Konno, Y (2014) Default or exit? Empirical study on SMEs in the Japanese construction industry. Construction Management and Economics, 32(10), pp. 1017-1029. ISSN 01446193
Abstract
The market size of Japan’s construction industry is decreasing. Preventing several major contractors from controlling the bidding of public works projects requires a certain number of other participants to be involved. Therefore, analysing the factors that affect the defaults or exits of small and medium-sized enterprises (SMEs) can effectively contribute to the stable supply of public services and the fair competition of bids. This research examines the factors affecting the defaults and exits of prime contractors in the public works of SMEs in the Japanese construction industry. Using construction company evaluation (Keiei Jikou Sinsa or Keisin) data in Japan as a basis, the factors are analysed using the multinomial logit model. Some Keisin scores and financial and non-financial performance indicators significantly affect defaults and exits, but the influence of each variable between them differs. In particular, the findings where non-financial performance indicators are able to predict defaults and exits are unique. Consequently, if the data from SMEs are obtained, then the analytical method employed in this study is useful for predicting future exits and defaults.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | bidding; construction companies; default; empirical analysis; exit |
| Index terms: | empirical study, public work, construction industry, public services, multinomial, financial performance, competition, bidding, default, construction company, Japan |
| Subjects: | bidding, dispute resolution, organization, statistical analysis, administrative law, industry analysis, market analysis, infrastructure engineering, Geography, business analysis, research methods |
| Topics: | Procurement, Engineering Principles, Research Practice, Geographical Context, Business Strategy, Legal Issues |
| 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