Behavioral Differences Towards Internal and External Factors in Making the Bid/No Bid Decision
Downloads
Decision-making and subjective evaluation are two important aspects that characterizes the involvement of an organization in tender process. Moreover, selection of the right project to bid for is a principal feature of business success. The study aims to investigate the behavioral differences of Saudi construction contractors toward internal and external factors based on the process of modelling the bidding decisions. A quantitative research design is used to investigate the behavioral differences of 97 contractors recruited from construction industry of Saudi Arabia. A questionnaire was distributed among the respondents that would help in identifying the significant level of factors affecting the bid or no bid decision. The impact of internal and external factors on the bidding decisions was evaluated using one-way ANOVA analysis. The results have shown a significant and positive effect of internal and external factors on the bid or no bid decision; including job start time, work capital requirement, availability of qualified human resources, bidding methods, bidding document price, project supervision procedure and etc. The study has helped in establishing a better understanding toward the behavioral differences of contractors with respect to the bidding decisions.
[2] Garrett, Gregory A., and Reginald J. Kipke. Capture Management: Winning More Business. CCH Incorporated, 2005.
[3] Egemen, Mehmedali, and Abdulrezak N. Mohamed. "A Framework for Contractors to Reach Strategically Correct Bid/no Bid and Mark-up Size Decisions.” Building and Environment 42, no. 3 (March 2007): 1373–1385. doi:10.1016/j.buildenv.2005.11.016.
[4] Lowe, David J., and Jamshid Parvar. "A logistic regression approach to modelling the contractor's decision to bid.” Construction Management and Economics 22, no. 6 (2004): 643-653. doi: 10.1080/01446190310001649056.
[5] Wanous, Mohammed, Halim A. Boussabaine, and John Lewis. "A neural network bid/no bid model: the case for contractors in Syria.” Construction Management and Economics 21, no. 7 (2003): 737-744. doi: 10.1080/0144619032000093323.
[6] Oyeyipo, Opeyemi, Koleola Tunwase Odusami, Rapheal A. Ojelabi, and Adedeji Olushola Afolabi. "Factors Affecting Contractors' Bidding Decisions for Construction Projects in Nigeria.” Journal of Construction in Developing Countries 21, no. 2 (2016): 21-35. doi: 10.21315/jcdc2016.21.2.2.
[7] Wibowo, Mohamad Agung, I. Nyoman Yudha Astana, and H. A. Rusdi. "An analysis of bidding strategy, project performance and company performance relationship in construction.” Procedia Engineering 125 (2015): 95-102. doi: 10.1016/j.proeng.2015.11.015.
[8] Patel, Meet, Mamata B. Rajgor, and Jayeshkumar R. Pitroda. "Factors affecting on contractor's bidding strategy in large scale residential construction.” Development 3, no. 5 (2016).
[9] Biruk, SŠ‚awomir, Piotr JaŠ›kowski, and Agata Czarnigowska. "Modelling Contractor's Bidding Decision.” Engineering Management in Production and Services 9, no. 1 (March 1, 2017): 64–73. doi:10.1515/emj-2017-0007.
[10] Yan, Peng, Junying Liu, and Martin Skitmore. "Individual, Group, and Organizational Factors Affecting Group Bidding Decisions for Construction Projects.” Advances in Civil Engineering 2018 (2018). doi: 10.1155/2018/3690302
[11] Petruseva, Silvana, Phil Sherrod, Valentina Zileska Pancovska, and Aleksandar Petrovski. "Predicting Bidding Price in Construction using Support Vector Machine.” TEM Journal 5, no. 2 (2016): 143.
[12] Low, Wai Wah, Hamzah Abdul-Rahman, and Norhanim Zakaria. "The Impact of Organizational Culture on International Bidding Decisions: Malaysia Context.” International Journal of Project Management 33, no. 4 (May 2015): 917–931. doi:10.1016/j.ijproman.2014.10.010.
[13] Shi, Huawang, Hang Yin, and Lianyu Wei. "A dynamic novel approach for bid/no-bid decision-making.” SpringerPlus 5, no. 1 (2016): 1589. doi: 10.1186/s40064-016-3230-1.
[14] Enshassi, Adnan, Sherif Mohamed, and Ala'A. El Karriri. "Factors affecting the bid/no bid decision in the Palestinian construction industry.” Journal of Financial Management of Property and Construction 15, no. 2 (2010): 118-142. doi:10.1108/13664381011063421.
[15] Chen, Yong Qiang, Su Juan Zhang, Li Sha Liu, and Jia Hu. "Risk perception and propensity in bid/no-bid decision-making of construction projects.” Engineering, Construction and Architectural Management 22, no. 1 (2015): 2-20. doi: 10.1108/ecam-01-2013-0011.
[16] Olatunji, Oluwole Alfred, Olaniyi Isaac Aje, and Sina Makanjuola. "Bid or no-bid decision factors of indigenous contractors in Nigeria.” Engineering, Construction and Architectural Management 24, no. 3 (2017): 378-392. doi: 10.1108/ecam-01-2016-0029.
[17] Lim, Pei Ling, and Rashad Yazdanifard. "What internal and external factors influence impulsive buying behavior in online shopping?.” Global Journal of Management And Business Research (2015).
[18] Holla, B. R. K., G. Sudhanvakrishna, Kiran K. Shetty, and Vasudev AS Rao. "A qualitative study of strategic factors influencing bid decision in indian construction industry.” International Journal of Civil Engineering and Technology 9, no. 1 (2018): 290-300.
[19] Sandberg, Kati. "International Bid Process Development in the Case Company.” (2015).
[20] Al-Alawi, Alamir Nasser Salim. "Holistic Approach to the Factors Affecting Individual Investor's Decision Making in the GCC Markets: Evidence from Oman and Saudi Arabia.” PhD diss., University of Plymouth, (2017).
- Authors retain all copyrights. It is noticeable that authors will not be forced to sign any copyright transfer agreements.
- This work (including HTML and PDF Files) is licensed under a Creative Commons Attribution 4.0 International License.
