scholarly journals Market Concentration, Market Power, and Firm Growth of Construction Companies

2021 ◽  
Vol 2021 ◽  
pp. 1-9
Author(s):  
Yumou Wang ◽  
Shilong Li
Keyword(s):  
Construction Industry ◽  
Market Power ◽  
Firm Growth ◽  
Market Concentration ◽  
Structural Effect ◽  
Construction Firms ◽  
Construction Companies ◽  
Fierce Competition ◽  
The Impact ◽  
China’S Economy

China’s economy has been transitioning from a phase of rapid growth to a stage of high-quality development that is called “new normal,” and China’s construction industry plays a pillar part in China’s economy. Nevertheless, the industry is large but not strong. This labour-intensive industry suffers from low concentration and fierce competition. Based on the organizational theory, which shows how market structure contributes to the growth of industry, this study aims to explore the impact of market concentration and market power on firm’s turnover and profit. Using statistical analysis and panel data of 37 China’s construction companies from 2009 to 2018, this study proposes and calculates the market concentration (CR) and the market power (MP) of China’s companies. Then the augmented Cobb–Douglas production function and OLS regression are used to explore the growth factors of China’s construction industry. The results show that the market concentration increases both the turnover and profit of construction firms. However, market power increases the profit of construction firms while decreases the turnover. In addition, the companies that are China’s non-state-owned have overseas income or are civil engineering and construction have more advantages in the growth of the construction industry in “quality”. This study provides a reference to understand the structures of the construction industries and the structural effect on the growth of different types of firms and could be replicated in other countries with the similar situation.

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.

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 The global economy and its influence on the Slovak construction sector

2010 ◽  
Vol 18 (1) ◽  
pp. 17-23
Author(s):  
E. Jankovichová
Keyword(s):  
Construction Industry ◽  
Global Economy ◽  
Communication Channels ◽  
Organization Structure ◽  
Construction Sector ◽  
Construction Companies ◽  
Control Procedures ◽  
Management Approaches ◽  
And Control ◽  
The Impact

The global economy and its influence on the Slovak construction sectorFor the construction industry, globalization is a trend that means two things: many opportunities and many threats. In the conditions of globalization many management approaches, such as organization structure, strategy forming, planning, motivation and control procedures, communication channels, risk management, etc., must transform. The aim of the paper is to analyze the influence of globalization on the construction industry in Slovakia and identify the impact of globalization on construction companies in this area.

scholarly journals Innovation, Mark-Up and Firm Growth: Evidence from China’s New Generation IT Industry

2019 ◽  
Vol 11 (7) ◽  
pp. 2000
Author(s):  
Hongya Li ◽  
Laiqun Jin ◽  
Yuanyao Ding
Keyword(s):  
Growth Rate ◽  
Market Power ◽  
Firm Growth ◽  
Capital Intensity ◽  
Least Square ◽  
Export Demand ◽  
Negative Effects ◽  
Industrial Firms ◽  
New Generation ◽  
The Impact

In this paper, we provide empirical evidence for understanding the growth behavior of China’s new generation of information technology (IT) industrial firms and the impact of innovation and market power on them. Based on the data of China’s new generation IT industrial firms covering the period 2000–2007, we use ordinary least square (OLS) and two-stage least squares (IV-2SLS) methods to study the effects of innovation and markup on the growth of China’s new generation IT industrial firms in the framework of Gibrat’s law. IV-2SLS estimations show that: (1) Innovation and markup have positive and significant effects on the firm’s total revenue growth rate, but have no significant or negative effects on the growth rate of the firm’s total assets and employment. (2) Innovation has a positive and significant effect on the firm’s mark-up. The results indicate that for China’s new generation IT industrial firms which are technology-intensive, improving the technological innovation and market power will reduce the firm’s input and increase the firm’s output. Innovation can significantly increase the firm’s mark-up. (3) From the perspective of the dynamic evolution of a firm’s growth, firm size has a negative and significant impact on the firm growth while firm age has a positive and significant impact on the firm’s growth. In addition, we also examine the different effects of capital intensity and export demand on the firm’s growth.

Recruitment processes and labour mobility: the construction industry in Europe

2007 ◽  
Vol 21 (2) ◽  
pp. 277-298 ◽  
Author(s):  
Ivana Fellini ◽  
Anna Ferro ◽  
Giovanna Fullin
Keyword(s):  
Construction Industry ◽  
Labour Force ◽  
Foreign Workers ◽  
National Context ◽  
Labour Mobility ◽  
Construction Companies ◽  
Country Comparison ◽  
Cross Country ◽  
The Impact ◽  
The Relationship

Migration studies analysing firms' recruitment behaviour are quite limited.This article, built around and examining a demand-driven labour migration hypothesis, explores how recruitment decisions by companies can affect international migratory flows. The study focuses on the construction industry, where a foreign (nondomestic, or expatriate) labour force forms a major component. Through a cross-country comparison, we highlight the impact of the characteristics of the sector and of labour market conditions on recruitment decisions impinging on foreign (non-domestic, or expatriate) labour.The article finally suggests a typology of strategies that construction companies may adopt in order to recruit foreign workers, and it analyses those factors that influence the different decisions in each national context. By considering in depth the relationship between recruitment strategies and patterns of international labour mobility, it is then explained why a company's behaviour can either produce immobility or mobility of foreign workers.

scholarly journals A PROPOSED THEORETICAL FRAMEWORK ON STRATEGIES FOR KLANG VALLEY MALAYSIAN QUANTITY SURVEYING CONSULTANCY FIRMS TO ACHIEVE PROFITABILITY

2020 ◽  
Vol 5 (21) ◽  
pp. 01-12
Author(s):  
Bee-Ling Chong ◽  
Kai-Chen Goh ◽  
Tien-Choon Toh
Keyword(s):  
Construction Industry ◽  
Firm Growth ◽  
Global Financial Crisis ◽  
Theoretical Framework ◽  
Business Environment ◽  
Construction Firms ◽  
Consulting Firms ◽  
Klang Valley ◽  
Quantity Surveying ◽  
The Global Financial Crisis

There is a lack of research studies showing the specific practices that enable QS consultancy firms to achieve profitability in Malaysia’s construction industry. As firm profitability is expected to have a positive and significant impact on firm growth, this put Malaysia's QS consulting firms at risk and affected firm growth if the problem they face remains unresolved. Despite the current Covid-19 pandemic has led to the global financial crisis, weaker global growth is still a big issue to developing countries including Malaysia. Construction firms such as QS consultancy firms face a lot of challenges due to the globalisation and competitiveness of the construction industry. Quantity surveying (QS) consultancy firms need to adopt suitable strategies to survive and grow in an evolving business environment. Thus, this paper focuses on the theoretical framework of the strategies for QS consultancy firms.

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.

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.

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.

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