Model for measuring competitiveness in construction companies in Lima–Peru

Abstract

PurposeThe main objective of this study was to establish a model of competitiveness factors to measure the value of construction companies adequately.Design/methodology/approachA theoretical model of four main factors was developed, and they include human capital, ethical values, process innovation and financing. Information was collected from 18 construction companies in the city of Metropolitan Lima, collecting information on each of these factors. Through an analysis of the principal components, the weighting of each factor about the competitiveness of a construction company was determined.FindingsThe cost of person-hours, the cost of equipment to execute work, and the cost of materials used are the strongest indicators to measure the competitiveness of a construction company. On the other hand, the number of employees holding university degrees and the number of master builders holding technical degrees in the human capital factor also have a moderate weight in determining the competitiveness value of a company. The indicator of work delivered within the deadline also moderately affects competitiveness. Finally, the monthly debt payment indicator has a very small effect on the company’s competitiveness.Originality/valueIn conclusion, this study provides evidence of a competitiveness model with highly related factors on human capital, process innovation and ethical values as the most important in measuring competitiveness.