IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v7y2015i11p15423-15448d59175.html
   My bibliography  Save this article

Project-Based Market Competition and Policy Implications for Sustainable Developments in Building and Construction Sectors

Author

Listed:
  • Min-Ren Yan

    (Department of International Business Administration, Chinese Culture University, No. 231, Sec. 2, Jian-guo S. Rd., Da-an Dist., 106 Taipei City, Taiwan)

Abstract

Building and construction sectors are significant contributors to the global economy, but their energy consumption necessitates greater commitment to sustainable developments. There is therefore a growing demand for green innovation in the form of cleaner production and policies to meet the modern requirements of sustainability. However, the nature in which public work is undertaken is in an environment of project-based market competition, whereby contractors routinely bid for contracts under specific project awarding systems, and variations are accompanied with the unique scope of individual projects before the final goods or services are delivered. A comprehensive understanding of the characteristics and contractors’ behavior in systems could help to identify the leverage points of policies. This paper proposes a system dynamics model, with quantitative analysis and simulations, to demonstrate the problems of a system with different project awarding systems and ineffective market performance. The framework of market efficiency and performance measures has been proposed to evaluate the project-based competition mechanism. Managerial policy implications for market efficiency and sustainable developments can thus be systematically discussed and compared through iterative computer simulations and scenario analysis.

Suggested Citation

  • Min-Ren Yan, 2015. "Project-Based Market Competition and Policy Implications for Sustainable Developments in Building and Construction Sectors," Sustainability, MDPI, vol. 7(11), pages 1-26, November.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:11:p:15423-15448:d:59175
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/7/11/15423/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/7/11/15423/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard Disney & Jonathan Haskel & Ylva Heden, 2003. "Restructuring and productivity growth in uk manufacturing," Economic Journal, Royal Economic Society, vol. 113(489), pages 666-694, July.
    2. Rahimiyan, Morteza & Rajabi Mashhadi, Habib, 2010. "Evaluating the efficiency of divestiture policy in promoting competitiveness using an analytical method and agent-based computational economics," Energy Policy, Elsevier, vol. 38(3), pages 1588-1595, March.
    3. Edmundas Kazimieras Zavadskas & Zenonas Turskis & Jolanta Tamošaitiene, 2008. "Contractor selection of construction in a competitive environment," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 9(3), pages 181-187, August.
    4. Minniti, Antonio, 2010. "Product market competition, R&D composition and growth," Economic Modelling, Elsevier, vol. 27(1), pages 417-421, January.
    5. Willem Karel M. Brauers & Edmundas Kazimieras Zavadskas & Zenonas Turskis & Tatjana Vilutiene, 2008. "Multi‐objective contractor's ranking by applying the Moora method," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 9(4), pages 245-255, July.
    6. Changbum Ahn & SangHyun Lee & Feniosky Peña-Mora & Simaan Abourizk, 2010. "Toward Environmentally Sustainable Construction Processes: The U.S. and Canada’s Perspective on Energy Consumption and GHG/CAP Emissions," Sustainability, MDPI, vol. 2(1), pages 1-17, January.
    7. Chiara D’Alpaos & Michele Moretto & Paola Valbonesi & Sergio Vergalli, 2013. "Time overruns as opportunistic behavior in public procurement," Journal of Economics, Springer, vol. 110(1), pages 25-43, September.
    8. Kolk, Ans & Pinkse, Jonatan, 2006. "Stakeholder Mismanagement and Corporate Social Responsibility Crises," European Management Journal, Elsevier, vol. 24(1), pages 59-72, February.
    9. Patricia M. Hillebrandt, 2000. "Economic Theory and the Construction Industry," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-0-230-37248-1.
    10. Stephen L. Gruneberg & Graham J. Ive, 2000. "The Economics of the Modern Construction Firm," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-51043-2.
    11. Wang, Yudong & Liu, Li & Gu, Rongbao & Cao, Jianjun & Wang, Haiyan, 2010. "Analysis of market efficiency for the Shanghai stock market over time," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(8), pages 1635-1642.
    12. Bucci, Alberto & Parello, Carmelo Pierpaolo, 2009. "Horizontal innovation-based growth and product market competition," Economic Modelling, Elsevier, vol. 26(1), pages 213-221, January.
    13. Menoka Bal & David Bryde & Damian Fearon & Edward Ochieng, 2013. "Stakeholder Engagement: Achieving Sustainability in the Construction Sector," Sustainability, MDPI, vol. 5(2), pages 1-16, February.
    14. Luis Roberto Arruda & Valdir De Jesus Lameira & Osvaldo Luiz Gonçalves Quelhas & Fernando Neves Pereira, 2013. "Sustainability in the Brazilian Heavy Construction Industry: An Analysis of Organizational Practices," Sustainability, MDPI, vol. 5(10), pages 1-17, September.
    15. John Rooke & David Seymour & Richard Fellows, 2004. "Planning for claims: an ethnography of industry culture," Construction Management and Economics, Taylor & Francis Journals, vol. 22(6), pages 655-662.
    16. Nickell, Stephen J, 1996. "Competition and Corporate Performance," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 724-746, August.
    17. Guri Krigsvoll & Marina Fumo & Renata Morbiducci, 2010. "National and International Standardization (International Organization for Standardization and European Committee for Standardization) Relevant for Sustainability in Construction," Sustainability, MDPI, vol. 2(12), pages 1-15, December.
    18. Richard Blundell & Rachel Griffith & John van Reenen, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(3), pages 529-554.
    19. Firuzan Yasamis & David Arditi & Jamshid Mohammadi, 2002. "Assessing contractor quality performance," Construction Management and Economics, Taylor & Francis Journals, vol. 20(3), pages 211-223.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Min-Ren Yan & Kuo-Ming Chien & Lin-Ya Hong & Tai-Ning Yang, 2018. "Evaluating the Collaborative Ecosystem for an Innovation-Driven Economy: A Systems Analysis and Case Study of Science Parks," Sustainability, MDPI, vol. 10(3), pages 1-13, March.
    2. Ta-Kai Yang & Min-Ren Yan, 2019. "Exploring the Enablers of Strategic Orientation for Technology-Driven Business Innovation Ecosystems," Sustainability, MDPI, vol. 11(20), pages 1-19, October.
    3. Shubo Liu & Min-Ren Yan, 2018. "Corporate Sustainability and Green Innovation in an Emerging Economy—An Empirical Study in China," Sustainability, MDPI, vol. 10(11), pages 1-29, November.
    4. Lisa Larsson & Johan Larsson, 2018. "Sustainable Development in Project-Based Industries–Supporting the Realization of Explorative Innovation," Sustainability, MDPI, vol. 10(3), pages 1-18, March.
    5. Ta-Kai Yang & Min-Ren Yan, 2020. "The Corporate Shared Value for Sustainable Development: An Ecosystem Perspective," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    6. Huang, Dayan & Liu, Chengyi & Yan, Zehao & Kou, Aiju, 2023. "Payments for Watershed Services and corporate green innovation," International Review of Economics & Finance, Elsevier, vol. 87(C), pages 541-556.
    7. Hala Sanboskani & Mounir El Asmar & Elie Azar, 2022. "Green Building Contractors 2025: Analyzing and Forecasting Green Building Contractors’ Market Trends in the US," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    8. Sung-Lin Hsueh & Yue Sun & Min-Ren Yan, 2019. "Conceptualization and Development of a DFuzzy Model for Low-Carbon Ecocities," Sustainability, MDPI, vol. 11(20), pages 1-15, October.
    9. Daniella Troje, 2021. "Policy in Practice: Social Procurement Policies in the Swedish Construction Sector," Sustainability, MDPI, vol. 13(14), pages 1-18, July.
    10. Min-Ren Yan & Kuo-Ming Chien & Tai-Ning Yang, 2016. "Green Component Procurement Collaboration for Improving Supply Chain Management in the High Technology Industries: A Case Study from the Systems Perspective," Sustainability, MDPI, vol. 8(2), pages 1-16, January.
    11. Zydrune Morkunaite & Romualdas Bausys & Edmundas Kazimieras Zavadskas, 2019. "Contractor Selection for Sgraffito Decoration of Cultural Heritage Buildings Using the WASPAS-SVNS Method," Sustainability, MDPI, vol. 11(22), pages 1-25, November.
    12. Vo Dang Khoa & Thanwadee Chinda, 2023. "Assessment of Construction Competitiveness through Knowledge Management Process Implementation," Sustainability, MDPI, vol. 15(22), pages 1-33, November.
    13. Tomáš Hanák & Ivan Marović & Nikša Jajac, 2020. "Challenges of Electronic Reverse Auctions in Construction Industry—A Review," Economies, MDPI, vol. 8(1), pages 1-14, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul Seabright, 2005. "National and European Champions - Burden or Blessing?," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 6(2), pages 52-55, August.
    2. Philippe Aghion & Richard Blundell & Rachel Griffith & Peter Howitt & Susanne Prantl, 2009. "The Effects of Entry on Incumbent Innovation and Productivity," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 20-32, February.
    3. Rachel Griffith & Stephen Redding & Helen Simpson, 2004. "Foreign Ownership and Productivity: New Evidence from the Service Sector and the R&D Lab," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 20(3), pages 440-456, Autumn.
    4. Nicholas Crafts & Mary O'Mahony, 2001. "A perspective on UK productivity performance," Fiscal Studies, Institute for Fiscal Studies, vol. 22(3), pages 271-306, September.
    5. Dhanora, Madan & Sharma, Ruchi & Khachoo, Qayoom, 2018. "Non-linear impact of product and process innovations on market power: A theoretical and empirical investigation," Economic Modelling, Elsevier, vol. 70(C), pages 67-77.
    6. Giuseppe Nicoletti & Stefano Scarpetta, 2003. "Regulation, productivity and growth: OECD evidence [‘A model of growth through creative destruction’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 18(36), pages 9-72.
    7. Francesco Daveri & Rémy Lecat & Maria Laura Parisi, 2016. "Service Deregulation, Competition, and the Performance of French and Italian Firms," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(3), pages 278-302, July.
    8. Juan Manuel Rivas Castillo, 2023. "Evidencias del impacto de la Competencia sobre el Crecimiento Económico de América Latina y el Caribe," Revista de Análisis Económico y Financiero, Universidad de San Martín de Porres, vol. 6(02), pages 13-25.
    9. Gaëtan Nicodème & Jacques-Bernard Sauner-Leroy, 2007. "Product Market Reforms and Productivity: A Review of the Theoretical and Empirical Literature on the Transmission Channels," Journal of Industry, Competition and Trade, Springer, vol. 7(1), pages 53-72, March.
    10. Schiantarelli, Fabio, 2005. "Product Market Regulation and Macroeconomic Performance: A Review of Cross Country Evidence," IZA Discussion Papers 1791, Institute of Labor Economics (IZA).
    11. Onori, Daria, 2012. "Welfare, competition, specialization and growth," Research in Economics, Elsevier, vol. 66(4), pages 355-370.
    12. Minniti, Antonio, 2010. "Product market competition, R&D composition and growth," Economic Modelling, Elsevier, vol. 27(1), pages 417-421, January.
    13. Renaud Bourlès & Gilbert Cette & Jimmy Lopez & Jacques Mairesse & Giuseppe Nicoletti, 2013. "Do Product Market Regulations In Upstream Sectors Curb Productivity Growth? Panel Data Evidence For OECD Countries," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1750-1768, December.
    14. Philipp Steinbrunner, 2023. "I want a quiet life! On productivity and competition in the Central European energy sector," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(2), pages 403-428, April.
    15. Alberto Bucci, 2014. "Population, competition, innovation, and economic growth with and without human capital investment," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(1), pages 61-84, April.
    16. Alberto Bucci, 2009. "Population, Innovation, Competition and Growth with and without Human Capital Investment," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1095, Universitá degli Studi di Milano.
    17. Harris, Richard & Moffat, John, 2011. "Plant-level determinants of total factor productivity in Great Britain, 1997-2006," LSE Research Online Documents on Economics 33561, London School of Economics and Political Science, LSE Library.
    18. Norbäck, Pehr-Johan & Persson, Lars, 2012. "Entrepreneurial innovations, competition and competition policy," European Economic Review, Elsevier, vol. 56(3), pages 488-506.
    19. Vahagn Jerbashian & Anna Kochanova, 2017. "The Impact of Telecommunication Technologies on Competition in Services and Goods Markets: Empirical Evidence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 628-655, July.
    20. Elena Podrecca, 2013. "Riforme del mercato dei prodotti e crescita della produttivit?. Teoria ed evidenza empirica," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 0(2), pages 10-41.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:7:y:2015:i:11:p:15423-15448:d:59175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.