Variations in Construction Enterprises’ Perceptions of the Competitive Environment and Their Effect on Bidding: An Empirical Study Based on the E-ISCP Model

Keda Chen (), Xiaowei Wang, Yuanshu Liang and Zhenhua Guo
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Keda Chen: Jishou University
Xiaowei Wang: The Hong Kong Polytechnic University
Yuanshu Liang: Chongqing University
Zhenhua Guo: Chongqing University

Chapter Chapter 15 in Proceedings of the 28th International Symposium on Advancement of Construction Management and Real Estate, 2024, pp 209-218 from Springer

Abstract: Abstract Information technologies such as electronic bidding are constantly trying to strengthen competition in the construction industry. As a result, the competitive climate for contractors is more uncertain and dynamic. The efficacy of market competition policies, however, is likely to differ from expectations because the perceived key points and action paths of contractors on the competitive environment are still unclear. This paper proposes an E-ISCP analysis model based on the classical SCP paradigm, with the goal of analyzing the key environmental perception factors and their role in bidding decisions. After designing a questionnaire and collecting 158 valid responses, we tested each path hypothesis in the E-ISCP model and conducted a difference analysis based on the sample's background characteristics. According to research, the contractor's attention to rivals—which is correlated with the number of competitors involved, the clarity of the competitive situation, and risk appetite—is the key to perception of the competitive environment. Additionally, bid/ no-bid decision are influenced by historical data and bidding requirements through competitive strength, but bidding behavior is directly hampered by contractors’ risk appetite.

Keywords: Construction market; Competition; Environmental perceptions; Decision-making (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/978-981-97-1949-5_15

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