Abstract
This study models location choices for foreign direct investments in new hospitals in China as an multi-criteria decision-making (MCDM) problem and designs develops a multidirectional relationship decision model combines the techniques of analytic network process (ANP) and technique for order performance based on similarity to the ideal solution (TOPSIS). This study discusses applying ANP to the relative weighting of multiple assessment criteria. The TOPSIS approach is employed to rank 15 counties without the Zhoushan of China’s Yangtze River Delta (YRD) region in terms of their overall performance under the decision model. To illustrate how the proposed approach is applied to the problem of selecting locations for new hospitals in China an empirical study of a real case is performed. This study demonstrates the effectiveness and feasibility of the proposed assessment procedure.
Similar content being viewed by others
References
Andrzej C.: Regional characteristics and the location of foreign firms within Poland. Appl. Econ. 37, 863–874 (2005)
Bakhuti S., Ajay T., Orvill B.A., Christopher J.L.M.: Access, utilization, quality, and effective coverage: An integrated conceptual framework and measurement strategy. Soc. Sci. Med. 61(1), 97–109 (2005)
Banga, R.: Impact of government policies and investment agreements on FDI inflows. 2003 Indian Council for Research on International Economic Relations: working Paper No.116. http://www.icrier.org/pdf/WP116.PDF. Cited 28 May 2005 (2003)
Bell M.L., Hobbs B.F., Ellis H.: The use of multi-criteria decision-making methods in the integrated assessment of climate change: implications for IA practitioners. Soc. Econ. Plan. Sci. 37(4), 289–316 (2003)
Chang S.J., Park S.: Types of firms generating network externalities and MNCs’ co-location decisions. Strateg. Manage. J. 26(7), 595–615 (2005)
Cheng, S.: The role of labour cost in the location choices of Japanese investors in China. Pap. Reg. Sci. 85(1), 121–138 (2006)
Cheng E.W.L., Li H.: Analytic network process applied to project selection. J. Construction Eng. Manage. 131(4), 459–466 (2005)
Cheng S., Stough R.R.: Location decisions of Japanese new manufacturing plants in China: a discrete-choice analysis. Ann. Reg. Sci. 40(2), 369–387 (2006)
Deichann J., Karidis S., Sayek S.: Foreign direct investment in Turkey: regional determinants. Appl. Econ. 35, 1767–1778 (2003)
Dunning J.H.: Location and the multinational enterprise: a neglected factor? J. Int. Bus. Stud. 29(1), 45–66 (1998)
Eddie W.L., Cheng H.L., Ling Y.: The analytic network process (ANP) approach to location selection: a shop** mall illustration. Construction Innov. 5(2), 83–97 (2005)
Fischer J.H., Harrington J.E.: Product variety and firm agglomeration. RAND J. Econ. 27(2), 281–309 (1996)
Fu J: Institutions and investments: foreign direct investment in China during an era of reforms. University of Michigan Press, Ann Arbor (2000)
Fung K.C., Iizaka H., Parker S.: Determinants of US and Japanese foreign direct investment in China. J. Comp. Econ. 30(3), 567–578 (2002)
Grant R.M.: Porter’s ‘competitive advantage of nations’: an assessment. Strateg. Manage. J. 12(7), 535–548 (1991)
He C.: Location of foreign manufacturing in China: agglomeration economies and country-of-origin effects. Pap. Reg. Sci. 82(3), 351–372 (2003)
Head, K., Ries, J.: Inter-city competition for foreign investment: static and dynamic effects of China’s incentive areas. J. Urban Econ. 40(1), 38–60 (1996)
Hsu, P.-F., Hsu, M.-G.: Optimizing the information outsourcing practices of primary care medical organizations using entropy and TOPSIS. Qual. Quant. doi:10.1007/s11135-006-9040-8 (2006)
Hwang C., Yoon K.: Multiple attribute decision making: methods and application. Springer, New York (1981)
Meade L.M., Sarkis J.: Analyzing organizational project alternatives for agile manufacturing processes-An analytical network approach. Int. J. Prod. Res. 37(2), 241–261 (1999)
Partovi F.Y.: An analytic model for locating facilities strategically. Omega 34(1), 41–55 (2006)
Porter M.E.: The competitive advantage of nations. Free Press, New York (1990)
Quaglia A., Vercelli M., Lillini R., Mugnoc E., Coebergh J.W. et al.: Socio-economic factors and health care system characteristics related to cancer survival in the elderly: A population-based analysis in 16 European countries (ELDCARE project). Crit. Rev. Oncol. Hematol. 54(2), 117–128 (2005)
Saaty T.L.: The analytic hierarchy process. McGraw Hill, New York (1980)
Saaty T.L.: Decision making with dependence and feedback: the analytic network process. RWS Publications, Pittsburgh (1996)
Shyur H.-J.: COTS evaluation using modified TOPSIS and ANP. Appl. Math. Comput. 177, 251–259 (2006)
Wolfslehner B., Vacik H., Lexer M.J.: Application of the analytic network process in multi-criteria analysis of sustainable forest management. For. Ecol. Manage. 207(1/2), 157–170 (2005)
Wu, C.-R., Lin, C.-T., Chen, H.-C.: Integrated environmental assessment of the location selection with fuzzy analytical network process. Qual. Quant. 41(1). Accepted: 14 September 2006 (forthcoming, 2007)
Zhou C., Delios A., Yang J.G.: Locational determinants of Japanese foreign direct investment in China. Asia Pac. J. Manage. 19(1), 63–86 (2002)
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Lin, CT., Tsai, MC. Location choice for direct foreign investment in new hospitals in China by using ANP and TOPSIS. Qual Quant 44, 375–390 (2010). https://doi.org/10.1007/s11135-008-9199-2
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11135-008-9199-2