PESTEL Analysis of Construction Productivity Enhancement Strategies: A Case Study of Three Economies

Abstract

Previous construction productivity research focused on developing productivity measurement methods and quantifying the impact of influencing factors. However, the development of holistic strategies for productivity enhancement of a construction industry has received limited attention. This paper examines the nature of the constraints on productivity advancement and explores the rationale underpinning the productivity enhancement strategies at the industry level. The exploration was based on a systemic perspective taking contingency factors in the broad business environment into consideration. A comprehensive literature review used a political, economic, social, technological, environmental, and legal (PESTEL) framework to reveal the major strategic themes of construction productivity enhancement. Building on the literature review, a multiple exploratory case study design was adopted to investigate the constraints and strategies within the construction industries of Singapore, Hong Kong, and the UK. The research design combines documentation, semistructured stakeholder interviews, and project site visits. The case study analyses led to a theoretical framework that conceptualizes the underlying structure of construction productivity enhancement strategies (CPESs) within the dynamic business environment of the industry. The findings contribute to a better theoretical understanding of the systemic nature of CPESs and provide specific guidance for formulating holistic strategies to enhance construction productivity.