Modelling the environmental, economic and social impacts of coronavirus pandemic on the construction industry

Olanrewaju, O I; Chileshe, N; Adekunle, E O and Salihu, C (2024) Modelling the environmental, economic and social impacts of coronavirus pandemic on the construction industry. International Journal of Construction Management, 24(14), pp. 1485-1498. ISSN 1562-3599

Abstract

The coronavirus (COVID-19) pandemic caught the whole world unaware and has negatively impacted all segments of several countries' economies. Consequently, the construction industry in the Sub-Saharan Africa (SSA) region is not left out of this significant impact that has affected all the industry stakeholders and led to the abandonment of many construction projects due to poor cash flow. This article aims to model the pandemic’s environmental, economic, and social effects on the construction industry. The research method includes a scoping review used to validate impacts identified in the literature. The impacts identified were then used to develop questionnaires that were administered to construction professionals in the SSA region. The questionnaire data were evaluated with Partial Least Square Structural Equation Modelling (PLS-SEM). The empirical model outputs highlight that the economic impact has the highest contribution to the overall shock of the pandemic. The study revealed that a better understanding of this impact would help industry stakeholders develop policies that will enhance construction industry performance and thus limit the pandemic impact on the industry. The outcome of this project may also apply to other sectors of the economy and countries globally.

Item Type: Article
Uncontrolled Keywords: built environment; coronavirus; COVID-19; economy; impacts; SARS-COV-2; Sub-Saharan Africa
Index terms: Sub-Saharan Africa, abandonment, structural equation modelling, COVID-19, cash flow, partial least square, construction project, economic impact, questionnaire, pandemic, construction industry performance, construction industry, modelling, social impact, coronavirus, construction professional, built environment
Subjects: data collection methods, analytical methods, physical geography and landforms, financial management, health risk and incident analysis, professional development, production management, health conditions and diseases, sociology, completion, statistical analysis, financial analysis, infrastructure and transport systems, industry analysis
Topics: Research Practice, Project Management, Geographical Context, Information Management, Engineering Principles, Cost Management, Business Strategy, Health and Safety, Urban Studies
Descriptive scope: 4 PCTA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here