Integrating Fuzzy C-Means and TOPSIS for performance evaluation: An application and comparative analysis

• FCM and TOPSIS are introduced as an integrated multiple criteria decision analysis methodology.
• The methodology is used to analyze balanced scorecard, real data on the performance of corporations.
• The result shows that e-commerce corporate resiliency is best predicted with non-financial data.
• Validation of this methodology is completed by comparing to a latent cluster ranking technique.

In this paper we introduce a multi-method multiple criteria approach for evaluating the performance of organizations. Performance analysis may include both strategic and operational performance, as well as financial and other less tangible factors. This paper introduces the use of Fuzzy C-Means and TOPSIS for organizational performance evaluation purposes. Using real company data and balanced scorecard accounting and performance dimensions the methodology is applied and evaluated. The predictive abilities of the technique from an organizational performance evaluation approach are evaluated using this data. One of the results from the illustrative application is that economic performance evaluation is not the best predictor of overall viability of some organizations, especially e-commerce based organizations.