Search results

Aims to investigates the relationship of strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy on a composite measure of financial performance for third‐party logistics (3PL) providers in Hong Kong. In addition, it seeks to identify the importance of operations priorities underlying the respective adopted strategy, as well as the importance given to future competitive challenges for each strategy.

Uses cluster analysis, ANOVA.

Logistics service providers classified to follow different strategies report different financial performance, with companies adhering to the combined strategy of cost and differentiation performing best, followed by pure differentiation companies, which in turn outperform pure cost‐, commodity driven‐companies.

Future research may be widened to include customer, and not solely competitor, perceptions. Further studies could elaborate on technology adoption, information sharing, strategy formulation, operations practices, and benchmarking. Other studies could focus on the differences between high and low performers in terms of business performance, and the processes that enable low performers to become high performers; as well as comparing logistics strategies and practices between different countries.

Third‐party logistics providers, solely competing on cost and offering basic services only, need to differentiate to gain improved financial performance. Logistics companies can improve along multiple operational dimensions to achieve competitive advantage in the marketplace. Research identifies operational areas to be emphasized to drive strategy according to strategic orientation, as well as generic factors that will drive future logistics management in Hong Kong.

Linking perceived financial performance to strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy for 3PL providers in Hong Kong.

Preface The functions of business divide into several areas and the general focus of this book is on one of the most important although least understood of these—DISTRIBUTION. The particular focus is on reviewing current practice in distribution costing and on attempting to push the frontiers back a little by suggesting some new approaches to overcome previously defined shortcomings.

The purpose of this paper is to investigate and determine the time and cost performance of progressive design-build (PDB) projects compared with that of design-build (DB) projects. The objective is to provide empirical evidence on the performance of PDB delivery method.

A quantitative research approach was used by analyzing time and cost data collected on 75 PDB and 92 DB projects from the database of Design-Build Institute of America. One-way analysis of variance was used to determine statistical difference in time and cost performance between PDB and DB.

PDB projects have a comparatively better time performance than cost performance. When compared with DB projects, there was a statistically significant difference in time overrun with PDB performing better than DB (0.41 vs 8.0%). Additionally, about 80% of PDB projects had shorter or as scheduled duration compared to 74% for DB. There was no statistically significant difference of cost performance between PDB and DB.

The main limitation is the sample size of 72 PDB projects. It is recommended that further research should be conducted using a larger sample size to confirm the findings of this study.

PDB will be more beneficial for projects with sensitive deadlines. For an owner deciding between PDB and DB, the advantage of using PDB is in its time performance, which may lead to the project being completed on or ahead of time. As such, PDB can serve as another “tool in the toolbox” for owners to help in reducing construction delays.

This paper is the first attempt to provide an empirical evidence of the cost and time performance of PDB based on analyzing multiple projects. Owners will be better informed when selecting PDB for their projects.

Supply chain (SC) configuration has gained increased acceptance as an important issue when evaluating new customization possibilities and this evidence has contributed to the strengthening of the debate between global vs local production locations. This work contributes in enrichment of this topic by studying how local or global SC location decisions influence performances by considering a SC point of view, in terms of cost and time, in traditional and customized productions.

A discrete event simulation approach, based on experimentation through executable configurations, was used to evaluate different SC scenarios for customized as well as traditional products within the footwear industry.

The results indicated that to identify proper SC locations, existing trade-offs between the time and cost performances should be studied, avoiding the evaluation of a single performance independently and, instead, adopting a complete SC point of view while considering these performances.

This evidence has contributed to the reinforcement of the discussion between far-shore destinations vs near-shore production locations. Further studies are encouraged to adopt the present model, in which addition of other variables such as specific manufacturing competences to differentiate suppliers, both local and global suppliers, or the possibility of realizing special types of product customization required by final consumers can be done.

The paper contributes to the academic and practitioners' debate by proposing a systemic approach to assess SCs’ performances in customized contexts and to compare them to traditional collections. Results indicate that cost and time performance must find a balance that does not necessarily correspond to an exclusively local or global production.

This work contributes to the SC configuration issue by considering the trade-off between efficiency and effectiveness (i.e. SC costs and SC times) for customized productions by reviving and enriching it with an SC perspective in customization contexts.

This paper aims to examine how information sharing affects cash flow performance through the competitive capabilities of low cost or product quality.

In total, 159 survey responses were collected from Norwegian manufacturing firms in 2018. Structural equation modelling (SEM) was used to analyse the data collected.

The low-cost competitive capability was found to positively mediate the effect of information sharing on cash flow performance. However, product quality competitive capability did not have a significant mediating effect between information sharing and cash flow performance. Rather, customer satisfaction fully mediated the relationship between product quality, capability and cash flow performance. The empirical results not only support how the competitive capabilities can be developed through information sharing but also illustrate that the competitive capabilities affect cash flow performance through different mediating routes.

While information sharing and competitive capabilities have been studied previously with regard to financial performance, less emphasis has been placed on how customer satisfaction might explain the mediated relationship between product quality, competitive capability and financial performance. In addition, financial performance is measured by the proxy of cash flow. The use of cash flow as a performance measure leads to a more forward-looking financial performance measure. This is especially appropriate for non-listed firms.

The paper's aim is to replicate and compare Huo et al.'s study to better understand performance drivers of third‐party logistics (3PL) in mainland China and to disseminate Hong Kong 3PL providers' experience to mainland China's peers.

A structural model is estimated to test the construct relationships using data collected from 105 mainland China's 3PL providers. The results are compared with the results of Huo et al.'s study of Hong Kong 3PL providers.

While the operations emphasis of low cost may still be effective for mainland China's 3PL providers, it may result in worse financial performance for Hong Kong 3PL providers. In mainland China, low‐ cost emphasis is affected by local competition, but not by operational challenges, while it is influenced by both local competition and operational challenges in Hong Kong. Operational challenges have a positive impact on low‐cost emphasis in Hong Kong, but no impact in mainland China.

The study enriches the literature on China's logistics and provides mainland China's 3PL managers valuable insights from the business practices of their Hong Kong peers.

Globally, road projects are notorious for riskiness, which often results in cost overruns. In developing countries, these risks are amplified by economic instabilities and institutional failures. Majority of road projects in these countries are awarded to notedly inept indigenous contractors. Currently, research on the relationship between risks and cost performance of road projects has predominantly focussed on the client’s perspective. Effects of risks on contractors’ cost performance (profit) are inadequately investigated in literature. The purpose of this paper is to determine the relationship between direct risks and cost performance of road projects by indigenous contractors of developing countries from the contractors’ perspective.

The multivariate structural equation modelling technique was used to analyse purposively obtained data from indigenous contractors that recently completed road projects in Nigeria.

It was observed that a significant positive relationship exists between the aggregate project risk, i.e. project risk index of cost (PRIC) and cost performance of the projects. Significant positive relationships were also found to exist between identified cost risk centres and PRIC and between risk factors and cost risk centres. The risk centre site environment and location contributes the most to PRIC.

Indigenous contractors of developing countries are to analyse the identified risk factors and centres prior to bidding for road projects and carefully manage them during project execution.

Future studies of risks in road project should aim to obtain project risk indices of costs for the projects.

Earned Value Management (EVM) is widely used as a project performance measurement and forecasting technique. Nonetheless, it has not been fully explored in Pakistani construction industry; where conventional progress reporting methodology (CPRM) is being followed having certain confines. It reports only the financial progress of a project, expresses feeble association between the duration and cost of activities, and forecasts flawed schedule and completion cost. This research implements EVM on under-construction building projects in Pakistan, and compares its upshots with the projects' actual records and with the outcomes of CPRM.

To assess the implementation of EVM on building projects, a set of specific criteria was established. Work Breakdown Structure, Organization Breakdown Structure and Control Points were established. The study has compared the EVM metrics with CPRM outcomes on three under-study building projects, and has deliberated on their mutual differences as well as their relationship with actual cost and schedule performance. Monthly figures of actual spending and completed activities were periodically recorded and compared with planned values for status indication. The graphs were generated to observe the correlation between the results of EVM and CPRM. The data was then extrapolated to forecast the schedule and cost values at completion.

The study discovered that trends of EVM in quantifying the project's cost and schedule performance were strongly correlated and were closer to the actual progress. It has also verified the EVM's soundness in forecasting the cost and schedule, required for project's completion. Contrarily, CPRM metrics could not precisely visualize the current and future, cost and schedule performance.

The case study concludes that EVM's incorporation in progress reporting regime can revolutionize the assessment procedures in Pakistan by rightly indicating the project's current status as well as visualizing the future performance. The study's methodology can also be extrapolated in other countries having similar work environment and economic conditions.

It is estimated that more than half of the construction industry’s projects encounter significant cost overruns and major delays, resulting in the industry having a tarnished reputation. Therefore, it is crucial to identify key project cost and schedule performance factors. However, despite the attempts of numerous researchers, their results have been inconsistent. Most of the literature has focused solely on the construction phase budget and time overruns; the engineering/design and procurement phase costs and schedule performances have been rarely studied. The paper aims to discuss these issues.

The objective of this study was primarily to identify and prioritize engineering, procurement and construction key performance factors (KPFs) and to strategize ways to prevent performance delays and cost overruns. To achieve these objectives, more than 200 peer-reviewed journal papers, conference proceedings and other scholarly publications were studied and categorized based on industry type, physical location, data collection and analysis methods.

It was concluded that both the time required to complete engineering/construction phases and the cost of completing them can be significantly affected by design changes. The two main causes of delays and cost overruns in the procurement phase are construction material shortages and price fluctuations. Other factors affecting all phases of the project are poor economic condition, equipment and labor shortages, delays in owners’ timely decision making, poor communication between stakeholders, poor site management and supervision, clients’ financial issues and severe weather conditions. A list of phase-based strategies which address the issue of time/cost overruns is presented herein.

The findings of this study address the potential confusion of the industry’s practitioners related to the inconsistent list of potential KPFs and their preventive measurements, and pave the way for the construction research community to conduct future performance-related studies.

The purpose of this paper is to investigate the outcomes of Indonesian power projects as representative projects of Asian emerging economies that were procured via public-private partnerships (PPPs) and traditional public sector procurement. Power generation infrastructure delivery in emerging economies frequently seeks private participation via PPPs as one of the key mechanisms to attract private finance. Undertaking a comparative benchmark study of the outcomes of Indonesian power projects provides an opportunity to explore the historic evidence as to whether PPPs deliver better outcomes than traditional public procurement in emerging economies.

This paper reports on a study of the performance of 56 Indonesian power projects procured via either PPPs or traditional procurement. First, it focusses on project time and cost outcomes of power plant facility during construction and commissioning and then extends this comparison to consider the operating availability of power plants during their first two years of operation.

The results indicate that PPP projects had superior time and operating availability to those procured traditionally whereas no significant differences were identified in the cost performance between PPPs and traditionally procured projects. These findings highlight the importance of adopting policies that are supported by broader sources of international financiers and high quality power plant developers.

The quality performance analyses of projects (based on equivalent available factor indices) were limited to the power plants in the Java-Bali region where the majority of projects are large scale power plants.

This study provides an empirical basis for governments of emerging economies to select the most beneficial procurement strategy for power plant projects. It highlights the importance of selecting experienced providers and to adopt policies that attract high quality international project financiers and power plant developers. This includes the need to ensure the commercial viability of projects and to seriously consider the use of cleaner power technologies.

This study is the first to compare the outcomes of power projects in Asian emerging economies delivered via PPPs against those delivered by traditional public procurement that includes consideration of the quality of the delivered product.