Purpose – This paper attempts to identify the strength of the relation between the quality characteristics of companies that are activating in an economy and their performance. Design/methodology/approach – In the quality characteristics sphere were included almost all the elements related to company's behaviour on a market, in an uncertain environment and in the relations developed with stockholders. And what theory can better shape this relation than grey systems theory, a theory of uncertainty and of continual changes? At first, all of these qualitative characteristics that are reflecting company's activity have been divided into six categories for a better reality reflection. A performance indicator was also depicted by taking into consideration each company's managerial objectives. Findings – By applying grey relational analysis (GRA) in a case of eight Romanian firms, the results were convincing: not only that these characteristics determine firm's evolution, but, by knowing them and acting properly on them, firm's extreme situations (such as insolvency or bankruptcy) can be avoided. Practical implications – The method exposed in the paper can be used for any company for evaluating the linkage between its main characteristics and the way its performance can evolve. Originality/value – The paper succeeds in identifying the linkage between the characteristics of a company at a certain point and its performance by using one of the newest developed theories: grey systems theory.
Grey Systems: Theory and Application – Emerald Publishing
Published: Aug 23, 2013
Keywords: Grey systems theory; Company analysis; Performance; Qualitative measure; Company performance; Quality; Romania