THE ANALYTIC HIERARCHY PROCESS METHOD TO DESIGN STRATEGIC DECISION MAKING FOR THE EFFECTIVE ASSESSMENT OF SUPPLIER SELECTION IN CONSTRUCTION INDUSTRY

Purpose - Endemic uncertainty of the environment within a limited time framework tend to complicate the decision-making process. This study aims to analyze the selection of the optimal supplier that meets the necessary criteria such as product features, supplier features, and delivery conditions.Methodology - Increasing market pressure in the construction industry compels companies to make quick and good decisions conducting strategic analyses. In this regard, information asymmetry is a crucial concept that requires managers to use different models during the decision-making process not only for their own benefit but also for the sake of all stakeholders. Analytic Hierarchy Process Method is used to evaluate suppliers’ characteristics that tend to consist of numerous interdependent variables and complex relationships.Findings - Supplier A has relatively better product features and supplier features. Addressing fundamental issues in supplier selection has been increasingly gaining ground in the construction industry in order to maintain a competitive advantage in regard to both cost and time efficiency as well as sustainability.Conclusion - Companies operate in an environment where decisions are ought to be handled in a rather holistic way. When managers are about to make robust decisions, they are ultimately obliged to feel responsible to both the company and various groups of stakeholders. Overall, decision-making is of vital importance for corporates both in a macro perspective due to existing ecological concerns and also in a micro perspective in terms of sustainability.

Keywords:

Analytic Hierarchy Process, strategy, decision-making, supplier selection construction industry,

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Research Journal of Business and Management-Cover

Yayın Aralığı: Yılda 4 Sayı
Başlangıç: 2014
Yayıncı: PressAcademia

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