The Profiling of Property, Plant & Equipment (PPE) Contributions in Australia and Malaysia Public Listed Construction Companies

The purpose of this paper is to study the profiling of property, plant and equipment (PPE) contributions in Australia and Malaysia construction companies. A company’s worth is usually based on the listed share price on the stock exchange. In arriving at the net profit, the contribution of PPE in the company’s assets is somehow being neglected. This paper will investigate the followings; firstly the level of PPE contribution in the construction firms by comparing the PPE contributions to the company’s asset as a whole which includes fixed (non-current) assets and current assets. This will determine the true strength of the companies, rather than relying on the share prices alone. Secondly, the paper will determine the trend of company’s asset ownership to show the company’s performance of the PPE ownership during the period of study. The data is based on the selected construction companies listed on the Australian Stock Exchange (ASX) and Malaysian Stock Exchange, known as Bursa Malaysia. The profiling will help to determine the strength of the construction firms based on the PPE holding, and the level of PPE ownerships in the two countries construction firms during the period of study.

Genesis and role of standards : theoretical foundations and socio-economical model for the construction and use of standards

A key issue in the economic development and performance of organizations is the existence of standards. Their definition and control are sources of power and it is important to understand their concept, as it gives standards their direction and their legitimacy, and to explore how they are represented and applied. The difficulties posed by classical micro-economics in establishing a theory of standardization that is compatible with its fundamental axiomatic are acknowledged. We propose to reconsider the problem by taking the opposite perspective in questioning its theoretical base and by reformulating assumptions about the independent and autonomous decisions taken by actors. The Theory of Conventions will offer us a theoretical framework and tools enabling us to understand the systemic dimension and dynamic structure of standards. These will be seen as a special case of conventions. This work aims to provide a sound basis and promote a better consciousness in the development of global project management standards. It aims also to emphasize that social construction is not a matter of copyright but a matter of open minds, collective cognitive process and freedom for the common wealth.

Genesis and role of standards : theoretical foundations and socio-economical model for the construction and use of standards

A key issue for the economic development and for performance of organizations is the existence of standards. As their definitions and control are source of power, it seems to be important to understand the concept and to wonder about the representations authorized by the concept which give their direction and their legitimacy. The difficulties of classical microeconomics of establishing a theory of standardisation compatible with its fundamental axiomatic are underlined. We propose to reconsider the problem by carrying out the opposite way: to question the theoretical base, by reformulating assumptions on the autonomy of the choice of the actors. The theory of conventions will offer us both a theoretical framework and tools, enabling us to understand the systemic dimension and dynamic structure of standards seen as special case of conventions. This work aims thus to provide a sound basis and promote a better consciousness in the development of global project management standards, aiming also to underline that social construction is not a matter of copyright but a matter of open minds, collective cognitive process and freedom for the common wealth.

Strategic Management Practices in the Construction Industry : a Dynamic Capabilities View

This book is an empirical study of strategic management practices in the construction industry. It examines the dynamic capabilities paradigm within the context of the Indonesian construction industry. The characteristics of asset-capability combinations were found to be significant determinants of the competitive advantage of the Indonesian construction enterprises, and that such advantage sequentially contributes to organizational performance. In doing so, this study fills an important gap in the empirical literature and reinforces the dynamic capabilities framework’s recognition as a rigorous theory of strategic management. As the dynamic capabilities framework can work in the context of Indonesia, it suggests that the framework has potential applicability in other emerging and developing countries

Projecting change through construction innovation

In projecting change for the critical Australian construction industry, the CRC for Construction Innovation envisions a culture of self improvement through applied research and technology transfer. Construction Innovation is driving research outcomes into business practice in areas such as innovativeness, sustainability, procurement, project diagnostics and site safety. The group has also led the formation of an international alliance to ensure its activities are hitting the mark nationally and internationally. Through initiatives like these, the CRC for Construction Innovation is already providing a potent vehicle for change.

Complicated working time arrangements : construction industry case study

This paper extends the understanding of working-time changes and work-life balance (WLB) through analyzing a case study where a reduction in working hours designed to assist the workforce in balancing work and nonwork life was implemented. An alliance project in the Australian construction industry was established initially with a 5-day working week, a departure from the industry-standard 6-day week. However, a range of factors complicated the success of this initiative, and the industry-standard 6-day working week was reinstated for the project. The authors argue that this case is valuable in determining the complex mix of influences that work against a wholesale or straightforward adoption of working-time adjustments and work-life balance practices. It is concluded that although the prevailing workplace culture is considered an important factor in the determination of working time, structural and workplace principles and practices may also be critical in working to secure the successful introduction of working-time reduction and work-life balance initiatives in the construction industry in the future.

Chinese fashion designers in Shanghai : a new perspective about their role in the construction of a fashion city

Shanghai possesses an apt legacy, once referred to as ‘Paris of the East’. Municipal aspirations for Shanghai to assume a position among the great fashion cities of the world have been integrated in the recent re-shaping of this modern city into a role model for Chinese creative enterprise yet China is still known primarily as centre of clothing production. Increasingly however, ‘Made in China’ is being replaced by ‘Created in China’ drawing attention to two distinct consumer markets for Chinese designers. Fashion designers who have entered the global fashion system for education or by showing their collections have generally adopted a design aesthetic that aligns with Western markets, allowing little competitive advantage. In contrast, Chinese designers who rest their attention on the domestic Chinese market find a disparate, highly competitive marketplace. The pillars of authenticity that for foreign fashion brands extend far into their cultural and creative histories, often for many decades in the case of Louis Vuitton, Hermes and Christian Dior do not yet exist in China in this era of rapid globalisation. Here, the cultural bedrock allows these same pillars to extend only thirty years or so into the past reaching the moments when Deng Xiaoping granted China’s creative entrepreneurs passage. To this end, interviews with fashion designers in Shanghai have been undertaken during the last twelve months for a PhD dissertation. Production of culture theory has been used to identify working methods, practices of production and the social and cultural milieu necessary for designers to achieve viability. Preliminary findings indicate that some fashion designers have adopted an as-yet unexplored strategy of business and brand development with a distinct Chinese aesthetic at its core, in contrast to the clichéd cultural iconography often viewed by Western viewers as representative of Chinese creativity. The development of this aesthetic is similar to the development of the Scandinavian design ethos that emerged during the 1950s.

Procuring OSM : base-line models of off-site manufacture business processes in Australia

A pressing cost issue facing construction is the procurement of off-site pre-manufactured assemblies. In order to encourage Australian adoption of off-site manufacture (OSM), a new approach to underlying processes is required. The advent of object oriented digital models for construction design assumes intelligent use of data. However, the construction production system relies on traditional methods and data sources and is expected to benefit from the application of well-established business process management techniques. The integration of the old and new data sources allows for the development of business process models which, by capturing typical construction processes involving OSM, provides insights into such processes. This integrative approach is the foundation of research into the use of OSM to increase construction productivity in Australia. The purpose of this study is to develop business process models capturing the procurement, resources and information flow of construction projects. For each stage of the construction value chain, a number of sub-processes are identified. Business Process Modelling Notation (BPMN), a mainstream business process modelling standard, is used to create base-line generic construction process models. These models identify OSM decision-making points that could provide cost reductions in procurement workflow and management systems. This paper reports on phase one of an on-going research aiming to develop a proto-type workflow application that can provide semi-automated support to construction processes involving OSM and assist in decision-making in the adoption of OSM thus contributing to a sustainable built environment.

Governance of learning mechanisms : evidence from construction firms

The focus of knowledge management (KM) in the construction industry is moving towards capability building for value creation. The study reported by this paper is motivated by recent assertions about the genesis and evolution of knowledge management capability (KMC) in the strategic management field. It attempts to shed light on the governance of learning mechanisms that develop KMC within the context of construction firms. A questionnaire survey was administered to a sample of construction contractors operating in the very dynamic Hong Kong market to elicit opinions on the learning mechanisms and business outcomes of targeted firms. On the basis of a total of 149 usable responses, structural equation modeling (SEM) analysis identified relationships among knowledge-governance mechanisms, knowledge processes, and business performance, thereby supporting the existence of strategic learning loops. The study findings provide evidence from the construction context for capability assertions that knowledge-governance mechanisms and processes form learning mechanisms that carry out strategic learning to create value, effect performance outcomes, and ultimately drive the evolution of KMC. The findings imply that it is feasible for managing construction firms to govern learning mechanisms through managing the capability-based holistic KM system, thereby reconfiguring KMC to match needs in the dynamic market environment over time.

Visualizing the evolution of knowledge management capability in construction firms

A firm, as a dynamic, evolving, and quasi-autonomous system of knowledge production and application, develops knowledge management capability (KMC) through strategic learning in order to sustain competitive advantages in a dynamic environment. Knowledge governance mechanisms and knowledge processes connect and interact with each other forming learning mechanisms, which carry out double loop learning that drives genesis and evolution of KMC to modify operating routines that effect desired performance. This paper reports a study that was carried out within a context of construction contractors, a type of project-based firms, operating within the dynamic Hong Kong construction market. A multiple-case design was used to incorporate evidence from the literature and interviews, with the help of system dynamics modeling, to visualize the evolution of KMC. The study demonstrates the feasibility to visualize how a firm's KMC matches its operating environment over time. The findings imply that knowledge management (KM) applications can be better planned and controlled through evaluation of KM performance over time from a capability perspective.

The strategic importance of tacit knowledge management activities in construction

Purpose: Tacit knowledge is perceived as the most strategically important resource of the construction organisation, and the only renewable and sustainable base for its activities and competitiveness. Knowledge management (KM) activities that deal with tacit knowledge are essential in helping an organisation to achieve its long-term organisational objectives. The purpose of this paper is to provide empirical evidence for the stronger strategic role of tacit KM in comparison to explicit KM. Design/methodology/approach: A questionnaire survey was administered in 2005 to a sample of construction contractors operating in Hong Kong to elicit opinions on the internal business environment, intensity of KM activities as executed by targeted organisations, and contribution of these activities to business performance (BP). A total of 149 usable responses were received from 99 organisations representing about 38 per cent of the sampling frame. The statistical analyses helped to map the reported KM activities into two groups that, respectively, deal with tacit and explicit knowledge. The sensitivity to variations of organisational policies and strength of association with BP in relation to the two groups of KM activities were also compared empirically. A total of 15 interviews with the managerial and professional staff of leading contractors was undertaken to provide insightful narratives of KM implementations. Findings: The effective implementation of organisational policies, such as encouraging innovations and strengthening strategic guidance for KM, would facilitate human interactions of tacit KM. Higher intensity of activities in managing tacit knowledge would ultimately help the organisations to achieve economic gain in the long run. Originality/value: The stronger strategic role of tacit KM is empirically investigated and established within the context of construction organisations.

Contribution of knowledge management activities to organisational business performance

Purpose – Within the construction industry there is a growing awareness of the need for linking knowledge management (KM) to business strategy, organisational objectives and existing performance measures. This study was undertaken within the context of construction organisations, and attempts to provide the empirical evidence about the relationships between KM activities and organisational business performance. Design/methodology/approach – A questionnaire survey was administered to a sample of construction contractors operating in Hong Kong to investigate the opinions of construction professionals regarding the intensity of KM activities and business performance within their organisations. In parallel to the survey, semi-structured interviews were undertaken to provide qualitative insights that helped to clarify and deepen understanding of the KM process within the context of the research target. Findings – The investigation shows that knowledge utilisation is the strongest contributor to general business performance. In addition, the impact of KM activities on the lagging performance indicators of the Balanced Scorecard (BSC), such as “financial performance”, is in an indirect manner, and through the leading indicators such as performance from “internal process” as well as “learning and growth” perspectives. Originality/value – The study empirically establishes the linkage between intensity of KM activities and business performance, and demonstrates that KM strategies need to be explicitly formulated and measured according to organisational business objectives.

An entry mode decision-making model for the international expansion of construction enterprises

Purpose – The purpose of this paper is to provide a new type of entry mode decision-making model for construction enterprises involved in international business. Design/methodology/approach – A hybrid method combining analytic hierarchy process (AHP) with preference ranking organization method for enrichment evaluations (PROMETHEE) is used to aid entry mode decisions. The AHP is used to decompose the entry mode problem into several dimensions and determine the weight of each criterion. In addition, PROMETHEE method is used to rank candidate entry modes and carry out sensitivity analyses. Findings – The proposed decision-making method is demonstrated to be a suitable approach to resolve the entry mode selection decision problem. Practical implications – The research provides practitioners with a more systematic decision framework and a more precise decision method. Originality/value – The paper sheds light on the further development of entry strategies for international construction markets. It not only introduces a new decision-making model for entry mode decision making, but also provides a conceptual framework with five determinants for a construction company entry mode selection based on the unique properties of the construction industry.

Impact of organisational cultural factors on knowledge management in construction

Knowledge Management (KM) is a process that focuses on knowledge-related activities to facilitate knowledge creation, capture, transformation and use, with the ultimate aim of leveraging organisations’ intellectual capital to achieve organisational objectives. Organisational culture and climate have been identified as major catalysts to knowledge creation and sharing, and hence are considered important dimensions of KM research. The fragmented and hierarchical nature of the construction industry illustrates its difficulties to operate in a co-ordinated and homogeneous way when dealing with knowledge-related issues such as research and development, training and innovation. The culture and climate of organisations operating within the construction industry are profoundly shaped by the long-established characteristics of the industry, whilst also being influenced by the changes within the sector. Meanwhile, the special project-based structure of construction organisations constitutes additional challenges in facing knowledge production. The study this paper reports on addresses the impact of organisational culture and climate on the intensity of KM activities within construction organisations, with specific focus on the managerial activities that help to manage these challenges and to facilitate KM. A series of semi-structured interviews were undertaken to investigate the KM activities of the contractors operating in Hong Kong. The analysis on the qualitative data revealed that leadership on KM, innovation management, communication management and IT development were key factors that impact positively on the KM activities within the organisations under investigation.

A self-assessment tool for knowledge management implementation in the construction industry

Knowledge management (KM) provides a structured process to establish the link between knowledgebased assets within an organisation and its desired business objectives. Although KM issues are becoming increasingly important to the construction industry, there is currently no measurement tool for assessing the implementation of KM programmes. This paper reports on the development of such a tool which can be used as both a means of self-assessment and also for benchmarking purposes. Important practices needed for successful KM implementation were identified from the literature and via a self-administered survey targeting large and medium construction organisations in Hong Kong. Survey findings demonstrate the potential of the proposed self-assessment tool to measure the individual’s perception of the relative importance of KM antecedents and practices, also providing early insight of KM implementation by highlighting the negative gaps between what “is” and “should be” happening, thus identifying areas that need re alignment of KM strategies and tactics. The paper also suggests this tool could be further developed to help organisations to formulate and modify their KM programmes according to their own specific internal business environment, and the nature of their projects.