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Organizational decline and bankruptcy prediction model for the Turkish construction companies

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2007
Şapçı (Eğilmezer), Nurdan
Within the scope of this research, factors contributing to the decline and failure in the Turkish construction industry are examined by the aid of a broad literature review and a Delphi Study conducted among respondents selected to be civil engineers who experienced organizational decline and/or bankruptcy throughout their professional lives. Based on the identified factors and their interrelations, Analytical Network Process (ANP) is used to quantify the relative importance of these factors on “Organizational Decline/Bankruptcy of the Turkish Construction Companies”. Organizational Decline/Bankruptcy evaluation and prediction model to be used by the construction company managers as a decision support tool is constructed. As a result of the ANP analysis, importance of management competency and companies’ intangible resources such as organizational knowledge and its technical and technological capabilities came out to be the most important factors effective on the fate of the company to success or bankruptcy whereas external factors such as economic and political changes; which are effective on all kind of industries commonly, occurred to be the least effective factors that directly affect business failure.