Identifying the relationship between business model and competitiveness using rough set theory

Abstract

Purpose: The purpose of this paper is to show the possibility of using Rough Set Theory to identify the relationship between a business model and company competitiveness. Design/Methodology/Approach: Rough Set Theory operates on large data sets and allows for the reduction of irrelevant data and the induction of decision rules that discover recurrence and dependencies in data. The discovered rules can become the basis for making business decisions. Findings: The relationship between a business model and company competitiveness can be identified through Rough Set Theory, and the results can take the form of clear and easily interpretable decision rules, if the premise, then the conclusion. Practical Implications: The identified decision rules can provide a rationale for the design or development of organizations, thus, enhancing the chance of success by relying on correctly validated company behavior. The proposed approach can also be used to identify relationships in other business environments or address diverse variables, such as other aspects of competitiveness. Originality/Value: The study will verify the usefulness of Rough Set Theory for building a rule base for decision-making regarding the construction of business models that offer a chance to boost the companies' competitiveness.