Innovation Vision of the Turkish Construction Industry: A Comparative Qualitative Content Analysis of Strategic Roadmaps

Construction plays a crucial role in Turkey’s economic development, accounting for nearly 8-9% of GDP.The growing global competitiveness of Turkish contractors also contributes significantly to the balance ofpayments of Turkey. It is widely acknowledged that competitiveness of firms depends on national“innovation systems,” that is shaped by government policy, and an innovation vision is needed at theindustry-level as well as supporting mechanisms such as funding schemes for research and developmentin the priority areas, and platforms to enable knowledge transfer between various stakeholders. In thispaper, we will discuss the innovation vision within the Turkish construction industry, by referring to variousconstruction industry-specific reports. Specifically, we will investigate the vision and conceptualization ofinnovation in the “Construction Industry Roadmap” as a part of the 10th Development Plan that wasprepared by the Turkish Ministry of Development. A comparative study has been carried out between thisreport and a white paper entitled as “Shaping the Future of Construction: Insights to redesign the industry”that was prepared by the World Economic Forum (WEF) by conducting a content analysis using NVivo.Although the content of two documents in terms of the “drivers” and “enablers” of innovation coincides toa large extent, the innovation was approached in a broader sense considering concepts such as “systemicinnovation”, “lessons learned”, “disruptive innovation”, “eco-innovation”, “incremental innovation” and“open source innovation” in the WEF’s report. Potential benefits of looking at the innovation system froma wider lens will be discussed as well as recommendations for further studies

Measuring the impact of lean construction practices on project duration and variability: A simulation-based study on residential buildings

Performance of the construction projects have been criticized for many years due to their low productivity rates and cost overruns as well as significant delays. Increasing number of dissatisfied customers compel practitioners to reform conventional practices of construction management. Lean construction has emerged as a result of these efforts in the industry. However, there are limited number of studies that demonstrate the practical benefits of lean construction applications. The aim of this paper is to untangle practical applications of lean construction and to reveal their benefits. A methodology was developed to compare the lean and non-lean scenarios of a residential building project by means of Monte Carlo simulation. Simulation models were generated through regular meetings held with construction planning experts. Research findings demonstrate that application of lean construction principles have a potential to improve the performance of projects by reducing both the total project duration and its expected variation. In addition, the study re­vealed that utilization of practical lean construction principles may result in a considerable amount of time reduction in wall construction and plastering activities of residential building projects. Although the findings of this study cannot be generalized, they are expected to encourage practitioners to adopt lean construction principles. First published online: 24 May 201

Alignment of project management with business strategy in construction: evidence from the Turkish contractors

The importance of fit between an organization’s implementation of project management (PM), and its business level strategy is emphasized in the literature. However, there are a limited number of studies investigating the relationship between business level strategy and implementation of PM in the construction industry. This paper aligns one of the business strategies, namely differentiation, with the PM process. A framework representing differentiation in the construction industry is proposed in this study. Structural equation modelling (SEM) is used to validate the relationship between differentiation and the PM process. The results show that a relationship between differentiation strategy and PM exists. The two types of differentiation are revealed, namely “product variety and speed-related differentiation” (PSD) and “quality and image-related differentiation” (QID). The companies trying to differentiate based on PSD should focus on cost, time and quality management. Change management and project planning are identified as important drivers of differentiation based on PSD. On the other hand, the companies trying to differentiate on QID should consider health, safety and environmental issues as well as quality. Companies should also manage their resources effectively to support the PM process that in turn leads to successful differentiation. Companies can utilize the research findings as a guideline while formulating their differentiation strategies

Empowering risk communication: use of visualizations to describe project risks

Risk information that is used during project risk identification and assessment should be communicated well to enable risk-informed decision-making. This study aims to use risk descriptors for risk contextualization and explore how visualization can improve the communication of project risk information. Risk descriptors (e.g., assumptions, controllability) were identified, and two workshops were held to verify the selected descriptors and explore the effectiveness of visualizations for risk communication. The first workshop was designed to assess the perceptions of different risk experts, and the second workshop was a case study application to evaluate the usability of risk visualization. Qualitative analysis of the first workshop revealed four themes, specifically standardization, representation, customization, and practicality, to be considered during risk visualization. The second workshop confirmed the value-added through the use of visualizations and the usefulness of risk descriptors. While this study does not focus on the best way of delivering the most useful data, it contributes to the existing body of knowledge by characterizing risk descriptors and introducing new insights regarding the use of visualization for communicating and describing risks in projects

Estimating the profitability of hydropower investments with a case study from Turkey

Energy demand has been increasing, but traditional sources of energy are depletable. New investments are needed in renewable energy production. Hydroelectric power plants are often considered a feasible renewable source of energy and are often organized as a public private partnerships (PPP). However, risk factors stemming from the macro environment as well as project conditions should be considered in performing feasibility studies. The objective of this study was to develop a method that can be used to predict the profitability of hydropower investments considering the relevant risk factors. To that end, a cash flow that represents the construction and operation period is set up, the risk fac­tors involved in such projects are identified, the impacts of these risk factors on the cash flow parameters are assessed, and Monte Carlo simulation is performed to estimate the net present value (NPV) of a hydropower investment. The proposed method was tested in a hydropower investment located in Turkey and generated credible results that could be of great benefit to potential investors operating in similar conditions. The primary contribution of this research is the creation of a method that allows investors to assess the profitability of a hydropower investment by using a stochastic approach

Negotiating the selling price of hydropower energy using multi-agent systems in BOT

During the feasibility study of BOT (Build-Operate-Transfer) hydropower investments, the selling price of energy is the most critical parameter that impacts the net present value (NPV) estimated by the investors. Investors usually consider the price of energy guaranteed by the government during their feasibility studies which is the worst case scenario. However, it is apparent that negotiations that take place between investor and broker determine the price of energy which is affected by various sources of uncertainty associated with the energy demand and country conditions. The objective of this study was to make a realistic estimate of the investor’s selling price by modeling the negotiation process between investor and broker using a multi-agent system (MAS). Thus, the factors affecting the negotiation process were identified, a negotiation protocol between the parties was set up, negotiation scenarios were determined, and modelled by using a MAS. The model was tested on a hydropower investment in Turkey and generated more realistic results compared to the current practice. Investors and brokers may benefit from this study because it considers the potential changes in the market as well as the negotiating postures of parties under different scenarios

Social network analysis of construction companies operating in international markets: case of Turkish contractors

Investigation of market entry strategies is critical for the success of international contractors. Establishing partnerships is among the most effective vehicles of operating in international markets. The major objective of this paper is to analyze the partnership behavior of contractors in overseas projects. In this respect, social network analysis (SNA) was used to better understand the collaborative project networks in different markets and for projects of differing sizes. A database was developed based on the collaborative international construction projects where Turkish firms and their non-Turkish partners were involved. A total of 449 projects carried out in 46 countries were used for the analysis. The findings of the study suggest that contractors adopt different strategies depending on the market and project character­istics. The majority of the companies tend to remain in the same markets; they keep working with the same partners or choose local partners; and engage with multiple partners in more complex projects. This study is expected to help contractors reflect on their internationalization decisions and devise appropriate strategies to establish project networks. First published online: 27 Jun 201

Exploring pattern of complexity in mega construction projects

Purpose: Megaprojects are known as complex projects that involve high levels of uncertainty. This interpretive study explores and portrays perceived complexity in mega construction projects by lived experiences of project managers. Methodology: This study utilises a ground theory approach to analyse data gathered from semi-structured interviews with 18 professionals involved in 11 mega projects. Findings: Complexity in mega construction projects is defined as a project property that stems from the interaction of project features, uncertain variables/conditions, and managerial actions forming a pattern, which emerges over time, based on the reflections of construction practitioners. Originality: This study defines complexity based on the reflections of the practitioners in the construction industry and uniquely identifies complexity patterns that may have implications for project management, particularly risk management

İnşaat Şirketleri için Bilgisayar Destekli Bir Portföy Değerlendirme ve Yönetim Aracının Geliştirilmesi

TÜBİTAK MAG Proje15.09.2016Günümüzde inşaat projeleri giderek karmaşık bir hal almakta, inşaat şirketleri birden çok projeyi eş zamanlı yürütmek durumunda kalmaktadır. Bu kapsamda, şirketlerin geleneksel proje yönetim teknikleri yerine, bütüncül bir yönetim anlayışı sunan portföy yönetimini benimsemeleri gereği doğmaktadır. Portföy yönetimi, projelerin başta şirketin stratejik hedefleri olmak üzere birçok faktörün bir arada değerlendirilmesi sonucunda portföydeki yerlerinin belirlenmesini ve mevcut kaynakların bu doğrultuda projeler arasında paylaştırılmasını kapsamaktadır. Böylelikle şirket stratejisi ve durumuna uygun, kaynakların daha verimli kullanıldığı ve şirket başarısı odaklı bir proje portföyü elde edilmektedir. İnşaat projelerinin karmaşık, değişken, çok ortaklı ve koşullara duyarlı yapısı düşünüldüğünde; bu alanda geliştirilebilecek proje portföy yönetimine yardımcı bir aracın önemi artmaktadır. Bunun yanı sıra, portföy yönetimi odaklı çalışmalarda projeler arası ilişkilerin yeterince kapsamlı ve güvenilir bir yöntemle ele alınamadığı da görülmektedir. Dolayısıyla bu araştırma-geliştirme projesinde, inşaat projeleri arasındaki ilişkilerin belirlenmesini ve proje portföy yönetim sürecine dahil edilmesini sağlayacak, portföyün nasıl yönetilmesi gerektiğine dair yönlendirme yapabilecek akıllı ve dinamik bir aracın geliştirilmesi amaçlanmıştır. Proje kapsamında, öncelikle proje portföy yönetimi alanında literatür taraması yapılmış ve portföy yönetimi anlayışının inşaat şirketlerine adapte edilmesini sağlayacak bir ihtiyaç analizi çalışması yapılmıştır. Aracın geliştirilmesi için bir yazılım firmasından hizmet alımı yapılmış, aracın geliştirim süreci ve nihai hali çeşitli anketler ve şirket profesyonelleriyle yapılan çalışmalarla desteklenerek aracın kullanılabilirliği doğrulanmıştır. Çalışma sonunda; şirketlerin kurumsal belleklerini oluşturarak şirket için en uygun olan portföy seçiminin şirket stratejisine, portföy düzeyinde risk ve beklenen karlılığa göre yapılmasını sağlayabilecek, proje ilişkileri ve portföyün özelliklerine göre yönetim önerileri sunabilecek bir portföy yönetim aracı geliştirilmiştir. Aracın büyük ölçekli inşaat şirketlerinin portföy yönetimlerine yardımcı olacağı, böylelikle şirketlerin yönetim anlayışının tekil projelerin başarısından şirket başarısına yönelebileceği düşünülmektedir. Bu doğrultuda araç uluslararası alanda faaliyet gösteren şirketler için uygun portföylerin oluşturulması ve etkin bir şekilde yönetilmesini sağlayabilecek ve şirketlerin sürdürülebilir rekabet avantajı kazanması mümkün olabilecekti

Strategic decision making in construction companies : an artificial neural network based decision support system for international market selection

Ph.D. - Doctoral Progra