A study on priority factors of competitiveness and performance of manufacturing companies using Analytical Hierarchy Processes (AHP)

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 analyze 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 are stakeholders which consist of managers, governments, associations, NGO, and universities. Method of data analysis used descriptive statistics and analytical hierarchy processes (AHP). The results showed that some priority factors determine competitiveness and performance of manufacturing companies. Three of the priority factors are management supervision policies, product quality, and information sharing. While the other factors are company's partnership with its suppliers and customers, cost efficiency policies, innovation capabilities, speed of product delivery, flexibility, long-term relationship orientation with partners, and service mission based on customer need. Also, increasing competitiveness and performance of manufacturing companies is also determined by the dynamics of the business environment and government policies support.

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