SUSTAINED COMPETITIVENESS IN PAKISTAN CONSTRUCTION SECTOR

Abstract

The subject of competitiveness has a vast range of definitions, meanings and measures. Construction industry requires improvement and constant changes to satisfy the requirements of the customer, promoting the competition between stakeholders of construction sector. Competitiveness is a complex domain, encompassing multiple perspectives; therefore it is challenging to create an appropriate framework to evaluate competitiveness of the construction industry. The point of view of all the stakeholders is required in developing, implementing and monitoring any initiatives for improvement in the industry. Unfortunately a model does not exist that can be used to assess the competitiveness of the Pakistan Construction Industry. Such a model would identify the areas for improvement and contribute in the development of strategies for adoption. This research is particularly related to construction engineering business in the industry from the contractor’s perspectives. This thesis assesses the competitiveness of the construction industry, and highlights the key factors affecting performance of industry, challenges and opportunities confronting the Pakistani construction sector. Also it proposes the framework for the enhancement of competitiveness in construction industry of Pakistan. The framework consists of 7 parameters: Construction industry environment, Competitiveness at firm level, Potential, Supporting factors, Flexibility, Construction business environment, and Economics and finance. Each competitiveness parameter has a group of different number of related factors. vi Due to lack of available studies in the subject this research engages a qualitative design to unfold the opinions of the respective firms about the competitiveness and its perception. Total twenty five (25) individuals, working as directors, project managers, senior engineers and senior managers employed in contracting firms were interviewed. Fuzzy approach for competitiveness assessment is used to assess the current competitiveness of the industry. Recruitment of well-trained human resource and cutting edge technologies, collaboration between academia and industry, investment in R&D projects and stable business environment can contribute in enhancing the competitiveness of construction industry. Attaining competitiveness in connection to the above elements will certainly require the participation of not only the construction organizations, but also of the academia, active performers from material suppliers to customers, and government as well.