Fuzzy TOPSIS framework for promoting win-win project procurement negotiations.

Abstract

In recent years, organizations worldwide have widely applied the project approach in business and value delivery. Negotiation is essential to the success of a project; however, it has not been explored systematically in the project context. A gap remains between knowledge and practical behavior during negotiation settlements throughout projects. Many project procurement (PP) negotiations do not work as expected. This study develops a practical framework using the scientific method to help close the gap and improve PP negotiations. The proposed framework uses the fuzzy TOPSIS (technique for order preference by similarity to ideal solution) method to integrate the PP management process (PPMP) and the three-phase negotiating model. Through this approach, notable variables and potential solutions under uncertain negotiation situations are quantitatively examined in the early stage and managed until the completion of PP. Thus, expected agreements can be obtained in a timely and efficient manner, with negotiating parties committing to implementing what has been agreed on. Such a commitment facilitates win-win outcomes. An example is presented to demonstrate how the proposed framework operates, and practical implications for managers of project-based organizations are offered. This study provides researchers and practitioners with a foundation to study refined models to enhance project negotiations with interdisciplinary integration.