Performance Of Construction Firms Research Articles

The Nexus of Quality Management and Construction Organisations' Performance in Urban Ghana: The Moderating Effect of Information Technology Integration

Effective quality management strategies improve and sustain organisations' competitiveness in the current business environment by incorporating information technology. The primary aim of this research is to investigate the moderating influence of information technology on the connection between quality management strategies and the performance of construction firms in Accra, Ghana. The study utilized a sample of 255 construction firms in the Accra- Metropolis. The data collected underwent analysis using inferential and descriptive statistics. The results indicated a favorable impact of quality management strategies on the performance of construction companies. Furthermore, a positive correlation was found between the integration of information technology (IT) and the performance of construction firms. Nevertheless, there was an insignificant correlation of the moderator (information technology integration) on the link between quality management strategies and the performance of construction companies. This could be attributed to the absence of skills and expertise, as well as the absence of a modernized information technology system that integrates communication and quality management processes in construction organizations in Ghana. Subsequent studies should concentrate on the barriers to integrating IT into quality management processes in construction firms in developing nations.

Effect of Safety and Health Planning on Performance of Construction Firm in Anambra State

The study examined effect of safety and health planning on performance of construction firm in Anambra state. The objectives were to; Assess the effect of safety planning on performance of construction firms in Anambra State; Determine the effect of health planning on performance of construction firms in Anambra State; Investigate the degree to which training programes affect performance of construction firms Anambra State. The study adopted survey research, data were generated from primary and secondary sources. The method for data collection was questionnaire which was administered randomly among the staff of the selected firms. The population of the study was 1486, The sample size of the study was two hundred and eighty-six (286). While two hundred and seventy-six (276) were retrieved. The hypotheses were tested using multiple regression analysis method at 0.05% level of significance. The findings of the study revealed that, Safety planning significantly improves the performance of Anambra State's construction companies. Health planning has no appreciable beneficial impact on Anambra State's construction companies' performance. safety training programs significantly improve the performance of Anambra State's construction companies. The study concluded from its findings that safety and health planning has significant positive effect on performance of construction firm in Anambra state. The study recommended that Employees should be held accountable for their own actions, and managers should be held accountable for the safety performance of their companies. There must always be backup medical staff on hand at construction sites in case of emergencies. In order to prepare their workers to handle accidents on building sites, management of construction companies should make it a priority to periodically assign safety training personnel.

Effects of Construction Contracts on Performance: The Case of Construction Firms in Kampala, Uganda

The study aimed to investigate the influence of construction contracts on the overall performance of selected construction firms in Kampala district. Specifically, it sought to assess the impact of formally contracting personnel, evaluate the effect of special contract conditions, and examine the role of surety bonds on firm performance within the construction industry. A descriptive design utilizing quantitative methods was utilized. The study utilized purposive and random sampling techniques to select relevant respondents from various positions within construction firms, ensuring a comprehensive analysis of the subject matter. A sample size of 76 respondents was involved in the study. Data collection was facilitated through a structured questionnaire comprising Likert scale type questions, piloted to ensure relevance and logical flow. The study achieved an 88.3% response rate, with 80 questionnaires returned and analyzed. The study found that there exist a significant controlling effect on the relationship between (i) contracted (temporary) personnel and performance of construction firms (r=0.778, p=0.000), (ii) special conditions of contract and performance of construction firms (r=892, p=0.000) and (iii) surety bonds and performance of construction firms (r=0.830, p=0.000). Analysis of performance indicators highlighted the importance of factors such as adherence to construction codes, client satisfaction, and innovative practices in determining firm success. In conclusion, the study underscored the critical role of construction contracts in shaping the performance of construction firms in Kampala district. To optimize firm performance, it is recommended that firms prioritize the recruitment and retention of skilled personnel, adhere meticulously to construction contracts, and leverage surety bonds for risk mitigation. These findings provide valuable insights for construction industry stakeholders, guiding strategic decision-making to enhance operational efficiency and project outcomes.

Impact of person-environment fit on construction project managers' turnover intention: a moderated mediation model

PurposeHigh turnover of project managers is a common phenomenon in the construction industry, which has a negative impact on the productivity and performance of construction firms. The study investigates the mechanisms of person-environment fit on turnover intention of construction project managers and the mediating role of job embeddedness. The authors also tested the moderating role of perceived organizational support in the influence of job embeddedness on turnover intention.Design/methodology/approachThe data were collected from managers of 62 construction and infrastructure projects in Wuhan. Based on person-environment fit theory, job embeddedness theory and social exchange theory (SET), the authors employ structural equation modeling (SEM) to examine the hypotheses.FindingsResults show that if project managers are not well-fitted with the environment of organizations, it reduces their embeddedness in jobs, which in consequence makes them more inclined to leave. Job embeddedness mediates the relationship between person-environment fit and turnover intention. In addition, the authors validated the moderating effect of perceived organizational support, showing that the higher the employee's job embeddedness, the lower the employee's turnover intention.Originality/valueConstruction companies can retain project managers and stabilize management teams through effective management strategies, thus effectively reducing the separation costs of construction companies.

Intellectual capital, digital transformation and firm performance: evidence based on listed companies in the Chinese construction industry

PurposeThe study aims to investigate the effects of intellectual capital and its constituents on the performance of listed companies operating in China's construction sector. The study also intends to examine the moderating role of digital transformation.Design/methodology/approachHypotheses will be tested using Modified Value-Added Intellectual Capital (MVAIC). The sample will be comprised of 93 Shenzhen and Shanghai A-share listed companies within the construction industry from the period of 2015–2021. Multiple regression analysis was employed to investigate the influence of intellectual capital, its components and digital transformation on the performance of construction firms.FindingsThe study's results reveal that the performance of construction firms greatly depends on intellectual capital and its components. Furthermore, digital transformation plays a vital moderating role between intellectual capital and its components and construction firm performance.Practical implicationsThis study addresses a critical inquiry on how construction managers can employ intellectual capital to enhance the performance of firms during digital transformation. Additionally, this research bridges this gap by guiding construction managers to concentrate on their external surroundings when examining firm performance.Originality/valueBy focusing on the predictors influencing construction firms' performance, this study contributes to the existing corpus of knowledge. This study employs resource orchestration theory (ROT) to determine how the different components of intellectual capital impact the performance of construction firms, with digital transformation acting as a moderating variable. This research will be valuable to researchers, construction industry professionals and policymakers.

Factors Affecting the Cost Management of Iraqi Construction Firms

Cost management refers to the procedures that must be followed to ensure that the project is accomplished on time and on budget. The goal of this study is to identify the main factors that affect cost compliance and to assess how relevant these factors are from the perspectives of clients, contractors, and consultants in construction firms in Iraq. For the purpose of this study, 100 structured questionnaires were distributed to clients, contractors, and consultants on building sites throughout the study area by using the survey approach. The Relative Importance Index (RII) technique was used for the analysis. It has been determined that the factors potentially affecting cost management in construction firms should be taken into consideration during the planning, design, tendering, and construction stages to accomplish the project within the specified time and cost. Twenty factors that affected the performance of construction firms in Iraq were identified. The results revealed the most affecting factor was poor management/poor coordination between the contracting company and the authorities involved, followed by the nationality of workers, structural materials damaged during storage, the absence of places designated for storing materials, lack of personnel specializing in devices and equipment, changing labor and material prices as a result of political changes, lack of technical staff, length of the project period, mismatch designs with execution works in site, and changes in orders. The study concludes by stating that there is not an efficient procedure in Iraq to control cost management.

Stakeholder Engagement and Operational Performance of Construction Firms in Rivers State, Nigeria

This paper investigates the impact of stakeholder engagement and operational performance of construction firms in Rivers State, Nigeria. To further understand operational performance, three measures including on-time delivery, project quality and cost minimization where used. This study was conducted in a non-contrived setting and the quasi-experimental research design method was adopted. A questionnaire was distributed to 121 study elements made up of managers and supervisors of eight selected construction firms with operational/regional offices in Port Harcourt, Rivers State, Nigeria. The retrieved and valid copies of the questionnaire were analyzed with the aid of the Statistical Package for Social Sciences (SPSS). The findings indicated that operational performance of construction companies in Port Harcourt, Rivers State, Nigeria as measured by on-time delivery, project quality and cost minimization is highly dependent on how engaged stakeholders of such a project are. Such engagement leads to high project quality, timely delivery of projects as well as cost reduction as stakeholders would have better understanding of the firm’s operations. It is then concluded that stakeholder engagement is key to project success for construction companies operating in the Niger Delta, specifically Rivers State. Hence, managers and supervisors must deliberately ensure that project stakeholders properly engaged all through the various stages of the project.

Influence of Human Resources Management Practices on Organisational Performance of Construction Firms in Lagos State –Nigeria

The success of any organisation depends on the effective and efficient utilisation of its human resources. In every project-based industry, such as the construction industry, project performance is tied to the effectiveness of its human resources. Labour turnover in the Nigerian construction industry and the poor performance of the Nigerian construction industry in terms of project delay, cost uncertainty, and quality deficiency is caused by inadequate utilisation of human resources management practices. The study aimed to assess the influence of human resources management practices on the organisational performance of construction firms in Lagos State in order to improve their competitive edge. A quantitative research method was adopted involving administration of 140 well-structured questionnaires to registered construction firms. The results revealed that human resources management practices (selection, training, development and reward) have a positive and statistically significant influence on organisational performance, with a p-value of <.001, <.003, <.003 and <.002 respectively. While the other practices (recruitment and compensation) did not significantly influence organisational performance. This indicates that human resources management practices are important to the success of organisations. Therefore, in order to overcome the challenges of labour dissatisfaction at work resulting from organisational instability, poor working conditions, lack of training, and reducing the low performance of the employees in the construction industry, appropriate and adequate human resources management strategies, policies, and action plan provisions should be put in place in order to improve organisational performance and to maintain competitive advantages.

Risk Management and Productivity Improvement in Construction Sector – Case in Vietnam

The purpose of this study is to present RISK MANAGEMENT AND PRODUCTIVITY IMPROVEMENT IN CONSTRUCTION SECTOR – CASE IN VIETNAM. Methodology: Authors use statistics, qualitative analysis including synthesis and inductive methods in this paper. Findings: Saving costs, safety and reduce damages is among factor to improve better efficiency, productivity and performance of construction firms. Author has proposed solutions in order to help improving safety practices by risk management concept in construction sector. Originality values: Therefore the research is contribute to productivity increases in construction sector that benefit public health as well as a key to the growth and progress of national economy.

Modelling the Impact of Environmental Factors on the Performance of Construction Companies through the Lens of Institutional Pressures

While investigating how environmental factors affect the performance of construction enterprises has remained a topical issue in the literature, many concerns about these factors, particularly in developing nations, are still unresolved. This study empirically examines specific environmental drivers affecting construction firms' performance and establishes the role of institutional pressures on construction firms' performance outcomes. Primary data were gathered from a sample of 197 respondents working in Syria's construction industry and were analysed using partial least squares structural equation modelling (PLS-SEM). When considering the impact of some environmental factors (economic environment, human capital, leadership, communication culture, socio-cultural environment, and political environment) on construction firm performance, the findings revealed that institutional pressures (coercive, mimetic, and normative) play a mediating role. However, the mediating influence of institutional pressures on the technological environment and performance of construction firms was not significant, thus indicating the need for more research. The findings of this study make a substantial addition to the current discussion about the most important environmental factors impacting construction firm performance. This study adds to the current debate about the causes of poor performance in construction firms by assisting managers in recognising the impact of the mentioned factors above on a firm's performance.

Impact of Technology Recombination on Construction Firm Performance: Evidence from Chinese Construction Sector

Technological recombinant innovation (TRI) has been regarded as an important part of technological innovation in the construction industry. However, the pattern of how TRI affects the performance of construction firms is still unclear. Building upon architectural innovation, this study identifies the exploratory and exploitative TRIs and explores the mediating mechanism of business models, by which TRIs influence a firm’s performance. Using text mining, panel data analysis of 107 China-listed construction firms was conducted to analyze the relationships. The results show that the positive relationship between exploratory TRI and firm performance is weakened by novelty-centered business model, while the negative effect of exploitative TRI on firm performance is strengthened through its mediation. This research enriches the literature on the relationship between technological innovation and firm performance by highlighting the important role of TRIs in predicting firm performance and differentiating mediating mechanisms for the two types of business models. In addition, the application of text mining to quantitatively evaluate the types of business model from the annual reports of listed construction firms, provides a new quantitative evaluation method for the research of business models.

Project Performance in the Global Construction Industry during the Covid-19 Era

The Covid-19 global pandemic has had profound impact on the way all industries operate now, and the construction industry is no exception. Given the importance of this industry in providing critical infrastructure needed to enhance the quality of life of all global citizens, this paper presented the results of a systematic review of empirical studies that have investigated construction project performance over the Covid-19 era spanning from 2020 to 2023. The Systematic Quantitative Assessment Technique was used to identify and assess 54 empirical articles from six of the most renowned academic publishers in order to answer three important research questions: 1) What was the geographical spread of construction project performance articles from 2020-2023? 2) Which data collection methods were utilized by these articles? 3) What themes were investigated by these articles? The review revealed that Asia had the most representation while South America had no representation at all, thus representing a geographical gap which future studies should address. The review also revealed that most studies relied on surveys to collect project performance data with relatively fewer studies using qualitative methods or adopting a mixed methods approach, with this representing a methodological gap to be addressed by future studies. Finally, the impact of the Covid-19 pandemic on the performance of construction firms was the most investigated theme, while the strategies firms can use to ‘future proof’ themselves against future pandemics or other unexpected disasters was the least investigated theme.

Influence of Organizational Culture on Construction Firms’ Performance: The Mediating Roles of Innovation and Marketing Capabilities

Local Ghanaian construction firms have been accused of underperformance due to inadequate resources and capabilities, lack of market information, poor managerial skills, and other external factors. While construction firms may be unable to control external challenges, how they mobilize internal resources to confront them may be crucial for their performance and survival. An emerging consensus is that how organizations use their resources to respond to externalities is related to their organizational culture (OC). We contend that the unique contribution of organizational culture to firm performance (FP) may diminish in the absence of appropriate firm capabilities. Drawing on the resource-based view and capability theories, we attempt to investigate (a) how the types of OC influence FP and (b) whether innovation and marketing capabilities mediate the link between types of OC and construction firm performance. Results of partial least squares structural equation modelling show that clan, adhocracy, and market culture have significant positive association with FP, while hierarchy culture is negatively related to FP. Furthermore, innovation and marketing capabilities demonstrate a combination of full and partial mediation effects on the link between OC types and FP. Thus, the results direct senior managers’ attention towards the significance of soft assets in construction firm performance outcomes, signaling a shift from a purely technical and rationalistic approach to a more adaptable and humanistic approach. It implies that while emphasizing cultural values, managers should also give priority to these two capability dimensions.

Examining the nonlinear relationships of corporate social responsibility, innovation and construction firm performance: the moderating role of construction firms' competitive position

PurposeCorporate social responsibility (CSR) and innovation are the two main approaches firms utilize to promote sustainable development. However, as yet, scholars have reached no consensus regarding their precise impact on construction firm performance (CFP), hindering efforts to implement effective sustainable development strategies that improve CFP. In view that a simple linear relationship may not be sufficient to capture their precise pattern, this study aims to unveil the nonlinear impact of CSR and innovation on CFP, especially when construction firms take up a distinct competitive position.Design/methodology/approachThis study first proposed four hypotheses to establish a new theoretical model by incorporating CSR, innovation, CFP and construction firms' competitive position (CFCP). Then the model was tested by using 292 annual observations collected from 75 construction firms in China. A multiple regression model analysis was carried out to analyze the survey data and validate the hypotheses.FindingsThe results reveal that both CSR and innovation have a U-shaped impact on the price-to-book ratio of a construction firm, a specific CFP measure. CFCP negatively moderates the U-shaped relationship between CSR and CFP, but positively moderates the U-shaped relationship between innovation and CFP.Originality/valueThis study goes beyond a simple linear view, instead of unveiling the nonlinear U-shaped effects of CSR and innovation on CFP that deepen the understanding of their complex relationships in the construction industry and makes construction firms aware that CSR and innovation can only improve performance if they reach a certain level. The moderating role of CFCP provides important implications for construction firms seeking to adopt appropriate competitive strategies related to social responsibility and innovation that both promote CFP and achieve sustainable development.

Key indicators for evaluating the performance of construction companies from the perspective of owners and consultants

The construction sector is considered as one of the largest and most important sector in many countries of the world. This research aims to determine the most important performance indicators to evaluate the performance of construction companies from the perspective of owners and consultants. To achieve the aim of this study a total of 107 questionnaires were distributed to owners such as ministries, municipalities, and non-governmental institutions in addition to consulting offices that supervised the implementation of a number of construction projects in Gaza Strip. The collected data was analyzed with Statistical Package for Social Science (SPSS) IBM version 22. The results of this research showed that the most important indicators for evaluating the performance of construction firms in Gaza Strip are, the time needed for construction works, compliance with technical specifications, quality of workmanship, the overall time for completion of all project work, acceptable quality, overall cost, time to prepare shop drawings, understanding the work, cost for construction works, and the availability of quality control system. This study may help in the future to set a comprehensive framework for evaluating the performance of construction companies that may serve as a benchmark against the competitors in this field, identifying weaknesses and addressing them, and developing strengths in order to continuously improve performance to achieve the optimal performance in order to satisfy the customer expectations and achieve desired results.

Moderating Effects of Internationalization between Corporate Social Responsibility and Financial Performance: The Case of Construction Firms

The relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) has been crucial in academia and business circles. Numerous construction firms have continued to internationalize construction business over time despite the influence of the COVID-19. The internationalization of construction business makes the CSR–CFP relationship more complicated than usual. Construction firms’ CSR fulfillment serves to engage in reliable relationships with stakeholders and consequently improve CFP. It can bring both benefits and costs to the firm, which suggests that the CSR–CFP relationship is non-linear. This study examines the impacts of CSR on the financial performance of construction firms. We took Chinese-listed construction companies as an example, and an inverted U-shaped curve relationship between CSR and CFP was eventually revealed. Further, the significant moderating role of the degree of corporate internationalization (DOI) in the CSR–CFP relationship is disclosed. The results show that matching a high DOI-high CSR and a low DOI-low CSR is more conducive to CFP promotion. Thus, this research makes contributions to the academic perception of the impacts of CSR and DOI on CFP and provides insights for CSR fulfillment in the international arena.

Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects

Because of the common practice of subletting construction work into smaller packages, subcontracting has become an attractive technique in the construction business. Effective subcontractor selection and monitoring reduce the problem while also determining the performance of construction firms. The engagement of a subcontractor in a building construction project results in relationships with the main contractor, which will influence the project's success. The purpose of this study was to look at how main contractors choose subcontractors and to analyze the effect of the main contractor–subcontractor relationship on project performance. This research used a descriptive survey method to look at the underlying characteristics that influence the relationship between the main contractor and subcontractors and their effect on the performance of construction projects. The findings of the study confirmed that most contractor depends on subcontractors for the execution of their work and therefore procurement and management of subcontractors highly affects the performance of the construction project. It was also discovered that the subcontractor often performs 20 percent to 50 percent of the work. Main contractors used subcontractors primarily to offer skilled labor, lower overhead expenses, and relieve work and financial burden on themselves. The major causes of issues between the main contractor and the subcontractor include the main contractor's delay in releasing payments, the subcontractor's shortage of trained personnel, and scheduling conflicts among the subcontractors on a given project. To eliminate antagonistic relationships, the study advises a trust-based cooperative partnership that incorporates subcontractors into a partnering strategy. Furthermore, for optimal construction project performance, simpler and complete subcontract documents would improve the interaction between the main contractor and the subcontractor.

The indirect effect of high-performance work practices on employees’ performance through trust in management

PurposeThe construction industry activities play a key role in achieving socio-economic development and sustaining economic growth in many countries. Increased awareness about the role of human resource management in employee performance has led construction firms to evaluate and focus on high-performance work practices (HPWPs) components, which intend to cultivate employee and organizational performance. This study aims to explain HPWPs affect employee performances through the mediating influence of trust in management in Aqaba, Jordan.Design/methodology/approachA questionnaire survey was administered to collect data among the contractors Grade1 across Aqaba, Jordan. This research was designed as a quantitative study and data were collected at one point of time. In total, 311 questionnaires were returned and only 279 completed questionnaires to test the relationship between HPWPs and employee performances according to the ability, motivation and opportunity conceptualized framework. The partial least squares technique was adopted to test the proposed relationships.FindingsThe results present that extensive training, rewards based on performance and job security have a significant relationship with trust in management. Trust in management exerts partial mediation effects between HPWPs (extensive training, rewards based on performance and job security) and employee performance (creativity and innovation).Originality/valueThe findings of the study provide useful and original information to improve the overall performance of construction firms.

Financial determinants of value based performance of construction firms in India

PurposeThe purpose of the study is to examine the value-based performance of firms in construction sector in India using Tobin's Q and Market Capitalization (MCAP) and then determine their significant financial drivers.Design/methodology/approachThe study is based on data from 87 firms engaged in infrastructure, real estate, industrial construction and allied areas in India over a study period of 10 years. Three distinct forms of panel regression models have been developed using Tobin's Q and MCAP as dependent variables. The models developed are using Baltagi's (1981) Error Component 2SLS, Varadharajan-Krishnakumar's (1987) Generalized 2SLS and Arellano – Bower/Blundell – Bond's (1991) dynamic panel.FindingsThe study found that MCAP is a better suited value-based performance measure for construction sector firms in India. The study further reports that the age of the firm, profit after tax, investment in research and development, dividends, leverage and net fixed asset are significant positive drivers, whereas cash flow is a significant negative driver.Research limitations/implicationsThe study is limited to a geographic location; therefore, the findings of this study cannot be generalized.Practical implicationsAs MCAP is a better suited value-based performance measure of a firm in the construction sector, managers should focus on improving profitability, higher research and development activities, higher dividends and higher expenditures on net fixed assets for improvement.Originality/valueThis is an original attempt to examine the value-based performance of firms in the construction sector in India using Tobin's Q and MCAP.

Determinants and implications of environmental practices for waste management and the minimization in the construction industry: a case study of Pakistan.

The construction projects and activities generate waste materials, which impose negative impacts on the environment and contribute towards environmental degradation. In this regard, the implementation of environmental practices (EPs) can play a vital role in reducing the environmental risks associated with waste materials from construction projects. Based on this hypothesis, the present survey study was conducted to assess the effectiveness of different EPs in reducing environmental risks associated with waste materials from construction firms (n = 159) operating in Pakistan. Organizational and government support, regulatory pressure, and economic and environmental performance were among the main determinants of EPs studied in the present study. The partial least squares technique was used for the data collection, assessment, and prediction of the results based on the hypothesis testing for a range of determinants. Compose reliability analysis of determinants showed that all items gave a value of 0.7, which is a clear indication of the reliability of each determinant in the formation of the hypothesis. From all eight hypotheses, H1 (0.475), H4 (0.217), H6 (0.114), H7 (0.210), and H8 (0.149) hypotheses with size effect in parentheses were acceptable due to their positive construction with EPs, while H2, H3, and H5 hypothesis did not show the significant effect with size effect values lower than 0.1. The study demonstrated that current environmental regulations and governing bodies in Pakistan are not sufficiently effective and strict to implement environmental regulations. In this regard, regulatory pressure is necessary to promote EPs along with increasing stakeholders' awareness. Overall, the implementation of EPs not only prepares construction firms to deal with the pressure exerted by regulations and customers but also enhances the environmental and economic performance of construction firms.