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Application of the Multicriteria Method Seeking to Assess Concentration, and Its Effects on Competition in the Manufacturing Sector

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  • Kęstutis Peleckis

    (Department of Economics Engineering, Faculty of Business Management, Vilnius Gediminas Technical University, Saulėtekio al. 11, LT-10223 Vilnius, Lithuania)

Abstract

(1) Background: comprehending market concentration and its implications is one of the most crucial aspects of studying and evaluating competition issues, and this is gaining increasing attention in companies’ sustainability research. Sustainability in the manufacturing industry refers to a company’s ability to continue operations over the long term. A manufacturing business must be able to ensure that it will have appropriate resources, labor, and consumers for its products well into the distant future in order to remain economically viable. At this time, market competition concentration influence is significant. The purpose of this article is to assess the viability of measuring the HHI in the implementation of business strategies in order to prevent market distortions in the manufacturing industry. (2) Methods: the distinguishing aspect of this paper is that it describes the capabilities of the fuzzy VIKOR approach for evaluating the HHI in order to avoid market distortion by studying the most important economic characteristics of the manufacturing market. (3) Results: the contribution of this study is the compilation of the HHI evaluation system in the manufacturing sector, with the goal of identifying the market conditions of corporate entities and facilitating the attainment of long-term market competitiveness. (4) Conclusions: a comparison of the multicriteria techniques approach and probability theories reveals that the industrial sector’s HHI-based performance may be measured. It is more adaptable to the organization’s actual decision-making procedure. The operation of manufacturing businesses in the market with the least amount of distortion can be significant for enhancing competitiveness not only at the national level, but also at the global level, particularly by enhancing reputation, reducing costs, responding to market demands, and adapting to market demands. The findings will be relevant for policymakers tasked with controlling market inefficiencies and fostering sustainable economic initiatives.

Suggested Citation

  • Kęstutis Peleckis, 2022. "Application of the Multicriteria Method Seeking to Assess Concentration, and Its Effects on Competition in the Manufacturing Sector," Sustainability, MDPI, vol. 14(19), pages 1-30, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:12062-:d:923725
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