IDEAS home Printed from https://ideas.repec.org/a/taf/conmgt/v24y2006i3p309-320.html
   My bibliography  Save this article

Predicting construction firm performance: an empirical assessment of the differential impact between industry- and firm-specific factors

Author

Listed:
  • Florence Phua

Abstract

It is obvious that the performance of firms hinges upon the dynamics of both industry- and firm-specific factors. A less obvious, and perhaps a more important, line of inquiry is that to the extent that they have a bearing on firm performance, how much do these two groups of factors respectively predict firm performance? To date, performance differences among construction firms that stem from industry- and firm-specific differential effect has remained largely unexplored. Using a dataset comprising 526 firms across various construction-related sectors, the sector-by-sector firm performance variation that is attributable to the heterogeneity of both industry- and firm-specific characteristics was empirically examined. That statistically significant results of different effect sizes are found indicates that although these factors are often assumed to be intertwined it is possible to study their respective impact on firm performance. Future studies could usefully replicate and extend this study to construction firms in other countries to further investigate what drives firm performance under different national, industry and firm contexts.

Suggested Citation

  • Florence Phua, 2006. "Predicting construction firm performance: an empirical assessment of the differential impact between industry- and firm-specific factors," Construction Management and Economics, Taylor & Francis Journals, vol. 24(3), pages 309-320.
    • Handle: RePEc:taf:conmgt:v:24:y:2006:i:3:p:309-320
    DOI: 10.1080/01446190500435127
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/01446190500435127
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01446190500435127?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David Jobber & Hafiz Mirza & Kee H Wee, 1991. "Incentives and Response Rates to Cross-National Business Surveys: A Logit Model Analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(4), pages 711-721, December.
    2. Florence Phua, 2004. "Modelling the determinants of multi-firm project success: a grounded exploration of differing participant perspectives," Construction Management and Economics, Taylor & Francis Journals, vol. 22(5), pages 451-459.
    3. Schmalensee, Richard, 1985. "Do Markets Differ Much?," American Economic Review, American Economic Association, vol. 75(3), pages 341-351, June.
    4. Graham Hall, 1994. "Factors Distinguishing Survivors From Failures Amongst Small Firms In The Uk Construction Sector," Journal of Management Studies, Wiley Blackwell, vol. 31(5), pages 737-760, September.
    5. John Child, 1975. "Managerial And Organizational Factors Associated With Company Performance‐Part Ii. A Contingency Analysis," Journal of Management Studies, Wiley Blackwell, vol. 12(1‐2), pages 12-27, March.
    6. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    7. Jeffrey S. Conant & Michael P. Mokwa & P. Rajan Varadarajan, 1990. "Strategic types, distinctive marketing competencies and organizational performance: A multiple measures‐based study," Strategic Management Journal, Wiley Blackwell, vol. 11(5), pages 365-383, September.
    8. ANITA M. McGAHAN & MICHAEL E. PORTER, 1997. "How Much Does Industry Matter, Really?," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 15-30, July.
    9. Richard P. Rumelt, 1991. "How much does industry matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(3), pages 167-185, March.
    10. Gary S. Hansen & Birger Wernerfelt, 1989. "Determinants of firm performance: The relative importance of economic and organizational factors," Strategic Management Journal, Wiley Blackwell, vol. 10(5), pages 399-411, September.
    11. Poh‐Lin Yeoh & Kendall Roth, 1999. "An empirical analysis of sustained advantage in the U.S. pharmaceutical industry: impact of firm resources and capabilities," Strategic Management Journal, Wiley Blackwell, vol. 20(7), pages 637-653, July.
    12. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    13. Christine Oliver, 1997. "The Influence of Institutional and Task Environment Relationships on Organizational Performance: The Canadian Construction Industry," Journal of Management Studies, Wiley Blackwell, vol. 34(1), pages 99-124, January.
    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. Emmanuel Dele Omopariola & Abimbola Windapo & David John Edwards & Hatem El-Gohary, 2021. "Level of Financial Performance of Selected Construction Companies in South Africa," JRFM, MDPI, vol. 14(11), pages 1-18, October.

    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. Chen, Yi-Min, 2010. "The continuing debate on firm performance: A multilevel approach to the IT sectors of Taiwan and South Korea," Journal of Business Research, Elsevier, vol. 63(5), pages 471-478, May.
    2. Nikolaos G. Theriou & Vassilis Aggelidis & Georgios N. Theriou, 2009. "A Theoretical Framework Contrasting the Resource-Based Perspective and the Knowledge-Based View," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 177-190.
    3. Juan Regino Maldonado & Wen Yali & Frederick Cubbage & Patricia Regino Maldonado, 2017. "Forest Resources in the Performance of Mexican Community Forest Enterprises in a Vertical Integration System," International Journal of Sciences, Office ijSciences, vol. 6(09), pages 1-15, September.
    4. Yi-Min Chen, 2008. "How Much Does Country Matter?," International Regional Science Review, , vol. 31(4), pages 404-435, October.
    5. Eriksen, Bo & Knudsen, Thorbjorn, 2003. "Industry and firm level interaction: Implications for profitability," Journal of Business Research, Elsevier, vol. 56(3), pages 191-199, March.
    6. Jose G. Vargas-Hernandez, M.B.A., 2014. "Research Methodology Strategies In Strategic Management," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 10, pages 106-147.
    7. Hawawini, Gabriel & Subramanian, Venkat & Verdin, Paul, 2004. "The home country in the age of globalization: how much does it matter for firm performance?," Journal of World Business, Elsevier, vol. 39(2), pages 121-135, May.
    8. Luiz Claudio Louzada & Márcio Augusto Gonçalves, 2018. "The Moderating Effect of the Sector’s Level of Concentration on the Relationship Between Balance Sheet Composition and the Firm’s Competitive Advantage," Brazilian Business Review, Fucape Business School, vol. 15(6), pages 512-532, November.
    9. Camisón, César & Forés, Beatriz, 2015. "Is tourism firm competitiveness driven by different internal or external specific factors?: New empirical evidence from Spain," Tourism Management, Elsevier, vol. 48(C), pages 477-499.
    10. Galbreath, Jeremy & Galvin, Peter, 2008. "Firm factors, industry structure and performance variation: New empirical evidence to a classic debate," Journal of Business Research, Elsevier, vol. 61(2), pages 109-117, February.
    11. Paul-Valentin Ngobo & Eric Stéphany, 2001. "Les différences de performance financière entre les entreprises: résultats du marché français," Revue Finance Contrôle Stratégie, revues.org, vol. 4(1), pages 89-121, March.
    12. Mair, Johanna, 2003. "Opening the black box: Applying a people perspective to examine the origins of unit performance," IESE Research Papers D/513, IESE Business School.
    13. Takata, Hidesuke, 2016. "Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011," Journal of Business Research, Elsevier, vol. 69(12), pages 5611-5619.
    14. Krishna Chandra Balodi & Shubhabrata Basu, 2015. "Configurations of Resources, Strategy, Structure and Environment in Young High-technology Firms: Evidence from Qualitative Comparative Analysis," Global Business Review, International Management Institute, vol. 16(6), pages 1012-1024, December.
    15. Ketelhöhn, Niels W. & Quintanilla, Carlos, 2012. "Country effects on profitability: A multilevel approach using a sample of Central American firms," Journal of Business Research, Elsevier, vol. 65(12), pages 1767-1772.
    16. Arend, Richard J., 2009. "Industry effects and firm effects: No effect is an island," Journal of Business Research, Elsevier, vol. 62(6), pages 651-659, June.
    17. Moses Acquaah & Tailan Chi, 2007. "A longitudinal analysis of the impact of firm resources and industry characteristics on firm-specific profitability," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 11(3), pages 179-213, September.
    18. Miguel Acosta Molina & Idaira Barrios del Pino & Alicia Correa Rodríguez, 2004. "Industry, management capabilities and firms' competitiveness: An empirical contribution," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(5), pages 265-281.
    19. Miguel A. Ariño & Africa Ariño & Roberto Garcia-Castro, 2008. "A model to evaluate transient industry effects," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 629-637.
    20. Markus A. Fitza, 2014. "The use of variance decomposition in the investigation of CEO effects: How large must the CEO effect be to rule out chance?," Strategic Management Journal, Wiley Blackwell, vol. 35(12), pages 1839-1852, December.

    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:taf:conmgt:v:24:y:2006:i:3:p:309-320. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RCME20 .

    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.