Modeling the interrelationships between competitiveness factors and indexes for construction companies

Abstract

Today’s competitive situation among construction companies, characterized by the globalization and the need to survive, has lead to an urgent need for competitiveness management. On this regard, the specialized literature provides studies that, under different economic or market circumstances, propose what are the most important factors influencing company competitiveness. Also, attempts have been made to measure competitiveness through a unique indicator or index without taking into account the complexity of this concept that until today lacks an agreed definition. These elements do not provide enough tools for competitiveness management, since there is no a model which demonstrates the existing interrelations between the factors and the indexes. This research is focused on developing a model demonstrating such interrelationships with the aim of finding the most relevant factors for each competitiveness index. The model will support decision-making at the managerial level, helping specifically the strategic planning due to the fact that managers will know which factors should be affected to achieve certain strategic objectives. This paper describes the research to develop such a model including: literature review, development of key concepts, and a preliminary interrelationship model for competitiveness factors and indexes. Also, a discussion is presented on how this model can contribute to construction companies’ strategic planning and competitiveness.