An exploratory study of a 'creating shared value' (CSV) concept for achieving firm competitiveness in Hong Kong construction firms

Abstract

The Hong Kong construction industry has both contributed to and benefited from the rapid economic, social, and infrastructure development of recent decades. However, social and environmental challenges - particularly health and safety related issues, manpower shortage, construction waste, and landfill problems - pose significant constraints on the continued growth of construction firms. These issues also undermine the sustainable development and long-term competitiveness of the construction industry in Hong Kong. Current studies on competitiveness in the construction management literature mainly focus on achieving business values, i.e., taking an economic perspective of competitiveness, often neglecting social integration. Social dimensions are given relatively lower priority, analysed separately, and treated outside the scope of business strategy. Experience in recent years has shown that a ‘Creating Shared Value’ (CSV) concept is a key to converting the above issues into tangible business opportunities, and achieving long-term competitiveness and sustainable growth for firms. The CSV concept aims to enhance firms’ competitiveness by advancing their business and social conditions simultaneously. It can help firms to better respond to societal, environmental, and market needs as well as business activities. However, despite this potential, little effort has been made to explore and understand the CSV concept in construction management. Hence, this study aims to explore whether CSV is a viable concept in construction management. In pursuit of this aim, the specific objectives are to identify potential CSV strategies in achieving firm competitiveness, explore the opinions of construction practitioners towards the CSV concept, and define and unfold the anatomy of the CSV concept using a qualitative methodology. This study also establishes a link between the CSV concept and firm competitiveness, and proposes a CSV-competitiveness conceptual model using strategic management theory. This research employs a multi-method approach to collect and analyse data, adhering to the principles of generating theory/concept from the grounded theory approach and the case study method. Qualitative data collection includes preliminary interviews, semi-structured in-depth interviews, and a review of organizational documents. Data are analysed qualitatively using thematic analysis, coding, documents analysis, case analysis, and constant comparison methods. The results show that construction firms are unaware of the CSV concept; however, they are unknowingly using the CSV concept to address social and environmental issues, while also achieving long-term competitiveness. Various potential barriers in implementing the CSV concept, specifically related to the government and the nature of the construction industry, are also identified. Overall the findings suggest that the CSV concept could be a viable strategy for construction firms to achieve long-term competitiveness. The respondent validation method is used to evaluate the research results and to attain theoretical saturation. The findings of this study are expected to enhance the understanding of the CSV concept in the construction industry by providing empirical data that aligns with existing principles of CSV. The study also prioritizes measuring social and business values jointly rather than focusing on the two values separately as done in previous studies. Furthermore, it highlights the effectiveness of social and psychological research methods in construction management research.