Asare, E; Owusu-Manu, D G; Ayarkwa, J; Edwards, D J and Martek, I (2023) Thematic literature review of working capital management in the construction industry: Trends and research opportunities. Construction Innovation, 23(4), pp. 775-791. ISSN 1471-4175
Abstract
Purpose: The construction industry (CI) is a major contributor to the gross domestic product of most economies. Yet, the industry is characterized by poorly performing projects, plagued with cost overruns, delays, with a relatively high-risk nature and marginal returns. Given that construction projects are financially dynamic, relying on highly fluctuating working capital and cash-flow requirements, there is an imperative need to understand the working capital management (WCM) of the CI. This study aims to review the extant literature on WCM in the CI to present a contemporary positional paper and engender a wider polemic debate on this crucial phenomenon. Design/methodology/approach: A systematic literature review methodology is used, using Google Scholar as the literature database. Findings: Despite the importance of this research theme, only 16 publications dedicated to the topic of WCM in the CI are identified. This is an important finding in itself and is indicative of hitherto scant research conducted. Other observations include the lack of experts examining the field, with no authors exploring the theme more than once. Subthemes of WCM are also scarce, with only the topic of the relationship between “WCM and profitability” been revisited and refined in literature; all other topics being cursory. Originality/value: This study is among pioneering papers in developing economies that have taken stock of WCM in the CI. As a result, the conclusion of this paper is to call out the paucity of research in WCM and set a broad agenda for future research.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction industry; project management; working capital management |
| Index terms: | methodology, database, project management, cost overrun, profitability, publication, construction project, gross domestic product, literature review, developing economy, construction industry, systematic literature review |
| Subjects: | research methods, data analysis and analytics, economic development, data management, economic analysis, financial and cost management, industry analysis, production management, project management theory and practice, research dissemination and communication, research evaluation and metrics |
| Topics: | Digital Applications, Cost Management, Research Practice, Project Management, International Construction, Information Management, Business Strategy |
| Descriptive scope: | 5 PCTEA |
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