Partner selection for international construction projects by using fuzz ANP


Aydoʇan G., KÖKSAL IŞIKKAYA A. , TÜYSÜZ F.

1st International Conference on Engineering and Applied Sciences Optimization, OPT-i 2014, Kos Island, Greece, 4 - 06 June 2014, pp.1932-1944 identifier

  • Publication Type: Conference Paper / Full Text
  • Volume:
  • City: Kos Island
  • Country: Greece
  • Page Numbers: pp.1932-1944

Abstract

International construction projects involve risks related to the political, economic and socio-economic environment of the host country. International contractors usually adopt joint ventures (JVs) in order to reduce the effects of the host country related risk factors. Considering the political, economic and socio-cultural environment of a foreign country and selecting an appropriate partner is essential for the operation of a successful venture. The aim of this study is to develop a partner selection model for ICJVs due to host country related risk factors among potential partners. Since, partner selection for ICJVs due to host country related risk factors encompasses several criteria and each criterion has numerous detailed subcriteria, it is a typical multiple criteria decision-making problem which requires both quantitative and qualitative factors to be evaluated. In the evaluation of the qualitative criteria, the desired value and the weight of importance for the criteria are usually defined in linguistic terms. The conventional approaches tend to be less effective in dealing with the imprecision or vagueness nature of the linguistic assessment. Consequently, the use of the fuzzy set theory and multi-criteria approach for evaluating partner selection factors for ICJVs due to host country related risk factors seems more convenient as it allows decision makers to express their ideas more adequately. Finally, fuzzy ANP is selected as the most appropriate tool for this study. The priorities and the weights of the determined risk factors are also revealed within the context of this study. Industry practitioners may assume the weighted criteria for partner selection or apply fuzzy ANP approach to determine the priorities of their own set o selection criteria.