John Killingsworth and Mohammed Hashem Mehany
Despite economic growth in the construction sector of the USA, profit margins are persistently low. An examination of collection practices of over 400 construction firms revealed…
Abstract
Purpose
Despite economic growth in the construction sector of the USA, profit margins are persistently low. An examination of collection practices of over 400 construction firms revealed a high number of firms with a collection period ratio above 30 days. This study aims to examines the variance between collection period ratio (days in accounts receivables, DAR) and days in accounts payables (DAP) and its correlation with profitability ratios [e.g. gross profit margin (GPM) and net profit margin (NPM)].
Design/methodology/approach
Descriptive statistics were used to observe trends over three years of financial reporting (2013 through 2016), while correlation statistics were used to understand relationship or association between the different financial ratios and the collection period variance (CPV). Respondent firms were stratified by the North American Industry Classification System, company type and revenue size.
Findings
Conventional theory holds that increasing financial expenses because of collections negatively impacts profitability. Therefore, the hypothesis of the study suggested a statistical correlation between the CPV and profitability measures. Results of the study, however, supported the null hypothesis. Reasons for the lack of correlation are considered as well as necessary follow-up studies before rejecting the hypothesis.
Originality/value
No such study was found specific to the construction industry, and as such, this study contributes to better understanding the implications of extensive collection periods. Further, this study contradicts assumptions about the behavior of the construction industry and the causal relationship between extensive collection periods and profitability.
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John Killingsworth, Mohammed Hashem Mehany and Jeff Kim
The apparent lag between macro-economic behavior and financial implications in the construction industry is yet to be examined. The purpose of this paper is to understand the…
Abstract
Purpose
The apparent lag between macro-economic behavior and financial implications in the construction industry is yet to be examined. The purpose of this paper is to understand the nature of the lag and the relationship between economic changes from year-to-year and the impact on the financial status of construction companies.
Design/methodology/approach
Correlation was made between US economic growth and construction industry financial indicators over a 28-year period. Cumulative per cent growth in US GDP was considered an independent variable, while nine financial ratios were calculated and considered dependent variables in this study.
Findings
The results of this study found that correlation improved when considering lag of two, three or sometimes four years after the economic event. Some financial ratios proved more sensitive than others, supporting the hypothesis of this study.
Research limitations/implications
The practical application of this study for construction companies is to understand how the construction industry lag impacts financial behavior. It therefore informs managerial decisions related to solvency, liquidity, equity structure and managerial practices; all of which are measured by financial ratios.
Practical implications
This study was intended to advance the research in this area and also to serve to strengthen industry members in their financial management of construction companies. Economic dynamics have long-lasting implications, which can be addressed through an increased focus on managing financial health.
Originality/value
Though the lag is intuitively known and has been studied from market perspectives, there is a lack of empirical study evaluating the impact of lag on financial key performance indicators.
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John Killingsworth, Mohammed Hashem Mehany and Hana Ladhari
This paper aims to examine general contractors’ experiences of using off-site manufactured structural framing systems. This engaged a single-case study using a qualitative…
Abstract
Purpose
This paper aims to examine general contractors’ experiences of using off-site manufactured structural framing systems. This engaged a single-case study using a qualitative methodology to identify expected benefits, actual benefits and challenges of such systems.
Design/methodology/approach
A single-case study approach evaluated general contractors’ experience of using a manufactured structural framing system. Qualitative data were collated and analyzed from industry domain experts to determine commonalities and thematic thinking.
Findings
The study revealed that the reasons behind considering off-site building systems were: accelerating the project schedule, overcoming site constraints and having a better end-product. The top expected benefits were: saving time (schedule), saving cost and improving quality. The top actual observed benefits were: saving erection time, reducing waste generation, reducing project costs, reducing safety risks and improving construction site logistics. The main challenges encountered were: unfamiliarity of different project parties with the off-site framing system, difficulty with reducing the overall project schedule, heavy site logistics and complicated off-site system design and standards requirements. The findings include solutions to overcome the challenges associated with using a manufactured structural system.
Research limitations/implications
This paper was a case study and therefore inherently limited in its generalizability. The study was conducted with general contractors in the mountain-west region of the USA. However, the implications of the study may have a broad application, as contractors across the globe seek to find similar solutions to using off-site or manufactured construction methods.
Practical implications
Construction labor shortages around the world are forcing the construction industry to find creative solutions to meet the demand for their services. Manufactured or off-site construction methods provide a possible solution to that labor shortage. However, builders need to be aware of the immediate challenges and actual benefits of using a manufactured structural framing system.
Social implications
Manufactured structural framing systems have the potential to impact lean and sustainable practices in construction. Reduced waste, reduced on-site man-power requirements, reduced construction schedules and reduced injuries each improve the lives of construction workers and the communities around these buildings.
Originality/value
An extensive literature review was performed to guide the design of this case study. Much has been written about off-site construction practices, but there is a significant research gap on the topic of structural framing systems. This study contributes to expanding the knowledge of off-site construction and specifically helps researchers and practitioners understand the challenges and benefits of this systematic approach to construction.
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Min-Kyu Choi, Peter J. Jordan and Ashlea C. Troth
The working day has always comprised frequent interruptions. Yet the frequency and intensity of these disruptions appear to be on the rise as a result of advancing technology…
Abstract
Purpose
The working day has always comprised frequent interruptions. Yet the frequency and intensity of these disruptions appear to be on the rise as a result of advancing technology, increasing interdependent work processes, and changing work environments (e.g., open-plan offices). Interestingly, there have only been a handful of studies on workplace interruptions, and the primary focus among researchers has been on the effects of interruptions on task completion. In this chapter, we argue that interruptions at work can be conceptualized as emotion-inducing events. We draw on research across different disciplines to develop a framework to show how the work-enhancing or work-hindering effects of different types of interruptions are, in part, determined by the employees' capability to manage (regulate) their emotional responses.
Approach
We initially review the literature regarding workplace interruptions. We then develop a framework for understanding the different types of interruptions experienced by individuals at work and then use this framework to develop a model linking interruptions to emotion regulation drawing on Affective Events Theory (Weiss & Cropanzano, 1996). In essence, we advance our understanding of work interruptions by considering these as events that are able to produce positive or negative affective reactions that may enhance or hinder work performance.
Originality/Value
The framework presented in this chapter increases understanding of the different types of workplace interruptions and shows how emotion regulation impacts subsequent work-related outcomes. This chapter provides valuable insights into the nature of work interruptions to identify both positive and negative aspects of work interruptions to establish two different domains of work interruptions that may improve (work-enhancing interruptions) or thwart (work-hindering interruptions) work-related outcomes. Theoretical and practical implications are discussed.
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JAMES A. LEGGETTE and BRENDA KILLINGSWORTH
Recently, theoretical economics has recognized something which the business person has known for a long time, that is “the world of single product firms with U‐shaped average cost…
Abstract
Recently, theoretical economics has recognized something which the business person has known for a long time, that is “the world of single product firms with U‐shaped average cost curves is simply not the world of reality.” Key to this newly emerging multiproduct framework is the concept of economies of scope.
William Riggs and Ruth L. Steiner
This chapter introduces how the built environment and walking are connected. It looks at the interrelationships within the built environment, and how those are changing given…
Abstract
This chapter introduces how the built environment and walking are connected. It looks at the interrelationships within the built environment, and how those are changing given planning and policy efforts to facilitate increased walking for both leisure activity and commuting. Using a broad review and case-based approach, the chapter examines this epistemological development of walking and the built environment over time, reviews the connections, policies and design strategies and emerging issues. The chapter shows many cases of cities which are creating a more walkable environment. It also reveals that emerging issues related to technology and autonomous vehicles, vision zero and car-free cities, and increased regional policy may play a continued role in shaping the built environment for walking. This dialogue provides both a core underpinning and a future vision for how the built environment can continue to influence and respond to pedestrians in shaping a more walkable world.
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Jagjit S. Brar and A.M.M. Jamal
Advocates of minority groups often claim that the corporate management lays off minority workers first at the onset of recessions and hires them last once the recovery begins…
Abstract
Advocates of minority groups often claim that the corporate management lays off minority workers first at the onset of recessions and hires them last once the recovery begins. Assertions of this sort are rooted in the belief that the labour market remains inherently discriminatory in spite of the U.S. Equal Employment Opportunity and Affirmative Action laws. Often times the popular media reinforces such assertions. An article in The Wall Street Journal claimed that during the U.S. recession of 1990–91 only blacks suffered a net employment loss (Sharpe, 1993), whereas another report by a Hispanic organisation contended that Hispanics were one of the few minority groups who did not recover from the last recession.
The author argues that we must stop and take a look at what our insistence on human labour as the basis of our society is doing to us, and begin to search for possible…
Abstract
The author argues that we must stop and take a look at what our insistence on human labour as the basis of our society is doing to us, and begin to search for possible alternatives. We need the vision and the courage to aim for the highest level of technology attainable for the widest possible use in both industry and services. We need financial arrangements that will encourage people to invent themselves out of work. Our goal, the article argues, must be the reduction of human labour to the greatest extent possible, to free people for more enjoyable, creative, human activities.
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The first Wisconsin Ph.D.s who came to MSU with an institutional bent were agricultural economists and included Henry Larzalere (Ph.D. 1938) whose major professor was Asher…
Abstract
The first Wisconsin Ph.D.s who came to MSU with an institutional bent were agricultural economists and included Henry Larzalere (Ph.D. 1938) whose major professor was Asher Hobson. Larzalere recalls the influence of Commons who retired in 1933. Upon graduation, Larzalere worked a short time for Wisconsin Governor Phillip Fox LaFollette who won passage of the nation’s first unemployment compensation act. Commons had earlier helped LaFollette’s father, Robert, to a number of institutional innovations.4 Larzalere continued the Commons’ tradition of contributing to the development of new institutions rather than being content to provide an efficiency apologia for existing private governance structures. He helped Michigan farmers form cooperatives. He taught land economics prior to Barlowe’s arrival in 1948, but primarily taught agricultural marketing. One of his Master’s degree students was Glenn Johnson (see below). Larzalere retired in 1977.