Application of Multi-Criteria Decision-Making Methods in E-Business: Comparative Analysis of TOPSIS and STEM Methods
Application of Multi-Criteria Decision-Making Methods in E-Business: Comparative Analysis of TOPSIS and STEM Methods
Gabrielyan Anna
Summary
Key words: Decision analysis, Chebyshev distance, Multi-attribute decision making (MADM), E-commerce analytic, strategic decision-making, optimization techniques
At present, under the predominance of managerialism, the decision-making process has become increasingly complex, as managers are required to consider numerous interrelated and often conflicting criteria. This is particularly evident in the e-business environment, where there is strong pressure to make rapid, decisive, and well-justified decisions. Multi-criteria decision-making (MCDM) methods constitute an appropriate set of tools for addressing such challenges. The purpose of this study is to compare the usability of two of the most widely applied MCDM methods in the field of electronic business, namely TOPSIS and STEM. First, the theoretical foundations of both methods are reviewed, followed by the analysis of a practical problem derived from real-world e-business situations. The results obtained using both methods are then compared in terms of efficiency, accuracy, and ease of application.
The findings indicate that both STEM and TOPSIS are applicable in the electronic business environment; however, they differ in their decision-making logic and sensitivity to input data. This study contributes to the development of a culture of evidence-based decision-making in e-business by demonstrating how multidimensional data analysis can be employed as an effective tool for strategic management.
DOI: https://doi.org/10.58726/27382923-2025.2-57