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

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  • 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
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    Cited by:

    1. 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.
    2. 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.
    3. Vo Dang Khoa & Thanwadee Chinda, 2023. "Assessment of Construction Competitiveness through Knowledge Management Process Implementation," Sustainability, MDPI, vol. 15(22), pages 1-33, 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. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. Daniella Troje, 2021. "Policy in Practice: Social Procurement Policies in the Swedish Construction Sector," Sustainability, MDPI, vol. 13(14), pages 1-18, July.

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