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Supplier Selection in Institutions of Residential Care

Author

Listed:
  • Marjanović Ivana

    (Faculty of Economics, University of Niš, Serbia)

  • Tsironis Loukas

    (Department of Business Administration, University of Macedonia, Greece)

  • Papathanasiou Jason

    (Department of Business Administration, University of Macedonia, Greece)

Abstract

The selection of suppliers in public procurement significantly impacts economic efficiency and social wellbeing, particularly within residential care institutions responsible for vulnerable populations. Despite the strategic importance of procurement decisions, limited research has addressed criteria weighting in the specific context of residential care. This study bridges this gap by applying the group Analytic Hierarchy Process (group AHP) to determine the weights of selected procurement criteria in residential care institutions in Serbia. Results indicate that price remains the dominant factor, though sustainability considerations are increasingly influential, aligning procurement practices with broader regulatory and policy goals. Moderately weighted criteria emphasize the importance of contractual clarity and fairness, while delivery time is found to be of comparatively lower priority. The application of group AHP demonstrates strong consistency among expert judgments, highlighting its effectiveness in enhancing transparency and reducing potential biases or corruption. The findings underscore the necessity of embedding scientifically grounded multi-criteria approaches into public procurement frameworks and suggest comprehensive training for procurement professionals to facilitate informed, sustainable, and socially responsible procurement decisions.

Suggested Citation

  • Marjanović Ivana & Tsironis Loukas & Papathanasiou Jason, 2025. "Supplier Selection in Institutions of Residential Care," Economic Themes, Sciendo, vol. 63(1), pages 81-99.
  • Handle: RePEc:vrs:ecothe:v:63:y:2025:i:1:p:81-99:n:1006
    DOI: 10.2478/ethemes-2025-0005
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    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement

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