Modeling Profitability-Influencing Risk Factors for Construction Projects: A System Dynamics Approach
This study addressed the complexity involved in integrating the causative risk factors influencing construction profitability. Most of the existing studies cover the individual effects of profitability influencing factors. Very few focus on the systematic impact without incorporating the complexity...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-05-01
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| Series: | Buildings |
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| Online Access: | https://www.mdpi.com/2075-5309/12/6/701 |
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| author | Shah Jahan Khurram Iqbal Ahmad Khan Muhammad Jamaluddin Thaheem Fahim Ullah Muwaffaq Alqurashi Badr T. Alsulami |
| author_facet | Shah Jahan Khurram Iqbal Ahmad Khan Muhammad Jamaluddin Thaheem Fahim Ullah Muwaffaq Alqurashi Badr T. Alsulami |
| author_sort | Shah Jahan |
| collection | DOAJ |
| description | This study addressed the complexity involved in integrating the causative risk factors influencing construction profitability. Most of the existing studies cover the individual effects of profitability influencing factors. Very few focus on the systematic impact without incorporating the complexity and associated dynamics, presenting a gap targeted by the current study. The current study aimed to assess causative interrelations and interdependencies between profitability influencing risk factors (PIRF), through systems thinking (ST) and system dynamics (SD) modeling. The SD approach was used to evaluate the integrated impacts on profitability-influencing risk categories (PIRC) in construction projects. The causative influencing factors affecting construction profitability were identified through a comprehensive literature review. These were ranked using content analysis, and categorized into significant issues. Through 250 structured surveys and 15 expert opinion meetings, the path for quantitative and qualitative evaluations was prepared. Following these investigations, a causal loop diagram (CLD) was established using the ST technique, and the integrated effect was quantified using SD modeling. The study finds the rising cost of material, supply chain process, payment issues, planning and scheduling problems, financial difficulties, and effective control of manpower and equipment resources as the most critical PIRFs. The integrated effects of PIRFs on PIRC were quantified using SD modeling. This study helps field professionals with profitability-influencing factors, diagnosing issues, and integrating impacts regarding decision-making and policy formulation. For researchers, it presents a list of factors that can be investigated in detail, and the holistic interrelationships established. |
| first_indexed | 2024-03-10T00:15:35Z |
| format | Article |
| id | doaj.art-06537e23206d4b64be8269dace56a593 |
| institution | Directory Open Access Journal |
| issn | 2075-5309 |
| language | English |
| last_indexed | 2024-03-10T00:15:35Z |
| publishDate | 2022-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Buildings |
| spelling | doaj.art-06537e23206d4b64be8269dace56a5932023-11-23T15:51:52ZengMDPI AGBuildings2075-53092022-05-0112670110.3390/buildings12060701Modeling Profitability-Influencing Risk Factors for Construction Projects: A System Dynamics ApproachShah Jahan0Khurram Iqbal Ahmad Khan1Muhammad Jamaluddin Thaheem2Fahim Ullah3Muwaffaq Alqurashi4Badr T. Alsulami5Department of Construction Engineering and Management, National University of Sciences and Technology (NUST), Islamabad 44000, PakistanDepartment of Construction Engineering and Management, National University of Sciences and Technology (NUST), Islamabad 44000, PakistanSchool of Architecture and Built Environment, Deakin University, Geelong Waterfront Campus, Geelong, VIC 3220, AustraliaSchool of Surveying and Built Environment, University of Southern Queensland, Springfield, QLD 4300, AustraliaDepartment of Civil Engineering, College of Engineering, Taif University, P.O. Box 11099, Taif 21944, Saudi ArabiaDepartment of Civil Engineering, College of Engineering and Islamic Architecture, Umm Al-Qura University, Makkah 24382, Saudi ArabiaThis study addressed the complexity involved in integrating the causative risk factors influencing construction profitability. Most of the existing studies cover the individual effects of profitability influencing factors. Very few focus on the systematic impact without incorporating the complexity and associated dynamics, presenting a gap targeted by the current study. The current study aimed to assess causative interrelations and interdependencies between profitability influencing risk factors (PIRF), through systems thinking (ST) and system dynamics (SD) modeling. The SD approach was used to evaluate the integrated impacts on profitability-influencing risk categories (PIRC) in construction projects. The causative influencing factors affecting construction profitability were identified through a comprehensive literature review. These were ranked using content analysis, and categorized into significant issues. Through 250 structured surveys and 15 expert opinion meetings, the path for quantitative and qualitative evaluations was prepared. Following these investigations, a causal loop diagram (CLD) was established using the ST technique, and the integrated effect was quantified using SD modeling. The study finds the rising cost of material, supply chain process, payment issues, planning and scheduling problems, financial difficulties, and effective control of manpower and equipment resources as the most critical PIRFs. The integrated effects of PIRFs on PIRC were quantified using SD modeling. This study helps field professionals with profitability-influencing factors, diagnosing issues, and integrating impacts regarding decision-making and policy formulation. For researchers, it presents a list of factors that can be investigated in detail, and the holistic interrelationships established.https://www.mdpi.com/2075-5309/12/6/701causal loop diagramprofitability-influencing risk factorsprofitability-influencing risk categoriessystem dynamicssystems thinking |
| spellingShingle | Shah Jahan Khurram Iqbal Ahmad Khan Muhammad Jamaluddin Thaheem Fahim Ullah Muwaffaq Alqurashi Badr T. Alsulami Modeling Profitability-Influencing Risk Factors for Construction Projects: A System Dynamics Approach Buildings causal loop diagram profitability-influencing risk factors profitability-influencing risk categories system dynamics systems thinking |
| title | Modeling Profitability-Influencing Risk Factors for Construction Projects: A System Dynamics Approach |
| title_full | Modeling Profitability-Influencing Risk Factors for Construction Projects: A System Dynamics Approach |
| title_fullStr | Modeling Profitability-Influencing Risk Factors for Construction Projects: A System Dynamics Approach |
| title_full_unstemmed | Modeling Profitability-Influencing Risk Factors for Construction Projects: A System Dynamics Approach |
| title_short | Modeling Profitability-Influencing Risk Factors for Construction Projects: A System Dynamics Approach |
| title_sort | modeling profitability influencing risk factors for construction projects a system dynamics approach |
| topic | causal loop diagram profitability-influencing risk factors profitability-influencing risk categories system dynamics systems thinking |
| url | https://www.mdpi.com/2075-5309/12/6/701 |
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