The effect of communication capabilities of suppliers and external green integration on the green and financial performance in Iran

2018 ◽  
Vol 10 (3) ◽  
pp. 309-323
Author(s):  
Mahdi Salehi ◽  
Hoda Majbouri Yazdi ◽  
Mohammad Nekoei
Keyword(s):  
Financial Performance ◽  
Construction Industry ◽  
Engineering System ◽  
Field Methods ◽  
Statistical Population ◽  
Content Type ◽  
Construction Companies ◽  
Practical Research ◽  
Building Engineering ◽  
South Khorasan

Purpose Human developments in constructing buildings and their subsequent infrastructures despite certain advantages have unfortunately considerable effects on the environment, such that construction could be named as the main exploiter of the natural, physical and biologic resources. Hence, the purpose of this paper is to evaluate the effect of communication capabilities of the suppliers and external green integration on the green performance and financial performance of engineering and construction companies. Design/methodology/approach The statistical population of the study comprises all 300 members of the Building Engineering System of South Khorasan Province. According to the Morgan table (1972), 167 participants were selected as the sample of the study using the stratified random sampling, and a standard questionnaire was distributed among them. Data were collected through library and filed methods. Data were analyzed using the factor analysis method (SPSS), and LISREL Software was used for evaluating the research hypotheses. Findings The obtained results indicated that information sharing has a significant effect on environmental coordination and the green balance of green cost reduction of coordinate competitive advantage. Originality/value Accordingly, given the results obtained from a developmental-practical research, the authors initially gathered and classified the required data on the construction industry using the library and field methods, then extracted the obstacles of the supply chain to help facilitate the implementation of efficiency in the so-called industry.

Exploring the use of financial capacity as a predictor of construction company corporate performance

2015 ◽  
Vol 13 (4) ◽  
pp. 596-611 ◽  
Author(s):  
George Cyril Tucker ◽  
Abimbola Windapo ◽  
Keith Stone Cattell
Keyword(s):  
Financial Performance ◽  
Construction Industry ◽  
South African ◽  
Corporate Performance ◽  
Financial Capital ◽  
Content Type ◽  
Financial Capacity ◽  
Construction Company ◽  
Construction Companies ◽  
Operational Variables

Purpose – The purpose of this paper is to examine the resilient operational variables that impact the corporate performance of construction companies in the South African construction industry and to explore whether financial capacity can be used as a predictor of construction company performance in the context of the South African construction industry. Design/methodology/approach – The operational variables of construction companies that impact their corporate performance were identified through an in-depth review of the extant literature. A combination of convenience and snowball sampling techniques were used in identifying 185 building and civil engineering construction companies based in four provinces of South Africa and registered in Grades 2-6 of the Construction Industry Development Board (CIDB) contractor grading register. The data used in the study were collected from this cohort of respondents through the use of structured questionnaires. At the end of the study period, 62 valid responses representing a response rate of 33.5 per cent were received. Data collected were analyzed using descriptive and inferential statistics. Findings – The findings of this study indicate that there is a significant positive relationship between the financial capital and net assets of construction companies and their corporate performance in terms of turnover. The data collected did not support any significant relationship between other operating financial variables, such as Return on Capital Employed and profitability and financial performance. Research limitations/implications – A predictive model for predicting the financial performance of firms was developed from the data collected. The implication of this is that the more financial capital possessed by a construction company, the more the company’s financial performance in terms of turnover. The CIDB can use financial capacity as a measure when grading contractors, as a good number of contractors are not performing. The predictive model developed could be adopted by the CIDB as an instrument for predicting the corporate financial performance of construction companies that seek to be listed on their contractor grading register. Originality/value – This research will be of significance to researchers and members of the research community in providing new knowledge as well as to contractors in enabling them to understand the importance of having financial capital. It is also of importance to the CIDB in their quest for contractor and construction industry development. Further research to validate the results obtained in this study using a larger sample size across more provinces of South Africa will form the basis of future studies.

An empirical analysis of the exit of SMEs tendering for public works in the Japanese construction industry

2014 ◽  
Vol 19 (2) ◽  
pp. 101-116 ◽  
Author(s):  
Yukiko Konno
Keyword(s):  
Financial Performance ◽  
Construction Industry ◽  
Empirical Analysis ◽  
Performance Indicators ◽  
Public Works ◽  
Content Type ◽  
Construction Companies ◽  
Binary Logit ◽  
Entry Qualifications ◽  
The Empirical Analysis

Purpose – The purpose of this study is to examine what factors affect the exit of small and medium-sized enterprises (SMEs) from tendering for public works in the Japanese construction industry using the Keiei Jikou Sinsa or Keisin (the database for evaluation of construction companies in Japan). Design/methodology/approach – This study empirically analyzes SMEs’ exit using the binary logit model. For the empirical analysis, it uses the scores as well as financial and non-financial performance indicators of Keisin data. Findings – The Keisin scores (the total score and W score), financial performance indicators (cash flow from operations and capital) and non-financial performance indicators (having unemployment insurance and operating years) significantly affect SME exits. Although the Keisin data are used for bid entry qualifications of public works, they can be applied to a factor analysis of the exit of SMEs in the construction industry. Originality/value – As there exists little empirical analysis of the exit of SMEs globally, this study contributes to the research on this phenomenon.

scholarly journals Examining the implementation of ISO 9001 in Indonesian construction companies

2015 ◽  
Vol 27 (1) ◽  
pp. 94-107 ◽  
Author(s):  
Debby Willar ◽  
Vaughan Coffey ◽  
Bambang Trigunarsyah
Keyword(s):  
Quality Management ◽  
Construction Industry ◽  
Current Practice ◽  
Iso 9001 ◽  
Quality Management Systems ◽  
Content Type ◽  
Construction Companies ◽  
Main Motive ◽  
Research Findings ◽  
Management Attitude

Purpose – The purpose of this paper is to examine the implementation of quality management systems (QMSs) of Grade 7 (G-7) Indonesian construction companies. This includes the initial motives that have driven the development of QMSs, barriers to effective QMS implementation, the current practice and integration of QMS-ISO 9001 principles and elements, and the performance of contractors implementing such QMSs. Design/methodology/approach – A survey was conducted involving 403 respondents (Quality Management Representatives, Managers, and Project and Site Engineers) from 77 G-7 as well as ISO 9001 certified Indonesian construction companies. Findings – The main motive for G-7 contractors in establishing and implementing ISO 9001 based QMSs are identified as being to effectively and efficiently control project activities. Respondents apparently do not often experience problems related to QMS implementation. However, issues of management attitude and purpose are identified as barriers that may affect effective QMS implementation. The study highlights the ISO 9001 principles and elements that still require to be more critically applied by G-7 contractors in order to fully implement and improve their current QMS effectiveness. The findings also suggest that, although certified, many G-7 contractors have not yet achieved a satisfactory level of performance to be truly competitive in global markets outside Indonesia. Originality/value – To date, only limited research has been conducted into the application of ISO 9001 in the Indonesian construction industry. The research findings reinforced the value of pursuing more effective QMS implementation. They also support current attempts to introduce ISO 9001 QMSs to a much wider base of Indonesian construction companies, particularly small and medium sized contractors and builders.

Operational process stages of brand alliances

2015 ◽  
Vol 27 (4) ◽  
pp. 389-408
Author(s):  
Chung-Ju Tsai ◽  
Tzong-Ru (Jiun-Shen) Lee ◽  
Szu-Wei Yen ◽  
Per Hilletofth
Keyword(s):  
Construction Industry ◽  
Brand Alliances ◽  
Content Type ◽  
Operational Process ◽  
Construction Companies ◽  
Reinforcing Bar ◽  
Brand Alliance ◽  
Interview Survey ◽  
Alliance Partners ◽  
Development And Management

Purpose – The purpose of this research is to investigate how companies in the reinforcing bar industry and the construction industry operate and implement brand alliances. Design/methodology/approach – This research uses a qualitative interview survey and the grounded theory method to extract key factors of brand alliance development and management in the targeted industries. The interview survey included six managers from different construction companies in Taiwan. Findings – This research identifies four common firm-level operational process stages (core categories) of brand alliances including different multidimensional factors, and proposes a conceptual model based on these identified core process stages. The four common core process stages include selection of brand alliance partners, communication with brand alliance partners, enforcement of brand alliances and assessment of brand alliances. Originality/value – The proposed model offers a tentative explanation of the development and management of brand alliances between the reinforcing bar industry and the construction industry. This study represents an initial research attempt in this field and explains how reinforcing bar and construction companies operate and implement brand alliances.

Developing a predictive model of construction industry-university research collaboration

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Monty Sutrisna ◽  
Dewi Tjia ◽  
Peng Wu
Keyword(s):  
Data Collection ◽  
Predictive Model ◽  
Construction Industry ◽  
Research Collaboration ◽  
Ann Model ◽  
Data Set ◽  
Content Type ◽  
Construction Companies ◽  
Likelihood Model ◽  
Artificial Neural Network Ann

Purpose This paper aims to identify and examine the factors that influence construction industry-university (IU) collaboration and develop the likelihood model of a potential industry partner within the construction industry to collaborate with universities. Design/methodology/approach Mix method data collection including questionnaire survey and focus groups were used for data collection. The collected data were analysed using descriptive and inferential statistical methods to identify and examine factors. These findings were then used to develop the likelihood predictive model of IU collaboration. A well-known artificial neural network (ANN) model, was trained and cross-validated to develop the predictive model. Findings The study identified company size (number of employees and approximate annual turnover), the length of experience in the construction industry, previous IU collaboration, the importance of innovation and motivation of innovation for short term showed statistically significant influence on the likelihood of collaboration. The study also revealed there was an increase in interest amongst companies to engage the university in collaborative research. The ANN model successfully predicted the likelihood of a potential construction partner to collaborate with universities at the accuracy of 85.5%, which was considered as a reasonably good model. Originality/value The study investigated the nature of collaboration and the factors that can have an impact on the potential IU collaborations and based on that, introduced the implementation of machine learning approach to examine the likelihood of IU collaboration. While the developed model was derived from analysing data set from Western Australian construction industry, the methodology proposed here can be used as the basis of predictive developing models for construction industry elsewhere to help universities in assessing the likelihood for collaborating and partnering with the targeted construction companies.

Reducing waste to landfill in the UK: identifying impediments and critical solutions

2013 ◽  
Vol 10 (2) ◽  
pp. 131-142 ◽  
Author(s):  
Lukumon O. Oyedele ◽  
Martin Regan ◽  
Jason von Meding ◽  
Ashraf Ahmed ◽  
Obas John Ebohon ◽  
...  
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Methodological Approach ◽  
Cost Savings ◽  
Content Type ◽  
Construction Companies ◽  
Early Communication ◽  
Design Changes ◽  
Critical Solutions ◽  
The Uk

PurposeThe UK construction industry produces up to one third of all waste to landfill. This study aims to identify specific project practices impeding the reduction of waste in construction projects as well as uncovering potential waste solutions throughout the project delivery process. The rationale being that for such a drastic reduction in waste to landfill, holistic and extensive measures would be required.Design/methodology/approachA two‐way methodological approach was used. This comprised qualitative unstructured interviews and a quantitative questionnaire survey of three major stakeholders in the UK construction industry: clients, architects and contractors.FindingsDesign factors remain the major cause of impediments to waste reduction to landfill. Critical impediments include clients making waste prevention a top priority in projects, overly complex designs, waste taking a low priority compared to project time and costs, lack of concerns by designers for buildability, among others. Critical solutions include early supply chain involvement in design process, choosing materials for their durability, early communication of design changes to all parties, longer project programmes and better lead times, among others.Practical implicationsIn all, the target of halving construction waste to landfill based on the 2008 benchmark is achievable but would require construction companies to take it upon themselves to implement the proposed solutions suggested by this study.Originality/valueThe value of this research is to provide UK construction companies with solutions to reduce waste and aid the reaching of the landfill target, as landfill is decreasing as a solution to waste. In addition the cost savings on reducing waste could be crucial for companies in this current economic climate.

The relationship between sustainability practices and financial performance of construction companies

2013 ◽  
Vol 2 (1) ◽  
pp. 6-27 ◽  
Author(s):  
Renard Y.J. Siew ◽  
Maria C.A. Balatbat ◽  
David G. Carmichael
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Health And Safety ◽  
Financial Ratios ◽  
Financial Reports ◽  
Content Type ◽  
Construction Companies ◽  
Wide Range ◽  
Sustainability Practices ◽  
The Impact

PurposeOver recent years, a number of companies have committed to sharing information relating to their environmental, social and governance (ESG) activities, in response to a higher demand for transparency from stakeholders. This paper aims to explore the impact of such reporting on the financial performance of construction companies.Design/methodology/approachThis paper first examines the state of non‐financial reporting of publicly‐listed construction companies on climate change, environmental management, environmental efficiency, health and safety, human capital, conduct, stakeholder engagement, governance and other matters deemed to be of concern to institutional investors. It then presents the results of an empirical study on the impact of issuing non‐financial reports and the extent of companies’ sustainability practices (represented by ESG scores) on the financial performance of the companies. Financial performance is measured via a range of financial ratios.FindingsThe paper finds that a majority of the publicly‐listed construction companies studied have low levels of reporting, while construction companies issuing non‐financial reports largely outperform those which do not in a number of selected financial ratios, although the correlation between financial performance and ESG scores is not strong.Originality/valueThe originality of this research lies in its use of “hard data”, and it is supported by a wide range of financial ratios; this is distinguished from the existing, largely qualitative literature.

scholarly journals Strategic framework for implementing smart devices in the construction industry

2021 ◽  
Vol 21 (2) ◽  
pp. 218-243
Author(s):  
Manuel Alexander Silverio-Fernández ◽  
Suresh Renukappa ◽  
Subashini Suresh
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Success Factors ◽  
High Rate ◽  
Smart Devices ◽  
Structured Interviews ◽  
Content Type ◽  
Strategic Framework ◽  
Construction Companies ◽  
The Uk

Purpose The decentralisation of information and high rate of mobile content access in the construction industry provide an ideal scenario for improvement of processes via the implementation of the paradigm of the Internet of Things (IoT). Smart devices are considered as the objects interconnected in the IoT; therefore, they play a fundamental role in the digital transformation of the construction industry. Currently, there is a lack of guidelines regarding the implementation of smart devices for digitalisation in the construction industry. Consequently, this paper aims to provide a set of guidelines for implementing smart devices in the construction industry. Design/methodology/approach An empirical study was performed in the UK and the Dominican Republic (DR). Following a systematic approach, qualitative data collection and analysis was performed based on semi-structured interviews involving professionals from construction companies in the UK and the DR. Interviews were recorded and subsequently transcribed using Microsoft Word and exported to the software NVivo, where the software was used to find common thematic nodes across all interviews. Findings The findings encompass drivers, challenges and critical success factors (CSFs) for implementing smart devices in construction project. For both countries, the top five CSFs were leadership, staff training, culture, technology awareness and cost of implementation. These findings were used to develop a strategic framework for implementing smart devices in construction companies. The framework establishes the actors, elements and actions to be considered by construction companies when implementing smart devices. Originality/value This paper provides a richer insight into the understanding and awareness of implementing smart devices. A strategic framework for implementing smart devices in the construction industry and providing guidelines for adopting smart devices in construction projects was developed and validated. This study provides a better understanding of the key factors to be considered by construction companies when embedding smart devices into their projects.

Benchmarking enablers to achieve growth performance: a conceptual framework

2020 ◽  
Vol 27 (4) ◽  
pp. 1475-1501 ◽  
Author(s):  
Sanjay Bhattacharya ◽  
Kirankumar S. Momaya ◽  
K. Chandrasekhar Iyer
Keyword(s):  
Literature Review ◽  
Conceptual Framework ◽  
Growth Performance ◽  
Construction Industry ◽  
Sustainable Growth ◽  
List Type ◽  
Positive Outcomes ◽  
Content Type ◽  
Construction Companies ◽  
Economic Context

PurposeTo suggest a conceptual framework to benchmark enablers of growth and link them to performance metrics, duly supported theoretically with definitions and literature review. The sub-objectives of the study are the following:To identify enablers based on theories and antecedents of growthTo establish key leads on how the identified enablers have been deployed by leading construction companies, basis their stages of growth and economic contextTo identify which enablers have higher potential to contribute to competitiveness and growth in an effort to benchmark performanceTo establish if the enablers deployed is dependent on the market maturity and economic contextDesign/methodology/approachThe enabler-mix-based approach is evolved through literature review, inputs from industry practitioners, and subsequent empirical analysis. To explore relationships, the primary methodology suggested is building theory from practice, justified in specific industry and regional economic context. Content analysis has been used for validation of the framework.FindingsTraditional strategy literature suffers from the limitations in terms of applicability and specific contextual settings. In a rapidly changing and varied environment coupled with the context of emerging countries, there is a need for a benchmarked framework for strategy and growth. The evidence toward utility of the framework has been established through a quick analysis of leading construction companies. Capabilities for “operational and process excellence,” “unique products and services,” and “visionary leadership” emerged to be the higher ranked core growth enablers. However, the deployment of these enablers is dependent on the maturity of the company and its economic context.Research limitations/implicationsThis simpler and generic framework analyzes the relative impact on performance, as well as the inter-enabler interaction and substitution effects, in the context of construction companies.Practical implicationsIn the context of industries that are volatile in nature (like the construction industry), strategy tools need to be simple and generic towards practical and uncomplicated application for the managers, to achieve positive outcomes.Originality/valueThis paper offers fresh perspectives to benchmarking literature in terms of enablers to deliver growth performance, in the context of construction companies. It attempts to fill the gap in evolving simple strategy tools to ensure sustainable growth performance in industries having nascent research support and less availability of data so far. In the context of industries that are volatile in nature (like the construction industry), strategy tools need to be simple and generic toward practical and uncomplicated application for the managers to achieve positive outcomes.

Using accounting ratios to measure construction industry lag

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
John Killingsworth ◽  
Mohammed Hashem Mehany ◽  
Jeff Kim
Keyword(s):  
Construction Industry ◽  
Financial Management ◽  
Economic Behavior ◽  
Financial Behavior ◽  
Financial Ratios ◽  
Equity Structure ◽  
Economic Changes ◽  
Content Type ◽  
Construction Companies ◽  
The Impact

Purpose The apparent lag between macro-economic behavior and financial implications in the construction industry is yet to be examined. The purpose of this paper is to understand the nature of the lag and the relationship between economic changes from year-to-year and the impact on the financial status of construction companies. Design/methodology/approach Correlation was made between US economic growth and construction industry financial indicators over a 28-year period. Cumulative per cent growth in US GDP was considered an independent variable, while nine financial ratios were calculated and considered dependent variables in this study. Findings The results of this study found that correlation improved when considering lag of two, three or sometimes four years after the economic event. Some financial ratios proved more sensitive than others, supporting the hypothesis of this study. Research limitations/implications The practical application of this study for construction companies is to understand how the construction industry lag impacts financial behavior. It therefore informs managerial decisions related to solvency, liquidity, equity structure and managerial practices; all of which are measured by financial ratios. Practical implications This study was intended to advance the research in this area and also to serve to strengthen industry members in their financial management of construction companies. Economic dynamics have long-lasting implications, which can be addressed through an increased focus on managing financial health. Originality/value Though the lag is intuitively known and has been studied from market perspectives, there is a lack of empirical study evaluating the impact of lag on financial key performance indicators.

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