ORIGINAL RESEARCH
An Integrated Structural Equation Modeling
and Analytic Hierarchy Process Approach
to Prioritize Investment in the Construction
Industry to Achieve Sustainable Development
in Saudi Arabia
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1
Industrial Engineering Department, College of Engineering, Zagazig University, Zagazig, Egypt
2
Industrial Engineering Department, College of Engineering, King Khalid University, Abha, Saudi Arabia
3
Civil Engineering Department, College of Engineering, King Khalid University, Abha, Saudi Arabia
Submission date: 2019-02-09
Final revision date: 2019-07-01
Acceptance date: 2019-07-07
Online publication date: 2020-02-06
Publication date: 2020-03-31
Corresponding author
Mohamed Mansour
Industrial Engineering Department, King Khalid University, College of Engineering, 394, Abha, Saudi Arabia
Pol. J. Environ. Stud. 2020;29(3):2285-2302
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ABSTRACT
The construction industry is a major contributor to socio economic development and an extensive
user of energy and natural resources; therefore, its engagement is fundamental to sustainability.
This research prioritizes investment spending in the construction sector in Saudi Arabia to meet
sustainable development. This research uses integrated structure equation modeling (SEM) and
analytical hierarchy process (AHP) as a solution approach for prioritizing the alternatives for the
decision maker. Experts and decision makers have been interviewed to define the main and subcriteria
and the corresponding pairwise comparison matrix. Economic, environmental, and social (EES) criteria
were considered, including 8, 8, and 5 subcriteria, respectively. SmartPLS applying the partial least
squares structural equation modeling (PLS-SEM) method and expert choice for AHP were used to
rank investment in the construction sector in Saudi Arabia in order to attain sustainable development.
The SEM results revealed that the influencing factors are 5 economic, 5 environmental, and 3 social
subcriteria in sustainable development. The results indicated that building projects ranked first at 13.9%,
followed by water and sanitation activities at 11.2%, and by electrical works business at 10.8%. Road
work ranked fourth at 8.6%, accompanied by mechanical activities at 6.4%. The electronic works
category ranked sixth at 6.2%, and then landscaping works at 4.8%. The dams category ranked eighth
at 3.3%; city cleaning and waste disposal achieved a percentage of 3.1%, and the remaining categories
achieved percentages of between 0.07% and 1.9%. The recommendations were that the Saudi government
should provide an investment preference in any future development plan for activities that received
the highest priority in the AHP model.