A Study on Priority Factors of Competitiveness and Performance of Manufacturing Companies Using Analytical Hierarchy Processes (AHP)
Musran Munizu, Kasman Damang, Armayah, Muhammad Asdar, Nurdin Brasit

Faculty of Economics and Business, Hasanuddin University

Abstract

Implementation of some best management practices such as supply chain management, total quality management, and quality culture can encourage increased competitiveness and business performance. The purpose of this study was to identify and validate the priority factors that determine the competitiveness and performance of manufacturing companies in South Sulawesi. This study was conducted in Makassar City, Gowa Regency, and Maros Regency. The key informant in this study consists of managers, governments, associations, and universities with purposive sampling technique. Method of data analysis used descriptive statistics and analytical hierarchy processes (AHP). The results showed that competitiveness and performance of manufacturing companies is determined by some priority factors, namely the companys partnership with its suppliers and customers, information sharing, management supervision policies, cost efficiency policies, product quality, innovation capabilities, speed of product delivery, flexibility, long-term relationship orientation with partners, and service mission based on customer need. In addition, increasing competitiveness and performance of manufacturing companies is also determined by the dynamics of the business environment and government policies support.

Keywords: Priority factors, competitiveness, business performance, manufacturing industry

Topic: Socio-economic issues