The Influence of Statistical Normalization Techniques on Performance Ranking Results

In this study, the most suitable normalization techniques for the multi-criteria decision making (MCDM) method proposed by Biswas and Saha were compared and a real situation was analyzed. In the study, the financial performance of the top 10 companies on the FORTUNE 500 list for 2019 was evaluated using seven financial ratios and five well-known normalization techniques. The results have shown that the max normalization procedure generated the most consistent results for Biswas and Saha’s MCDM method. The study is the first to test the suitability of different normalization techniques for the MCDM method proposed by Biswas and Saha. Also, this paper provides decision support that can be used for the selection of the best normalization techniques for other MCDM methods.