Multiple criteria decision making for supplier selection and cross-cultural considerations: Case study of the United Kingdom / United Arab Emirates construction industry

Supplier selection is an essential part of business activity in the supply chain. The failure or success of organisations depends on suppliers and their attributes. As the supply chains become increasingly globalised, supplier selection requires an understanding of cross-cultural differences in decision-making. Supplier selection is based on well-established criteria that can differ between industries and individuals, and the perceived importance of supplier attributes as selection criteria drive the decision process. The main objectives of the current research were to investigate the levels of importance attributed to the selection criteria and sub-criteria. The research also aimed to reveal differences in supplier selection between two cultural groups, specifically the United Kingdom (UK) and the United Arab Emirates (UAE). Additionally, this research aimed to examine the key supplier selection criteria from the construction industry. This industry was selected due to its important contribution to the national economies of the UK and UAE. Furthermore, the research aimed to develop a mathematical model for the supplier selection process that can be employed in the construction industry to address gaps in previous studies. Prior studies argued that the development of a simple mathematical model would facilitate a better understanding of supplier selection process. To achieve the above goals, the current research employed a mixed research method. It used qualitative and quantitative research methods. Interviews were used for the qualitative method, while a questionnaire was used for the quantitative method. The supplier selection decision makers were approached to participate in the research. These decision makers consisted of the chief executive officer or president, purchasing managers, supply chain managers, operation managers, and logistics managers. There were 100 research participants: 50 participants from each country (the UK and UAE). They were interviewed and filled in the questionnaire. Qualitative data was analysed with thematic analysis and the quantitative data was analysed with Analytic Hierarchy Process (AHP). The current research found that previous studies focused on quality, cost and price, delivery, and other factors as the critical supplier selection criteria. It was also found that previous studies ignored the cultural attributes and corporate social responsibility selection criteria. It was found that previous studies had not examined the construction industry, especially from two different regions with alternative cultural values. After analysing collected data, the current research found that the most important supplier selection criteria in the construction industry are financial position and quality management system. Complementarily, the results showed that there were similarities and significant differences between the UK and UAE in terms of the importance of selection criteria. The results also showed that there was a further similarity between green practices and supplier logistics. The results revealed that the cultural attributes of suppliers were the least important selection criteria compared with the other criteria available in the current research framework. Meanwhile, the results noted there was a cultural influence on the supplier selection process. The results of the current research increase our understanding of the supplier selection criteria, and the cultural influence on the selection decision-making, especially in the construction industry. Additionally, the current research provides a framework of the most important selection criteria for suppliers in the construction industry.