Rani, Nur Izzati Ab. and Ismail, Syuhaida and Mohamed, Zainai and Hussain, Affuddin Husairi and Ghafourian, Kambiz
(2018)
Local Contractors' Awareness on Competitiveness towards
Liberalisation and Globalisation in the Malaysian Construction Industry.
Journal of Construction in Developing Countries , 23 (1).
pp. 21-42.
ISSN 1823-6499
Abstract
Globalisation gives the opportunity to contractors from a particular country to venture
into various countries around the globe as the construction market is unlimitedly open. Due to
this globalisation, the government has signed free trade agreements (FTA) as the result of the
liberalisation process. Globalisation and liberalisation do not only provide opportunities and
benefts to the local construction market, but also give challenges to local contractors in terms
of competition with other local and foreign contractors. Yet, a question arises whether the local
contractors in particular are aware with the competitive challenges they are facing against
the foreign contractors or even amongst the local contractors themselves. This is because
there are limited studies conducted which seek to identify the current levels of awareness on
competitiveness among local contractors within the Malaysian construction industry. Hence,
this paper emerges with the objectives of (1) identifying the current level of awareness of
local contractors on competitiveness and (2) investigating the most important attributes of
awareness of local contractors in the Malaysian construction industry. Questionnaire surveys
were conducted on local Malaysian contractors involving 61 organisations from 112 venturing
into overseas market. Data were analysed via Rasch analysis consisting of fve method analysis
which are the reliability and validity analysis, organisation misft analysis, unidimensionality
analysis, item misft analysis and item measure order analysis. Findings from this paper reveal
that most of the contractors have a moderate level of awareness on the competitiveness in
the Malaysian construction industry. The fndings of this study have been concluded as the
local contractors acknowledge their competitors' strength and weaknesses when bidding
for new projects and also aim to improve their competitiveness in competing with other
local contractors locally. Recognition of this paper on the awareness of the importance
of competitiveness by various local contractors in the Malaysian construction industry is in
line with the Construction Industry Transformation Plan (CITP) 2016–2020 in addressing the
Internationalisation Thrust with the aim to increase competitiveness of the domestic market,
especially with the presence of foreign players.
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