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Article
Publication date: 14 September 2022

Qian Zhang, Bee Lan Oo and Benson Teck-Heng Lim

The interest in corporate social responsibility (CSR) has become burgeoning in the construction industry as firms are under constant pressure from socially conscious stakeholders…

Abstract

Purpose

The interest in corporate social responsibility (CSR) has become burgeoning in the construction industry as firms are under constant pressure from socially conscious stakeholders to demonstrate their efforts to address various CSR issues. This study aims to unveil the key practices and impact factors (KPIFs) of CSR implementation in construction firms and the interrelationships among different key impact factors toward attaining CSR practices.

Design/methodology/approach

Mobilizing the integrated institutional, stakeholder and self-determination theories, a theoretical framework was first developed to elaborate the potential inter-relationships among the key impact factors toward CSR implementation. Data were collected from extra-grade contractors through an online questionnaire survey and was then analyzed by the partial least square structural equation modeling method.

Findings

The results show that construction firms' CSR practices could be classified into eight distinct key dimensions, e.g. shareholders' interests, government commitment and environment preservation. It is found that three groups of key impact factors – external institutional factors (especially coercive-normative factors), intrinsic factors (especially strategic business direction and organizational culture) and identified factors (i.e. the perceived importance of CSR practices) – have statistically significant positive impacts on most key dimensions of CSR practices.

Practical implications

The research findings have implications for top management to better understand CSR implementation, thereby helping them secure legitimacy to survive and advance in the competitive construction businesses.

Originality/value

The findings contribute to the theoretical body of knowledge in CSR by modeling and empirically demonstrating the influence mechanism of CSR implementation in construction within an integrated model.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 23 August 2022

Yixi Zhang, Bee Lan Oo and Benson Teck-Heng Lim

Contractors of different scales, operating in different construction industries of varying institutional and economic settings, have different considerations when making bid or…

Abstract

Purpose

Contractors of different scales, operating in different construction industries of varying institutional and economic settings, have different considerations when making bid or no-bid and mark-up decisions. Focusing on the large and medium-sized contractors in the Jilin province, China, the purpose of this study is to examine important factors affecting their decision to bid (d2b) and mark-up decisions and investigate differences between large and medium-sized contractors in evaluating the importance of the various factors affecting their d2b and mark-up decisions.

Design/methodology/approach

This study used a survey design for timely data collection from a large population. Contractors’ bidding attitudes was collected using an online survey questionnaire with a list of 40 key factors. Statistical analytical methods were applied for comparing the two groups of contractors.

Findings

The results of this study indicate that factors related to client conditions are most critical for both large and medium-sized contractors in their d2b and mark-up decisions. The results also show statistically significant differences between the two groups of contractors on a subset of factors affecting their d2b and mark-up decisions. The large contractors have placed more emphasis on projects' potential financial and strategic benefits. Another notable finding is that both groups of contractors have placed great emphasise on “government legislations” in their d2b and mark-up decisions.

Research limitations/implications

These findings should be interpreted in consideration of several limitations. Firstly, the sample size is relatively small, and the focus was on a single province in the China construction industry. Next, this study only explores differences between large and medium-sized contractors in evaluating the importance of the various factors affecting their d2b and mark-up decisions.

Practical implications

Contractors could refer list of critical factors in competing for jobs in Jilin province or other provinces of similar institutional and economic settings. Construction clients, on the other hand, should consider the list of critical factors in the formulation of their competitive tendering procedures, thus enhancing the efficiency in their procurement of construction services.

Originality/value

Research on contractors’ bidding decision-making in the context of Chinese construction industry remains scarce; the research findings have implications for the industry stakeholders.

Details

Construction Innovation , vol. 23 no. 5
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 11 October 2022

Teng Ma and Ya Liu

The role of corporate social responsibility (CSR) fulfillment is critical when building resilience of project-based organizations (PBOs). However, fulfilling CSR to build a highly…

Abstract

Purpose

The role of corporate social responsibility (CSR) fulfillment is critical when building resilience of project-based organizations (PBOs). However, fulfilling CSR to build a highly resilient PBO remains a black box problem. This study explores the different CSR combinations that enhance PBO resilience.

Design/methodology/approach

This study defines CSR in terms of shareholder, employee, and social CSR, and analyzes corporate characteristics in terms of corporate scale and nature. Data are collected from Hexun.com and the China Stock Market and Accounting Research Database (CSMAR). The qualitative comparative analysis (QCA) method is used to analyze 48 listed construction and engineering companies from China to explore the CSR configurations for PBOs in enhancing organizational resilience.

Findings

A large firm size is a necessary condition for high organizational resilience. We find six paths to build high and non-high resilience in PBOs, and the driving mechanisms of high and non-high resilience exhibit an asymmetric relationship.

Research limitations/implications

This study cracks the black box of CSR fulfillment and PBO resilience. It reveals the CSR configurations that enhance or inhibit the resilience of PBOs. It also provides scientific basis for PBOs in their fulfillment of CSR in response to crises, and the enhancement of organizational resilience. Future research can be expanded to other industries, as the study sample is only limited to civil engineering construction companies. Since this study uses cross-sectional data, time series can be introduced in the future to further explore the relationship between CSR and organizational resilience.

Practical implications

This study provides targeted suggestions that can help decision-makers of construction companies to determine how they can fulfill CSR to enhance organizational resilience. At the same time, it can provide intellectual support for PBOs to cope with systemic crises and promote the fulfillment of CSR.

Originality/value

In terms of theoretical value, on the one hand, this study verifies the relationship between CSR fulfillment and PBO resilience, revealing its mechanism of action and multiple paths; on the other hand, it provides a new way of thinking for management research methods and enriches the theoretical study of organizational resilience.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 18 April 2023

Raphael Lissillour, Yuting Cui, Khaled Guesmi, Weijian Chen and Qianran Chen

This study aims to empirically examine the relationships among perceived environmental uncertainty (EV), the level of knowledge distance (KD) and the impact of value network on…

Abstract

Purpose

This study aims to empirically examine the relationships among perceived environmental uncertainty (EV), the level of knowledge distance (KD) and the impact of value network on firm performance.

Design/methodology/approach

The quantitative analysis is based on data from 243 Chinese companies with engineering, procurement and construction (EPC) business in the context of the COVID-19 pandemic.

Findings

The two dimensions of value network [network centrality (NC) and network openness (NO)] have a different impact on firm performance [financial performance (FP) and market performance (MP)]. NC has a positive impact on FP, but not on MP. NO has a positive effect on MP, but not on FP. A reduced KD mediates the relationship between value network and firm performance. Moreover, it fully mediates the relationship between NC and MP, NO and FP. Finally, during the COVID-19 pandemic, only EV has a moderating effect on KD and MP.

Research limitations/implications

This study is limited in terms of data set because it relies on a limited amount of cross-sectional data from one specific country. Therefore, researchers are encouraged to test the proposed propositions further.

Practical implications

The present findings suggest that EPC professionals should pay more attention to the EV, which may be impacted by policy, technology and the economy. This research has actionable implications for the reform of EPC in the construction industry, and practical recommendations for EPC firms to improve their corporate performance.

Originality/value

The results measure the complementary effects of both dimensions of value network (NC and NO) on two distinct aspects of firm performance (MP and FP) and assess the moderating effect of EV and KD in the context of the COVID-19 pandemics.

Details

Journal of Knowledge Management, vol. 28 no. 1
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 9 August 2022

Jingyi Lai, Yongcheng Fu, Yongqiang Chen and Bo Du

Outsourcing is a common practice that is often adopted to reduce costs and enhance capabilities. The underlying logic of a firm's outsourcing strategy is not always evident due to…

Abstract

Purpose

Outsourcing is a common practice that is often adopted to reduce costs and enhance capabilities. The underlying logic of a firm's outsourcing strategy is not always evident due to multiple antecedents with interacting effects. This study identifies critical factors that influence outsourcing strategies and reveals their interactions with empirical evidence from Chinese construction firms.

Design/methodology/approach

The quantitative decision-making trial and evaluation laboratory (DEMATEL) method was applied to analyze the interrelationships among the antecedents of project outsourcing strategies. First, 24 experts from 13 Chinese construction firms were invited to evaluate and score the influence of each factor on the other. Second, the graph theory and matrix tools of DEMATEL were used to quantitatively obtain the causality among factors and the prominence of each factor within the system.

Findings

Among the antecedents, a firm's pursuit of cost efficiency, identity, technological capability and contracting capability are the most prominent factors influencing project outsourcing strategies. For the interactions among these factors, this study reveals that the focal firm's technological capability significantly influences its contracting capability, and they jointly influence the firm's outsourcing practices, the selection of outsourcing vendors and, eventually, its pursuit of cost efficiency. Moreover, legal restrictions in the institutional environment strongly shape this capability–cost efficiency relationship.

Originality/value

Twelve critical factors following different theoretical perspectives at varying levels of analysis were identified from the literature review. By revealing the interrelationships among these factors, this study develops a holistic framework that integrates the transaction cost and capability perspectives for understanding project outsourcing strategies embedded in different institutional environments.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 10
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 7 November 2023

Sarah Franz, Axele Giroud and Inge Ivarsson

This study aims to analyse how multinational corporations (MNCs) organise value chain activities to penetrate new market segments. It contributes by expanding traditional…

Abstract

Purpose

This study aims to analyse how multinational corporations (MNCs) organise value chain activities to penetrate new market segments. It contributes by expanding traditional decisions regarding the vertical fine-slicing of value chain activities (whether performed internally or externally) and the consideration of resource-sharing decisions (integration or separation) for each value chain function.

Design/methodology/approach

The authors draw on primary data collected from two case study firms operating in the large emerging Chinese market: Volvo Construction Equipment AB and Epiroc AB. In-depth cases illustrate how foreign MNCs expand into new market segments and simultaneously target both the lower-priced mid-market and the premium segments in the Chinese mining and construction industry.

Findings

The results reveal that product diversification creates challenges for managers who must oversee new (vertical) value chains, often simultaneously. Beyond geography and modes of governance, managers must decide whether to integrate or separate value chain activities for the new product lines. The study identifies four main strategic choices for firms to address this complexity, focusing on the decision to internalise or externalise (i.e. within or across organisational boundaries) and integrate or separate value chain activities between different product lines.

Originality/value

This study builds upon the internalisation theory and recent international business contributions that focus on value chain configurations to explain MNCs’ product diversification as a growth strategy in a host emerging market. It also sheds light on the choice of conducting new activities in-house or externally and elucidates firms’ managerial decisions to operationally integrate or separate individual value chain activities. The study provides insights into the drivers explaining managerial decisions to configure value chain activities across product lines and contributes to the growing body of literature on MNC activities in emerging economies by highlighting that product diversification impacts entry mode diversity and resource sharing across units.

Article
Publication date: 23 June 2023

Xiang Hu, Eliza Nor and Chee-Wooi Hooy

This study aims to investigate the relationship between political connections and the over-indebtedness of firms in the construction industry. Furthermore, this study explores the…

Abstract

Purpose

This study aims to investigate the relationship between political connections and the over-indebtedness of firms in the construction industry. Furthermore, this study explores the moderating effect of corporate governance mechanisms with monitoring intent on this relationship.

Design/methodology/approach

This study uses the data from China’s listed construction firms for the years 2010–2019 to run the fixed-effect regression. This study constructs the optimal capital structure mathematical model by following the trade-off approach.

Findings

The research results show that most of China’s listed construction firms are surprisingly over-indebted in the long run. This study affirms that political connections positively impact the over-indebtedness of China’s listed construction firms. However, corporate governance can alleviate the impact of political connections on the over-indebtedness of China’s listed construction firms.

Originality/value

There were limited studies to discuss the relationship between political connections and the over-indebtedness of construction firms, and no particular attention has been given to the moderating effect of corporate governance mechanisms on the relationship between political connections and over-indebtedness. Moreover, in calculating the over-indebtedness of China’s listed construction firms, this study considers the financial characteristics of China’s construction firms when building the mathematical model of optimal capital structure, which makes the calculation results of over-indebtedness closer to reality.

Details

Journal of Financial Management of Property and Construction , vol. 28 no. 3
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 14 December 2022

Ahsan Nawaz and Francis Lanme Guribie

Social procurement (SP) is a complicated and risky innovation, the adoption of which needs to be accompanied by complementary process and organizational change. To date, however…

Abstract

Purpose

Social procurement (SP) is a complicated and risky innovation, the adoption of which needs to be accompanied by complementary process and organizational change. To date, however, there has been little empirical evidence explaining whether and how different sorts of external pressures affect the level of SP adoption in the construction sector. Drawing on institutional theory, this study aims to analyze how three types of isomorphic pressures (i.e. coercive, mimetic and normative pressures) influence the adoption of SP in the construction sector.

Design/methodology/approach

The impacts of these pressures are empirically tested with survey data collected from 134 construction firms in the Chinese construction industry.

Findings

The findings show that both coercive and mimetic pressures have a considerable impact on the adoption of SP. However, there is little evidence in this study that normative demands had a major impact on SP.

Practical implications

This research is a useful instrument for promoting a favorable social attitude regarding construction procurement. Through socioeconomic regeneration and development, procurement can be considered as a significant route for social transformation, economic development and poverty reduction.

Originality/value

This study addresses the paucity of research into SP in the construction industry by establishing the institutional drivers to procuring services and products from a social enterprise perspective. Findings from this study extend the frontiers of existing knowledge on SP in the construction industry.

Details

Construction Innovation , vol. 24 no. 3
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 30 May 2023

Yuheng Wang and Junyuan Chen

This study seeks to understand how accountant stereotypes have been constructed and reconstructed at the macro-national and the structural level in Chinese society.

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Abstract

Purpose

This study seeks to understand how accountant stereotypes have been constructed and reconstructed at the macro-national and the structural level in Chinese society.

Design/methodology/approach

This qualitative investigation into China's social construction of accountant stereotypes employs Becker's (1963) labelling theory. Viewing stereotyping as a socially constructed practice, this study draws on a post-positivistic, reflexive epistemology in conducting 28 semi-structured interviews with accountants and related actors.

Findings

Chinese accountant stereotypes are constructed and reconstructed according to the rules created and enforced in different cultural-political periods. The accountant stereotypes constructed during the ancient Confucian period (500 BC – 1948) were replaced during 1949 and 2012 when the political focus shifted towards propagating socialism and later promoting economic growth. They also show how Confucian stereotypes of accountants resurfaced in 2013 but were reconstructed by the central government's cultural confidence policy of propagating Confucianism.

Originality/value

Empirically, prior literature has focused on what the accountant stereotype is and how accountants respond to such stereotypes, but it has neglected the ways in which these accountant stereotypes are politically and culturally constructed, diffused and legitimated. This paper fills in the gap by understanding the social practice of accountant stereotyping in a previously unexplored political-cultural context, namely Chinese society. In theoretical terms, by offering the first use of Becker's (1963) labelling theory in the accounting literature, it furthermore enhances our understanding of how accountants' identities and social standing are shaped by social rules.

Details

Accounting, Auditing & Accountability Journal, vol. 37 no. 1
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 5 August 2022

Jin Cai, Zhongfu Li, Yudan Dou, Tianxin Li and Mengqi Yuan

Off-site construction (OSC) has been regarded as a clean and efficient production approach to help the construction industry towards sustainability. Different levels of OSC…

Abstract

Purpose

Off-site construction (OSC) has been regarded as a clean and efficient production approach to help the construction industry towards sustainability. Different levels of OSC technologies vary greatly in their implementations and adoptions. Compared to low OSC level technologies have been applied widely, the adoption of high OSC level technologies (HOSCLTs) in practice remains limited. The adoption mechanism for HOSCLTs by firms has not been clear, hindering their promotion. This study aims to explore the mechanism combining subjective and objective adoption for HOSCLTs.

Design/methodology/approach

This study developed an integrated model illustrating mechanism for HOSCLTs adoption based on the technology acceptance model (TAM), which has strong capacity to explain potential adopters' subjective intentions to adoption, and the task-technology fit (TTF) theory, which well describes the linkages between the task, technology and performance in technology adoption. The proposed model was then empirically evaluated through a survey of 232 practitioners in the Chinese OSC industry using partial least squares structural equation modeling.

Findings

The results indicate that both task characteristics (TAC) and technology characteristics (TEC) positively affect TTF of HOSCLTs. TAC, TTF, firm conditions and stakeholder influence have significant positive effects on perceived usefulness (PU), which further positively influence attitude towards adoption. TEC and firm conditions are significantly related to perceived ease of use (PEU). TTF, PEU and attitude towards adoption are good predictors of behavior intention to HOSCLTs adoption. PEU only significantly influences adoption intention and is not observed to influence attitudes and PU, unlike prior research on common OSC adoption.

Originality/value

This study contributes to the body of knowledge by exploring HOSCLTs adoption in the industry based on distinguishing the levels of OSC technologies and supplementing an integrated model for explaining the mechanism with the combination of subjective and objective adoption. The study also provides useful insights into understanding and promoting HOSCLTs adoption for policy makers and stakeholders actively involved in the OSC field.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 10
Type: Research Article
ISSN: 0969-9988

Keywords

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