SELECTION OF SOCKS EXPORT MARKETS FOR TURKEY USING MULTI-CRITERIA DECISION MAKING METHODS

Year 2020, Volume: 38 Issue: 2, 795 - 815, 01.06.2021

Aytaç Yıldız Ahmet Özbek

Abstract

Export provides foreign exchange inflow and reduces unemployment and is, therefore, an important field of economic activity promoted by every country. Turkey is the sixth-largest exporter in the socks industry, which is a strategic export product. In this context, it wants to take first place by increasing its export volume. For this, it must choose the markets which will export well. However, there are many criteria that are effective in selecting the export market place and are independent of exporting countries. It is beneficial to use multi-criteria decision-making (MCDM) methods in the solution of such problems. The aim of this study is to select the most suitable export market to increase Turkey’s socks export volume. Firstly, a survey of export market selection criteria is developed based on a literature review. The survey is completed by export specialists of socks exporting companies in Turkey to determine the most important criteria in the selection of socks export markets. Afterward, between 2014-2018 criterion data of the top 11 countries accounting for 70 percent of the world's total socks imports are derived from the Trade Map Database. 2020 values were obtained using regression analysis. TOPSIS (Technique for Order-Preference by Similarity to Ideal Solution), GRA (Grey Relational Analysis) and ANP (Analytical Network Process) methods are used to evaluate the alternative socks export markets. Sensitivity analysis is performed using TOPSIS, GRA and ANP data. The results are compared to select the best export market for the Turkish socks industry.

Keywords

Socks export, market selection, TOPSIS, GRA, ANP

References

• [1] Akgün, İ., & Erdal, H. (2019). Solving an ammunition distribution network design problem using multi-objective mathematical modeling, combined AHP-TOPSIS, and GIS. Computers & Industrial Engineering, 129, 512-528.
• [2] Anand, G., Alagumurthi, N., Elansezhian, R., Palanikumar, K., & Venkateshwaran, N. (2018). Investigation of drilling parameters on hybrid polymer composites using grey relational analysis, regression, fuzzy logic, and ANN models. Journal of the Brazilian Society of Mechanical Sciences and Engineering, 40(4), 214.
• [3] Azar, G. (2014). Food culture distance as a predictor of foreign market selection: the case of Swedish food exporters. Journal of Food Products Marketing, 20(1), 75-97.
• [4] Baranitharan, P., Ramesh, K., & Sakthivel, R. (2019). Multi-attribute decision-making approach for Aegle marmelos pyrolysis process using TOPSIS and Grey Relational Analysis: Assessment of engine emissions through novel Infrared thermography. Journal of Cleaner Production, 234 (2019) 315-328.
• [5] Cano, J., Campo, E., & Gómez-Montoya, R. (2017). International market selection using fuzzy weighing and Monte Carlo simulation. Polish Journal of Management Studies, 6(2), 40-49.
• [6] Chen, P. (2019). Effects of normalization on the entropy-based TOPSIS method. Expert Systems with Applications, 136(1),33-41.
• [7] Cheng, H. L., & Huang, M. C. (2019). The trade-off between institutionally proximal and distal markets: The impact of home market pressures on firms’ export market selection. Industrial Marketing Management, 76, 98-108.
• [8] Chou, C. C. (2018). Application of ANP to the selection of shipping registry: the case of Taiwanese maritime industry. International Journal of Industrial Ergonomics, 67, 89-97.
• [9] e Silva, S. C., Meneses, R., & Radomska, J. (2018). A Holistic Perspective on the International Market Selection Phenomenon. JEEMS Journal of East European Management Studies, 23(4), 579-602.
• [10] Farias Aires, R. F., & Ferreira, L. (2019). A new approach to avoid rank reversal cases in the TOPSIS method. Computers & Industrial Engineering, 132, 84-97.
• [11] Farzipoor Saen, R. (2011). International market selection using advanced data envelopment analysis. IMA Journal of Management Mathematics, 22(4), 371-386.
• [12] Hwang, C. L., & Yoon, K. (1981). Multiple attributes decision-making methods and applications. Heideberg: Springer.
• [13] International Trade Center, (2019), Export, Import and Tariff, https://www.trademap.org/Index.aspx, Accessed: 24.04.2019.
• [14] Kalafsky, R. V. (2017). Export programs and SME market choice: evidence from North West England. GeoJournal, 82(6), 1135-1144.
• [15] Kilic, H. S., Zaim, S., & Delen, D. (2015). Selecting “the best” ERP system for SMEs using a combination of ANP and PROMETHEE methods. Expert Systems with Applications, 42(5), 2343-2352.
• [16] Koohi, S., & Alikhani, A. (2014). An investigation on different factors influencing on target market selection in petrochemical industry. Management Science Letters, 4(6), 1293-1298.
• [17] Kuo, Y., Yang, T., & Huang, G. W. (2008). The use of grey relational analysis in solving multiple attribute decision-making problems. Computers & industrial engineering, 55(1), 80-93.
• [18] Kursun, B., Kurt, U., Guvercin, S., Okten, K., Akgul, S., & Yildiz, A. (2016). An application for the failure mode and effects analysis integrated with the grey relational analysis. Trakya University Journal of Engineering Sciences, 17(2), 35-44.
• [19] Li, X., Wang, Z., Zhang, L., Zou, C., & Dorrell, D. D. (2019). State-of-health estimation for Li-ion batteries by combing the incremental capacity analysis method with grey relational analysis. Journal of Power Sources, 410, 106-114.
• [20] Liang, X., Sun, X., Shu, G., Sun, K., Wang, X., & Wang, X. (2013). Using the analytic network process (ANP) to determine method of waste energy recovery from engine. Energy Conversion and Management, 66, 304-311.
• [21] Mahmoudkelaye, S., Azari, K. T., Pourvaziri, M., & Asadian, E. (2018). Sustainable material selection for building enclosure through ANP method. Case Studies in Construction Materials, 9, e00200.
• [22] Mateusz, P., Danuta, M., Małgorzata, Ł., Mariusz, B., & Kesra, N. (2018). TOPSIS and VIKOR methods in study of sustainable development in the EU countries. Procedia Computer Science, 126, 1683-1692.
• [23] Nedjati, A., & Izbirak, G. (2013). Evaluating the intellectual capital by ANP method in a dairy company. Procedia-Social and Behavioral Sciences, 107, 136-144.
• [24] Nunes, M. P., & de Souza Lequain, L. (2016). The application of competitive intelligence in export markets selection: A comparative analysis of four methods. Internext: Revista Electrônica de Negócios Internacionais da ESPM, 11(3).
• [25] Özbek, A. (2009). World Cotton Market and Turkey's Place. 1st International Symposium of the 5th National Vocational High School, Konya, 536-562.
• [26] Özbek, A. (2009). Review of future export performance based on sample product (denim pants) in the Turkish clothing industry, PHD Thesis, Marmara University, Institute of Pure and Applied Sciences, İstanbul.
• [27] Özbek, A. (2018) . Turkish ready-made trade analysis based on sub-sectors. International Journal of Humanities and Education (IJHE), 4 (7), 161-183.
• [28] Rad, T. G., Sadeghi-Niaraki, A., Abbasi, A., & Choi, S. M. (2018). A methodological framework for assessment of ubiquitous cities using ANP and DEMATEL methods. Sustainable cities and society, 37, 608-618.
• [29] Ragland, C. B., Widmier, S. M., & Brouthers, L. E. (2015). A factor endowment approach to international market selection. Journal of Strategic Marketing, 23(6), 497-511.
• [30] Schu, M., & Morschett, D. (2017). Foreign market selection of online retailers—A path-dependent perspective on influence factors. International Business Review, 26(4), 710-723.
• [31] Shabani, A., & Saen, R. (2016). Developing imprecise dual-role hybrid measure of efficiency for international market selection using ternary variable. International Journal of Industrial and Systems Engineering, 22(3), 305-331.
• [32] Shabani, A., Saen, R. F., & Vazifehdoost, H. (2013). The use of data envelopment analysis for international market selection in the presence of multiple dual-role factors. International Journal of Business Information Systems, 13(4), 471-489.
• [33] Shahbandarzadeh, H., & Haghighat, F. (2010). Evaluation of the strategies of target market selection on the basis of IFE and EFE matrixes using linmap technique (A case study of Bushehr province). Iranian Journal of Management Studies, 3(3), 41-56.
• [34] Shipley, M. F., Johnson, M., Pointer, L., & Yankov, N. (2013). A fuzzy attractiveness of market entry (FAME) model for market selection decisions. Journal of the Operational Research Society, 64(4), 597-610.
• [35] Shukla, A., Agarwal, P., Rana, R. S., & Purohit, R. (2017). Applications of TOPSIS algorithm on various manufacturing processes: a review. Materials Today: Proceedings, 4(4), 5320-5329.
• [36] Söyler, H., & Yaraş, E. (2016). Analysis of decision on penetrating into the küresel market with fuzzy AHP and fuzzy TOPSIS. Manas Journal of Social Studies, 5(4), 77-96.
• [37] Şarkgüneşi, A., Kişi, N., & Üzmez, U. (2017). The SMEs managers’ attitude of exportation in TR81 region. International Journal of Management Economics and Business, 13(5), 770-779.
• [38] The Central Bank of the Republic of Turkey, (2019), Exchange Rates, https://www.tcmb.gov.tr/kurlar/kurlar_tr.html, Accessed: 26/04/2019.
• [39] Tosun, N. (2017). Target Market Selection in Fresh Fruit-Vegetable Sector Using Fuzzy VIKOR Method. Journal of Management Marketing and Logistics, 4(4), 465-471.
• [40] Turkey Chamber of Agricultural Engineers (TCAE), (2018). Cotton Report 2018, http://www.zmo.org.tr/general/bizden_detay.php?kod=30467&tipi=17&sube=0, Accessed on 26.05.2019.
• [41] Uzun, G. (2019). Analysis of grey relational method of the effects on machinability performance on austempered vermicular graphite cast irons. Measurement, 142, 122-130.
• [42] Wang, C. N., & Le, A. P. (2018). Application in International Market Selection for the Export of Goods: A Case Study in Vietnam. Sustainability, 10(12), 4621.
• [43] Yaser, E. M., & Shunmugesh, K. (2019). Multi-objective optimization of milling process parameters in glass fibre reinforced polymer via grey relational analysis and desirability function. Materials Today: Proceedings, 11, 1015-1023.
• [44] Yavuz, V. (2016). A multiple criteria analysis based on PROMETHEE and entropy methods for geographic market selection: an application in furniture industry. Academic Review of Economics and Administrative Sciences, 9(2), 163-177.
• [45] Yayla, A. Y., Yildiz, A., & Ozbek, A. (2012). Fuzzy TOPSIS method in supplier selection and application in the garment industry. Fibres & Textiles in Eastern Europe.
• [46] Yazdani, M., Kahraman, C., Zarate, P., & Onar, S. C. (2019). A fuzzy multi attribute decision framework with integration of QFD and grey relational analysis. Expert Systems with Applications, 115, 474-485.
• [47] Yıldız, A. (2014). Usage of analytic network process in the best university selection. Journal of Advanced Technology Sciences, 3(2), 108-119.
• [48] Yildiz, A., & Ergul, E. U. (2015). A two-phased multi-criteria decision-making approach for selecting the best smartphone. South African Journal of Industrial Engineering, 26(3), 194-215.
• [49] Yılmaz, K., Öztürk, Y., & Burdurlu, E. (2017). Target market selection for furniture companies with the multiple criteria decision-making approach. Journal of Advanced Technology Sciences, 6(3), 744-756.
• [50] Zhao, J., Li, J., & Li, L. (2011). An Analysis on the Target Market of China's Textile and Garment Export Trade. Procedia Engineering, 15, 4718-4722.
• [51] Zyoud, S. H., & Fuchs-Hanusch, D. (2017). A bibliometric-based survey on AHP and TOPSIS techniques. Expert systems with applications, 78, 158-181.
• [52] Saaty, T. L. (1980). The analytic hierarchy process .McGraw-Hill. New York, 324.