TOPSIS Method in Search for Competitive Advantage and Firm-Performance

This paper adapts TOPSIS (Technique for Order Preference Similarity to Ideal Solution) to study two industry cases important to Chiang Rai (Thailand), namely longan and chili-paste industries. A creative order-ranking use of TOPSIS leads to provide means for assessing hypotheses and illuminating the dynamic patterns, and the similarity and differences of the cases. The hypotheses were derived based on resource-based view (RBV) and practice-based view (PBV), which are two important theories of competition, strategic management and supply chain and logistics. Thirty cases, consisting of manufacturers, consolidators and growers, formed the response groups for the longan industry. Thirty-three chili-paste processors and traders were studied.