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1 – 10 of over 18000Reports on a survey of companies using third‐party distributionservices. Compares results with those of the same survey conducted threeyears earlier. Discusses reasons why…
Abstract
Reports on a survey of companies using third‐party distribution services. Compares results with those of the same survey conducted three years earlier. Discusses reasons why companies may or may not use third‐party distribution providers. Establishes how satisfied companies are with existing arrangements. Explores why companies may wish to change current arrangements.
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Ahmed Khouja, Nadia Lehoux and Yan Cimon
In highly competitive industries such as the construction sector, companies with limited capabilities struggle to maintain their current standing, let alone acquire more market…
Abstract
Purpose
In highly competitive industries such as the construction sector, companies with limited capabilities struggle to maintain their current standing, let alone acquire more market share. Before they are able to address their shortcomings, these companies need to pinpoint where their performance stands when it comes to market demand. Furthermore, competitiveness is strongly linked with companies' ability to win tenders and deliver the associated construction projects. Tenders are, therefore, a mechanism that reflects the strengths and weaknesses of construction firms and can be deemed an indicator of competitiveness. This paper aims to help small and medium-sized enterprises (SMEs) increase their presence in the construction sector by suggesting a systematic approach to evaluate their competitiveness.
Design/methodology/approach
Participation requirements were extracted from 11 calls for tenders and organized into categories using a qualitative content analysis. These requirements along with winning assets deduced from the literature constitute the basis of the tool. The qualitative evaluation of the difficulty in satisfying requirements or acquiring assets was transformed into unified, quantifiable scores by means of fuzzy numbers.
Findings
A total of 233 requirements were found and classified in 3 main categories. In addition, a list of 54 assets organized into five categories was compiled. The entire methodology led to a five-step assessment tool whose output can be depicted on the proposed competitiveness readiness matrix (CRM).
Research limitations/implications
This study contributes to the limited number of articles discussing the contractor's side in the tendering process. Furthermore, it combines three theoretical perspectives (i.e. resource-based view, relational view, and industry structure perspective), which are scarcely applied in the construction management field. Consideration of the calls for tenders when developing solutions is also a unique aspect of this research when compared to previous studies.
Practical implications
This tool may help practitioners navigate the rather elusive tendering process by outlining the necessary elements to participate in and win tenders. It may also allow construction firms to better position themselves in the market with respect to customers' requirements and competitors' performances.
Originality/value
This study provides an approach of both self-assessment and market benchmarking. It assists companies in formulating strategies to become more competitive in general and make better bidding decisions. This is especially interesting because of three aspects: the study is based on a fundamental element of the construction competitiveness concept, i.e. calls for tenders; it offers a mechanism to transform systematically qualitative attributes into quantifiable scores; and it provides a practical and reliable display of the assessment results.
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The purpose of this paper is to examine the factors that affect the discontinuance of business of start-up contractors and property companies in Japan. It will help managers of…
Abstract
Purpose
The purpose of this paper is to examine the factors that affect the discontinuance of business of start-up contractors and property companies in Japan. It will help managers of start-up contractors and property companies to effectively manage their companies. Furthermore, it will be useful for stakeholders with links to start-up companies to analyse the credit risks associated with these businesses.
Design/methodology/approach
This study uses data from the Japan Finance Corporation Business Startup Panel Survey to empirically examine the factors that affect the discontinuance of business of start-up companies. A binary logit model is used as the statistical method. Utilising the resource-based view theory, this study explores the relationships between resources and company capabilities at both start-up and discontinuance of business.
Findings
Start-up contractors tend to discontinue their business, as managers grow older and when a sufficient workforce cannot be found at start-up. On the other hand, start-up property companies tend to discontinue business when securing of orderers is not sufficient at start-up.
Originality/value
This study analyses start-up contractors and property companies and finds that factors that affect the discontinuance of business differ across construction and property industries, with each industry facing important, sector-specific issues.
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Adnan Enshassi, Abdul Rashid Abdul Aziz and Ala'a El Karriri
This paper aims to investigate the overhead costs of construction contractors at the Gaza Strip, Palestine, specifically the level of contractors' awareness of the concept of…
Abstract
Purpose
This paper aims to investigate the overhead costs of construction contractors at the Gaza Strip, Palestine, specifically the level of contractors' awareness of the concept of overhead cost, their perception of main components of overhead cost, percentage of overhead to total project cost, method used to manage and control overhead cost, and reasons for increasing overhead cost.
Design/methodology/approach
In the research 40 contractors classified under the Palestinian Contractors Union (PCU) and United Nation Relief Works Agency (UNRWA) list were surveyed.
Findings
The findings indicate that the majority of contractors are aware of overhead costs in construction projects. The staff wages are the highest overhead costs component. The currency exchange rates, inflation, increase in financial costs among others lead to increase in overhead costs. The findings illustrate that the overhead costs are on average 11.1 percent of the total project cost. Controlling and managing overhead costs are considered the main tools to improve the companies' financial situation.
Practical implications
The trend in most companies is to adopt techniques to manage and control their cost components. Using activity based costing (ABCs) is one of the main techniques which the companies should take into consideration. The contractors' knowledge and awareness of the research finding will increase their chances of winning bids within an acceptable profit margin. Applied training courses are recommended for contractors to improve their awareness regarding the importance of overhead costs.
Originality/value
This study will extend contractors' awareness and knowledge through guidance on how to gear their financial resources carefully, and how to bid correctly in order to remain competitive in the market place.
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GARY D. HOLT, PAUL O. OLOMOLAIYE and FRANK C. HARRIS
The procedural and administrative aspects of UK tendering have remained largely unaltered for decades but this may soon change in light of the recent review of the construction…
Abstract
The procedural and administrative aspects of UK tendering have remained largely unaltered for decades but this may soon change in light of the recent review of the construction sector, headed by Sir Michael Latham. This paper presents findings of a nationwide survey of UK construction contractors assessing their opinion of the Latham procurement recommendations, along with their opinion of the authors' proposals for alternative selection procedure. Contractor usage/opinion of current tendering methods, tendering documentation and contractual arrangements are also identified. Analysis techniques primarily involve the derivation of contractor preference, agreement and importance indices (Pri, Agi and Imi respectively). Results show that clients are attempting to cut costs by increased use of open tendering coupled with plan and specification tender documentation, but that savings are offset by clients ultimately paying for contractors' costs associated with their achieving contract award for only 1 in 5 bids. Generally, contractors are in tune with the ideals of the Latham review and characteristics pertaining to the HOLT (Highlight Optimum Legitimate Tender) selection technique.
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Ernawati Mustafa Kamal and Roger Flanagan
The construction industry is a very important part of the Malaysian economy. The government's aim is to make the industry more productive, efficient and safe. Small to…
Abstract
Purpose
The construction industry is a very important part of the Malaysian economy. The government's aim is to make the industry more productive, efficient and safe. Small to medium‐sized enterprises (SMEs) are at the core of the Malaysian construction industry and account for about 90 per cent of companies undertaking construction work. One of the main challenges faced by the Malaysian construction industry is the ability to absorb new knowledge and technology and to implement it in the construction phase. The purpose of this paper is to consider absorptive capacity in Malaysian construction SMEs in rural areas.
Design/methodology/approach
The research was conducted in three stages: first, understanding the Malaysian construction industry; second, a literature review on the issues related to absorptive capacity and discussions with the Construction Industry Development Board (CIDB); and third, multiple case studies in five construction SMEs operating in a rural area to validate the factors influencing absorptive capacity.
Findings
Nine key factors were identified influencing absorptive capacity in Malaysian construction SMEs operating in rural areas. These factors involved: cost and affordability; availability and supply; demand; infrastructure; policies and regulations; labour readiness; workforce attitude and motivation; communication and sources of new knowledge and; culture.
Originality/value
The key factors influencing absorptive capacity presented in this paper are based on validation from the case studies in five construction SMEs in Malaysia. The research focuses on how they operate in rural areas; however, the research results have wider application than just Malaysia. The key factors identified as influencing absorptive capacity can serve as a basis for considering knowledge absorption in the wider context by SMEs in other developing countries.
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Colin W. Fuller and Luise H. Vassie
Partnership arrangements in industry have increased in interest because of the perceived business benefits that these alliances can bring to organisations. However, it has been…
Abstract
Partnership arrangements in industry have increased in interest because of the perceived business benefits that these alliances can bring to organisations. However, it has been claimed that it is important to align organisational cultures in order that these partnership arrangements are successful. This case study reports a benchmark assessment of employee and contractor safety climates in an offshore oil company that operated contractor partnership agreements in the North Sea. The study used a questionnaire in order to assess safety climates in terms of employees’ and contractors’ perceptions of safety management, workplace conditions and safety concerns. Factor analysis and structural equation modelling were used to support the benchmark study in order to compare the employees’ and contractors’ beliefs in the organisation’s health and safety philosophy. The results obtained indicated that safety climates could be aligned in organisations that operate partnership agreements within a recognised health and safety management system. It is suggested that the approach presented is appropriate for benchmarking safety climates before and after partnership arrangements have been established in order to determine the level of cultural alignment that has been achieved.
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Despite the quantity of collaborations, the vocational network of the housing production in Ankara during its first five years (1923–1928) remains dispersed. The aim of this study…
Abstract
Purpose
Despite the quantity of collaborations, the vocational network of the housing production in Ankara during its first five years (1923–1928) remains dispersed. The aim of this study is to identify all the actors of housing production and their collaborations which shaped Ankara's urban development as the new capital city.
Design/methodology/approach
The study engages with the literature and archival documents to identify the actors of the housing production, i.e. architects, master-builders, public institutions, private companies, contractors and entrepreneurs, and their resultant vocational network in the housing production in Ankara during 1923–1928.
Findings
Due to different agendas, such as speculation, financial interests or patriotism, the construction industry in Ankara had become an arena where many paths intersected, forming an intertwined vocational network. The profession of contractor became popular, and local architects, engineers and even individuals of various other professions began to work as mediators for foreign companies and public institutions, which required support especially in large-scale projects.
Originality/value
The dispersed information revealed that the actors of the housing production remained mostly anonymous, or only the famous architects were commemorated; however, others could be found within the lines of the established literature on Ankara and/or in archival documents. This research not only focuses on “salient” actors but also highlights the “silent” actors of the housing production and prepares charts to clarify the vocational network in Ankara during its first five years to contribute to the future studies on Ankara and its housing.
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Japanese contractors have been successful in adopting total quality management (TQM) practices in their domestic operations. By examining Japanese contractors in a foreign…
Abstract
Japanese contractors have been successful in adopting total quality management (TQM) practices in their domestic operations. By examining Japanese contractors in a foreign country, the research presented in this paper shows that the implementation of TQM in the construction industry is constrained by national markets where the clients, subcontractors and site operatives are not imbued with the same quality culture. The location‐bound nature of the production process, competitive bidding which emphasises cost, dependence on subcontractors and the non‐direct link between the main contractors and site operatives are some of the constraining factors. Nonetheless, as demonstrated by the Japanese contractors, TQM routines can still be implemented, provided local norms and contracting practices are accommodated.
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Anne Mills and Jonathan Broomberg
This chapter draws on a study conducted in the mid 1990s to compare management differences between three different groups of South African hospitals, in order to understand how…
Abstract
This chapter draws on a study conducted in the mid 1990s to compare management differences between three different groups of South African hospitals, in order to understand how these differences might have affected hospital functioning. The groups were public hospitals; contractor hospitals publicly funded but privately managed; and private hospitals owned and run by private companies. Public sector structures made effective management difficult and were highly centralized, with hospital managers enjoying little autonomy. In contrast, contractor and private groups emphasised efficient management and cost containment. These differences appeared to be reflected in cost and quality differences between the groups. The findings suggest that in the context of a country such as South Africa, with a relatively well-developed private sector, there is potential for the government to profit from the management expertise in the private sector by identifying lessons for its own management structures, and by contracting-out service management.