A macroeconomic regression analysis of the European construction industry

Pellicer, Teresa M.; Pellicer, Eugenio; Eaton, David J.

doi:10.1108/09699980911002584

Cited by 8 publications

(5 citation statements)

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“…The importance of GFA 3 in relation to construction company health seems underlined by the fact that all macroeconomic SCA in the works studied here, came from the construction management literature. However, the macroeconomic/construction business relationship is in some ways mutual, as either can – positively as well as negatively – influence the other (West and Worthington, 2006; Pellicer et al , 2009; Sangki et al , 2011).…”

Section: Analysis and Discussionmentioning

confidence: 99%

Construction business failure: conceptual synthesis of causal agents

Holt

2013

Construction Innovation

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PurposeBusiness failure has evolved a major research domain, both of corporate finance generally and of construction management, equally. Much of this attention has focused on assessing business “health” to predict longevity, but less so, on causal agents of failure. The aim of this study is to synthesise published knowledge in the subject domain to explore construction failure agents.Design/methodology/approachExtant literature drawn from both corporate finance and construction management disciplines are synthesised. Subjective, textual analysis is undertaken and causal agents thematically grouped. A failure relationship model is derived that conceptualises construction business failure in relation to its operating universe.FindingsGeneric failure agents (GFA) (ordered, based on percentage frequency among the literature observed) are shown to be: managerial, financial, company characteristics, and macroeconomic. The first three are proffered to reciprocally interact within a “universe” defined by the latter. Numerous sub‐causal agents (SCA) are attributed to each generic agent. The role of innovation is suggested to hold potential negative (as well as positive) impacts on mitigating GFA and SCA.Research limitations/implicationsLimitations relate to synthesis of contemporary published evidence, so a progressive iteration would be empirical study of identified agents within live construction environments. An implication is the call for research realignment; from emphasis on business health assessment, to that of root causal agents.Practical implicationsAdvancement of theory relating to business failure has significant implications for construction management research.Originality/valueThe failure relationship model and its linkage to innovation is novel.

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Section: Analysis and Discussionmentioning

confidence: 99%

Construction business failure: conceptual synthesis of causal agents

Holt

2013

Construction Innovation

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“…You can notice that the relationship between construction section and economy was studied by lots of scientists (Giang and Pheng 2010;Pellicer et al 2009;Khan 2008;Wigrena and Wilhelmsson 2007;Chiang et al 2006;You and Zi 2007). For example, Pellicer et al (2009) analyzed the effect of decay on the construction sector in terms of macroeconomics.…”

Section: Introductionmentioning

confidence: 97%

“…For example, Pellicer et al (2009) analyzed the effect of decay on the construction sector in terms of macroeconomics. Authors used regression model for study and forecast of the situation in construction sector.…”

Section: Introductionmentioning

confidence: 99%

Copras Based Comparative Analysis of the European Country Management Capabilities Within the Construction Sector in the Time of Crisis / Europos Valstybių Gebėjimo Valdyti Statybos Sektorių Krizės Laikotarpiu Palyginamoji Analizė Taikant Copras Metodą

Kildienė

Kaklauskas

Zavadskas

2011

Journal of Business Economics and Management

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Construction industry and its impact on the national economy in different countries had been investigated. In general, it can be noted that development trends of the construction industry is almost the same as the development trends of the whole country economy itself. Efficiency level of the construction and real estate industries depends on the specific quantities of the variables within micro, meso and macro context. Although factors of the macro level influence the efficiency level of the whole economy this investigation analyses its influence on the efficiency of the construction industry. Efficiency of the construction industry operation depends on the complex impact of the macro level variable factors such as economic, political and cultural level of development, construction industry are effected by the regulating documents, market, taxation system, drawing possibilities and conditions, inflation, local resources etc. (Kaklauskas et al. 2011). Construction industry development possibilities vary according to the effect of macro level factors. Crisis, spin up in 2008–2009, had differently affected the construction industry markets of the European Union countries. The general part of countries had faced the decrease of outputs, real estate transactions, and predictable reduction in employment of population and quantity of construction companies. Adverse conditions and huge deviations that had arisen due to the crisis encourage analysing the situation of the construction sector not only in the particular country but in other ones, it happens because of possibility to analyse the international experience and get the broader view of the construction sector issues and solve them correctly. Procedure, presented in the issue, provide the possibility to detect the one of 23 European countries which possesses the most effective construction sector market development according to the criteria set. Countries undergo the multi-criteria evaluation applying COPRAS methods (Zavadskas and Kaklauskas 1996), evaluation criteria relevance is determined via entropy method. The first time using the entropy concept (Shannon and Weaver 1947; Shannon 1948) for maximizing the quantity of information contained in the dataset. The entropy is described as the casual value of the uncertainty which makes it more valuable in comparison with other factors. Thus, the main goal of the work is to group investigated European countries applying the COPRAS method and evaluating six criteria, describing the construction sector. In order to implement this goal, economy of the European Union countries, construction sectors, statistical economic data, valuables set according to the entropy method and priority of the European country construction sectors set by COPRAS method will be evaluated. Santrauka Ivairiose šalyse buvo atlikti statybos šakos ir jos vaidmens nacionalineje ekonomikoje tyrimai. Pažymetina, kad dažniausiai konkrečios šalies statybos šaka vystosi pagal panašias tendencijas, kaip ir visa šalies ekonomika. Statybos ir nekilnojamojo turto šakos efektyvumo lygis priklauso nuo tam tikro skaičiaus kintamujų mikro-, mezo- ir makro- lygmenimis. Nors makrolygmens veiksniai veikia visos šalies pramonės efektyvumo lygį, šiame tyrime analizuojamas tik poveikis statybos šakos efektyvumui. Statybos šakos veiklos efektyvumas priklauso nuo ją kompleksiškai veikiančių makrolygmens kintamujų veiksnių, tokių kaip šalies ekonominis, politinis ir kultūrinis išsivystymo lygis, statybos šakos veiklą reglamentuojantys dokumentai, rinka, mokesčių sistema, kreditų gavimo galimybes ir sąlygos, infliacija, vietiniai ištekliai ir t. t. (Kaklauskas et al. 2011). Priklausomai nuo šių makrolygmens veiksnių poveikio visumos kinta statybos šakos plėtros galimybės. Įsisiūbavusi ekonomine krizė 2008–2009 m. skirtingai palietė Europos Sajungos šalių statybos sektorių rinkas. Daugelyje valstybiu sumažėjo gamybos apimtys, nekilnojamojo turto sandorių skaičius, pastebimai sumažejo gyventoju užimtumas bei statybos imoniu skaičius. Nepalankios sąlygos krizes metu bei didelės permainos skatina analizuoti situaciją statybos sektoriuje ne tik savo šalyje, bet ir kitose, nes tarptautinio patyrimo analizė suteikia galimybę plačiau pažvelgti į statybos sektoriaus problemas bei rasti jų sprendimo būdus. Straipsnyje pateikta metodika leidžia nustatyti efektyviausiai statybos sektoriaus rinką pagal parinktus kriterijus, vystančią šalį tarp 23 Europos valstybių. šalys vertinamos daugiakriteriniu COPRAS metodu (Zavadskas, Kaklauskas 1996), o vertinimo kriterijų reikšmingumai nustatomi entropijos metodu. Entropijos sąvoka apibrežiama kaip atsitiktinio dydžio neapibrežtumo matas, suteikiantis jam svorio palyginti prieš kitus rodiklius. Taigi pagrindinis darbo tikslas – COPRAS metodu sugrupuoti tiriamas Europos valstybes pagal prioritetiškumą, ivertinus šešis statybos sektorių apibūdinančius kriterijus. Šiam tikslui įgyvendinti analizuojama šalių ekonomika ir statybos sektoriai, renkami Europos Sąjungos šalių statistiniai ekonominiai duomenys, nustatomi jų reikšmingumai, pritaikius entropijos metodą, bei Europos šaliu statybos sektoriu prioritetiškumas taikant COPRAS metodą.

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“…Currently, as a likely consequence of the near global economic slowdown and construction demand shrinkage, the internationalization of construction companies has become of significant interest [20], and this jump into the international market forces firms to take part in foreign countries' bidding processes, multilateral funds and overseas tenders [21]. As a consequence, to beat other local and foreign competitors, a culture that enhances a company's competitiveness and performance becomes vital for success [22].…”

Section: Literature Reviewmentioning

confidence: 99%

Modeling bidding competitiveness and position performance in multi-attribute construction auctions

Ballesteros‐Pérez

Campo-Hitschfeld

Mora-Meliá

et al. 2015

Operations Research Perspectives

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a b s t r a c tCurrently, multi-attribute auctions are becoming widespread awarding mechanisms for contracts in construction, and in these auctions, criteria other than price are taken into account for ranking bidder proposals. Therefore, being the lowest-price bidder is no longer a guarantee of being awarded, thus increasing the importance of measuring any bidder's performance when not only the first position (lowest price) matters.Modeling position performance allows a tender manager to calculate the probability curves related to the more likely positions to be occupied by any bidder who enters a competitive auction irrespective of the actual number of future participating bidders.This paper details a practical methodology based on simple statistical calculations for modeling the performance of a single bidder or a group of bidders, constituting a useful resource for analyzing one's own success while benchmarking potential bidding competitors.

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A macroeconomic regression analysis of the European construction industry

Cited by 8 publications

References 30 publications

Construction business failure: conceptual synthesis of causal agents

Construction business failure: conceptual synthesis of causal agents

Copras Based Comparative Analysis of the European Country Management Capabilities Within the Construction Sector in the Time of Crisis / Europos Valstybių Gebėjimo Valdyti Statybos Sektorių Krizės Laikotarpiu Palyginamoji Analizė Taikant Copras Metodą

Modeling bidding competitiveness and position performance in multi-attribute construction auctions

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