An Extensive Group Decision Methodology for Alliance Partner Selection Problem in Collaborative Networked Organisations

More and more companies address collaborations and cooperation as strategic topics to build competitive networks and broaden the global competences provided by the community thus created. These companies can cooperate with partners to share resources, competences, risks, or costs. Besides, penetrating new markets can be easier when associating new partners. The selection process of an adequate partner considered for a specific objective is a key success factor. This paper proposes an evaluation methodology for selecting an alliance partner in the case of a network of enterprises, manufacturing high precision mechanical components. An extensive group decision methodology is developed using both quantitative data and qualitative judgments in the evaluation of criteria. Since some performances cannot be represented with crisp numbers, the proposed methodology allows experts to use linguistic variables to express their judgments for the assessment of qualitative criteria. Two main phases are integrated in this methodology. In the first phase, criteria and experts weightings are calculated to determine the criteria importance using fuzzy the analytical hierarchy process. In the second phase, a technique for order preference by similarity to ideal solution is proposed to rank the different alternatives, corresponding to the alternative partnerships.

[1]  Hui-Mei Chen,et al.  The performance of marketing alliances between the tourism industry and credit card issuing banks in Taiwan , 2005 .

[2]  Cengiz Kahraman,et al.  Prioritization of human capital measurement indicators using fuzzy AHP , 2007, Expert Syst. Appl..

[3]  Ching-Lai Hwang,et al.  Multiple Attribute Decision Making: Methods and Applications - A State-of-the-Art Survey , 1981, Lecture Notes in Economics and Mathematical Systems.

[4]  Fei Ye,et al.  An extended TOPSIS method with interval-valued intuitionistic fuzzy numbers for virtual enterprise partner selection , 2010, Expert Syst. Appl..

[5]  Harri I. Kulmala,et al.  Co-Evolution of Trust and Dependence in Customer-Supplier Relationships , 2008 .

[6]  Cheng Wu,et al.  Ontology based decision support system for partner selection of virtual enterprises , 2001, 2001 IEEE International Conference on Systems, Man and Cybernetics. e-Systems and e-Man for Cybernetics in Cyberspace (Cat.No.01CH37236).

[7]  B. Hope,et al.  Information flows in a New Zealand Sheep Meat Supply Chain , 2004, ACIS.

[8]  J. Child,et al.  Strategies of cooperation: managing alliances, networks, and joint ventures , 2000 .

[9]  Zeshui Xu,et al.  An interactive method for fuzzy multiple attribute group decision making , 2007, Inf. Sci..

[10]  van der Jeltje Meer-Kooistra,et al.  Management control of inter-firm transactional relationship , 2004 .

[11]  Da Ruan,et al.  Fuzzy group decision making for selection among computer integrated manufacturing systems , 2003, Comput. Ind..

[12]  A. Kadefors Trust in project relationships-inside the black box , 2004 .

[13]  Wann-Yih Wu,et al.  The analytic network process for partner selection criteria in strategic alliances , 2009, Expert Syst. Appl..

[14]  Kim Langfield-Smith,et al.  Management control systems and trust in outsourcing relationships , 2003 .

[15]  Zeshui Xu,et al.  An automatic approach to reaching consensus in multiple attribute group decision making , 2009, Comput. Ind. Eng..

[16]  Fredrik Hacklin,et al.  Strategic venture partner selection for collaborative innovation in production systems: A decision support system-based approach , 2004 .

[17]  Gwo-Hshiung Tzeng,et al.  Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS , 2004, Eur. J. Oper. Res..

[18]  Jau-Shien Chang,et al.  Selecting appropriate sellers in online auctions through a multi-attribute reputation calculation method , 2011, Electron. Commer. Res. Appl..

[19]  Fei Ye,et al.  Group multi-attribute decision model to partner selection in the formation of virtual enterprise under incomplete information , 2009, Expert Syst. Appl..

[20]  Yu Dongmei,et al.  A multi-objective optimization model of the partner selection problem in a virtual enterprise and its solution with genetic algorithms , 2006 .

[21]  Yadong Luo Partnering with foreign businesses: perspectives from Chinese firms , 2002 .

[22]  E. Ertugrul Karsak,et al.  Distance-based fuzzy MCDM approach for evaluating flexible manufacturing system alternatives , 2002 .

[23]  Hans-Jürgen Zimmermann,et al.  Fuzzy Set Theory - and Its Applications , 1985 .

[24]  Binshan Lin,et al.  Accessing information sharing and information quality in supply chain management , 2006, Decis. Support Syst..

[25]  Gin-Shuh Liang,et al.  Using fuzzy MCDM to select partners of strategic alliances for liner shipping , 2005, Inf. Sci..

[26]  Gülçin Büyüközkan,et al.  Selection of the strategic alliance partner in logistics value chain , 2008 .

[27]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[28]  Moses Acquaah International joint venture partner origin, strategic choice, and performance: A comparative analysis in an emerging economy in Africa , 2009 .

[29]  Selin Soner Kara,et al.  A hybrid fuzzy MCDM approach to machine tool selection , 2008, J. Intell. Manuf..

[30]  Ching-Hsue Cheng,et al.  Fuzzy hierarchical TOPSIS for supplier selection , 2009, Appl. Soft Comput..

[31]  Andreas C. Georgiou,et al.  A goal programming model for partner selection decisions in international joint ventures , 2002, Eur. J. Oper. Res..

[32]  Ting-Yu Chen,et al.  The interval-valued fuzzy TOPSIS method and experimental analysis , 2008, Fuzzy Sets Syst..

[33]  Hong Tau Lee,et al.  An analytic hierarchy process approach with linguistic variables for selection of an R&D strategic alliance partner , 2010, Comput. Ind. Eng..

[34]  E. Stanley Lee,et al.  An extension of TOPSIS for group decision making , 2007, Math. Comput. Model..

[35]  I. Graham Fuzzy set theory and its applications (2nd Edition): This book by H.-J. Zimmermann is published by Kluwer Academic Publisher, Dordrecht (1991, 399 pp, US$69.95, ISBN 0-7923-9075-X). , 1991 .

[36]  Edward Levitas,et al.  Selecting partners for successful international alliances: Examination of U.S. and Korean firms , 1997 .

[37]  Julita Vassileva,et al.  A Review on Trust and Reputation for Web Service Selection , 2007, 27th International Conference on Distributed Computing Systems Workshops (ICDCSW'07).

[38]  Ludmil Mikhailov,et al.  Fuzzy analytical approach to partnership selection in formation of virtual enterprises , 2002 .

[39]  H. Zimmermann,et al.  Fuzzy Set Theory and Its Applications , 1993 .

[40]  A. I. Ölçer,et al.  A new fuzzy multiple attributive group decision making methodology and its application to propulsion/manoeuvring system selection problem , 2005, Eur. J. Oper. Res..

[41]  Da Ruan,et al.  Fuzzy group decision-making for facility location selection , 2003, Inf. Sci..

[42]  C. Hwang Multiple Objective Decision Making - Methods and Applications: A State-of-the-Art Survey , 1979 .

[43]  Emad Roghanian,et al.  Comparison of first aggregation and last aggregation in fuzzy group TOPSIS , 2010 .

[44]  Kent E. Neupert Prices, Quality and Trust: Inter-Firm Relations in Britain and Japan , 1994 .

[45]  Loon Ching Tang,et al.  Analysis of the Cargo Service Dynamics in East Asian Airports , 2010, Int. J. Appl. Logist..

[46]  Sylvia B. Encheva,et al.  Partner Selection for Interfirm Collaboration in Ship Design , 2010, Ind. Manag. Data Syst..

[47]  Anne Marie Doherty,et al.  Market and partner selection processes in international retail franchising , 2009 .

[48]  Cengiz Kahraman,et al.  Multi-attribute comparison of catering service companies using fuzzy AHP: The case of Turkey , 2004 .

[49]  Naiqi Wu,et al.  Selection of partners in virtual enterprise paradigm , 2005 .

[50]  J. van der Meer-Kooistra,et al.  Management control of interfirm transactional relationships: the case of industrial renovation and maintenance - Design and methods , 1999 .

[51]  Naoufel Cheikhrouhou,et al.  A multi-criteria model for the evaluation of business benefits in horizontal collaborative networks , 2010, J. Intell. Manuf..

[52]  Li Dong,et al.  Motives and partner selection criteria in international strategic alliances: Perspectives of Chinese firms , 2006 .

[53]  A. Kaufmann,et al.  Introduction to fuzzy arithmetic : theory and applications , 1986 .

[54]  Mikkel Lucas Overby Partner Selection Criteria in Strategic Alliances When to Ally with Weak Partners , 2005 .

[55]  Sheu Hua Chen,et al.  Applying ANP approach to partner selection for strategic alliance , 2008 .

[56]  William Yu Chung Wang,et al.  Supply Chain Management: Issues in the New Era of Collaboration And Competition , 2006 .