A study of the competitiveness of local contractors in Hong Kong

Abstract

This study examines the competitiveness of local contractors in Hong Kong. Since many studies had already covered the importance of technological innovation to competitiveness of contractors, this research therefore focuses mainly on: - the extent to which local indigenous contractors commit to the development of new technology; and - the potential of technological innovation as a source of competitive advantage. To achieve the above aims, the competitiveness of contractors in seventeen work categories was measured under a conceptual model, the development of which was based on the integration of factors of competitiveness on national and corporate levels. Interviews were also conducted with both competitive and not-so-competitive contractors selected by means of competitive performance measures. On the whole, the study found that: - only a few listed local indigenous contractors adopt and implement technological innovations; - their technological innovations, when implemented or adopted, fail to satisfy the conditions of sustainable competitive advantage in most cases; - the technological development process involves huge financial resources and exposure to the market which is dominated by sophisticated client demand as well as the dominance of construction work which allows differentiation in terms of construction methods; - if local indigenous contractors are to produce the kinds of technology which satisfy the conditions of sustainable competitive advantage, it requires government support in bridging the resource gap at the outset; and - financial capability of the local indigenous contractors is a potential source of sustainable competitive advantage in the public housing and non-residential building work categories.