Determining the weights of commercial criteria for investment project evaluation based on the IDOCRIW method

Abstract

Current approaches for the assessment of investment projects in the business world are mostly only limited to common financial analysis. Instead, the industry needs to increasingly emphasize the importance of commercial criteria for making investment decisions. The objective of this research is to propose a model for determining the weights of commercial criteria for evaluating investment projects. For that purpose, the modified IDOCRIW (Integrated Determination of Objective CRIteria Weights) method is applied to calculate weights for commercial criteria. The motivation for conducting this research is the fact that there are few papers in the literature dealing with the determination of weight vectors using the IDOCRIW method. The model is tested on real-life data from a large project-oriented manufacturing company, and the research results indicate improved accuracy in determining the weights of commercial criteria. This approach allows for a better understanding of the significance of each criterion and contributes to the enhancement of the decision-making process in the business environment.