Productivity Management of Construction Companies: Investment Holdings of the Bank Keshavarzi of Iran Fund

Document Type : Research Article

Author

Department of Civil Engineering, Cha.C., Islamic Azad University, Chalous, Iran

Abstract

This research investigates productivity management within the construction company, addressing the critical need for centralized and integrated systems in project-oriented organizations. The study adopted a case study approach, focusing on 15 construction companies within Tadbir Holding, with a statistical population of 80 senior managers and technical experts in Tehran. Data was collected using a questionnaire incorporating the Patterson Job Performance Questionnaire and Porter Organizational Commitment Questionnaire. Data analysis was conducted using SPSS 16 software. The results show that "Organizational Effectiveness" was the highest-ranked basic factor (mean rank 5.505), while "Synergistic Utilization of Internal Resources and Capabilities" was the lowest (mean rank 5.499). Among sub-factors, "Level of implementation and adherence to a common set of values, beliefs, and norms across all construction companies within the organization" was prioritized highest (mean rank 4.92). Statistical analysis using single-sample T-tests (95% probability) supported all hypotheses, indicating that productivity management can advance goals, and construction companies influence other investment and construction holding companies. These findings underscore the importance of fostering a strong organizational culture and ensuring effective support from the holding company to enhance overall productivity within the construction sector. The findings reveal that enhancing synergy among holding subsidiaries, securing financing for construction companies through holding company capital, employing highly adaptable managers, fostering a rich and impactful organizational culture within the complex, and actively implementing these strategies can effectively manage productivity within construction companies. This, in turn, contributes to increased productivity across the entire holding system.

Keywords

Main Subjects


[1] H.G. Gemünden, P. Lehner, A. Kock, The project-oriented organization and its contribution to innovation, International Journal of Project Management, 36(1) (2018) 147-160. 
[2] T. Ahola, So alike yet so different: A typology of interorganisational projects, International Journal of Project Management, 36(8) (2018) 1007-1018.
[3] J. Bundy, R.M. Vogel, M.A. Zachary, Organization–stakeholder fit: A dynamic theory of cooperation, compromise, and conflict between an organization and its stakeholders, Strategic Management Journal, 39(2) (2018) 476-501.
[4] H.A. Hoang, F.T. Rothaermel, Leveraging internal and external experience: exploration, exploitation, and R&D project performance, Strategic management journal, 31(7) (2010) 734-758.
[5] C. Lechner, C. Leyronas, Small–business group formation as an entrepreneurial development model, Entrepreneurship theory and practice, 33(3) (2009) 645-667.
[6] A. Namaki, M.A. Shahhoseini, G. Karami, E. Abdollahian, Presenting the Corporate Governance Model of Holdings Financed Through the Internal Capital Market with a Theoretical Approach of Stakeholders, Iranian Journal of Finance, 7(3) (2023) 120-139.
[7] M.A. Ansaripour, A. Mohammadi, The Legal Framework for Foreign Investment in the Iranian Banking Sector, Yearbook of Islamic and Middle Eastern Law Online, 21(1) (2022) 8-27.
[8] M. Dadgostar, S. Namdar, The holding companies in the Iranian legal system, Journal of Social Sciences and Humanities Research, 4(02) (2016) 58-62.
[9] F. Jadidi, R. Karimi, A. Azmoudeh, Holding Companies and Their Strategies, International Conference on Accounting, Economics and Financial Management, Tehran, 2014. https://civilica.com/doc/325324
[10] H.P. Daems, The holding company and corporate control (Vol. 3), Springer Science & Business Media, 2012.
[11] D. Murphy, Holding company liability for debts of its subsidiaries: corporate governance implications. Bond L. Rev., 10, p.i., 1998.
[12] F.R. Lichtenberg, Corporate takeovers and productivity, MIT Press, 1992.
[13] D. Audretsch, X. Guo, A. Hepfer, H. Menendez, X. Xiao, Ownership, productivity and firm survival in China, Economia e Politica Industriale, 43 (2016) 67-83.
[14] R. Lynch, Corporate Strategy, ‎Pearson College Div; 4th edition, 2006.
[15] D. Ficbauer, M. Režňáková, Holding company and its performance, Acta universitatis agriculturae et silviculturae mendelianae brunensis, 62(2) (2014) 329-337.
[16] P. Hanafizadeh, M. Shafiei Nikabadi, Framework for selecting an appropriate e‐business model in managerial holding companies: Case study: Iran Khodro, Journal of Enterprise Information Management, 24(3) (2011) 237-267.
[17] A. Mukabideri, I. Nkechi, O. Kengere, The contribution of horizontal business combination on financial performance of I&M Bank, American Journal of Finance, 6(1) (2021) 23-41.
[18] N. Rudenko, A. Miller, August. Efficiency evaluation of actions taken by regional subsidiaries of the holding company, In International Scientific-Practical Conference “Business Cooperation as a Resource of Sustainable Economic Development and Investment Attraction”(ISPCBC 2019), Atlantis Press, (2019) 97-100.
[19] A. Syahri, Legal Analysis of Government Control Over the Company Subsidiaries in State-Owned Enterprises Holding, Journal of Social Science, 4(4) (2023) 950-961.
[20] K. Jiang, Strategic Decision-Making in Large Holding Firms: Diversification, Influencing Factors, Similarity and Difference, and Challenges, Highlights in Business, Economics and Management, 24 (2024) 1774-1785.
[21] Y. Gao, X.L. Tian, Prefabrication policies and the performance of the construction industry in China, Journal of Cleaner Production, 253 (2020) 120042.
[22] Y. Han, X. Fang, X. Zhao, L. Wang, Exploring the impact of incentive policy on the development of prefabricated buildings: A scenario-based system dynamics model, Engineering, Construction and Architectural Management, 31(12) (2024) 4697-4725.
[23] A.B. Abeberese, M. Chen, Intranational trade costs, product scope and productivity: Evidence from India's Golden Quadrilateral project, Journal of Development Economics, 156 (2022) 102791.
[24] B.Y. Choi, J.H. Pyun, Does real exchange rate depreciation increase productivity?: Analysis using korean firm-level data, In The Effects of Globalisation on Firm and Labour Performance, Routledge, (2021) 134-168.
[25] A. Raihan, A. Tuspekova, Dynamic impacts of economic growth, energy use, urbanization, agricultural productivity, and forested area on carbon emissions: New insights from Kazakhstan, World Development Sustainability, 1 (2022) 100019.
[26] Y.S. Lee, J.J. Kim, T.S. Lee, Measuring productivity changes in the Korean construction management industry, KSCE Journal of Civil Engineering, 20 (2016) 2154-2161.
[27] M.E. Rochina Barrachina, J.A. Rodríguez Moreno, A possible mechanism for partial crowding‐out of R&D subsidies in developing countries, Review of Development Economics, 28(1) (2024) 71-96.
[28] S. Chatterjee, T. Lebesmuehlbacher, A. Narayanan, How productive is public investment? Evidence from formal and informal production in India, Journal of Development Economics, 151 (2021) 102625.
[29] D. Mazzeo, N. Matera, P. De Luca, C. Baglivo, P.M. Congedo, G. Oliveti, A literature review and statistical analysis of photovoltaic-wind hybrid renewable system research by considering the most relevant 550 articles: An upgradable matrix literature database, Journal of Cleaner Production, 295 (2021) 126070.
[30] M.A. Hany Abd Elshakour, I.A. Al-Sulaihi, K.S. Al-Gahtani, Indicators for measuring performance of building construction companies in Kingdom of Saudi Arabia, Journal of King Saud University-Engineering Sciences, 25(2) (2013) 125-134.
[31] S. AboAbdo, A. Aldhoiena, H. Al-Amrib, Implementing Enterprise Resource Planning ERP system in a large construction company in KSA, Procedia Computer Science, 164 (2019) 463-470.
[32] M.K. Alam, A systematic qualitative case study: questions, data collection, NVivo analysis and saturation, Qualitative Research in Organizations and Management: An International Journal, 16(1) (2021) 1-31.
[33] H.D. Khanh, S.Y. Kim, Construction productivity prediction through Bayesian networks for building projects: A Case from Vietnam. Engineering, Construction and Architectural Management, 30(5) (2022) 2075-2100.
[34] P. Pornthepkasemsant, S. Charoenpornpattana, Identification of factors affecting productivity in Thailand’s construction industry and proposed maturity model for improvement of the productivity, Journal of Engineering, Design and Technology, 17(5) (2019) 849-861.
[35] A. Hasan, A. Elmualim, R. Rameezdeen, B. Baroudi, A. Marshall, An exploratory study on the impact of mobile ICT on productivity in construction projects, Built Environment Project and Asset Management, 8(3) (2018) 320-332.
[36] M.J. Nigjeh, N. Amani, Evaluation of influential value engineering factors on the function of interchanges: case studies in Iran, Journal of Engineering and Applied Science, 69(1) (2022) 48.
[37] R. Hughes, D. Thorpe,  A review of enabling factors in construction industry productivity in an Australian environment, Construction Innovation, 14(2) (2014) 210-228.
[38] C. Amoah, E. Bamfo-Agyei, F. Simpeh, The COVID-19 pandemic: the woes of small construction firms in Ghana, Smart and Sustainable Built Environment, 11(4) (2022) 1099-1115.
[39] Z.G. Al-Kofahi, A. Mahdavian, A. Oloufa, System dynamics modeling approach to quantify change orders' impact on labor productivity 1: principles and model development comparative study, International Journal of Construction Management, 22(7) (2022) 1355-1366.
[40] J.J. Adrian, L.T. Boyer, Modeling method-productivity, Journal of the Construction Division, 102(1) (1976) 157-168.
[41] N. Amani, K. Safarzadeh, Project risk management in Iranian small construction firms, Journal of Engineering and Applied Science, 69(1) (2022) 7.
[42] Productivity Improvement Programs, Productivity Improvement for Construction and Engineering: Implementing Programs That Save Money and Time, (2014).                                                   https://ascelibrary.org/doi/10.1061/9780784413463.ch02
[43] M.A. Azman, C.K. Hon, B. Xia, B.L. Lee, M. Skitmore, Internationalization and productivity of construction firms in a developing country: The effect of institutional environment and ownership on Malaysian construction firms, Journal of management in engineering, 38(1) (2022) 04021081.
 [44] K.A. Aschbrenner, G. Kruse, J.J. Gallo, V.L. Plano Clark, Applying mixed methods to pilot feasibility studies to inform intervention trials, Pilot and feasibility studies, 8(1) (2022) 217.
[45] H.S. Park, S.R. Thomas, R.L. Tucker, Benchmarking of construction productivity, Journal of Construction Engineering and Management, 131(7) (2005) 772-778.
[46] B. Standing, F. Lamari, Reducing construction execution conflict while increasing productivity: the link between internal integration and financial performance, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 15(1) (2023) 04522036.
[47] J.L. Park, S.K. Yoo, J.S. Lee, J.H. Kim, J.J. Kim, Comparing the efficiency and productivity of construction firms in China, Japan, and Korea using DEA and DEA-based Malmquist, Journal of Asian architecture and building engineering, 14(1) (2015) 57-64.
[48] R.V. Aguilera, A. De Massis, R. Fini, S. Vismara, Organizational goals, outcomes, and the assessment of performance: reconceptualizing success in management studies, Journal of Management Studies, 61(1) (2024) 1-36.
 [49] A.S. Al-Shaiba, S.G. Al-Ghamdi, M. Koc, Comparative review and analysis of organizational (in) efficiency indicators in Qatar, Sustainability, 11(23) (2019) 6566.