Conceptualising the nexus of projects, finance and capacity in construction business

doi:10.15302/J-FEM-2018021

Front. Eng

2018, Vol. 5

Issue (3) : 289-297 https://doi.org/10.15302/J-FEM-2018021

RESEARCH ARTICLE

Conceptualising the nexus of projects, finance and capacity in construction business

Arun BAJRACHARYA¹(

), Stephen Olu OGUNLANA², Cheng Siew GOH¹, Hai Chen TAN¹

¹. School of Energy, Geoscience, Infrastructure and Society, Heriot-Watt University, 62200 Putrajaya, Malaysia
². School of Energy, Geoscience, Infrastructure and Society, Heriot-Watt University, Edinburgh EH14 4AS, United Kingdom

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Abstract

This paper addresses a research question on why construction companies fail in their business. Starting with the concept of growth and capacity underinvestment archetype, a new and operational systems thinking model is developed. The conceptual systems thinking model includes a set of causal structure that can explain various modes (including the growth and failure modes) of business performance of small and medium construction companies. Mainly the three components – projects, finance and capacity – and the understanding of their nexus (or causal inter-relationships) are found to be sufficient to reveal different performance modes in construction business. Further, the three operational aspects, namely, the business growth or decline process; the situation of financial and other capacity resource consumption; and the management of projects, finance and other capacity resources have been identified as the inter-related core and integral aspects of construction business. The three inter-related core aspects could actually include and explain different possible range of business situations, policies and practices in a construction company.

Keywords performance of construction business projects finance capacity systems thinking

Corresponding Author(s): Arun BAJRACHARYA

Just Accepted Date: 02 July 2018 Online First Date: 25 July 2018 Issue Date: 14 September 2018

Cite this article:

Arun BAJRACHARYA,Stephen Olu OGUNLANA,Cheng Siew GOH, et al. Conceptualising the nexus of projects, finance and capacity in construction business[J]. Front. Eng, 2018, 5(3): 289-297.

URL:

https://academic.hep.com.cn/fem/EN/10.15302/J-FEM-2018021
https://academic.hep.com.cn/fem/EN/Y2018/V5/I3/289

Fig.1 The growth and capacity underinvestment archetype (Source:^{Senge, 1990})

Fig.2 Patterns of business performance as explained by the GCU archetype

Fig.3 The growth process of construction company

Fig.4 Limits to the growth process

Fig.5 Managing projects and finance

Fig.6 Managing projects and the capacity

Fig.7 The nexus of projects, finance and capacity

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