An Analysis of Factors for Increase in Financial Turnover Gap Between Construction Companies Established During Same Time Period in KSA
##plugins.themes.bootstrap3.article.sidebar##
PDF
Submitted Jun 21, 2022
Published Oct 21, 2022
Published Oct 21, 2022
DOI
Abstract viewed = 261 times
Issue
Section
Articles
##plugins.themes.bootstrap3.article.main##
This research investigates and evaluates various management-related factors influencing the Saudi Arabian construction companies that are responsible for the increase in the financial turnover gap between construction companies established during the same time period in KSA and tries to determine if the corporate management team or the site management team has a significant effect on the overall performance and success of construction companies. The study has made use of quantitative research methods with a deduction approach. This research is conducted by using a web-based survey questionnaire targeted at the sample size of 400 professionals from all regions of Saudi Arabia including all demographic levels. As per the results, the highest RII scorings of the success/failure factors related to the corporate management (Payment delay, Poor cost estimation, Weakness of the financial and technical capabilities of some contractors, and Delays in decision making by the management team) revealed the importance of corporate management issues that are responsible for the increase in financial turnover gap. The results obtained from the research would provide insight to companies for better identification of issues that may be facing the organization and therefore, helpful in the formation of policies that may benefit the organization to reduce the financial turnover gap between them. This is the first research that covers all five major grading areas: Roads, Water and sanitation work, Buildings, Electrical work, and Mechanical work with grade I, II & III classified contractors including all thirteen provinces of Saudi Arabia. The literature review revealed that none of the previous research covered grading areas and demography.
Keywords: Construction Companies, Corporate Management, Financial Performance, Site Management, Success/Failure Factors.
References
Ali H., Al-Sulaihi, I. & Al-Gahtani K. (2013). Indicators for measuring performance of building Construction companies in Kingdom of Saudi Arabia. Journal of King Saud University-Engineering Sciences, 25(2).
Al-Hammadi, S., & Nawab, M.S. (2016). Project Time Overruns in Saudi Arabian Construction Industry. International Journal of Scientific and Engineering Research, 7(2), 555-560.
Alhajri, A. R., & Alshibani, A. (2018). Critical Factors behind Construction Delay in Petrochemical Projects in Saudi Arabia. Energies, 11(7).
Alshehri, A. (2019). Addressing the Challenges in Construction Project Management: The Case of Saudi Arabia. Journal of Engineering and Applied Sciences, 6(1).
Alshehri, A. M., Falqi, I. I., Bageis, A. S., & Alsulamy, S. (2019). Retrieving Beneficial Outcomes through Increased Level of Awareness about Value Management in Saudi Construction Industry A Survey-based Approach. International Journal of Engineering Research & Technology (IJERT), 8(03), DOI: http://dx.doi.org/10.17577/IJERTV8IS030045.
Alhomidan, A. (2013). Factors affecting cost overrun in road construction projects in Saudi Arabia. International Journal of Civil & Environmental Engineering, 13(03).
Albogamy, A., Scott, D., & Dawood, N. (2013). Dilemma of Saudi Arabian construction industry. KICEM Journal of Construction Engineering and Project Management. 3(4).
Albogamy, A., & Dawood, N. (2015). Development of a client-based risk management methodology for the early design stage of construction processes: applied to the KSA. Engineering, Construction and Architectural Management, 22(5).
Al‐Kharashi, A., & Skitmore, M. (2009). Causes of delays in Saudi Arabian public sector construction projects. Construction Management and Economics, 27(1), 3-23.
Alsuliman, J. A. (2019). Causes of delay in Saudi public construction projects. Alexandria Engineering Journal, 58(2), 801-808.
Alsuliman, J., Bowles, G., Chen, Z., & Smith, S. D. (2012). Current practice of variation order management in the Saudi construction industry. Association of Researchers in Construction Management, 1-10.
Alsaedi, M., Assaf, S., Hassanain, M. A., & Abdallah, A. (2019). Factors affecting contractors’ bidding decisions for construction projects in Saudi Arabia. Buildings, 9(2), 33.
Al-Emad, N., Rahman, I. A., Nagapan, S., & Gamil, Y. (2017). Ranking of delay factors for Makkah’s construction industry. In MATEC Web of Conferences (Vol. 103, p. 03001). EDP Sciences.
Al-Sedairy, S. T. (2001). A change management model for Saudi construction industry. International journal of project management, 19(3).
AlSehaimi, A., Koskela, L., & Tzortzopoulos, P. (2013). Need for alternative research approaches in construction management: Case of delay studies. Journal of Management in Engineering, 29(4).
Allahaim, F. S., & Liu, L. (2015). Causes of cost overruns on infrastructure projects in Saudi Arabia. International Journal of Collaborative Enterprise, 5(1-2), 32-57.
Almahmoud, E., & Doloi, H. K. (2020). Identifying the key factors in construction projects that affect neighbourhood social sustainability. Facilities, 38(11/12), 765-782.
Alotaibi, N., Sutrisna, M., & Chong, H. (2015). Managing Critical Factors Causing Delays in Public Construction Projects in Kingdom of Saudi Arabia. In The 6th International Conference on Engineering, Project, and Production Management (EPPM 2015).
Alotaibi, N. O., Sutrisna, M., & Chong, H. Y. (2016). Guidelines of using project management tools and techniques to mitigate factors causing delays in public construction projects in kingdom of Saudi Arabia. Journal of Engineering, Project, and Production Management, 6(2), 90-103.
Al-Gahtani, K., Al-Sulaihi, I., Al Rashed, R., & Batarfi, A. (2015). Key performance indicators for value management in Saudi construction industry. International Journal of Application or Innovation in Engineering & Management (IJAIEM), 4(11), 54-62.
Al‐Sudairi, A. A. (2007). Evaluating the effect of construction process characteristics to the applicability of lean principles. Construction Innovation, 7(1).
Al-Yami, A., & Sanni-Anibire, M. O. (2019). BIM in the Saudi Arabian construction industry: State of the art, benefit and barriers. International Journal of Building Pathology and Adaptation, 39(1).
Alzara, M., Kashiwagi, J., Kashiwagi, D., & Al-Tassan, A. (2018). Analysis of cost overruns in Saudi Arabia construction projects: A university case study. Journal for the Advancement of Performance Information and Value, 10(1), 84-101.
Assaf, S., Srour, O., & Hassanain, M. A. (2013). Causes of failure of small contractors in Saudi Arabia. International Journal of Construction Management, 13(4), 1-10.
Assaf, S., Hassanain, M. A., & Al-Zahrani, S. (2015). Causes of contractors' failure in industrial projects in Saudi Arabia. Research Journal of Applied Sciences, Engineering and Technology, 9(3), 158-164.
Assaf, S. A., & Al-Hejji, S. (2006). Causes of delay in large construction projects. International journal of project management, 24(4), 349-357.
Assaf, S. A., Bubshait, A. A., & Al‐Muwasheer, F. (2010). Factors affecting affordable housing cost in Saudi Arabia. International Journal of Housing Markets and Analysis, 3(4).
Assaf, S., Hassanain, M. A., & Abdallah, A. (2018). Review and assessment of the causes of deficiencies in design documents for large construction projects. International Journal of Building Pathology and Adaptation, 36(3).
Assaf, S., Hassanain, M. A., Abdallah, A., Sayed, A. M., & Alshahrani, A. (2019). Significant causes of claims and disputes in construction projects in Saudi Arabia. Built Environment Project and Asset Management, 9(5).
Bakar, A. H. A., Tabassi, A. A., Razak, A. A., & Yusof, M. N. (2012). Key factors contributing to growth of construction companies: A Malaysian experience. World Applied Sciences Journal, 19(9), 1295-1304. DOI: 10.5829/idosi.wasj.2012.19.09.1454.
Akogbe, R. K., Feng, X., & Zhou, J. (2013). Importance and ranking evaluation of delay factors for development construction projects in Benin. KSCE Journal of Civil Engineering, 17(6), 1213-1222.
Aloulou, W., & Fayolle, A. (2005). A conceptual approach of entrepreneurial orientation within small business context. Journal of Enterprising Culture, 13(01), 21-45.
Bageis, A., & Alshehri, A. (2019). Role of On-Time & Honest Customer Services in the Success of Small Construction Companies in Saudi Arabia. The Open Civil Engineering Journal, 13(1).
Bageis, A., Falqi, I. I., Alshehri, A., Alsulamy, S., & Alsahli, T. A. (2019). Behavioral differences towards internal and external factors in making the bid/no-bid decision. Civil Engineering Journal, 5(5), 1189-1196.
Bin Seddeeq, A., Assaf, S., Abdallah, A., & Hassanain, M. A. (2019). Time and cost overrun in the Saudi Arabian oil and gas construction industry. Buildings, 9(2), 41.
Bahidrah, S., & Korkmaz, K. A. (2017). Barriers to the implementation of the 2030 Saudi Visions Sustainable Construction Objectives. Middle East Journal of Entrepreneurship, Leadership & Sustainable Development, 1(1), 33.
Dikmen, I., Birgonul, M. T., Ozorhon, B., & Sapci, N. E. (2010). Using analytic network process to assess business failure risks of construction firms. Engineering, Construction and Architectural Management, 17(4).
Doloi, H. (2009). Analysis of pre‐qualification criteria in contractor selection and their impacts on project success. Construction Management and Economics, 27(12), 1245-1263.
Drost, E. A. (2011). Validity and reliability in social science research. Education Research and perspectives, 38(1), 105-123.
Elawi, G. S. A., Algahtany, M., & Kashiwagi, D. (2016). Owners’ perspective of factors contributing to project delay: case studies of road and bridge projects in Saudi Arabia. Procedia Engineering, 145, 1402-1409.
Falqi, I. I. (2019). Assessment of Cost and Extent of Delays in Public Sector Construction Projects in Aseer Region, KSA. International Journal of Recent Technology and Engineering,8(4).
Fellows, R. and Liu, A. (2015), Research Methods for Construction, 4th ed., John Wiley & Sons Ltd, West Sussex.
Gopang, R. K. M., alias Imran, Q. B., & Nagapan, S. (2020). Assessment of Delay Factors in Saudi Arabia Railway/Metro Construction Projects. International Journal of Sustainable Construction Engineering and Technology, 11(2), 225-233.
Hakala, H. (2011). Strategic orientations in management literature: Three approaches to understanding the interaction between market, technology, entrepreneurial and learning orientations. International Journal of Management Reviews, 13(2), 199-217.
Hair Jr, J. F., Page, M., & Brunsveld, N. (2020). Essentials Of Business Research Methods (Fourth). Routledge.
Holt, G. D. (2014). Asking questions, analysing answers: relative importance revisited. Construction Innovation, 14(1), 2-16.
Ikediashi, D. I., Ogunlana, S. O., & Alotaibi, A. (2014). Analysis of project failure factors for infrastructure projects in Saudi Arabia: A multivariate approach. Journal of Construction in Developing Countries, 19(1), 35-52.
Jadid, M. N. (2013). Overcoming obstacles facing the contractors sector in Saudi Arabia using a rank correlation method. The Open Construction & Building Technology Journal, 7(1).
Johnson, B., & Turner, L. A. (2003). Data collection strategies in mixed methods research. Handbook of mixed methods in social and behavioral research. Sage Publications, 297-319.
Kashiwagi, D. (2011). Case study: Best value procurement/performance information procurement system development. Journal for the Advancement of Performance Information & Value, 3(1), 12-45.
Khawam, A. A., & Bostain, N. S. (2019). Project manager’s role in safety performance of Saudi construction. International Journal of Managing Projects in Business,12(4).
Mahamid, I. (2016). Factors contributing to poor performance in construction projects: studies of Saudi Arabia. Australian Journal of Multi-Disciplinary Engineering, 12(1), 27-38.
Mahamid, I. (2016). Micro and macro level of dispute causes in residential building projects: Studies of Saudi Arabia. Journal of King Saud University-Engineering Sciences, 28(1), 12-20.
Mathar, H., Assaf, S., Hassanain, M. A., Abdallah, A., & Sayed, A. M. (2020). Critical success factors for large building construction projects: Perception of consultants and contractors. Built Environment Project and Asset Management, 10(3).
Marshall, C., & Rossman, G. B. (2014). Designing qualitative research. Sage publications.
Ministry of Municipal and Rural Affairs (2021), General Statistics, available at: https://old.momra.gov.sa/GeneralServ/statistic.aspx.
Ministry of Municipal and Rural Affairs (2021), Contractor Classification System and Regulations, available at: https://contractors.momra.gov.sa/contractorslistpage1.aspx.
Mohamed, A., Abdelrahman, M., & Moustafa, M. (2006). Problems facing construction project consultant implementation in Saudi Arabia. International Journal of Research in Engineering and Technology, 5(7), 1-4.
Nenni, M. E., Arnone, V., Boccardelli, P., & Napolitano, I. (2014). How to increase the value of the project management maturity model as a business-oriented framework. International Journal of Engineering Business Management, 6(8).
Price, A., & Al-Otaibi, M. (2010). Analysis and evaluation of criteria for pre-selecting contractors in the Saudi Arabian construction sector. IN: Egbu, C. In Proceedings 26th Annual ARCOM Conference (pp. 6-8).
Saunders, M., Lewis, P. & Thornhill, A. (2019). Research Methods for Business Students. Harlow, England: Pearson Education Limited.
Saudi Woman Report by General Authority for Statistics (2020), available at: https://www.stats.gov.sa/sites/default/files/ woman_international_day_2020EN.pdf.
Saudi Gazette (2020).” Saudi women make up 6% of engineers in labor market”, available at: https://saudigazette.com.sa/article/601559/SAUDI-ARABIA/Saudi-women- make-up-6- Of-engineers-in-labor-market.
Sarhan, J. G., Xia, B., Fawzia, S., & Karim, A. (2017). Lean construction implementation in the Saudi Arabian construction industry. Construction Economics and Building, 17(1), 46-69.
Shaawat, M. E., Jamil, R., & Al-Enezi, M. M. (2018). Analysis of challenges in sustainable construction industry by using analytic hierarchy process: a case study of Jubail Industrial City, Saudi Arabia. International Journal of Sustainable Real Estate and Construction Economics, 1(2), 109-122.
Shash, A. A., & Qarra, A. A. (2018). Cash flow management of construction projects in Saudi Arabia. Project Management Journal, 49(5), 48-63.
Sidawi, B. (2012). Management problems of remote construction projects and potential IT solutions; The case of kingdom of Saudi Arabia. Journal of Information Technology in Construction (ITcon), 17(7), 103-120.
Tripathi, K. K., & Jha, K. N. (2018). Application of fuzzy preference relation for evaluating success factors of construction organisations. Engineering, construction and architectural management, 25(6).
Tuffaha, F. M., Assaf, S., Zaben, Y. Z., & Hadidi, L. A. (2020). A framework for the performance assessment of construction contractors in Saudi Arabia. Built Environment Project and Asset Management.
Downloads
Download data is not yet available.
##plugins.themes.bootstrap3.article.details##
How to Cite
Shah, A. A. M. A. (2022). An Analysis of Factors for Increase in Financial Turnover Gap Between Construction Companies Established During Same Time Period in KSA. European Journal of Business and Management Research, 7(5), 226–237. https://doi.org/10.24018/ejbmr.2022.7.5.1524
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
