The Significance of Barriers to Entry in the Construction Industry

Valence, Gerard de

doi:10.5130/ajceb.v7i1.2975

Cited by 7 publications

(7 citation statements)

References 16 publications

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“…Non-traditional forms of procurement de Valence, 2011;Leiringer, 2006;Li and Akintoye, 2003 By avoiding traditional forms of procurement, a client has the opportunity to encourage innovative solutions. These might include public-private-sector partnerships (PPPs) and other concession projects, and build and maintain (B&M) contracts where the maintenance costs of the facility are important factors in design decisions.…”

Section: Cooperation Between Participants Of the Construction Processmentioning

confidence: 99%

Construction innovation diffusion in the Russian Federation

Suprun

Stewart

2015

Construction Innovation

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Her PhD research is focused on improving construction innovation diffusion in the Russian Federation construction industry. Associate Professor Rodney A. Stewart is an academic in the School of Engineering at Griffith University in Queensland Australia. His research covers a range of research topics in the broad field of engineering, construction and environmental management, where he has published over 170 refereed articles. Specifically, his goal is to demonstrate, through evidence-based research, how the use of advanced technology and data informatics can benefit the often laggard construction and utility industries.

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Section: Cooperation Between Participants Of the Construction Processmentioning

confidence: 99%

Construction innovation diffusion in the Russian Federation

Suprun

Stewart

2015

Construction Innovation

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“…Similarly, Warszawski (1996) and Cheah and Garvin (2004) also discuss financial aspects that may act as entry barriers to new firms into construction and this is also supported by our results. The responses regarding the competitive nature of the industry also support the work of Flanagan et al (2007), Yates (1994), Warszawski (1996), and those of de Valence (2012). Hardie and Newell (2011) and Cheah and Garvin (2004) who found that regulations within the construction industry had the potential to act as barriers to entry.…”

Section: Discussion Of Resultsmentioning

confidence: 56%

“…Although there has been no research into barriers to entry for Indigenous enterprises into the construction industry, it is generally considered that the construction industry has relatively low barriers to entry (Murray and Smyth, 2011; de Valence, 2012). Evidence presented to support this view is the relatively high level of start-ups in the construction industry each year (Anikeeff and Sriram, 2008), although there is also considerable evidence that a large number of these new firms fail (Holt, 2013; Konno, 2015).…”

Section: Barriers To Entry Within the Construction Industrymentioning

confidence: 99%

“…Gruneberg and Ive (2000) identify economies of scale, supply chains, incumbent cost advantages, private information, contestable markets, and client imposed barriers as significant entry barriers to new construction firms. de Valence (2012) analysed these barriers further refining them in accordance with nature of the market a firm enters: perfect competition, monopolistic competition, and oligopolistic. Perfect competition markets generally contain low entry barriers and entry barriers increase as the market becomes monopolistic, and increases again as it becomes oligopolistic.…”

Section: Barriers To Entry Within the Construction Industrymentioning

confidence: 99%

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Integrating Indigenous enterprises into the Australian construction industry

Denny-Smith

Loosemore

2017

ECAM

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Purpose The purpose of this paper is to explore the barriers to entry for Indigenous businesses into the Australian construction industry. Design/methodology/approach A national survey was conducted with 33 Indigenous businesses operating in the Australian construction industry. Findings The findings show that Indigenous enterprises face similar challenges to many small non-Indigenous enterprises wishing to enter the industry. These include adjusting to unique construction industry cultures and practices, breaking into existing business networks and building social capital and being under-cut by industry incumbents and competitors when tendering for projects. These barriers are similar to those faced by other non-Indigenous social enterprises, although Indigenous enterprises do appear to experience relatively greater difficulty in starting-up their businesses and in securing sufficient capital, finance and assistance to enable them to scale-up and tender for normal work packages at a competitive price. Research limitations/implications The results are limited to Australian Indigenous businesses. The survey does not allow a comparison of non-Indigenous and Indigenous businesses, although comparison of results with existing non-Indigenous research into small to medium-sized firms in construction does allow some tentative insights. These need to be explored further. Practical implications These results indicate that there are significant barriers to be addressed within the Australian construction industry if government indigenous procurement policies are to achieve their stated aims of increasing the number of Indigenous firms in the industry. The results also have important implications for Indigenous businesses and for non-Indigenous firms operating in the Australian construction industry. Social implications This is an important gap in knowledge to address if countries like Australia are to redress the significant inequalities in income and health suffered by Indigenous populations. Originality/value In countries like Australia, with significant Indigenous populations, governments are seeking to address persistent disadvantage by using new social procurement initiatives to create quasi construction markets for Indigenous enterprises to participate in the construction industry. While there is an emerging body of research into the barriers facing mainstream small to medium-sized enterprises and, to a lesser extent, social enterprises in construction, the barriers to entry facing Indigenous construction enterprises have been largely ignored.

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“…The immigration problem is somewhat similar to that of 'too many new firms springing up' as they both represent threat of new entrants. When there is no barrier to entry, as is the case in the construction industry, and anyone or any firm can just decide to start or stop construction works, then the market can easily be over flooded with firms, leading to tipped balances, fierce competition and insolvencies (BurtonShaw-Gunn, 2009;De Valence, 2012;Research and Markets, 2015). Using strategy as ploy to distract or deter competitors, for example reporting unregistered workers who avoid tax might increase likelihood of survival.…”

Section: Market Forcesmentioning

confidence: 99%