A hybrid AHP-MAUT model for assessing competitiveness of construction companies: a case study of construction companies in Vietnam and Canada

Abstract

Purpose The construction industry is facing an enormous number of challenges due to continuous advancements in construction technologies and techniques. Hence, construction management theories have to confront critical newly issues concerning market globalization and construction innovations. The key factor to address these challenges is to ameliorate the competitive abilities of the competing construction firms. In this context, measuring competitiveness of construction firms is an efficacious approach to amplify their competitive growth and profitability. To this end, the purpose of this research paper is to design a three-tier multi-criteria decision making model for competitiveness assessment and benchmarking of construction companies, meanwhile tackling a wide range of essential factors and attributes that covers broad aspects of the present competitive market. Design/methodology/approach In the first tier, four new pillars (4P) of competitiveness assessment are introduced for construction firms, namely, organization performance, project performance, environment and client and innovation and development. These pillars are able to aid in construction firms’ management on both long and short term basis. Hence, 21 key competitive factors and eighty key competitive criteria are identified, incorporated and analyzed in this research study. The second tier encapsulates carrying out a questionnaire survey in the Canadian and Vietnamese market to garner two main sets of information. The first set of information incorporates responses of the pairwise comparisons between competitiveness factors and criteria. The second set involves gathering utility scores pertinent to each competitiveness criteria. The developed model then leverages the use of analytical hierarchy process to scrutinize the relative importance priorities of competitiveness factors and criteria. The third tier of the developed model encompasses the use of multi-attribute utility theory to compute competitiveness scores for construction companies through blending criteria’ relative importance weights alongside their respective utility functions. In addition, the third tier comprises conducting a sensitivity analysis to derive the most important criteria influencing the overall competitiveness of construction companies. The developed model is tested and validated using three case studies; one construction company from Canada and two construction companies from Vietnam. Findings Results demonstrated that the developed model has a potential to render a synthesized and methodical performance evaluation for the competitive ability of a given construction company. Furthermore, it was found that Vietnamese companies are more considerate towards pillars pertaining to environment and client while Canadian companies are more attentive towards innovation and development. The outcome of sensitivity analysis revealed that effectiveness of cost management highly affects the competitive ability of Vietnamese companies while effectiveness of cost management exhibits the most significant influence on the competitive of Canadian companies. Practical implications The developed model can benefit construction companies to understand their competitiveness in their market and diagnose their strengths and weaknesses. It is also can be useful in efficient utilization of their limited resources and development of sustainable and long-term strategic plans strategic plans, which consequently leads to maintaining better position in their dynamic business markets. Originality/value Literature review manifests that reported competitiveness assessment models and practices are not able to address present challenges, technologies and developments in construction market.

Model for measuring competitiveness in construction companies in Lima–Peru

“…The comparison of the proposed model in this study with the model presented by Ngoc et al (2023) provides some additional significant perceptions. In the proposal of Ngoc et al, it is paid attention to the external factors and their influence in the competitiveness, such as market fluctuations and technology evolution.…”

“…In a more recent approach, Ngoc et al (2023) developed the Analytical Hirarchy Process and Multi-Attribute Utility Theory (AHP-MAUT) model, which aspires to provide an exhaustive and comparative competitiveness evaluation of construction companies, considering a wide range of essential factors and attributes which cover many aspects of the competitive market. This model is structured in three levels: organizational performance, project performance, environment and client and innovation and development.…”

“…This model is structured in three levels: organizational performance, project performance, environment and client and innovation and development. Although, it is ARLA 37,1 argued that these performances are effects, not causes of the competitiveness; in order to be considered competitiveness factors, the environment and the client should be redefined as an adaptive ability to the environment and customer service, respectively (Ngoc et al, 2023).…”

“…This study is based on the AHP-MAUT model of Ngoc et al (2023) with some modifications in the election of the competitiveness factors and the calculation mode. It is looked for a deep analysis of the components which contribute to the competitiveness in the construction field, as a consequence, it is developed a theoretical model based on the fundamental elements of construction companies, collected using expert opinions.…”

“…Furthermore, while the model of Ngoc et al (2023) is focused in the relations among individual factors and competitiveness, our model tries to considerate interaction of multiple internal factors and how they can work together to increase the competitiveness of a construction company. This holistic approach offers a more integrated view of how different internal elements can interact and contribute to the general competitiveness of the company.…”