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.

Analysing Japanese contractor activity on the basis of panel data

2015 ◽  
Vol 22 (4) ◽  
pp. 390-402 ◽  
Author(s):  
Yukiko Konno
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Construction Industry ◽  
Performance Indicators ◽  
Random Effect ◽  
Random Effect Model ◽  
Public Works ◽  
Content Type ◽  
Construction Company ◽  
Different Characteristics

Purpose – The purpose of this paper is to examine the factors influencing defaults and exits from public works by prime contractors of small and medium-sized enterprises in the Japanese construction industry. By analysing the data for several years as panel data, this study determines the extent of influence of changes in company characteristics on the defaults and exits. Design/methodology/approach – Using construction company evaluation (Keiei Jikou Sinsa or Keisin) data and by employing the panel binary logit random effect model, this study empirically analyses the construction industry. Findings – This study shows that defaulting and exiting companies have different characteristics. The result shows financial performance indicators, non-financial performance indicators and Keisin scores to significantly affect defaults and exits. In particular, this study finds non-financial performance indicators, such as whether a firm draws insurance, to significantly affect its likelihood to default or exit and the influence varies on the basis of insurance type. Originality/value – The feature of this study is that its analysis focuses not only on defaulting companies but also on exiting companies, defined as those that stop operating as prime contractors for public works but otherwise stay in business. In contrast to existing research, this study distinguishes between defaults and exits and analyses the factors that influence a firm following one of these two outcomes. Moreover, although Keisin data are usually used to determine whether companies qualify to enter bids for public works, they can be applied for an attribution analysis of corporate defaults and exits.

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.

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.

Empirical analysis of how risk management by Korea’s exporting companies affects export performance

2017 ◽  
Vol 21 (4) ◽  
pp. 324-348 ◽  
Author(s):  
Se-Hwan Joo ◽  
Myong-Sop Pak
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Empirical Analysis ◽  
Export Performance ◽  
Theoretical Background ◽  
Research Model ◽  
Content Type ◽  
The Relationship ◽  
The Empirical Analysis ◽  
Shed Light

Purpose The purposes of this paper are as follows. First, the paper investigates the causes of risk and methods for managing it based on previous studies of trade risk and trade risk management. Second, the paper analyses the types and forms of trade risk for exporting companies and investigate the relationship between actual trade risks and perceptions of trade risk. Third, the paper establishes a measurement device for trade risk management and export performance based on previous studies. Fourth, the paper derives the concepts based on the accumulated details to establish a research model and verifies a cause and effect relationship. Fifth, the paper analyses what kind of effect the perception of trade risk exerts on trade risk management. And sixth, the paper analyses the effect of the method of trade risk management on the export performance of exporting companies to shed light on the utility of trade risk management. Design/methodology/approach The purpose in this research is to analyse the effects of trade risk management on the export performance of exporting companies. The authors have conducted a review of previous studies about trade risk, trade risk management, and the outcomes thereof. Based on that review, the authors have established a research model, derived hypotheses, and used statistical methods to verify those hypotheses. Findings First, the authors analysed the methods of settling payments, transaction terms, the transportation environment, and experience in trade claims and found that they influenced the perceived level of trade risk. Second, exporting companies’ prior perception of trade risk determines which methods of trade risk management are suitable. Third, the analysis of the methods of trade risk management and export performance found that financial performance was influenced more than non-financial performance by trade risk management. Originality/value The authors determined whether trade risk management effectively counters the losses incurred as a result of the trade risks faced by exporting countries. The authors used an empirical statistical analysis to comprehensively analyse appropriate trade risk management and export performance. Prior to implementing the empirical analysis, the authors conducted research on trade risk and its management and established a research model and research hypotheses based on a theoretical background of trade risk methods appropriate to the circumstances faced by exporting companies.

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.

scholarly journals Impact of the volatility of resource revenue on non-resource revenue volatility

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Empirical Analysis ◽  
Economic Diversification ◽  
Data Set ◽  
Content Type ◽  
Generalized Methods Of Moments ◽  
Public Revenue ◽  
Revenue Volatility ◽  
The Stability ◽  
Methods Of Moments ◽  
The Empirical Analysis

PurposeThis paper investigates the effect of the volatility of resource revenue on the volatility of non-resource revenue.Design/methodology/approachThe empirical analysis has utilized an unbalanced panel data set comprising 54 countries over the period 1980–2015. The two-step system generalized methods of moments (GMM) is the main economic approach used to carry out the empirical analysis.FindingsResults show that resource revenue volatility generates lower non-resource revenue volatility only when the share of resource revenue in total public revenue is lower than 18%. Otherwise, higher resource revenue volatility would result in a rise in non-resource revenue volatility.Research limitations/implicationsIn light of the adverse effect of volatility of non-resource revenue on public spending, and hence on economic growth and development prospects, countries whose total public revenue is highly dependent on resource revenue should adopt appropriate policies to ensure the rise in non-resource revenue, as well as the stability of the latter.Practical implicationsEconomic diversification in resource-rich countries (particularly in developing countries among them) could contribute to reducing the dependence of economies on natural resources, and hence the dependence of public revenue on resource revenue. Therefore, policies in favour of economic diversification would contribute to stabilizing non-resource revenue, which is essential for financing development needs.Originality/valueTo the best of our knowledge, this topic has not been addressed in the literature.

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.

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