Basha, M (2021) Intra-sector firm performance and its determinants in the UK construction industry. PhD thesis, University of Westminster, UK.
Abstract
This thesis is a detailed quantitative investigation of intra-sector firm performance in the UK construction industry. Using the value-based model and creating a conceptual tool of assessment from it comprising nine determinants, the research applies this tool to the industry. Over two decades of firm performance data in the key sectors are analysed to answer the firm’s performance question. By doing so, the thesis for the first time combines the disciplines of strategy, economics and finance to analyse the intra-sector firm performance question in UK construction. A panel-based ordinary least squares (OLS) regression is the main approach. However, corrections and adjustments are made for a range of likely econometric issues including heteroscedasticity, autocorrelation, multicollinearity and cointegration. A suite of five different advanced regressions including GLS random effects and maximum likelihood estimations are implemented to validate and corroborate the OLS results. In addition, three different regressions are performed in the sample simultaneously namely in the overall industry, the three key sectors in it and in a time-based pre- and post-credit crisis splicing. Robust evidence is found for each of the nine determinants and their varied influences on profits in the UK construction industry. Among the important findings here are: evidence for a liquidity-orientated business model in large tracts of the industry; a negative leverage impact on profits only among building sector firms; and a purely positive profits function among civil engineering firms. Based on these findings, firm managers in each sector of the industry are given specific recommendations including: to avoid debt in the buildings sector; to invest systematically in technology and capital assets in the civil engineering sector; and to focus on cost leadership in the specialist trades sector. The analysis also yields important policy insights for regulators and policy think tanks. Noteworthy here are tax-based incentives for inventory management in all sectors of the industry, a technology development institute for the firms in the industry and sector-specific regulatory guidelines for the firms in the buildings sector. The thesis expands the repertoire of creative solutions for the difficult intra-sector firm performance questions of this industry.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Uncontrolled Keywords: | inventory; business model; civil engineering; leadership; policy; civil engineer; UK |
| Index terms: | econometric, determinant, construction industry, investigation, business model, estimation, regulator, firm performance, inventory, liquidity, technology development, capital assets, evidence, profit, civil engineer, strategy, engineering firm, cointegration, manager |
| Subjects: | innovation and technology management, economic analysis, practitioner, evaluation and assessment methods, asset management, inventory management, business analysis, financial and cost management, data collection methods, profession, risk assessment, business, industry analysis, sociology, firms, management |
| Topics: | Research Practice, Cost Management, Business Strategy, Stakeholder Management, Roles and Professions, Engineering Principles, Risk Management, Supply Chain Management |
| 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