Partner selection and performance evaluation framework for a construction-related virtual enterprise: A multi-agent systems approach

Nyongesa, H O; Musumba, G W and Chileshe, N (2017) Partner selection and performance evaluation framework for a construction-related virtual enterprise: A multi-agent systems approach. Architectural Engineering and Design Management, 13(5), pp. 344-364. ISSN 1745-2007

Abstract

To exploit market opportunities, disparate enterprises can pool their core competencies to form a temporary organisation. This inter-organisational collaboration of enterprises is commonly referred to as a virtual enterprise (VE). However, the VEs' partner selection problems influence their overall performance. Due to the limited construction-specific studies on the evaluation and selection of partners, the current research sought to address this knowledge gap by investigating the partner selection problem. The partners comprising 10 construction companies carrying out project tasks for a large building in Nairobi, Kenya, were evaluated. Data were collected using a sequential mixed-methods approach consisting of a focus group interview, questionnaires and algorithms. The study proposed the use of the partner selection and performance evaluation technique. This technique combines fuzzy approximate reasoning with the conventional analytic hierarchy process algorithm, designed to deal with imprecise evaluators' judgments. A multi-agent systems approach was chosen to simulate VEs. Results show that the chosen techniques are both efficient and effective. In particular, the reduced group fuzzy analytic hierarchy process reduces the number of pairwise comparisons required when comparing a large number of attributes. Application to the construction management domain, in particular, is germane to the research.To exploit market opportunities, disparate enterprises can pool their core competencies to form a temporary organisation. This inter-organisational collaboration of enterprises is commonly referred to as a virtual enterprise (VE). However, the VEs' partner selection problems influence their overall performance. Due to the limited construction-specific studies on the evaluation and selection of partners, the current research sought to address this knowledge gap by investigating the partner selection problem. The partners comprising 10 construction companies carrying out project tasks for a large building in Nairobi, Kenya, were evaluated. Data were collected using a sequential mixed-methods approach consisting of a focus group interview, questionnaires and algorithms. The study proposed the use of the partner selection and performance evaluation technique. This technique combines fuzzy approximate reasoning with the conventional analytic hierarchy process algorithm, designed to deal with imprecise evaluators' judgments. A multi-agent systems approach was chosen to simulate VEs. Results show that the chosen techniques are both efficient and effective. In particular, the reduced group fuzzy analytic hierarchy process reduces the number of pairwise comparisons required when comparing a large number of attributes. Application to the construction management domain, in particular, is germane to the research.

Item Type: Article
Uncontrolled Keywords: contractors; decision-making; partner selection; virtual enterprise; Kenya; multi-criteria decision-making model; multi-agent systems; fuzzy logic; analytic hierarchy process; goal programming
Index terms: virtual enterprise, goal programming, fuzzy analytic hierarchy process, Kenya, performance evaluation, decision-making, collaboration, multi-agent system, questionnaire, construction company, temporary organization, reasoning, partner selection, Nairobi, interview, judgment, multi-criteria decision-making, fuzzy logic, focus group
Subjects: dispute resolution, data collection methods, organization, data science, artificial intelligence, organizational theory, Geography, management, performance measurement, algorithms, decision-making and optimization, information systems, partnership management, cognitive psychology, decision analysis
Topics: Legal Issues, Digital Applications, Quality Management, Organizational Design, Business Strategy, Geographical Context, Project Management, Research Practice, Stakeholder Management, Risk Management
Descriptive scope: 4 PCEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here