Transformations  in
Business & Economics

BRINGING MANAGEMENT EXPERTISE IN THE DECISION-MAKING PROCESS THROUGH A DYNAMIC IMPORTANCE-PERFORMANCE ANALYSIS
Olimpia I. Ban, Adrian I. Ban, Elena A. Botezat, Anamaria M. Pop, Dorin C. Coita

ABSTRACT: The present study aims to advance research into a valuable managerial decision-making method, namely the Importance-Performance Analysis (IPA). Specifically, the purpose of the research is to develop a Dynamic Importance-Performance Analysis method (DIPA) that facilitates managers’ playful exploration of possibilities based on their local managerial thinking to better understand a product/service attribute’s potential value in a decision optimisation problem. Using a tourism destination dataset, it is shown how the proposed method generates a dynamic distribution of product/service attributes across the IPA quadrants and leads to more than one set of strategic recommendations, as typically, IPA-based methods allow. To this extent, the study’s results validate the novel method’s efficacy, preserving user-friendliness and manageability. The theoretical and managerial implications of this study are also discussed.

KEYWORDS:  dynamic IPA, decision-making, management expertise, optimisation.

JEL classification:  C50, C51, C61, D81, M31, Z32, Z33.