Probabilistic hesitant fuzzy multiple attribute decisionmaking based on regret theory for the evaluation of venture capital projects

The selection of venture capital investment projects is one of the most important decision-making activities for venture capitalists. Due to the complexity of investment market and the limited cognition of people, most of the venture capital investment decision problems are highly uncertain and the venture capitalists are often bounded rational under uncertainty. To address such problems, this article presents an approach based on regret theory to probabilistic hesitant fuzzy multiple attribute decision-making. Firstly, when the information on the occurrence probabilities of all the elements in the probabilistic hesitant fuzzy element (P.H.F.E.) is unknown or partially known, two different mathematical programming models based on water-filling theory and the maximum entropy principle are provided to handle these complex situations. Secondly, to capture the psychological behaviours of venture capitalists, the regret theory is utilised to solve the problem of selection of venture capital investment projects. Finally, comparative analysis with the existing approaches is conducted to demonstrate the feasibility and applicability of the proposed method

A novel TODIM based on prospect theory to select green supplier with q-rung orthopair fuzzy set

The authors would like to acknowledge the financial support by the Fundamental Research Funds for the Central Universities (#JBK2001043, and #JBK190969), the FEDER funds provided in the National Spanish project PID2019-103880RB-I00 and also it has been partially supported by grant from the National Natural Science Foundation of China (#71910107002).Green supply chain has developed rapidly due to the advocacy of ecological civilization, and choosing a proper green supplier is a crucial issue. Considering the fuzziness of evaluation information and the psychological states of decision makers (DMs) in selecting process, a novel TODIM based on prospect theory with q-rung orthopair fuzzy set (q-ROFS) is proposed. The novel TODIM concerns both the perceived transformed probability weighting function and the differences in risk attitudes. A new distance, which concerns the herd mentality, is carried out to measure the perceived difference of the q-ROFS. Besides, a new systematic evaluation index system, named as PCEM (Product, Cooperation ability, Environment, Market), has been established. A case related to pork supplier companies is presented and fully demonstrates the effectiveness of the novel TODIM when compared with the extended one, the intuitionistic fuzzy TODIM, the Pythagorean fuzzy TODIM as well as the TOPSIS with q-ROFS. Finally, a series of comparative analyses illustrate the advantages of the proposed TODIM.Fundamental Research Funds for the Central Universities JBK2001043 JBK190969FEDER funds provided in the National Spanish project PID2019-103880RB-I00National Natural Science Foundation of China (NSFC) 7191010700

Combined probabilistic linguistic term set and ELECTRE II method for solving a venture capital project evaluation problem

Multiple criteria decision making (MCDM) frameworks assist people in assessing alternatives and making reasonable decisions, with the ELECTRE II MCDM method in particular being widely applied to many diverse fields. As it is not always possible to assess qualitative attributes or accurately evaluate alternatives using precise values, this paper proposes a new approach that combines the ELECTRE II method with probabilistic linguistic term sets (PLTS) to allow decision makers to state their qualitative preferences using corresponding probabilities. To demonstrate the viability of the PTLS-ELECTRE II method and assess its practicability, the proposed method was applied to a typical MCDM venture capital project evaluation problem, for which a comprehensive venture capital project evaluation index system was constructed that included multiple qualitative and quantitative indicators, such as industry background, marketing, product technology, team management and financial data. The reasonable evaluation sequence of alternatives was then determined using the PTLS-ELECTRE II method which can provide more accurate MCDM decisions

International entrepreneurial startups' location under uncertainty through a heterogeneous multi-layer decision-making approach:Evidence and application of an emerging economy

Purpose: Science and technology parks (STPs) have a limited capacity, which can create challenging conditions for applicants. This makes the location selection a multi-criteria decision-making (MCDM) problem to find and apply for the most appropriate STP with the highest accordance with the startup's requirements. This research aims to select the most appropriate STP to locate an international entrepreneurial pharmaceutical startup under uncertainty. Since drugs are generally produced domestically in developing countries such as Iran, the access of pharmaceutical startups to the resources provided by STPs can lead to overcoming competitors and improving the country's health system. Design/methodology/approach: In this research, the factors or attributes effective on startup location were extracted through a two-round Delphi method, which was performed among 15 experts within three groups. Subsequently, the determining factors were used to select the location of a pharmaceutical startup among possible STPs. In this regard, decision-makers were allowed to use different types of numbers to transfer their opinion. Afterward, the heterogeneous weighted aggregated sum product assessment (HWASPAS) method was applied to calculate the score of each alternative and rank them to place the studied startup successfully. Findings: The results indicated that Tehran STP stands in the first place; however, if the decision was made based on single criterion like cost, some other STPs could be preferable, and many managers would lose this choice. Furthermore, the results of the proposed method were close to other popular heterogeneous MCDM approaches. Originality/value: A heterogeneous WASPAS is developed in this article for the first time to enable international entrepreneurs to imply their opinion with various values and linguistic variables to reduce the emphasis on accurate data in an uncertain environment

Group decision-making models for venture capitalists: the PROMETHEE with hesitant fuzzy linguistic information

Venture capitalists (VCs) have long been preoccupied by the issue of selecting a promising start-up firm, whereas, ranking the available start-up firms is an effective way to solve this issue. In this paper, the PROMETHEE is chosen to be the fundamental ranking method. Also, the hesitant fuzzy linguistic term set is a suitable tool to simulate VCs’ evaluation information. Additionally, as the deepening of social division of labor and specialization of individuals, group decision making is famous for improving decision-making quality. Moreover, in the decision-making process, VCs exhibit behavioral characteristics which is depicted well by prospect theory that VCs are risk averse for gains and risk seeking for losses and rely on the transformed probability to make their decisions rather than unidimensional probability. Thus, a group prospect PROMETHEE with hesitant fuzzy linguistic information is constructed for VCs to make a better decision. Then, the proposed method is applied to rank start-up firms and the comparative analyses are made as well. It confirms that the group prospect PROMETHEE is better in describing the common behavioral characteristics of VCs and in enhancing the quality of evaluation

A Venture Capital Recommendation Algorithm based on Heterogeneous Information Network

According to its characteristics, venture capital can be described as a typical heterogeneous information network, which includes multiple kinds of nodes and various relations. Getting hints from PathRank algorithm, this paper proposes VC-Recom, a recommendation algorithm based on heterogeneous information network, which helps investment companies find suitable startup projects. Besides, the experimental results show that the proposed algorithm can produce more effective recommendation results for investment firms compared with other methods

Fuzzy algorithm applied to factors influencing competitiveness: A case study of Brazil and Peru through affinities theory

Innovation plays a crucial role in the economy of nations worldwide. In Latin America, countries foster competitiveness through public and private incentives to support innovation. Moreover, entrepreneurship incentives seek to improve countries’ performance, although factors such as low business growth rates and informality can compromise it. Despite the efforts, there are several difficulties in achieving competitiveness, and few studies in developing countries. Therefore, the article explores the relationship between the factors that influence competitiveness, especially the role of innovation and entrepreneurship in Brazil and Peru. The research uses quantitative-qualitative methodology through modeling and simulation and a case study. The authors use the Affinities Theory to verify the relationship between the indicators that make up the competitiveness landscape and its most significant and attractive factors, adapting the methodology established by the International Institute for Management Development (IMD) World Competitiveness ranking. As a result, this algorithm allows us to know the relationships between five factors of economic attractiveness and four competitiveness indicators. As its main contributions, the study advances the frontier of knowledge about innovation and entrepreneurship, as few studies explore competitiveness in developing countries. Also, it offers a detailed explanation of the application of this algorithm, allowing researchers to reproduce this methodology in other scenarios. Practically, it might support policymakers in formulating development strategies and stimuli for business competitiveness. In addition, academic and business leaders can strengthen university-business collaboration with applied research in innovation and entrepreneurship. One limitation would be the number of countries participating in the research. The authors suggest future lines of research.Project number 522RT0130 in Programa Ibero-americano de Ciências y Tecnologia para el Desarrolho (CYTED)info:eu-repo/semantics/publishedVersio

Fuzzy Sets in Business Management, Finance, and Economics

This book collects fifteen papers published in s Special Issue of Mathematics titled “Fuzzy Sets in Business Management, Finance, and Economics”, which was published in 2021. These paper cover a wide range of different tools from Fuzzy Set Theory and applications in many areas of Business Management and other connected fields. Specifically, this book contains applications of such instruments as, among others, Fuzzy Set Qualitative Comparative Analysis, Neuro-Fuzzy Methods, the Forgotten Effects Algorithm, Expertons Theory, Fuzzy Markov Chains, Fuzzy Arithmetic, Decision Making with OWA Operators and Pythagorean Aggregation Operators, Fuzzy Pattern Recognition, and Intuitionistic Fuzzy Sets. The papers in this book tackle a wide variety of problems in areas such as strategic management, sustainable decisions by firms and public organisms, tourism management, accounting and auditing, macroeconomic modelling, the evaluation of public organizations and universities, and actuarial modelling. We hope that this book will be useful not only for business managers, public decision-makers, and researchers in the specific fields of business management, finance, and economics but also in the broader areas of soft mathematics in social sciences. Practitioners will find methods and ideas that could be fruitful in current management issues. Scholars will find novel developments that may inspire further applications in the social sciences

Organisational Factors and Uptake of Venture Capital by Small and Medium Enterprises: A Case of Selected Venture Capital Beneficiaries of Kenya Commercial Bank

Venture capital is a recent source of capital for businesses in Kenya. Most businesses tend to look internally for primary funding before considering finances from banks and cooperative societies. Venture capitalists are important source of equity that can invest in any form of business, regardless of size, depending on their assessment and postulation of the success of the business. The main objective of this research study was to establish the influence of organisational factors and uptake of venture capital by small and medium enterprises: a case of selected venture capital beneficiaries of Kenya Commercial Bank. Specific objectives were to determine how organisational innovativeness affects uptake of venture capital by SMEs and to establish how ownership structure of business affects uptake of venture capital by SMEs. The study was anchored on resource view-based, institution and pecking order theory. The study employed descriptive research design with a target population of 300 SMEs who had benefited from venture capital in Kenya through KCB Lions’ Den and KCB 2Jiajiri. The researcher sampled 90 respondents, randomly selected and gathered primary data by use of questionnaires in a Likert scale. However, the researcher conducted a piloting exercise to build up reliability and validity of the instrument before data collection. Data gathered from correctly filled questionnaires was coded, tabulated and analysed using Statistical Package for Social Sciences (SPSS) Version 24. The study adopted descriptive and inferential statistics to capture the characteristics of variables under study and analyse the relationship between dependent and independent variables. The researcher conducted this study within the set ethical standards. The study established that organisational innovativeness had a positive and significant effect on uptake of venture capital with β=0.586, t=5.228 and R2 of 0.259, hence influence uptake of venture capital by SMEs to a great extent and a fundamental pillar to growth and entry to a new market place. Ownership structure had a positive and significant effect on uptake of venture capital (β=0.685, t=5.747) and R2 of 0.297, thus, determines uptake of venture capital by SMEs to a great extent and primary driving factor for investor and creditors decision. The study recommends that SMEs should invest in research to create innovative products and least cost processes thus continuously enhancing organisational innovativeness. Owners/managers should strive to take up more venture capital since the venture capitalists do not only assist in provision of funds but can also contribute to the internal operations of the businesses, especially policy formulation