Konno, Y (2014) An empirical analysis of the exit of SMEs tendering for public works in the Japanese construction industry. Journal of Financial Management of Property and Construction, 19(2), pp. 101-116. ISSN 1366-4387
Abstract
Purpose – The purpose of this study is to examine what factors affect the exit of small and medium-sized enterprises (SMEs) from tendering for public works in the Japanese construction industry using the Keiei Jikou Sinsa or Keisin (the database for evaluation of construction companies in Japan). Design/methodology/approach – This study empirically analyzes SMEs' exit using the binary logit model. For the empirical analysis, it uses the scores as well as financial and non-financial performance indicators of Keisin data. Findings – The Keisin scores (the total score and W score), financial performance indicators (cash flow from operations and capital) and non-financial performance indicators (having unemployment insurance and operating years) significantly affect SME exits. Although the Keisin data are used for bid entry qualifications of public works, they can be applied to a factor analysis of the exit of SMEs in the construction industry. Originality/value – As there exists little empirical analysis of the exit of SMEs globally, this study contributes to the research on this phenomenon.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | evaluation; construction companies; bid; public work; tendering decisions |
| Index terms: | Japan, construction company, cash flow, unemployment, tendering decision, financial performance, methodology, database, qualification, construction industry, factor analysis, public work, insurance |
| Subjects: | economic analysis, organization, statistical analysis, industry analysis, data management, infrastructure engineering, Geography, business analysis, research methods, educational resources, tendering, financial management |
| Topics: | Cost Management, Business Strategy, Geographical Context, Research Practice, Engineering Principles, Procurement, Digital Applications, Education |
| 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