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1 – 10 of over 3000Ahmed 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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Suhair Alkilani and Martin Loosemore
This research uses contingency theory and Venkatraman’s concept of moderating fit to explore how key project stakeholders (clients, consultants and suppliers) influence project…
Abstract
Purpose
This research uses contingency theory and Venkatraman’s concept of moderating fit to explore how key project stakeholders (clients, consultants and suppliers) influence project performance from the perspective of small and medium contractors in the Jordanian construction industry.
Design/methodology/approach
An anonymous structured survey was performed comprising 200 key informants including senior project managers, construction managers, engineers and general managers working for small- and medium-sized contractors in the Jordanian construction industry. The Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to analyse the data.
Findings
The results of this study show that consultant-related factors (quality of documentation produced, ability to communicate and technical competencies) are perceived to have the most significant direct effect on project performance, followed by client-related factors (payment promptness, decision certainty and documentation control) and supplier-related factors (supplier performance, defects control and logistics management).
Originality/value
The results contribute new theoretical, empirical and practical insights to existing construction project performance research by highlighting the key performance factors which need to be managed for each stakeholder group to ensure effective project performance from a small- and medium-sized contractor perspective.
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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.
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Peter E.D. Love, Zahir Irani, Heng Li, Eddie W.L. Cheng and Raymond Y.C. Tse
To improve organizational performance and sustain a competitive advantage many Australian businesses have begun to embrace e‐commerce. For example, businesses from the automotive…
Abstract
To improve organizational performance and sustain a competitive advantage many Australian businesses have begun to embrace e‐commerce. For example, businesses from the automotive, banking, insurance and retail industries have been able to leverage the benefits of information and communication technologies. Yet, those from the construction industry have been slow, perhaps even reluctant, to implement information and communication technologies to support ecommerce. Thus, this paper aims to determine the barriers that small‐medium sized contractors are experiencing when confronted with the need to implement e‐commerce to sustain their competitiveness. Unstructured interviews were undertaken with managers from 20 small‐medium sized contractors from the State of Victoria in Australia, which had annual turnovers ranging from $1‐50 million. The financial, organizational, technical and human barriers that were identified from findings are presented and discussed. The paper concludes by proposing strategies that small‐medium sized contractors may adopt if they to leverage the benefits of e‐commerce.
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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 medium‐sized…
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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Abimbola Olukemi Windapo, Oluseye Olugboyega and Sunday Odediran
This study aims to investigate the impacts of procurement strategies on the growing proportion of construction small- and medium-sized enterprises (SMEs) and whether the size of…
Abstract
Purpose
This study aims to investigate the impacts of procurement strategies on the growing proportion of construction small- and medium-sized enterprises (SMEs) and whether the size of the construction company moderates the effect.
Design/methodology/approach
This study adopted a quantitative research approach and a cross-sectional questionnaire survey in achieving its objectives. The survey requires the respondent to identify both the most successful and most outstanding project that the respondent was involved in between 2010 and 2016.
Findings
The study found that only traditional and management-oriented procurement strategies ensure the achievement of all growth plans for construction SMEs in South Africa; and that medium-sized construction enterprises achieve social growth such as community empowerment, managerial skills and advancement on the cidb Register of Contractors.
Practical implications
The findings of the study imply that policymakers should base their decisions regarding macroeconomic issues and growth plans for construction SMEs on the internal and external factors such as differences in the sizes of construction SMEs and differences in the suitability of procurement strategies affecting the growth of construction SMEs.
Originality/value
In past studies, the diversity amongst SMEs is often overlooked and SMEs are erroneously assumed to share similar objectives, possess equal capabilities and face challenges of the same magnitude. The original contribution of this study is shown in the investigation of the moderating effect of SMEs’ diversity (in terms of company size) on their growth proportion as influenced by procurement strategies.
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Oluseyi Julius Adebowale and Justus Ngala Agumba
Small and medium-sized contractors are critical to micro and macroeconomic performance. These contractors in South Africa have long been confronted with the problem of business…
Abstract
Purpose
Small and medium-sized contractors are critical to micro and macroeconomic performance. These contractors in South Africa have long been confronted with the problem of business failure because of a plethora of factors, including poor productivity. The purpose of this study is to investigate salient issues undermining the productivity of small and medium-sized contractors in South Africa. This study proposes alternative possibilities to engender productivity improvement.
Design/methodology/approach
Qualitative data were collected using semi-structured interviews with 15 contractors in Gauteng Province, South Africa. The research data were analysed using content and causal layered analyses.
Findings
Challenges to contractors’ productivity were associated with inadequately skilled workers, management competence and political factors. Skills development, construction business and political factors were dominant stakeholders’ perceptions. Metaphors for construction labour productivity are presented and reconstructed as alternative directions for productivity improvement.
Practical implications
Contractors lose a substantial amount of South African Rand to poor productivity. Alternative directions provided in this study can be leveraged to increase profitability in construction organizations, enhance the social well-being of South Africans and ultimately improve the contribution of contractors to the South African economy.
Originality/value
The causal layered analysis (CLA) applied in this study is novel to construction labour productivity research. The four connected layers of CLA, which make a greater depth of inquiry possible, were explored to investigate labour productivity in construction organizations.
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Medium‐sized regional building contractors in the UK are exhibiting poorer performance in the 1980s and the 1990s and are less likely to survive than their larger or smaller…
Abstract
Medium‐sized regional building contractors in the UK are exhibiting poorer performance in the 1980s and the 1990s and are less likely to survive than their larger or smaller counterparts. The market structure of contracting appears to be changing, putting pressure on these intermediate firms. Evidence drawn from the Department of the Environment (DoE) statistical series shows industry composition is changing, in particular the gradual decline over time of the middle market. An analysis of company accounts for a sample of approximately 200 contractors shows that medium‐sized firms are also displaying inferior business ratios. Possible explanations are offered, including barriers to entry, such as capitalization, economies of scale (pecuniary and market), along with changes in construction demand.
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Senthilkumar Venkatachalam, Alasdair Marshall, Udechukwu Ojiako and Chamabondo Sophia Chanshi
The purpose of this paper is to explore, using fine-grained exploratory multi-case studies, organisational learning practices – and associated constraints – impacting the…
Abstract
Purpose
The purpose of this paper is to explore, using fine-grained exploratory multi-case studies, organisational learning practices – and associated constraints – impacting the performance of four small- and medium-sized project organisations which deliver energy efficiency projects in South Africa and whose learning practice mixes are of wider significance for the emerging project society in the region.
Design/methodology/approach
The unit of analysis is the Energy Efficiency Demand Side Management (EEDSM) programme; a US$104m grant funded the initiative directed at supporting energy efficient retro-fit projects across local municipalities in South Africa. Thematic analysis is undertaken, based on multiple exploratory interviews with project practitioners working for small- and medium-sized EEDSM project organisations.
Findings
Recognising the criticality of tacit knowledge as a focus for learning, within unstructured, novel, non-routine and technically specialised learning contexts in particular, the widespread lack of organisational harnessing through linkages to strategy and performance are noted, and advocacy is offered for the development of appropriate learning cultures linked to communities of practice that bring specialists together from across regional project societies.
Research limitations/implications
The socio-political context of the EEDSM programme, although briefly addressed for its organisational cultural implications, was not given detailed consideration in the exploratory interviews. This would have enhanced the idiographic complexity of the findings, while also reducing prospects for distilling generalisable organisational learning improvement opportunities for emerging project societies. However, the study does not seek to provide evidence for specific learning practice effects on performance as this was not something the interviewees felt able to comment on in significant detail.
Originality/value
Learning practice studies for small- and medium-sized project organisations remains sparse, so are studies of business environments within developing countries, in general, or sub-Saharan Africa, in particular. Looking beyond narrow individual project views of performance, the present study’s project society-based business environment is theorised as both constraining and benefiting from the project-learning practices discussed by the respondents.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
This research paper concentrates on the reasons why the labor-only procurement of construction services is being commonly used in Nigeria. Adopting a survival strategy for hard economic times of accepting labor-only work benefits small- and medium-sized contractors by providing quick sources of cash flow and by allowing them to build more client relationships, while small private clients benefit from cost savings and from controlling material quality.
Originality/value
The briefing saves busy executives, strategists, and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.
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