PERPUSTAKAAN UMP 00 11111111111 0000117834 DEVELOP THE - BUSINESS SUCCESS CHECKLIST IN THE CONSTRUCTION INDUSTRY ZAHIDY BIN ABD HAMID Thesis submitted in fulfilment of the requirements for the award of the degree of Doctor of Philosophy Faculty of Industrial Management UNIVERSITI MALAYSIA PAHANG NOVEMBER 2016 PERPUSTAKAAN 0305I UNIVERSITI MALAYSIA PAHANG No. Perolehan No. Panggilan 117834.:, Tankh 17 APR 2011
TABLE OF CONTENTS DECLARATION TITLE PAGE 1 DEDICATION ACKNOWLEDGEMENTS ABSTRACT ABSTRAK TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATIONS 1V v vi Xl! XV KV1 CHAPTER 1 INTRODUCTION 1.1 Preamble 1 1.2 Research Background 2 1.3 Problem Statement 11 1.4 Research Questions 16 1.5 Research Significance 17 1.6 Research Objectives 18 1.7 Nature of the Research 19 1.8 Operation Definitions 20 1.9 Research Outline 21 1.10 Chapter Summary 22 CHAPTER 2 LITERATURE REVIEW 2.1 Preamble 23 2.2 Construction Industry 23 2.3 Construction Industry and Economic Growth 24 2.4 Entrepreneurship 30 2.5 Entrepreneurship and Economic Growth 33 Vi
2.6 Construction Entrepreneurship 37 2.7 Entrepreneurship and Performance 40 2.7.1 Entrepreneurial Orientation 41 2.7.2 Entrepreneurial Organisation 42 2.7.3 Entrepreneurial Competency 47 2.7.4 Entrepreneurial Environment 51 2.8 Defining Business Success 54 2.9 Conceptions of Success in the Construction Industry 55 2.10 Success in the Construction Industry from an Entrepreneurship 60 Perspective 2.11 Conceptual Research Framework 64 2.12 Selected Measures of the Constructionpreneurial Business Success 65 2.12.1 Constructionpreneurial Orientation Measures 65 2.12.2 Constructionpreneurial Organisation Measures 67 2.12.3 Constructionpreneurial Competency Measures 68 2.12.4 Constructionpreneurial Environment Measures 72 2.13 Overview of Research Philosophical Paradigms 74 2.14 Current Methodological Approaches in the CEM Research 77 2.15 Chapter Summary 79 CHAPTER 3 RESEARCH METHODOLOGY 3.1 Preamble 81 3.2 Selection of the Research Methodology 81 3.3 Rationale of the Selected Research Methodology 83 3.4 Delphi Method Overview 87 3.4.1 Advantages and Disadvantages of the Delphi Method 89 3.4.2 Delphi Process 91 3.4.3 Delphi Questionnaire 93 3.4.4 Pilot Study 96 3.4.5 Reliability and Validity 99 3.4.5.1 Reliability 100 3.4.5.2 Validity 101 3.4.6 Panel Composition 102 vii
3.4.6.1 Panel Size 103 3.4.6.2 Panel Member Qualification 105 3.4.7 Delphi Round 113 3.4.8 Criteria for Attaining Consensus 114 3.5 DEMATEL Technique Overview 115 3.5.1 Advantages and Disadvantages of the DEMATEL Technique 117 3.5.2 DEMATEL Process 118 3.5.2.1 Step 1: Generating the Initial Direct-relation Matrix Z 119 3.5.2.2 Step 2: Normalizing the Initial Direct-relation Matrix D 120 3.5.2.3 Step 3: Obtaining the Total-relation Matrix T 121 3.5.2.4 Step 4: Computing the Sums of Rows and Column of 121 Matrix T 3.5.2.5 Step 5: Setting the Threshold Value, a 122 3.5.2.6 Step 6: Building the Cause and Effect Relationship 123 Diagram 3.6 Delphi-DEMATEL Process 124 3.7 Developing the Constructionpreneurial Business Success Checklist 127 3.7.1 Phase 1: Designing the Constructionpreneurial Business Success 127 Checklist 3.7.2 Phase 2: Refining the Constructionpreneurial Business Success 127 Checklist 3.7.3 Phase 3: Validating the Constructionpreneurial Business Success 127 Checklist 3.8 Chapter Summary 129 CHAPTER 4 RESEARCH FINDINGS 4.1 Preamble 131 4.2 Research Question 1 132 4.3 Research Question 2 133 4.3.1 Panel Composition 133 4.3.2 Demographic Characteristics of the Expert Panel 135 4.3.3 Pilot Study 139 4.3.4 Instrument Reliability 141 4.3.5 Findings of the Delphi Study Round 1 142 VIII
4.3.5.1 Constructionpreneurial Orientation 144 4.3.5.2 Constructionpreneurial Organisation 144 4.3.5.3 Constructionpreneurial Competency 145 4.3.5.4 Constructionpreneurial Environment 145 4.3.6 Findings of the Delphi Study Round 2 146 4.3.6.1 Constructionpreneurial Orientation 148 4.3.6.2 Constructionpreneurial Organisation 149 4.3.6.3 Constructionpreneurial Competency 149 4.3.6.4 Constructionpreneuri a! Environment 149 4.3.7 Consensus for the Delphi Rounds 151 4.4 Research Question 3 154 4.4.1 Instrument Reliability 154 4.4.2 Findings of the DEMATEL Technique 155 4.4.3 Interpreting the Findings 166 4.5 Research Question 4 173 4.5.1 Phase 1: Designing the Constructionpreneurial Business Success 173 Checklist 4.5.2 Phase 2: Refining the Constructionpreneurial Business Success 174 Checklist 4.5.3 Phase 3: Validating the Constructionpreneurial Business Success 176 Checklist 4.5.3.1 Descriptive Statistics and Internal Consistency 179 4.5.3.2 Correlations 181 4.5.3.3 Appropriateness of the CBS Checklist for the Intended 186 Uses 4.6 Chapter Summary 189 CHAPTER 5 DISCUSSION OF THE FINDINGS 5.1 Preamble 191 5.2 Research Question 1 191 5.3 Research Question 2 193 5.3.1 Constructionpreneurial Orientation 194 5.3.2 Constructionpreneurial Organisation 195 5.3.3 Constructionpreneurial Competency 196 ix
5.3.4 Constructionpreneurial Environment 199 5.4 Research Question 3 201 5.4.1 Constructionpreneurial Orientation 204 5.4.2 Constructionpreneurial Organization 205 5.4.3 Constructionpreneurial Competency 205 5.4.4 Constructionpreneurial Environment 206 5.5 Research Question 4 208 5.6 Chapter Summary 213 CHAPTER 6 CONCLUSIONS AND RECOMMENDATIONS 6.1 Preamble 214 6.2 Research Objective 1 215 6.3 Research Objective 2 216 6.4 Research Objective 3 217 6.5 Research Objective 4 220 6.6 Contribution of the Study 221 6.6.1 Academic Contributions 221 6.6.2 Industry Contributions 223 6.7 Limitations of the Study 224 6.8 Recommendations for Future Research 226 6.9 Concluding Remarks 227 REFERENCES 232 APPENDICES A Dissemination of Knowledge of the Current Study 270 B Alternative Methodology Approaches in the CEM Research (Year 2010 271 onwards) C Invitation to Participate and Participation Consent Letters 279 D List of Expert Panellists and Qualifications 282 E Introductory and Round One Delphi Questionnaires 287 F Sample of Expert's Opinions 1 300 G Sample of Expert's Opinions 2 307 H Round Two Delphi Questionnaire 314 x
DEMATEL Questionnaire 319 Field Study Questionnaire K Questions for Field Study Interview Protocol 327 L Final Version of the CBS Checklist 328 xi
LIST OF TABLES Table Title Page 1.1 Contractor Registration Classification 3 1.2 Total Number of Registered Contractors (2011-2014) 3 1.3 Status of Registered Contractors as at 31 December 2014 5 1.4 The Malaysian Construction Industry and the National Economy 8 1.5 Percentage Share of GDP from the Construction Sector in Selected 9 Countries 1.6 Contribution of Gross Output by the Construction Sub-sectors (2012-10 2013) 1.7 Value of the Construction Work Done by Sub-sectors (Qi 2014 Qi 2015) 10 1.8 Labour Force by the Various Industry (2005 2012) 11 1.9 Statistic of Abandoned Housing Projects in Peninsular Malaysia 14 2.1 Three Types of Entrepreneurs 34 2.2 Description of the Constructionpreneurial Orientation Dimensions 66 2.3 Description of the Constructionpreneurial Organisation Dimensions 67 2.4 Description of the Con structionpreneurial Competency Dimensions 72 2.5 Description of the Constructionpreneurial Environment Dimensions 73 2.6 Relevant Situations for Different Research Methods 75 3.1 Different Approaches to Piloting the Delphi Surveys 99 3.2 Requirement for the Selection of Qualified Expert lii 3.3 Criterions to Reach Consensus 115 4.1 Variables abstracted from the entrepreneurship literature 133 4.2 Profile of the Panel Experts 135 4.3 Reliability Analysis of the Evaluation Scale for the Delphi Study 142 xii
Table Title Page 4.4 Importance Indicators Emerged from the Delphi Round 1 143 4.5 Importance of Indicator Emerged for the Delphi Round 2 148 4.6 Most Important Indicators for the Construction Business Success 150 4.7 Improvement of Consensus between the Delphi Rounds 151 4.8 Interpretation of the Kendall's Coefficient of Concordance, W 153 4.9 Reliability Analysis of the Evaluation Scale for the DEMATEL Technique 154 4.10 Numbered Influence Indicators for the Matrix Calculation 156 4.11 Initial Direct-relation Matrix Z 158 4.12 Normalised Initial Direct-relation Matrix X 159 4.13 Total Relation Matrix T 160 4.14 Total Effects of Overall Influence of Indicators 161 4.15 Total Relation Matrix T for the Constructionpreneurial Orientation 163 4.16 Total Relation Matrix T for the Constructionpreneurial Organisation 163 4.17 Total Relation Matrix T for the Constructionpreneurial Competencies 163 4.18 Total Relation Matrix T for Constructionpreneurial Environment 164 4.19 Total Effects of Influence of the indicators under Each Dimension 164 4.20 Refined Items for the CBS Checklist 174 4.21 Demographical Characteristics of the Selected Case Construction 178 Enterprise 4.22 Schedule of the Field Study Interview Protocol 179 4.23 Psychometric Properties of the CBS Checklist Items 179 4.24 Correlations of the CBS Checklist Components 181 4.25 Amount of Correlations by Components According to Their Magnitude 183 4.26 Correlations of the CBS Checklist Items 185 xiii
Table Title Page 4.27 Summary of Findings from the Field Study Interview Protocol 187 4.28 Summary of Findings from the Current Study 190 5.1 Relevant Success Indicators from the Entrepreneurship Phenomenon 192 5.2 Importance Rank of the Success Indicators 193 xlv
LIST OF FIGURES Figure Title Page 2.1 Relevant knowledge domains for the success of the construction enterprise 63 from the perspectives of an entrepreneurship phenomenon 2.2 Conceptual research model 64 2.5 The research 'onion' 75 3.1 Typical three rounds Delphi process 92 3.2 Delphi procedure for the CEM research 92 3.3 Flowchart of the pilot study process 99 3.4 The 'closeness' continuum 103 3.5 Steps of the DEMATEL technique 119 3.6 Interpretation of the causal diagram 124 4.1 Overall cause and effect diagram 162 4.2 Cause and effect diagram for constructionpreneurial orientation 165 4.3 Cause and effect diagram for constructionpreneurial organisation 165 4.4 Cause and effect diagram for constructionpreneurial competency 166 4.5 Cause and effect diagram for constructionpreneurial environment 166 4.6 Degrees and directions of interative influence 170 6.1. Theoretical framework for the success of construction enterprise from the 229 perspectives of an entrepreneurship phenomenon xv
LIST OF ABBREVIATIONS AEC CBS CC CE CEM CIDB CIDC CIMP CITP CO COrg CVA DEMATEL GDP GFCF GEM IJV MCDM MENA SME SPSS UK USA Architecture, Engineering, and Construction Constructionpreneurial Business Success Constructionpreneurial Competencies Constructionpreneurial Environment Construction Engineering Management Construction Industry Development Board Malaysia Construction Industry Development Council India Construction Industry Master Plan Construction Industry Transformation Programme Constructionpreneurial Orientation Constructionpreneurial Organisation Construction Value Added Decision Making Trial and Evaluation Laboratory Gross Domestic Product Gross Fixed Capital Formation Global Entrepreneurship Monitor International Joint Venture Multi-Criteria Decision Making Middle East and North Africa Small and Medium Enterprise Statistical Package for the Social Sciences United of Kingdom United States of America xvi