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Country Selection Model for Sustainable Construction Businesses Using Hybrid of Objective and Subjective Information

Author

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  • Kang-Wook Lee

    (Korea Research Center for Overseas Construction, International Contractors Association of Korea, Seoul 04513, Korea)

  • Wooyong Jung

    (Department of Civil and Environmental Engineering, Yonsei University, Seoul 03722, Korea)

  • Seung Heon Han

    (Department of Civil and Environmental Engineering, Yonsei University, Seoul 03722, Korea)

Abstract

An important issue for international businesses and academia is selecting countries in which to expand in order to achieve entrepreneurial sustainability. This study develops a country selection model for sustainable construction businesses using both objective and subjective information. The objective information consists of 14 variables related to country risk and project performance in 32 countries over 25 years. This hybrid model applies subjective weighting from industrial experts to objective information using a fuzzy LinPreRa-based Analytic Hierarchy Process. The hybrid model yields a more accurate country selection compared to a purely objective information-based model in experienced countries. Interestingly, the hybrid model provides some different predictions with only subjective opinions in unexperienced countries, which implies that expert opinion is not always reliable. In addition, feedback from five experts in top international companies is used to validate the model’s completeness, effectiveness, generality, and applicability. The model is expected to aid decision makers in selecting better candidate countries that lead to sustainable business success.

Suggested Citation

  • Kang-Wook Lee & Wooyong Jung & Seung Heon Han, 2017. "Country Selection Model for Sustainable Construction Businesses Using Hybrid of Objective and Subjective Information," Sustainability, MDPI, vol. 9(5), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:5:p:800-:d:98285
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    Cited by:

    1. A. Kamaletdinov Sh. & A. Ksenofontov A. & А. Камалетдинов Ш. & А. Ксенофонтов А., 2018. "Моделирование Доходов Социально-Экономических Систем На Основе Производственной Функции // Modeling Of Income Of Socio-Economic Systems On The Basis Of The Production Function," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 22(1), pages 118-127.
    2. Jin Woo Won & Wooyong Jung & Seung Heon Han & Sungmin Yun & Bonsang Koo, 2019. "What Enables a High-Risk Project to Yield High Return from a Construction Contractor’s Perspective?," Sustainability, MDPI, vol. 11(21), pages 1-17, October.

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