SWOT-AHP hybrid method for ranking the strategies in the shipbuilding sector
Abstract
The paper outlines the most important shipbuilding strategies in Romania that would allow this industry to increase its performance to be competitive. The research is mainly based on the collection of information from experts in the field from ANCONAV (Romanian Shipbuilders Association), specialists in design and production, and shipyard managers in Romania. The SWOT analysis was based on this information and was the starting point in formulating the strategies. The quantitative determination of the importance of each factor and sub-factor from the SWOT matrix in view of ranking the strategies, but also the verification of the points of view of the experts in the field were performed using the Analytical Hierarchy Process Method (AHP), using Excel applications. The obtained results consisted in identifying the internal and external environmental factors and formulating the main strategies with positive effects on the Romanian naval sector (the development of a Romanian cluster, the consolidation of the position on the global ship market through aggressive marketing, investments regarding the construction of ecological ships, the development of centers of excellence for exploiting the research-development-innovation capacity, the limitation of highly-skilled labor migration, expanding the digitalization, and developing a marketing policy to promote the national shipbuilding companies globally).
Keyword : SWOT matrix, AHP, pairwise comparisons, local priorities of the factors, ranking the strategies, shipbuilding sector
How to Cite
Popescu, G., & Gasparotti, C. (2022). SWOT-AHP hybrid method for ranking the strategies in the shipbuilding sector. Journal of Business Economics and Management, 23(3), 706–730. https://doi.org/10.3846/jbem.2022.17029
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Bucak, U., Dinçer, M. F., & Demirel, H. (2019). Evaluation of the maritime 4.0 using the AHP method. In Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation (pp. 123–137), Selçuk, İzmir. UCTEA Turkish Chamber of Marine Engineers. https://gemimo.org/Data/Uploads/files/GMC-2019-Proceedings_02082019%20(1)%23page%3D%5B1-873%5D.pdf
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Hozairi, Buhari, Lumaksono, H., & Tukan, M. (2020). The strategy determination to improve marine security using SWOT-AHP. Earth and Environmental Sciences, 469, 012099, 1–8. https://doi.org/10.1088/1755-1315/469/1/012099
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Lumaksono, H. (2014). Implementation of SWOT-FAHP method to determine the best strategy on development of traditional shipyard in sumenep. Academic Research International, 5(5), 56–67. http://www.savap.org.pk/journals/ARInt./Vol.5(5)/2014(5.5-07).pdf
Madsen, D. Ø. (2016). SWOT analysis: A management fashion perspective. International Journal of Business Research, 16(1), 39–56. https://doi.org/10.18374/IJBR-16-1.3
Ma’ruf, B., Okumoto, Y., & Widjaja, S. (2006). Environment-based strategic management model for Indonesia’s medium-sized shipyards. Journal of Ship Production, SNAME, 22(4), 195–202. https://doi.org/10.5957/jsp.2006.22.4.195
Ma’ruf, B. (2009). Strategic analysis of the Indonesian shipyards to sustain in new building business. International Journal of Logistics and Transport, 3(1), 81–90. http://www.ijmbe.net/uploads/articles/article-002-Buana-1570635114.pdf
Mascaraque-Ramírez, C., Para-González, L., & Moreno-Sánchez, D. (2018). Improvement of the construction project of tuna purse seine vessels through a cost and term analysis. Ships and Offshore Structures, 13(1), 20–27. https://doi.org/10.1080/17445302.2017.1335576
Monteiro, P., de Noronha, T., & Paulo Neto, P. (2013). A differentiation framework for maritime clusters: Comparisons across Europe. Sustainability, 5(9), 4076–4105. https://doi.org/10.3390/su5094076
Namugenyi, C., Nimmagadda, S. L., & Reiners, T. (2019). Design of a SWOT analysis model and its evaluation in diverse digital business ecosystem contexts. Procedia Computer Science, 159, 1145–1154. https://doi.org/10.1016/j.procs.2019.09.283
Panagiotou, G. (2003). Bringing SWOT into focus. Business Strategy Review, 14(2), 8–10. https://doi.org/10.1111/1467-8616.00253
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 24–40.
Putu, Y., Rizal, O., Ahmadi S., & Suharyo, O. S. (2017). Feasibility analysis of naval base relocation using SWOT and AHP method to support main duties operation. Journal of Defense Management, 7(1), 1–8. https://doi.org/10.4172/2167-0374.1000160
Saaty, T. L. (1980). The analytic hierarchy process. McGraw-Hill. https://doi.org/10.21236/ADA214804
Saaty, T. L. (1994). How to make a decision: the analytic hierarchy process. Interface, 24(6), 19–43. https://doi.org/10.1287/inte.24.6.19
Sahin, B., Senol, Y. E., Bulut, E., & Okan Duru, O. (2015). Optimizing technology selection in maritime logistics. Research in Logistics and Production, 5(3), 299–309. http://research.logistyka-produkcja.pl/images/stories/Numer_18Spec/RLP032015Spec6.pdf
Sánchez-Sotano, A., Cerezo-Narváez, A., Abad-Fraga, F., Pastor-Fernández, A., & Salguero-Gómez, J. (2020). Trends of digital transformation in the shipbuilding sector. In New trends in the use of artificial intelligence for the industry 4.0. InTechOpen. https://doi.org/10.5772/intechopen.91164
Shiwakoti, S., & Regmi, S. (2022). Strategic analysis of the Nepal electricity authority: A SWOT-AHP analysis based on stakeholders’ perceptions. International Journal of the Analytic Hierarchy Process, 14(1), 1–31. https://doi.org/10.13033/ijahp.v14i1.944
Syahtaria, I., Sukarno, S., Mashudi, A., & Widodo, E. (2019). SWOT application on determining ship yard development strategies: A case study. International Journal of ASRO, 10(03), 37–41. https://doi.org/10.37875/asro.v10i3.148
Şenol, Y. E., Gökçek, V., & Seihan, A. (2017). SWOT-AHP analysis of autonomous shipping. International Multidisciplinary Congress of Eurasian (pp. 58–69). Rome, Italy. https://avesis.itu.edu.tr/arama?q=SWOT-AHP+Analysis+of+Autonomous+Shipping
Stefan, D., Vasile, V., Oltean, A., Comes, C.-A., Stefan, A.-B., Ciucan-Rusu, L., Bunduchi, E., Popa, M.-A., & Timus, M. (2021). Women entrepreneurship and sustainable business development: Key findings from a SWOT–AHP analysis. Sustainability, 13, 5298. https://doi.org/10.3390/su13095298
Tummala, V. M. R., Chin, K. S., & Ho, S. H. (1997). Assessing success factors for implementing CE: A case-study in Hong Kong electronics industry by AHP. International Journal of Production Economics, 49(3), 265–283. https://doi.org/10.1016/S0925-5273(97)00016-9
Veličkovska, I. (2022). Implementation of a SWOT-AHP methodology for strategic development of a district heating plant in fuzzy environment. Strategic Management, 27(1), 43–56. https://doi.org/10.5937/StraMan2110001V
Weihrich, H. (1982). The TOWS matrix – A tool for situational analysis. Long Range Planning, 15(2), 54–66. https://doi.org/10.1016/0024-6301(82)90120-0
Wickramasinghe, V., & Takano, S. (2010). Application of combined SWOT and Analytic Hierarchy Process (AHP) for tourism revival strategic marketing planning: A case of Sri Lanka tourism. Journal of the Eastern Asia Society for Transportation Studies, 8, 954–969. https://www.jstage.jst.go.jp/article/easts/8/0/8_0_954/_pdf
Yasseri, S. (2012). Subsea technologies selection using analytic hierarchy process. International Journal of the Society for Underwater Technology, 30(3), 151–164. https://doi.org/10.3723/ut.30.151
Yuksel, I., & Dagdeviren, M. (2007). Using the analytical network process (ANP) in a SWOT analysis – A case study for a textile firm. Information Sciences, 177, 3364–3382. https://doi.org/10.1016/j.ins.2007.01.001
Alho, J. M., & Kangas, J. (1997). Analyzing uncertainties in experts’ opinions of forest plan performance. Forest Science, 43, 521–528. https://doi.org/10.14214/sf.677
Anwar, R. N., Faturachman, D., Quintania, M., Sirait, H., & Setiawati, R. (2020). Competitive advantage analysis of shipyard companies in Indonesia. International Journal of Marine Engineering Innovation and Research, 5(2), 111–116. https://doi.org/10.12962/j25481479.v5i2.7032
Akyuz, E., & Celik, M. (2017). Using of A’WOT to design an enhanced planned maintenance system (e-PMS) on-board ship. Brodogradnja: Teorija i praksa brodogradnje i pomorske tehnike, 68(1), 61–75. https://doi.org/10.21278/brod68104
Baso, S., Musrina, M., & Anggriani, A. D. E. (2020). Strategy for improving the competitiveness of shipyards in the Eastern part of Indonesia. KAPAL: Jurnal Ilmu Pengetahuan dan Teknologi Kelautan, 17(2), 74–85. https://doi.org/10.14710/kapal.v17i2.29448
Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), 55–73. https://doi.org/10.5038/2640-6489.6.1.1148
Bucak, U., Dinçer, M. F., & Demirel, H. (2019). Evaluation of the maritime 4.0 using the AHP method. In Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation (pp. 123–137), Selçuk, İzmir. UCTEA Turkish Chamber of Marine Engineers. https://gemimo.org/Data/Uploads/files/GMC-2019-Proceedings_02082019%20(1)%23page%3D%5B1-873%5D.pdf
Celik, M. (2010). A key decision-making process on logistic support to merchant ships based on operational requirements: Marine supplier selection. Naval Engineers Journal, 122(1), 125–135. https://doi.org/10.1111/j.1559-3584.2010.00235.x
David, F. R., Creek, S. A., & David, F. R. (2019). What is the key to effective SWOT analysis, including AQCD factors? SAM Advanced Management Journal, 84(1), 25–32. https://samnational.org/journal/vol84ed1/
Hossain, K. A., Zakariaa, N. M. G., & Sarkara, M. A. R. (2017). SWOT analysis of China shipbuilding industry by third eyes. Procedia Engineering, 194, 241–246. https://doi.org/10.1016/j.proeng.2017.08.141
Hozairi, Buhari, Lumaksono, H., & Tukan, M. (2020). The strategy determination to improve marine security using SWOT-AHP. Earth and Environmental Sciences, 469, 012099, 1–8. https://doi.org/10.1088/1755-1315/469/1/012099
Jain, V., Ajmera, P., & Davim, J. P. (2021). SWOT analysis of Industry 4.0 variables using AHP methodology and structural equation modeling. Benchmarking: An International Journal. https://doi.org/10.1108/BIJ-10-2020-0546
Jooste, C., & Fourie, B. (2009). The role of strategic leadership in effective strategy implementation: Perceptions of South African strategic leaders. Southern African Business Review, 13(3), 51–68. https://www.ajol.info/index.php/sabr/article/view/76341
Juran, J. M., & Defeo, J. A. (2016). Juran’s quality handbook: The complete guide to performance (6 ed.). McGraw Hill Professional.
Kajanus, M., Leskinen, P., Kurttila, M., & Kangas, J. (2012). Making use of MCDS methods in SWOT analysis – lessons learnt in strategic natural resources management. Forest Policy and Economics, 20(C), 1–9. https://doi.org/10.1016/j.forpol.2012.03.005
Killen, C. P., Walker, M., & Hunt, R. A. (2005). Strategic planning using QFD. International Journal of Quality and Reliability Management, 22(1), 17–29. https://doi.org/10.1108/02656710510572968
Kim, S. B., & Whang, K. S. (1993). Forecasting the capabilities of Korean civil aircraft industry. Omega, 21(1), 91–98. https://doi.org/10.1016/0305-0483(93)90041-I
Lee, K.-R. (2019). Analytic comparisons of shipbuilding competitiveness between China and Korea. Journal of Korea Trade, 23(4), 1–16. https://doi.org/10.35611/jkt.2019.23.4.1
Learned, E. P., Christiansen, C. R., Andrews, K., & Guth, W. D. (1969). Business policy: Text and cases. Irwin.
Lumaksono, H. (2014). Implementation of SWOT-FAHP method to determine the best strategy on development of traditional shipyard in sumenep. Academic Research International, 5(5), 56–67. http://www.savap.org.pk/journals/ARInt./Vol.5(5)/2014(5.5-07).pdf
Madsen, D. Ø. (2016). SWOT analysis: A management fashion perspective. International Journal of Business Research, 16(1), 39–56. https://doi.org/10.18374/IJBR-16-1.3
Ma’ruf, B., Okumoto, Y., & Widjaja, S. (2006). Environment-based strategic management model for Indonesia’s medium-sized shipyards. Journal of Ship Production, SNAME, 22(4), 195–202. https://doi.org/10.5957/jsp.2006.22.4.195
Ma’ruf, B. (2009). Strategic analysis of the Indonesian shipyards to sustain in new building business. International Journal of Logistics and Transport, 3(1), 81–90. http://www.ijmbe.net/uploads/articles/article-002-Buana-1570635114.pdf
Mascaraque-Ramírez, C., Para-González, L., & Moreno-Sánchez, D. (2018). Improvement of the construction project of tuna purse seine vessels through a cost and term analysis. Ships and Offshore Structures, 13(1), 20–27. https://doi.org/10.1080/17445302.2017.1335576
Monteiro, P., de Noronha, T., & Paulo Neto, P. (2013). A differentiation framework for maritime clusters: Comparisons across Europe. Sustainability, 5(9), 4076–4105. https://doi.org/10.3390/su5094076
Namugenyi, C., Nimmagadda, S. L., & Reiners, T. (2019). Design of a SWOT analysis model and its evaluation in diverse digital business ecosystem contexts. Procedia Computer Science, 159, 1145–1154. https://doi.org/10.1016/j.procs.2019.09.283
Panagiotou, G. (2003). Bringing SWOT into focus. Business Strategy Review, 14(2), 8–10. https://doi.org/10.1111/1467-8616.00253
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 24–40.
Putu, Y., Rizal, O., Ahmadi S., & Suharyo, O. S. (2017). Feasibility analysis of naval base relocation using SWOT and AHP method to support main duties operation. Journal of Defense Management, 7(1), 1–8. https://doi.org/10.4172/2167-0374.1000160
Saaty, T. L. (1980). The analytic hierarchy process. McGraw-Hill. https://doi.org/10.21236/ADA214804
Saaty, T. L. (1994). How to make a decision: the analytic hierarchy process. Interface, 24(6), 19–43. https://doi.org/10.1287/inte.24.6.19
Sahin, B., Senol, Y. E., Bulut, E., & Okan Duru, O. (2015). Optimizing technology selection in maritime logistics. Research in Logistics and Production, 5(3), 299–309. http://research.logistyka-produkcja.pl/images/stories/Numer_18Spec/RLP032015Spec6.pdf
Sánchez-Sotano, A., Cerezo-Narváez, A., Abad-Fraga, F., Pastor-Fernández, A., & Salguero-Gómez, J. (2020). Trends of digital transformation in the shipbuilding sector. In New trends in the use of artificial intelligence for the industry 4.0. InTechOpen. https://doi.org/10.5772/intechopen.91164
Shiwakoti, S., & Regmi, S. (2022). Strategic analysis of the Nepal electricity authority: A SWOT-AHP analysis based on stakeholders’ perceptions. International Journal of the Analytic Hierarchy Process, 14(1), 1–31. https://doi.org/10.13033/ijahp.v14i1.944
Syahtaria, I., Sukarno, S., Mashudi, A., & Widodo, E. (2019). SWOT application on determining ship yard development strategies: A case study. International Journal of ASRO, 10(03), 37–41. https://doi.org/10.37875/asro.v10i3.148
Şenol, Y. E., Gökçek, V., & Seihan, A. (2017). SWOT-AHP analysis of autonomous shipping. International Multidisciplinary Congress of Eurasian (pp. 58–69). Rome, Italy. https://avesis.itu.edu.tr/arama?q=SWOT-AHP+Analysis+of+Autonomous+Shipping
Stefan, D., Vasile, V., Oltean, A., Comes, C.-A., Stefan, A.-B., Ciucan-Rusu, L., Bunduchi, E., Popa, M.-A., & Timus, M. (2021). Women entrepreneurship and sustainable business development: Key findings from a SWOT–AHP analysis. Sustainability, 13, 5298. https://doi.org/10.3390/su13095298
Tummala, V. M. R., Chin, K. S., & Ho, S. H. (1997). Assessing success factors for implementing CE: A case-study in Hong Kong electronics industry by AHP. International Journal of Production Economics, 49(3), 265–283. https://doi.org/10.1016/S0925-5273(97)00016-9
Veličkovska, I. (2022). Implementation of a SWOT-AHP methodology for strategic development of a district heating plant in fuzzy environment. Strategic Management, 27(1), 43–56. https://doi.org/10.5937/StraMan2110001V
Weihrich, H. (1982). The TOWS matrix – A tool for situational analysis. Long Range Planning, 15(2), 54–66. https://doi.org/10.1016/0024-6301(82)90120-0
Wickramasinghe, V., & Takano, S. (2010). Application of combined SWOT and Analytic Hierarchy Process (AHP) for tourism revival strategic marketing planning: A case of Sri Lanka tourism. Journal of the Eastern Asia Society for Transportation Studies, 8, 954–969. https://www.jstage.jst.go.jp/article/easts/8/0/8_0_954/_pdf
Yasseri, S. (2012). Subsea technologies selection using analytic hierarchy process. International Journal of the Society for Underwater Technology, 30(3), 151–164. https://doi.org/10.3723/ut.30.151
Yuksel, I., & Dagdeviren, M. (2007). Using the analytical network process (ANP) in a SWOT analysis – A case study for a textile firm. Information Sciences, 177, 3364–3382. https://doi.org/10.1016/j.ins.2007.01.001