Using Analytic Hierarchy Process for Exploring Prioritization of Functional Strategies in Auto Parts Manufacturing SMEs of Pakistan

This article uses analytical hierarchy process (AHP) to findprioritization of functional strategies (manufacturing, marketing, human resource, andfinancial management) by small and medium enterprises (SMEs) operating in auto partsmanufacturing sector of Pakistan. SMEs are major part of the industrial structure andhave significant contribution toward generating jobs in Pakistan. These enterprises aregenerally family-owned businesses, and this study provides concrete insights into themind-set of owners toward different functional strategies. The AHP implementation stepsare performed using commercially available software “Expert Choice®.” Marketing strategyis considered to be the most important strategy, while manufacturing management strategyis the second most important strategy. There is little emphasis on the financial andhuman resource management which is a serious cause of concern. The study would helppolicy makers to understand the business behaviors of this sector and consequentlyformulate policies to enhance their performance