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Azman, M A, Lee, B L, Rahman, R A and Ballesteros-Pérez, P (2026) Ownership and contracting specialization: unlocking the productivity of construction firms in hybrid market economies. Construction Management and Economics, 44(01), 61–78.

  • Type: Journal Article
  • Keywords: Construction productivity; ownership structures; contracting specialization; hybrid market economies; technological gap;
  • ISBN/ISSN: 0144-6193
  • URL: https://doi.org/10.1080/01446193.2025.2575358
  • Abstract:
    In hybrid market economies, the mix between government and private ownership aims to balance innovation and social stability. However, the impacts of these ownership structures and their contracting specialization on construction firm productivity remain largely unexplored. Using longitudinal datasets of 55 Malaysian construction firms over 12 years, we explore construction firm productivity differences between Government-Linked Companies (GLCs) and Private-Controlled Firms (PCFs), as well as productivity differences between General Contracting Firms (GCFs) and Specialized Trade Firms (STFs). We use Total Factor Productivity (TFP), meta-frontier frameworks, and the Generalized Method of Moments (GMM) to measure firm productivity, technological gaps, and managerial efficiency while accounting for potential endogeneity issues. The findings reveal no significant impact of ownership types on construction firm productivity. However, controlling ownership shares significantly moderates construction firm productivity. Furthermore, contracting specialization significantly impacts construction firm productivity, with GCFs consistently outperforming STFs, primarily due to technological advantages. Despite this, STFs demonstrate higher managerial efficiency in applying available technologies, suggesting their productivity is hindered by external constraints such as existing policies. Our study recommends that policymakers in hybrid market economies consider reducing excessive government control among construction firms and look for ways to mitigate technological gaps between GCFs and STFs.

Gurmu, A T (2026) Econometric analysis of macroeconomic factors influencing construction labour productivity at industry level: evidence from Australia. Construction Management and Economics, 44(01), 23–40.

Hatayama, H and Tahara, K (2016) Using decomposition analysis to forecast metal usage in the building stock. Building Research & Information, 44(01), 63-72.

Holmes, S H, Phillips, T and Wilson, A (2016) Overheating and passive habitability: Indoor health and heat indices. Building Research & Information, 44(01), 1-19.

Huuhka, S and Lahdensivu, J (2016) Statistical and geographical study on demolished buildings. Building Research & Information, 44(01), 73-96.

Kleemann, F, Lederer, J, Aschenbrenner, P, Rechberger, H and Fellner, J (2016) A method for determining buildings' material composition prior to demolition. Building Research & Information, 44(01), 51-62.

Leder, S, Newsham, G R, Veitch, J A, Mancini, S and Charles, K E (2016) Effects of office environment on employee satisfaction: A new analysis. Building Research & Information, 44(01), 34-50.

Madanayake, U H, Ayinla, K O and Saka, A B (2026) An investigation of learner types and their unique preferences on the work-based learning (WBL) model: a case of quantity surveying apprenticeship. Construction Management and Economics, 44(01), 1–22.

Parkinson, T, de Dear, R and Candido, C (2016) Thermal pleasure in built environments: Alliesthesia in different thermoregulatory zones. Building Research & Information, 44(01), 20-33.

Simpson, S, Banfill, P, Haines, V, Mallaband, B and Mitchell, V (2016) Energy-led domestic retrofit: Impact of the intervention sequence. Building Research & Information, 44(01), 97-115.

Yap, J B H, Tan, K L and Skitmore, M (2026) Constructing ethics resilience: unveiling preventive strategies for compliance in the Malaysian construction industry. Construction Management and Economics, 44(01), 41–60.