Modeling Profitability-Influencing Risk Factors for Construction Projects: A System Dynamics Approach

Circular Economy in the Construction Industry: A Step towards Sustainable Development

Construction is a resource-intensive industry where a circular economy (CE) is essential to minimize global impacts and conserve natural resources. A CE achieves long-term sustainability by enabling materials to circulate along the critical supply chains. Accordingly, recent research has proposed a paradigm shift towards CE-based sustainability. However, uncertainties caused by fluctuating raw material prices, scarce materials, increasing demand, consumers’ expectations, lack of proper waste infrastructure, and the use of wrong recycling technologies all lead to complexities in the construction industry (CI). This research paper aims to determine the enablers of a CE for sustainable development in the CI. The system dynamics (SD) approach is utilized for modeling and simulation purposes to address the associated process complexity. First, using content analysis of pertinent literature, ten enablers of a CE for sustainable development in CI were identified. Then, causality among these enablers was identified via interviews and questionnaire surveys, leading to the development of the causal loop diagram (CLD) using systems thinking. The CLD for the 10 shortlisted enablers shows five reinforcing loops and one balancing loop. Furthermore, the CLD was used to develop an SD model with two stocks: “Organizational Incentive Schemes” and “Policy Support.” An additional stock (“Sustainable Development”) was created to determine the combined effect of all stocks. The model was simulated for five years. The findings show that policy support and organizational incentive schemes, among other enablers, are critical in implementing a CE for sustainable development in CI. The outcomes of this study can help CI practitioners to implement a CE in a way that drives innovation, boosts economic growth, and improves competitiveness.

Key Adoption Factors for Collaborative Technologies and Barriers to Information Management in Construction Supply Chains: A System Dynamics Approach

Construction processes are complex and dynamic. Like its other components, the construction supply chain (CSC) involves multiple stakeholders requiring varying levels of information sharing. In addition, the intensity and diversity of information in CSCs require dexterous management. Studies reveal that information complexity can be reduced using collaborative technologies (CTs). However, the barriers to information management (IM) hinder the CTs’ adoption process and cause complexity in CSCs. This research identifies barriers to IM and factors affecting the adoption of CTs in developing countries. In order to understand and address complexity, the system dynamics (SD) approach is adopted in this study. The aim is to investigate if SD can reduce information complexity using CTs. Causal loop diagrams (CLDs) were developed to understand the relationship between the IM barriers and CT adoption factors. The SD model, when simulated, highlighted three main components, i.e., complexity, top management support, and trust and cooperation, among others, as factors affecting the adoption of CTs. Addressing these factors will reduce information complexity and result in better IM in construction projects.

Impact of Political, Social Safety, and Legal Risks and Host Country Attitude towards Foreigners on Project Performance of China Pakistan Economic Corridor (CPEC)

The China Pakistan Economic Corridor (CPEC) project was signed between China and Pakistan in the year 2013. This mega project connects the two countries to enhance their economic ties and give them access to international markets. The initial investment for the project was $46 billion with a tentative duration of fifteen years. Being an extensive project in terms of cost and duration, many factors and risks affect its performance. This study aims to investigate the effects of political (PR), social safety (SR), and legal risks (LR) on the project performance (PP) of the CPEC. It further investigates the significance of the host country’s attitude towards foreigners (HCA). A research framework consisting of PR, SR, and LR as independent variables, PP as the dependent variable, and HCA as moderator is formulated and tested in the current study. In this quantitative study, the Likert scale is used to measure the impact of the assessed risks. A questionnaire survey is used as a data collection tool to collect data and test the research framework and associated hypotheses. The partial least square structural equation modeling (PLS-SEM) is used to perform the empirical test for validation of the study, with a dataset of 99 responses. The empirical investigation finds a negative relationship between PR, SR, LR, and PP. It is concluded that PR, SR, and LR negatively influence the PP of CPEC. Furthermore, HCA negatively moderates the PR, LR, and PP of CPEC. In contrast, the value of SR and PP is positive in the presence of the positive HCA.