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Article
Publication date: 12 April 2022

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.

Details

Benchmarking: An International Journal, vol. 30 no. 3
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 23 November 2022

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.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 3
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: 1 March 2001

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…

2189

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 smallmedium 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 smallmedium 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 smallmedium sized contractors may adopt if they to leverage the benefits of e‐commerce.

Details

Construction Innovation, vol. 1 no. 1
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 6 July 2012

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

4859

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.

Details

Journal of Engineering, Design and Technology, vol. 10 no. 2
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 18 August 2020

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…

1319

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.

Details

Journal of Financial Management of Property and Construction , vol. 25 no. 3
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 16 August 2023

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.

Details

Journal of Engineering, Design and Technology , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 1 February 2000

IAN STUMPF

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.

Details

Engineering, Construction and Architectural Management, vol. 7 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 29 October 2019

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.

Article
Publication date: 18 June 2019

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.

Details

Strategic Direction, vol. 35 no. 8
Type: Research Article
ISSN: 0258-0543

Keywords

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