An application of a multi‐criteria approach to assessing the performance of Portugal's economic sectors : Methodology, analysis and implications

Purpose – To propose a multi‐criteria approach for ranking the performance of the economic sectors of the Portuguese economy and to identify the most attractive sectors. Design/methodology/approach – A multi‐criteria approach using ELECTRE III and SRF software for eliciting the weights of criteria is used to solve the ranking problem statement. Findings – The sector non‐metallic mineral products was ranked in first place in relation to all the rankings; the wholesale trade and retailing trade sectors were ranked in second place in relation to all the rankings; the sector wood, cork and furniture was ranked often in second place; the electronic and electrical industry sectors was ranked in third place; the agriculture and fishing sector was ranked in the tail‐end of the ranking; the agro‐industry sector and the transportation and distribution sector consistently were ranked in the lowest positions, just before the agriculture and fishing sector. Research limitations/implications – Other evaluation criteria can be used to improve the relative ranking classification, namely strategic and operational performance measures. Practical implications – The results of this application are useful for investors, business leaders, and policy makers. From the perspective of potential investors, investment opportunities can be evaluated based on the attractiveness of the economic sectors studied. From the perspective of Portuguese policy makers and business leaders, sectors of the Portuguese economy that are in need of fundamental restructuring are easily identified. For these sectors, business strategies and policy initiatives that are based on benchmarking effective innovations are in order. Therefore, joint partnership between business leaders, policy makers and higher education to lay the ground for innovative practices in these sectors may prove very useful. Originality/value – The proposed multi‐criteria approach utilized in this study is simple; furthermore it has the capacity to deal well with uncertainty. This study also contributes to an important, yet relatively new body of application‐based literature, dealing with a multi‐criteria approach to decision making with the aid of fuzzy theory methodologies.