Correlation between innovation and performance of construction firms

2009 ◽  
Vol 36 (11) ◽  
pp. 1722-1731 ◽  
Author(s):  
Seokin Choi ◽  
Hyounseung Jang ◽  
Joonsik Hyun
Keyword(s):  
Construction Industry ◽  
Radical Change ◽  
Asian Financial Crisis ◽  
Construction Firms ◽  
Construction Companies ◽  
Time Period ◽  
Product And Process ◽  
And Performance ◽  
Market Leadership ◽  
Indirect Relationship

This paper studies the performance of 118 major Korean construction companies between 1997 and 2003 to verify empirically the existence of a direct relationship between innovations of firms and their performance. This time period was selected because there had been a radical change in the market leadership of the construction industry due to the Asian Financial Crisis of the late 1990s. The AMOS analysis and the research demonstrated that innovation of a firm has an indirect relationship with its performance through mediating variables — firm product and process fits. While innovations of a firm are contingent to the external factors, product fit and process fit have direct impact on firm performance, suggesting that the product fit and the process fit are two significant indicators of the success or failure of a firm.

Assessment of Electronic Procurement Practices on Project Delivery, Case Study of Selected Construction Companies in Oyo State

2018 ◽  
pp. 257-266
Keyword(s):  
Construction Industry ◽  
Information Exchange ◽  
Ease Of Use ◽  
Project Delivery ◽  
Development Programs ◽  
Construction Firms ◽  
Construction Companies ◽  
Electronic Procurement ◽  
Ict Infrastructure ◽  
E Mail

This study investigated the use of e-Procurement in selected construction firms in Oyo state, Nigeria. The data were derived using a well-structured questionnaire survey involving 104 respondents. Descriptive statistical and correlation analyses were used to analyze the data. Findings show that the use of electronic procurement in the selected construction firms for carrying out procurement function is high with majority of the professionals affirming the use of the system, the four categories of e-Procurement used were e-mail, static websites, web.2.0 technologies and portals that have capabilities of supporting the execution of functions limited to intra and inter firm communication and exchange of project information and data. Consequently, between 84 percent and 76 percent of the respondents used these e-Procurement technologies for communication of information, exchange of bill of quantities, project reports, CAD drawings and project specifications. Consequently, factors with the highest positive impacts on the use of these technologies in the firms were the speed of transactions, lower transaction cost and ease of use. The study implies that the selected construction firms in Oyo state Nigeria predominantly use e-mails and websites to support the execution of pre-award phase of construction procurement. Finding also shows that there is positive relationship between e-Procurement (e-Notifying, e-Exchange, and e-Submission of bid) and Project delivery. The study suggests that to accelerate the rate of uptake of e-Procurement and maximize its benefits in the Nigerian construction industry, there is a need to improve the quality and quantity of ICT infrastructure across the country; and to embark on aggressive enlightenment campaigns, training and skill development programs in the use of e-Procurement in the construction industry in this country.

scholarly journals Creating relationship continuity across projects in the construction industry

IMP Journal ◽  
2017 ◽  
Vol 11 (2) ◽  
pp. 207-229 ◽  
Author(s):  
Malena Ingemansson Havenvid ◽  
Elsebeth Holmen ◽  
Åse Linné ◽  
Ann-Charlott Pedersen
Keyword(s):  
Construction Industry ◽  
Empirical Studies ◽  
Mutual Orientation ◽  
Content Type ◽  
Construction Firms ◽  
Relationship Continuity ◽  
Time Period ◽  
Strategy Types ◽  
The Relationship ◽  
Over Time

Purpose The purpose of this paper is to investigate the relationship continuity across projects among actors in the construction industry, and to discuss why and how such continuity takes place. Design/methodology/approach The authors draw on the results from four in-depth case studies illustrating different strategies for pursuing relationship continuity. The results are analysed and discussed in light of the oft-mentioned strategies suggested by Mintzberg (1987): emergent, deliberate and deliberately emergent strategies. Furthermore, the ARA-model is used to discuss why the relationship continuity strategies are pursued, and which factors might enable and constrain the relationship continuity. Findings The main findings are twofold. First, the authors found that the strategy applied for pursuing relationship continuity may, in one-time period, contain one type of strategy or a mix of strategy types. Second, the type of strategy may evolve over time, from one type of strategy being more pronounced in one period, to other strategies being more pronounced in later periods. The strategies applied by construction firms and their counterparts can thus contain elements of emergent, deliberate and deliberately emergent strategies, in varying degrees over time. It is also shown that the strategies of the involved actors co-evolve as a result of interaction. Also, the main reasons for pursuing continuity appear to lie in the re-use and development of important resources and activities across projects to create efficiency and the possibility to develop mutual orientation, commitment and trust over time, and thus reduce uncertainty. Research limitations/implications Further empirical studies are needed to support the findings. For managers, the main implication is that relationship continuity can arise as part of an emerging interaction pattern between firms or as part of a planned strategy, but that elements of both might be needed to sustain it. Originality/value The authors combine Mintzberg’s strategy concepts with the ARA-model to bring new light to the widely debated issue of discontinuity and fragmentation in the construction industry.

Constraints and opportunities facing construction organization in post-conflict condition in Afghanistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qais Amarkhil ◽  
Emad Elwakil
Keyword(s):  
Matrix Analysis ◽  
Content Type ◽  
Construction Firms ◽  
Construction Companies ◽  
Post Conflict ◽  
Conflict Condition ◽  
Local Construction ◽  
And Performance ◽  
Construction Organization ◽  
Critical Constraints

Purpose Although there are many challenges and constraints for construction organization operation and performance in a post-conflict condition, there is insufficient construction project management literature. Therefore, the purpose of this paper is to identify a framework to understand and determine critical constraints and opportunities in a post-conflict condition facing local construction firms in Afghanistan. The proposed framework is composed of three major steps: identify and determine key performance indicators; identify challenges impacting organization operation and performance in post-conflict condition; determine critical constraints and opportunities based on prioritized performance measures; and organizational strength and weakness factors. Design/methodology/approach The strength, weakness, opportunities and threat matrix analysis has been used to determine post-conflict condition constraints and opportunities. Then the analytical hierarchy process has been used to prioritize the measures and identify the constraints and opportunities facing construction companies in a post-conflict situation. The mix-research method is applied to this study to analyse qualitative variables and quantitative variables obtained from the experts’ opinions and 51 filled questioners. Findings The study shows that there are a total of 11 critical constraints and three essential opportunities for construction companies that industry practitioners and policymakers should take into account while formulating the organizational strategy. Practical implications The developed framework will benefit construction companies in improving their performance and operation in after-conflict conditions. Originality/value This paper is the first to provide a comprehensive conceptualization of the challenges and constraints for construction organization operation and performance in a post-conflict condition. It also offers a novel conceptual framework to understand and determine critical constraints and opportunities in a post-conflict condition facing local construction firms in Afghanistan.

scholarly journals ANALISIS STRUKTUR PASAR INDUSTRI KONSTRUKSI DI INDONESIA TAHUN 2007-2011

Media Ekonomi ◽  
2017 ◽  
Vol 20 (3) ◽  
pp. 49
Author(s):  
Annisa Utami
Keyword(s):  
Construction Industry ◽  
Market Share ◽  
Concentration Ratio ◽  
Analytical Techniques ◽  
Know How ◽  
Construction Companies ◽  
And Performance

<p>The purpose of this study was to determine how the structure, conduct and performance of the construction industry in Indonesia. And to know how much influence the structure, conduct and performance of the construction industry in Indonesia. Analytical techniques used in this research is to use the Concentration Ratio (CR4) and the Herfindahl-Hirchman index (IHH), which which took the example of 8 Indonesian construction companies wich were tested whithin a period 2007-2011. The results showed the level of concentration ratio (CR4) ranged from 73,02% to 76,16%, then the figure shows the structure of the constraction industry period 2007- 2011 is an oligopoly tight. While based on the Herfindahl-Hirschman index, is the range from 0,159695275 to 0,169852, which means the structure of the construction industry in Indonesia is not a monopoly or not structured approaches 1, when viewed from the level of concentration between the years 2007-2011, it can be concluded that the level of competition in the construction industry in Indonesia is very competitive. it is characterized by the competition of market share among the four dominant companies in the Indonesian construction industry in terms of revenue<br />Keywords: Oligopoly, CR4, IHH, Structure, Conduct and Performance.</p>

Assessing Organisations’ Readiness for Technological Changes in Construction Industry

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Norfashiha Hashim ◽  
◽  
Aina Syazifa Samsuri ◽  
Nur Hidayah Idris ◽  
◽  
...  
Keyword(s):  
Construction Industry ◽  
Research Work ◽  
Construction Sector ◽  
Kuala Lumpur ◽  
Technological Changes ◽  
Structured Interviews ◽  
Construction Firms ◽  
Construction Companies ◽  
Technological Readiness

Of late, the advancements in technology have witnessed a spike in the number of schemes aimed towards enhancing the deployment of technologies in construction-based entities, thereby increasing the demand for technological modifications. This paper intends to scrutinise the keenness of construction entities to identify technological changes within the construction sector. The goals of this research work are to ascertain the degree of willingness for technological alterations, the norms which construction entities should possess regarding the readiness for technological alterations, and the obstacles encountered by construction firms in terms of technological alterations. Ten semi-structured interviews were carried out comprising ten G7 contractors in Selangor and Kuala Lumpur regarding on the implementation and adopting the technological changes within their companies. Based on the observations, most construction firms in Malaysia are fairly prepared to encounter technological fluctuations. Furthermore, the research deliberates many norms which are essential to generate the technological readiness in construction firms along with the obstacles which could impact the organisational inclination for technological changes. This work intends to help construction companies evaluate their degree of readiness and organise themselves for better adoption of technological alterations in their businesses.

scholarly journals Organizational Resilience and Performance: An Analysis of the Relevance of Suppliers’ Trade Credit and Bank Diversification in the Spanish Construction Industry

2017 ◽  
Vol 17 (4) ◽  
pp. 1-19
Author(s):  
Esteban Lafuente ◽  
Felipe Strassburger ◽  
Yancy Vaillant ◽  
Jordi Vilajosana
Keyword(s):  
Construction Industry ◽  
Financial Institutions ◽  
Trade Credit ◽  
Superior Performance ◽  
Financial Resources ◽  
Economic Downturn ◽  
Construction Firms ◽  
Relevant Variables ◽  
And Performance ◽  
Period Performance

The objective of this study is to determine the effect of relevant variables related to strategic sources of financial resources—in our case, suppliers’ trade credit and use of financial institutions—over performance among Spanish construction firms. To test the proposed hypotheses, we employ panel-data techniques on a large dataset that includes information for 3590 Spanish small (1723), medium-sized (1616) and large (251) construction businesses during 2004-2011. The results of the longitudinal analysis reveal that trade credit granted by suppliers constitute a relevant source of liquidity and financial resources that positively impacts economic performance. During the period of economic downturn that affected Spain after 2008, those construction firms that benefited from longer average payment periods from their suppliers reported superior performance levels. Additionally, we find that bank diversification is conducive to performance but only during the crisis period: performance is significantly higher in businesses that work with a greater number of financial institutions.

scholarly journals Competitive Capabilities for the Innovation and Performance of Spanish Construction Companies

2019 ◽  
Vol 11 (19) ◽  
pp. 5475 ◽  
Author(s):  
José Giménez ◽  
Antonia Madrid-Guijarro ◽  
Antonio Duréndez
Keyword(s):  
Empirical Evidence ◽  
Survey Research ◽  
Human Capabilities ◽  
Firm Innovation ◽  
Construction Firms ◽  
Construction Companies ◽  
Competitive Capabilities ◽  
Internal Capabilities ◽  
Competitive Success ◽  
And Performance

This research analyses the influence of internal capabilities, identified as strategic by the literature, on the performance and innovation of Spanish construction companies during a recessionary period. Based on this, we studied whether innovative, marketing, financial, managerial, and human capabilities affect competitive success in terms of fostering innovation and the performance of firms. Empirical evidence is provided by performing survey research with a sample of 94 Spanish construction firms. The results show that firm innovation is fostered by innovative, financial, and human capabilities, and that performance is promoted by innovation, and financial and human capabilities. Human capabilities have the most important effect on both innovation and the performance of the company.

scholarly journals Supervisor's capability and aptitude to supervise Health and Safety (H&S) induction training to site workforces: A case study of the construction industry of Pakistan

2021 ◽  
Vol 19 (4) ◽  
pp. 962-971
Author(s):  
Khalid Daniyal ◽  
Bilal Aslam ◽  
Umer Khalil
Keyword(s):  
Construction Industry ◽  
Health And Safety ◽  
Work Conditions ◽  
The Other ◽  
Upper Management ◽  
Construction Firms ◽  
Construction Companies ◽  
Site Supervisors ◽  
Audio Communication

Health and Safety (H&S) is a professional approach to substitute harmless and vigorous work conditions for any industry. The construction industry is of utmost importance because it is associated with elevated accident rates compared to the other sectors. To some extent, cultural progression is also reliant on communication among all the groups inside a corporation. Effective communication happens in a construction corporation, among upper management and the employees arbitrated by the supervisors. Therefore, if the construction supervisor's capabilities are ignored, the plans to progress the satisfactory H&S culture may be unsuccessful. The aptitude for conducting H&S induction training to employees is one of the construction supervisor's abilities, and in developing countries, the supervisor's capabilities are ignored. Moreover, the organization's eagerness on H&S, which corresponds to the induction training, is relatively less. The current research reports an examination to analyze how the supervisors possess H&S capabilities and skills to oversee site H&S induction training to workforces successfully. For the analysis, Pakistan's construction industry was targeted, and numerous construction firms were contacted in this regard. The data for the intended objective was accumulated through talks and surveys with site supervisors in construction companies of various extents from all over Pakistan. The outcomes exposed insufficient training, an absence of management dedication, and an inadequate familiarity or usage of visual/audio communication assistance by construction companies in Pakistan. Thus, it is suggested that there is a need for the supervisors to understand the use of multilingual skills and current technologies to assist valuable site H&S induction training that can progress a path towards an optimistic H&S culture.

scholarly journals Effect of Company Strategies on Organisational Performance in Nigerian Construction Industry

2020 ◽  
pp. 25-33
Author(s):  
U. V. Alintah- Abel ◽  
N. B. Iheama ◽  
S. C. Ugochukwu
Keyword(s):  
Construction Industry ◽  
Positive Impact ◽  
Primary Data ◽  
Growth Strategies ◽  
Organisational Performance ◽  
Competitive Strategies ◽  
Construction Firms ◽  
Construction Companies ◽  
Generic Strategies ◽  
The Impact

Changes in the environment such as customers’ preferences and choices has put the companies on toes with each firm fighting for its survival and all is based on strategies choice and their implementation. Thus, Nigerian construction companies have to adopt and apply appropriate strategies to be more competitive in this industry and get success in their businesses. Hence, the aim of this study was to investigate the effect of company strategies on organisational performance in Nigerian construction industry. The conceptual framework was provided to give a guideline on how both independent and dependent variables will interact in other to get the impact of companies’ strategies on performance. Primary data with the aid of a structured questionnaire was used to elicit information from respondents. The data collected were analysed using both descriptive such as percentages and mean and inferential statistics of regression analysis was used to test the hypotheses. The findings revealed that construction companies adopt several company strategies at various levels; however, the strategies are generally applied moderately in the firms. The study deduced that both growth strategies and generic strategies have positive significant impact on performance. The study recommended that policy makers and the management of the construction firms should adopt a mix of the competitive strategies since both have positive impact on performance and there is need for companies to intensify their applications since it will spur performance in the organisation.

APPLICATION OF KEY PERFORMANCE INDICATORS IN SOUTH‐EASTERN EUROPEAN CONSTRUCTION

2010 ◽  
Vol 16 (4) ◽  
pp. 521-530 ◽  
Author(s):  
Mladen Radujković ◽  
Mladen Vukomanović ◽  
Ivana Burcar Dunović
Keyword(s):  
Performance Management ◽  
Construction Industry ◽  
Performance Indicators ◽  
Key Performance Indicators ◽  
Structured Interviews ◽  
East European ◽  
Construction Company ◽  
Construction Companies ◽  
Management Processes ◽  
And Performance

The importance of performance based benchmarking has become a necessity in a modern construction company and presents a constant challenge for the construction industry. The aim of this paper is to elaborate significance, role and types of Key Performance Indicators (KPI) in the construction industry and show how different management perspectives perceive the indicators. A literature review was carried out in order to generate a listing of KPIs, used among academe and the industry. Afterwards, using surveys and semi‐structured interviews, the data was gathered from more than 30 South‐East European construction companies. Results were analyzed, producing a final set of 37 indicators. This study identified a low level of awareness of KPI models and performance management processes among the companies. Furthermore, the analysis showed a substantial difference in perception of KPIs among investors, consultants and contractors, which consequently led to a compiling list of KPIs. The top ten KPI's are: Quality, Cost, Number of investor interferences, Changes in project support, Time increase, Client satisfaction, Employees’ satisfaction, Innovation and learning, Time and Identification of client's interest. The paper concludes with final remarks and guidelines for the implementation of KPIs in practice. Santrauka Šiuolaikineje statybos imoneje efektyvumu pagristo lyginimo svarba jau yra neišvengiama, o statybu pramonei tai reiškia nuolatinius iššūkius. Šiuo darbu siekiama išnagrineti pagrindiniu statybu sektoriaus veiklos rodikliu (PVR) reikšme, vaidmeni ir rūšis bei pademonstruoti, kaip šie rodikliai vertinami remiantis skirtingais vadybos požiūriais. Apžvelgta literatūra, siekiant sudaryti akademineje aplinkoje ir pramoneje naudojamu PVR saraša. Pasitelkus apklausas ir iš dalies struktūrinius pokalbius, buvo surinkti duomenys iš daugiau kaip 30 pietryčiu Europos statybos imoniu. Išanalizavus rezultatus gautas galutinis 37 rodikliu rinkinys. Šiame tyrime nustatyta, kad imones menkai ka težino apie PVR modelius ir efektyvumo valdymo procesus. Be to, paaiškejo, kad investuotojai, konsultantai ir rangovai PVR suvokia gana skirtingai, ir del to teko sudaryti PVR saraša. Dešimt pagrindiniu PVR yra šie: kokybe, kaina, investuotojo kišimosi atveju skaičius, pasikeitusi parama projektui, nukelti terminai, kliento pasitenkinimas, darbuotoju pasitenkinimas, naujoves ir mokymasis, laikas, kliento interesu nustatymas. Darbo pabaigoje pateikiamos baigiamosios pastabos ir PVR taikymo praktikoje rekomendacijos.

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