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Editorials

Editorial

Pages 223-225 | Published online: 17 Feb 2007

The first Note in this issue is a comment by Chang on a recent paper by Bridge and Tisdell. Chang notes the great progress in our understanding of organizations that has been enabled by the development of two powerful analytical theories: transaction cost economics and the resource‐based view. Each approach has its strengths and limitations, but it appears to Chang that Bridge and Tisdell are wrong to try to synthesize these two very different theoretical frameworks. Chang explores the problems that would emerge in the event that these two very different epistemologies were combined.

In their response to the Comment, Bridge and Tisdell point out they had not intended to synthesize a microeconomic theory (transaction cost economics) with a strategic management theory (resource‐based view) in pursuance of a new theory of vertical integration. Rather, their approach is to allow the co‐existence and selective use of each theory depending on the prevailing economic conditions. This, they feel, renders the main criticisms in Chang's comment inapplicable. Bridge and Tisdell address the remaining criticism by reference to one of the chief proponents of the resource based‐view and by noting relevant empirical work. In the end, although Bridge and Tisdell understand the desire for a unified theory of vertical integration, they consider that a pluralistic approach offers the best chance of making progress at this time. This progress would include developing better explanations and predictions of subcontracting in construction activity.

Organizational culture is an important part of organizational analysis, particularly during episodes of change management. Change management is not always successful. Chahal and Price suggest that failures in the implementation of change management can often be traced back to communication difficulties and a failure to make an accurate estimate of the amount of retraining that will be required as the consequence of organizational change. Their research focuses on improving the change management process. They propose a new strategic framework for change management that they have tested and had implemented in a construction firm. They show that increased consultation and worker participation increases a sense of ownership and commitment, thus reducing the kind of anxiety and stress that often results in resistance to change.

Ogunsemi and Jagboro have examined the time‐cost model developed by Bromilow. Bromilow's 1974 model was based on a dataset of 370 Australian projects. He proposed a mathematical relationship for predicting the initial duration of a project. Given the widespread incidences of delay and cost‐overruns in Nigerian construction projects, there is considerable interest in seeing whether data from Nigerian construction projects would lead to a similar relationship. Ogunsemi and Jagboro have developed a formula based on 87 Nigerian projects that required a re‐examination of Bromilow's pioneering work, and has led to them proposing a new formula specifically for predicting time performance in Nigerian construction projects. This should provide Nigerian practitioners with a more accurate prediction of project duration at the early stages of project planning.

Yu acknowledges the principle that “management is an art to handle the complicated with simple, to handle more with less”. Cost estimating is a tedious and time consuming process that requires not only experience but also some sort of engineering judgment. Conceptual estimating may be seen as just a rough “guess” of the project cost. Yu changes this perspective by proposing a new model called PIREM that can conduct conceptual estimation as accurately as detailed estimation while only 20% efforts are required compared with before. This work offers an interesting example of the development of some much‐needed strong underlying theory in the field of construction management.

El‐Diraby and Gill deal with the problem of information flow and communication, particularly in relation to risk management in privatized‐infrastructure projects. They feel that a structured taxonomy would go a long way towards the aim of improving communications and such a taxonomy for construction terms in private infrastructure projects. This will support the exchange of information between contractors and financial institutions. Such a structured approach to communication problems can form the basis of an information management system that would ensure that the important aspects of risk are dealt with, and to render more visible who is responding to what risk, and how.

To help minimize the environmental impacts of construction projects, environmental management systems have been proposed for construction organizations. Within these systems, environmental performance assessment (EPA) is one of the tools for assessing and benchmarking environmental performance. However, the relationships between environmental operational indicators used in EPA and environmental performance indicators have not been tested and correlated, casting doubt on the reliability of these inputs. Tam et al. develop a series of input and output indicators for EPA and measure their relationships based on the perceptions of project managers.

Leiringer explores the way that people promote public‐private partnerships (PPP) as a means for procuring construction work. He deals with four commonly advanced arguments that are used to promote the realization of technological innovations within the design and construction phases of PPP projects. There are clear discrepancies between what takes place in practice and the arguments usually advanced about the benefits that are generally claimed for collaborative working, design freedom, value for money, long‐term commitment and risk transfer. As well as pointing out the flaws in these arguments, Leiringer offers alternative interpretations which may challenge or curb some of the current enthusiasm for PPP‐type procurement.

Phua examines the fundamental question of whether construction firm performance is influenced more by industry‐wide factors or by firm‐specific factors. While it is obvious that the performance of firms hinges upon the interplay between these two factors, no research has been done to investigate the unique contribution each has on a firm's performance. She looks at the sector‐by‐sector firm performance variation that is attributable to the heterogeneity of industry‐wide and firm‐specific characteristics and explains why certain aspects are particularly important to a firm's performance.

Information communication technology (ICT) promises benefits that may not materialize due to a misunderstanding of the relationships between factors and processes that influence ICT implementation. Peansupap and Walker present results from qualitative research on three Australian construction contractors. Their results provide insights into ICT innovation diffusion at an organizational level and how this may be applied to improve ICT adoption at different implementation stages. Strategic ICT implementation planners should consider issues of critical management support, technical support, supportive workplace environment and ICT users' individual‐characteristics.

Forthcoming papers

Nicola Costantino

The contribution of Ranko Bon to the debate on sustainable construction

Roberto Pietroforte and Tullio Gregori

Does volume follow share? The case of the Danish construction industry

Wai‐Ki Fu, Hing‐Po Lo and Derek S. Drew

Collective learning, collective knowledge and learning networks in construction

Hong Zhang

Multiple resource‐constrained construction scheduling based on particle swarm optimization

Martin Skitmore, Goran Runeson and Xinling Chang

Construction price formation: full‐cost pricing or neoclassical microeconomic theory?

Chun Ming Tang, C. W. Y. Wong, A. Y. T. Leung and K. C. Lam

Selection of funding schemes by a borrowing decision model: a Hong Kong case study

Yu‐Lin Huang and Shih‐Pei Chou

Valuation of the option to abandon and minimum revenue guarantee in BOT infrastructure projects

Franco K. T. Cheung and Martin Skitmore

A modified storey enclosure model

Les Ruddock and Jorge Lopez

The construction sector and economic development: the ‘Bon curve’

A. V. Thomas, Satyanaranaya N. Kalidindi and L. S. Ganesh

Modelling and assessment of critical risks in BOT road projects

Yu Song, Chun Liu and Craig Langston

Linkage measures of the construction sector using the hypothetical extraction method

Rick Best and Craig Langston

Evaluation of construction contractor performance: a critical analysis of some recent research

Charles Y. J. Cheah and Jicai Liu

Valuing governmental support in infrastructure projects as real options using Monte Carlo simulation

Ronie Navon and O. Berkovich

An automated model for materials management and control

Low Sui Pheng and Hongbin Jiang

Analyzing ownership, locational and internalization advantages of Chinese construction MNCs using Rough Set Analysis

Sung Kin Pun, Chunlu Liu and Craig Langston

Case study of demolition costs of residential buildings

Philip McCann

On the supply side determinants of regional growth

Rodney A. Stewart and Clinton A. Spencer

Six‐sigma as a strategy for process improvement on construction projects: a case study

Ramesh Ramsaran and Roger Hosein

Growth, employment and the construction industry in Trinidad and Tobago

Stuart Carmichael and Maria Murray

Record keeping for contemporaneous delay analysis: a model for effective event management

Florence T. T. Phua

When is construction partnering likely to happen? An empirical examination of the role of institution norms

Chen‐Yu Chang, Hui‐Yu Chou and Ming‐Teh Wang

Characterizing the corporate governance of UK listed construction companies

Gul Polat, David Arditi, Glenn Ballard and Ugur Mungen

Economics of on‐site versus off‐site fabrication of rebar

Anita Liu and Zhaoyang Fang

A power‐based leadership approach to project management

Colin Davidson, Gonzalo Lizarralde and Cassidy Johnson

A systems view of temporary housing projects in post‐disaster reconstruction

Erik Dietzenbacjer and Alex Hoen

Coefficient stability and predictability in input‐output models: a comparative analysis for the Netherlands

G. Zhang and Jay Yang

Factors influencing the implementation of raised floor system in Australian office buildings

Rong‐yan Huang

A performance‐based bridge LCCA model using visual inspection inventory data

Robby Soetanto, Andrew Dainty, Jacqueline Glass and Andrew David Freeman Price

Towards an explicit design decision process: the case of the structural frame

Helen Lingard, Brenda Yip, Steve Rowlinson and Thomas Kvan

The experience of burnout among future construction professionals: a cross‐national study

Yu Song, Chunlu Liu and Craig Langston

Extending construction linkage measures by the consideration of the impact of capital

Timothy Lewis

Impact of globalisation on the construction sector in developing countries

Jasper Mbachu and Raymond Nkado

Factors constraining successful building project implementation in South Africa

Chrisna du Plessis

A strategic framework for sustainable construction in developing countries

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