INDICATORS OF LABOUR PRODUCTIVITY IN THE CONSTRUCTION FIRMS: THE CONCEPTUAL MODELLING OF CAPITAL INTENSITY AND MARKET REGULATION

• Published in: Malaysian Construction Research Journal
• Main Author: Juhari F.N.; Azman M.A.; Halil F.M.; Chuweni N.N.; Azir K.M.A.K.; Lee B.L.
• Format: Article
• Language: English
• Published: Construction Research Institute of Malaysia 2023
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85194553359&partnerID=40&md5=7e40ba5e53983773187b3e68dac5bd2d

The construction industry is a crucial sector in the economy, but the industry has been facing stagnant productivity levels over the years. Various studies have attempted to understand the reasons behind the slow productivity growth, which can have significant implications for the industry's sustainable profits and wages. Both internal and external factors may contribute to the decline in productivity. To facilitate a comprehensive investigation, the research strategy focuses specifically on labour productivity levels within construction firms. This concentration allows for a more direct exploration of the dynamics at play. Addressing these concerns, this study aims to develop a conceptual model that explores the connections between capital intensity, market regulation, and their interactions with labour productivity. The research proposes the utilization of financial and economic data of construction firms that listed on the case study country’s Stock Exchange, covering the period from 2009 to 2020 to assess capital intensity, labour productivity, and market regulation measures. Additionally, this paper meticulously assesses the methods of measuring variables by considering economic and financial theories and selects appropriate modelling techniques guided by robust theoretical and statistical principles. By testing theoretical propositions between these constructs, the study seeks to offer insights for policymakers on enhancing long-term construction labour productivity at the firm level while considering sustainable economic incentives. Ultimately, this research strives to bridge the gap between theory and practice, using empirical evidence contributing to a better understanding of productivity dynamics in the construction industry and facilitating informed policy decisions. © 2023, Construction Research Institute of Malaysia. All rights reserved.