Prioritizing the Supply Chain of Small and Medium-Sized Enterprises in the Construction Industry Using Multi-Criteria Decision-Making Techniques

Subject Areas : Supply Chain

Abdoljavad Mansouri ¹ , Ebrahim Niknaghsh ^{2 *} , Shahram Bandpey ³ , Ali Mehdizadeh Ashrafi ⁴

1 - Ph.D. Candidate, Department of Industrial Management, Fi.C., Islamic Azad University, Firoozkooh, Iran
2 - Assistant Professor, Department of Industrial Management, Fi.C., Islamic Azad University, Firoozkooh, Iran
3 - Assistant Professor, Department of Industrial Management, Fi.C., Islamic Azad University, Firoozkooh, Iran
4 - Assistant Professor, Department of Industrial Management, Fi.C., Islamic Azad University, Firoozkooh, Iran

Received: 2025-05-19 Accepted : 2025-09-28 Published : 2025-09-28

Keywords: Small Industries, Resource Independence, Employment Share, Product and Market Diversity, Export Share and Multi-criteria Decision-making,

Abstract :

Over the past two decades, global markets have undergone significant structural and qualitative transformations. The accelerating trends toward regionalization and globalization, alongside the transition from a production-centered to a customer-centric paradigm, have reshaped industrial dynamics. To optimize resource utilization and minimize waste, industrial producers have implemented strategies that have redefined industrial structures. A key feature of this evolution is the growing emphasis on small and medium-sized enterprises (SMEs). While large-scale industries still attract attention from policymakers due to economies of scale, scope, organizational capacity, and experience, SMEs have emerged as a competitive alternative, benefiting from advantages such as reduced transportation costs, regulatory flexibility, adaptability, and responsiveness to market demands. In recent years, even in advanced economies, the performance gaps have emerged within the industrial sector, with some SMEs outperforming their larger counterparts. This shift has renewed the discourse on optimal industry scale and highlighted the strategic role of SMEs in national economic development.This study aims to prioritize SMEs operating in the Tehran Industrial Park based on four critical criteria: independence from foreign resources, employment contribution, diversity of products and markets, and export share. Tehran Industrial Park is the only industrial zone beyond a 120-kilometer radius from the capital that is eligible to receive external resources, as stipulated in Iran’s Fourth and Fifth Development Plans. Through an extensive literature review and expert consultation, relevant indicators were identified, and the prioritization was conducted using a Multi-Criteria Decision-Making (MCDM) technique. The expert panel consisted of professionals affiliated with the Industrial Parks Company. The results reveal the following prioritization: 1. Cement industry 2. Construction industry 3. Chemical industry 4. Food industry 5. Automotive parts industry 6. Electrical and electronics industry 7. Wood industry

References:


1. Ahmadi, P., & Ghaffari, M. (2021). Prioritization of Industrial Sectors for Sustainable Economic Development in Iran Using AHP Method. Journal of Industrial Economics, 29(3), 45-63.
2. World Bank (2022). Small and Medium Enterprises (SMEs) Finance: Improving Access and Promoting Growth. Washington, DC: World Bank Publications.
3. OECD (2021). Enhancing SME Competitiveness and Access to Markets. OECD Publishing.
4. Sharifi, A., & Esmaeilzadeh, P. (2020). The Role of Industrial Clusters in Economic Growth of Iran’s Small and Medium Enterprises. Iranian Journal of Economic Studies, 15(2), 125-140.
5. United Nations Industrial Development Organization (UNIDO) (2021). Industrial Development Report 2021: The Future of Small and Medium Enterprises. Vienna: UNIDO.
6. Karimi, H., & Zare, R. (2019). Evaluating the Impact of Export Diversification on Industrial Growth in Iran. Journal of Economic Policy, 24(1), 87-102.
7. Bagheri, M., & Hosseini, S. (2020). Multi-criteria Decision Making for Investment Prioritization in the Iranian Manufacturing Sector. Journal of Operations Research and Management Science, 18(4), 201-215.
8. International Labour Organization (ILO) (2022). Promoting Decent Work in SMEs and Entrepreneurship. Geneva: ILO.
9. Nazari, F., & Sadri, H. (2021). Analysis of Employment Generation in SMEs: Evidence from Iran. Journal of Business Research, 34(1), 33-49.
10. Liu, Y., & Zhang, Q. (2020). Technology Adoption and Employment Growth in Emerging Market SMEs. Technological Forecasting and Social Change, 159, 120174.
11. Hashemi, S., & Mahmoodi, M. (2022). Environmental and Economic Sustainability in Iran’s Industrial Sector: A Priority Setting Approach. Sustainable Development Journal, 30(3), 565-579.
12. Asian Development Bank (2020). SMEs in Asia: Unlocking Potential for Growth and Innovation. Manila: ADB.
13. Chen, J., & Wang, Y. (2021). Export Diversification and Economic Resilience: Insights from Emerging Economies. Economic Modelling, 93, 25-38.
14. Etemad, H., & Wright, R. (2019). Entrepreneurship and SME Development in the Middle East and North Africa. Journal of Entrepreneurship in Emerging Economies, 11(2), 131-145.
15. Zare, A., & Karimi, B. (2021). Assessing the Competitiveness of Iranian Industrial Sectors Using Fuzzy AHP. Journal of Industrial Engineering and Management, 14(2), 189-210.
16. United Nations Conference on Trade and Development (UNCTAD) (2022). World Investment Report 2022: Industrial Transformation and SME Development. Geneva: UNCTAD.
17. Rahimi, M., & Jafari, S. (2020). The Effect of Market Access on the Growth of Iranian SMEs: An Empirical Study. Journal of Economic Development, 45(4), 79-94.
18. OECD (2020). The Digitalisation of SMEs: Opportunities and Challenges. OECD SME and Entrepreneurship Papers, No. 13.
19. World Economic Forum (2021). The Future of Manufacturing: Advanced Technologies and Sustainable Growth. Geneva: WEF.
20. Hosseinzadeh, L., & Mohammadi, F. (2023). Investment Prioritization in Industrial Parks Using AHP and Fuzzy Logic: A Case Study in Northern Iran. Journal of Industrial Strategy, 9(1), 15-30.
21. Acs, Z. J., & Audretsch, D. B. (1990). The Economic of Small Firms: A European Challenge. Kluwer Academic Publishers.
22. Birch, D. (1987). Job Creation in America: How Our Smallest Companies Put The Most People to Work. New York: Free Press.
23. Kornai, J. (1990). The Road to a Free Society: Shifting from a Socialist System. New York: Norton.
24. Pior, M. J., & Sable, C. F. (1984). The Second Industrial Divide: Possibilities for Prosperity. New York: Basic Books.
25. Scherer, F. M. (1990). Changing Perspectives on the Firm Size Problem. Ann Arbor: University of Michigan Press.
26. Asian Development Bank (2004). Industrial Competitiveness: The Challenge for Pakistan. Manila: ADB.
27. Behar, A., & Edwards, L. (2004). Estimating Elasticities of Demand and Supply for South African Manufacturing Exports Using a Vector Error Correction Model. Center for the Study of African Economics, Working Paper 204.
28. Hobday, M. (1995). Innovation in East Asia: The Challenge to Japan. Aldershot: Edward Elgar.
29. Itoh, M., & Urate, S. (1994). Small and Medium-Size Enterprises Support Policies in Japan. The World Bank, December 1994.
30. Leila Webster (1991). World Bank Lending for Small and Medium Enterprises: Fifteen Years of Experience.