growth in KoreaTechnol, Technological Forecasting and Social Change, 11(1), 70-75.

Igari, N. (2014). How to successfully promote ICT usage: A comparative analysis of Denmark and Japan. Telematics and Informatic, 31(1), 115-125.

Jakobs, K. (2017). Two dimensions of success in ICT standardization, ICT Express, 3(1), 85-89.

Linstone, H.A.; Turo & M. (2002). The Delphi Method Techniques and Applications.OnlineAvaliable: www.inei.org.br/inovateca/estudos-pesquisas eminovacao/Delphibook.pdf

Mahmoudi Tabar, M.; Sotoodeh, S., & Boudlaie, H. (2021). Identifying the effective factors of innovative marketing in SMEs in the IT industry. Journal of Entrepreneurship Development. 14(2), 81-98.

Maresova, P., & Kacetl, J. (2014). Innovations in ICT in the Czech Republic with Focus on a Chosen region. Social and Behavioral Sciences, 109(6), 679 – 683.

Marinescu, M., & TraianPele, D. (2012). Modelling-the-Strategic-Success-Factors-of-the-Romanian-ICT-based-Companies, Social and Behavioral Sciences, 58(7), 1111 – 1120.

Moinian, B. Eliasi.; M. Soufi, J., & Naghavi, M. (2021). Developing a Knowledge Worker Retention Model in Knowledge-Based Companies (Case Study: IT, Communication, and Biotechnology Companies). Journal of sustainable human resource management. 3(1), 89-111.

Nieble, T. (2018). ICT and economic growt comparing developing, emerging and developed countries. World Development. 104(5), 197–211.

Niknam, O.; Darvishi, Z.; Moghaddam, Y., & Sedghiani, J. (2021).  Designing and explaining the Sustainable Belongings Model of New Generation Employees through Grounded Theory (A Study in Information and Communication Technology Business), Journal of Research in human resource management, 44(8), 1-24.

Njoh, A. (2019). The relationship between modern Information and Communications Technologies (ICTs) and development in Africa, Utilities Policy, 50(1), 83-90 

Park, J.; Kim, Y., & Kim. M. (2017). Investigating factors influencing the market success or failure of IT services in Korea, International Journal of Information Management, 37(8), 1418-1427.

Ruivo, P.; Rodrigues, J.; Neto, M.; Oliveira, M., & Johansson, T. (2015). Defining a framework for the development of ICT services nearshoring in Portugal, Computer Science, 64(2), 140-145.

Saaty, T.L. (1999).  Fundamentals of the analytic network process", Proceedings of ISAHP 1999, Kobe, Japan.

Sadok, M.; Chatta, R & Bednar, P.  (2016). ICT for development in Tunisia: “Going the last mile". Technology in Society, 46(1), 63-69.

Sadorsky, P. (2012). Information communication technology and electricity consumption in emerging economies, Energy Policy, 48(2), 130-136.

Safaie, N.; Ghazavi, N.; Sarabadani, A., & Nasri, S. (2021)."Analysis of the effects of covid-19 virus on the import, export and labor in iran using system dynamic approach", Journal of Control, 14(5), 107-120. (In persian)

Safaie, N.; Hedayati, S.; Nasri, S. & Mirzaei, M. (2021). Analyzing the Effectiveness of EU Climate Policies by Simulating Scenarios
to Reduce Carbon Emissions from 2021 to 2030 and Its Impacts on Iranian
Environmental Strategic Policies Using a System Dynamics Approach, Journal of Iran Futures Studies, 6(1), 127-149. (In persian)

Vahidinia, E.; Hosseinzade, M.; Hosseini, H., & Abdolvand, N. (2020). Explaining the Coopetition Model for Market Entry in the ICT Sector. Journal of Business Administration Researches. 12(2), 511-533.

Wang H.; Tian M.; Zhang Y., & Wang Z. (2021). The Impact of R&D Strategy on Firm Performance of ICT Companies in China.

Yongjo, M.; ChangLee, K.; SungLee, D., & Hahn, M. (2015). Empirical analysis of roles of perceived leadership styles and trust on team members’ creativity: Evidence from Korean ICT companies. Computers in Human Behavior, 42(1), 149-156.

Zare, M.; Aghaie, A.; Asl Hadad, A., & Samimi, Y. (2019). Service Quality Management Modeling, Controlling and Upgrading as well as Communications and Information Technology Enhancement through Conducting a Case Study in the Parent Telecommunications Network of Iran, Journal of Control, 13(6), 9-20.

Zhang, F & Li, D. (2018). Regional ICT access and entrepreneurship: Evidence from China. Information & Management, 55(4), 188–198.