• International conference on construction engineering and project management
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• 2009.05a
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• pp.40-40
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• 2009

Construction firms have long sought success in the global construction market through diversifying revenue sources and project portfolios. The volume of international contracts has contributed to firms' sustained growth by mitigating the impact of the domestic market's cyclical nature. In spite of the importance of international construction, the uncertainty and dynamic changes surrounding global construction pose serious threats to global contactors. Over the last decade, the international construction industry has changed drastically in many ways, particularly including financial resource diversity, competition rules for the selection of contractors, and the terms of delivery systems requiring more competent total service providers. This paper investigates the important changes for global contractors through various documentation analysis as well as in-depth interviews with industry experts. This paper then analyzes the common strategies and lessons obtained from the cases of leading global contractors that have sustained their growth in the competitive global construction during the last decade. In addition, the authors further analyzed the comparisons between those firms and Korean contractors to discern any difference in sustaining their growth in the competitive market. It was found that those leading firms were quite proactive and responsive to changing markets by diversifying their market revenues to stabilize their revenue structure and enhancing their competency through a wide range of 'business convergence'. In addition, they significantly increased their upstream/downstream functional capabilities; hence becoming more competent service providers, able to grow in these rapidly changing market conditions. Finally, this paper benchmarks the critical strategies that support growth, which in turn can provide a strategic guideline for expansion into the global construction market.

• Korean Journal of Construction Engineering and Management
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• v.4 no.3 s.15
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• pp.76-84
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• 2003

The bankruptcy possibility of construction firms have been higher by the environment of current construction industry. Thus, converting management environment for growth into that for value or profit is required. Nowadays, funds of construction firms is almost provided by financial institutions. As the firms' size grow, they have a form of fund provision through the securities market; however, fair distribution for returns is not practiced by opening company. Especially, construction firms lost trust of Investor by lack of awareness to firm clearness, and then a vicious cycle of no effectiveness in fund provision through securities market is continued again. On this study correlation between stock quotations and primary financial factors of firms in order to grasp actual management condition in construction firms was analyzed. By this, the correlation between stock quotations and the result of firm management was provided. Also, necessity of firm's capital provision was explained, thus ways to ensure firm clearness was searched.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.34 no.3
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• pp.977-987
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• 2014

Since 1960's, international construction market have explosively increase and have reached up to 600 Bil. US$ through active participation of construction firms and steady support of government. Nevertheless, owners, clients and financial institutions required reasonable criteria to effectively assess the overseas business capabilities of construction firms. However, the existing methods for construction firms rarely considers the perspective of overseas business capabilities. To overcome these problems, this study proposes an evaluation system for overseas business capabilities of construction firms. First, the needs for new evaluation system is derived through FGI, and the direction of new evaluation system is presented by reviewing the limitations of existing methods. Also, the capabilities that are required for the performances for overseas businesses were analyzed through expert interviews. Finally, 31 primary evaluation indices consisting of 3 criteria - appropriateness of index, possibility of quantification, possibility of data gathering - are derived under 9 categories and 3 perspectives through surveys and consultation meeting. The preliminary investigation of 24 Korean construction firms are conducted for comparing the existing evaluation systems and to verify its applicability. The proposed method could provide a rational criterion to evaluate the construction firms, improve internal capacity of firms, and ultimately supports the success of the construction industry.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.389-396
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• 2005

Despite very good reputation that Korean construction industrial firms had enjoyed until early 1990's in overseas markets, their participation abroad drastically declined after the delivery of two(2) million unit-housing project in the early 1990's and the foreign currency crisis that took place in the late 1990's. The revival of booming construction industry in domestic market is far beyond the expectation due to the long recession of the construction economy and government's severe restriction against real estate development. Under such crucial circumstances, the construction industrial firms' strategy to survive is the more active business promotion in overseas markets. However, the Korean construction industrial firms have to abandon the labor intensive strategy, through that they have enjoyed until the early 1990's, and turn to management oriented strategy which may be a new prosperous horizon and a new challenge as well, because the labor cost of newly developing countries is much more competitive. The aim of this study is to suggest how to cope with current market situations through a chronological survey based on the cost data prevailed during four decades from the 1960's until the 1990's in overseas markets.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.88-95
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• 2003

A firm's business composition and the sales volume of each business segment are subject to change depending, to a considerable extent, on the firm's business strategy. These changes were weighted and represented as a single index, referred to by scholars in strategic management and industrial organization research fields as 'firm entropy' then its impact on firms' profitability was assessed over twelve years. The performance differences between contractor and non-contractor firms, as well as focused and diversified firms, were compared through a Longitudinal Data Analysis Technique within a Hierarchical Linear Modeling framework. Hypothesis was formulated based on firm diversification theories and previous research findings. The hypothesis was tested according to the modeling outcomes, and implications are presented. The research findings indicate that the level of firms' long-term profitability supports the argument that the construction industry is highly competitive and mature.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.4
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• pp.307-314
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• 2022

The construction and real estate industries contribute significantly to each country's economic development. Strong construction and real estate firms will contribute more to the country's GDP by contributing to the industry's development. The purpose of this study is to examine the factors that influence the performance of the construction and real estate sectors in Vietnam. A survey of 200 construction and real estate firms in different areas was conducted from 2020 until the end of 2021. Following the removal of errors, the author got 196 replies, 6 of which were invalid, leaving 190 votes for quantitative analysis. The research findings show that elements such as (1) senior executives' commitment to the organization, and (2) the ability to use technology have a positive and significant impact on firm performance when using advanced econometric analysis. Furthermore, in the case of Hanoi, Vietnam, business relationships have a positive impact on firm performance. Training and development, as well as the working environment and incentives, have little effect on the profitability of construction and real estate firms. Finally, the research also has some recommendations and limitations for the construction and real estate sector.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.27-34
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• 2002

Utilizing information and knowledge is one of the major objectives in the management of construction firm. This trend has been developed both inside of the firms and overall industry-wise. Therefore conventional methods of performance evaluation based on the financial statements such as balance sheet under GAAP(Generally Accepted Accounting Principles) are not sufficient to cover various Performance of constriction firms. Core competency of construction firms needs to be evaluated by the new performance evaluation model. In this research, the concept of BSC (Balanced Score Cards) is utilized to develop the performance evaluation model for construction firms considering four major performance indicators including financial perspective, customer perspective, learn and growth perspective, anti internal business perspective. A model of performance evaluation including criteria is proposed to evaluate construction firms based on their vision and strategy.

• Journal of Construction Engineering and Project Management
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• v.1 no.2
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• pp.18-27
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• 2011

Egyptian construction firms (ECF) started recently to adopt quality management system (QMS) as a way to develop and improve their performance as previous studies have shown. However, considering all the firm's aspects in a competitive way is a crucial process for the ECF's culture. This research is trying to indicate the role of the QMS implementation in measuring performance (MP) through developing a model for measuring performance at the organizational level, and to explore its impact on the organizations that adopt QMS. This model is based on specific elements and their related indicators which have been derived from national approaches and models of MP. This model determines the performance level (PL) of the organization that is measured by means of a point system. Weights of the elements in the point system considered both the elements' importance in the international models and its real practice in the ECFs. This model has been validated using another questionnaire and the majority of surveyed experts agreed that the proposed model can be applied effectively.

• International conference on construction engineering and project management
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• 2007.03a
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• pp.684-693
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• 2007

The construction industry is a significant component of many economies and typically contains a high proportion of small and medium enterprises. However, it is generally understood that this industry is fragmented, adversarial, not highly innovative and not quick to respond to change. At the same time, the industry is under pressure to continue to embrace new technologies and methods, and to adapt better to current and emerging global issues such as sustainability. In order to meet these challenges, firms in the industry need to understand the issues involved and manage their practices accordingly. This paper describes exploratory research into the role of innovative and environmentally sustainable design and construction practices in one group of construction firms, viz., smaller residential building firms in Queensland, Australia.

• Korean Journal of Construction Engineering and Management
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• v.8 no.2
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• pp.146-154
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• 2007

The u-City construction project has become a hot topic In the construction market because it seems economic value-added field for construction firms. However, construction firms don't willingly participate in the u-City construction market because the future business environments for the u-City are very uncertain. Scenario planning is a very powerful method in managing this complex planning situation and is based on scenarios that help each enterprise appropriately adapt itself to its own business environments. Therefore it Is based on the main principles of systems thinking and multiple futures. For the purpose of dealing with such uncertainties, this paper attempts to develop the possible market scenarios of the u-City construction market through a scenario planning approach. From this perspective, we considered various aspects of the u-City construction such as market demands, technology development, policy level and management environment. After considering the relevant issues, we identified the main trends and key uncertainties. Then, we developed three coherent u-City construction market scenarios. On the basis of the proposed scenarios, the business strategies of potential construction firms in the u-City construction market has been formulated. Therefore, construction firms can use these scenarios as a basic data for market analysis and business strategy. Therefore, this paper is able to enhance the participation of construction firms in the u-City construction market.