Causal Relationship Analysis Based on DEMATEL Technique for Innovative Policies in SMEs

Abstract

This research aims to offer an overview of policy instruments identified within the Small and Medium Enterprises (SMEs) development. The Decision Making Trial and Evaluation Laboratory (DEMATEL) method is also used to draw a directed graph for better capturing the causal relationship visibly between multiple innovative policies. A structural graph will be devise to portray a contextual relationship among twelve policy instruments of policy system including supply, demand, and environmental side, in which the arrow direction of graph represents the influence strength of different policy instrument. The research results reveal that education and public enterprise are both significant factors affecting other instruments and play main roles within policy application for SMEs. In the meanwhile, scientific & technical and information are the factors intensely affected by other policies.