Company Failure in the Construction Industry: A Critical Review and a Future Research Agenda (4360) |
| James M.W. Wong and S. Thomas Ng (Hong Kong SAR, China) |
Dr. James M.W. Wong
Postdoctoral Fellow
Department of Civil Engineering
The University of Hong Kong
Department of Civil Engineering,
The University of Hong Kong, Pokfulam Road
Hong Kong
Hong Kong SAR, China
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| Corresponding author Dr. James M.W. Wong (email: jmwwong[at]hkucc.hku.hk, tel.: + 852 2241 5348) |
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| [ abstract ] [ paper ] [ handouts ] |
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Published on the web 2010-01-14
Received 2009-11-19 / Accepted 2010-01-14 |
| This paper is one of selection of papers published for the FIG Congress 2010 in Sydney, Australia and has undergone the FIG Peer Review Process. |
FIG Congress 2010
ISBN 978-87-90907-87-7 ISSN 2308-3441
http://www.fig.net/resources/proceedings/fig_proceedings/fig2010/index.htm
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Abstract |
| Company failure is not only extremely disruptive to an industry but may also cause significant rippling effects in an economy. Construction companies are vulnerable to bankruptcy due to the fragmented nature of the industry, high competition, the high uncertainty and risk involved, and considerable fluctuations in construction volume. It is important to recognise any potential company failures at the earliest opportunity. While bankruptcy prediction has long been regarded as a critical topic in the accounting and finance sectors, this research topic is still under-explored in the context of the construction industry. This paper aims to provide a synthesis of the previous business failure prediction models for construction companies and put forward a future agenda in this research area. Common causes of construction company failures are also reviewed. Using the results from the proposed research, it is anticipated that construction companies will be better able to prevent business failure and this should be relevant to the current needs of the construction industry and significant to the society. |
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| Keywords: Positioning; Implementation of plans; Risk management; company failure; construction; failure prediction model; strategic management |
