Abstract
The growth potential of a corporation can be assessed in terms of its orders and sales. Because the management of a construction company starts with order-taking, orders received is directly related to corporate survival. New orders are impacted not only by construction business cycle, but also by a variety of external factors such as loan interest rate, legislation, and orders awarded in the public and private sectors, among other factors. These environmental factors have different impacts on companies and it is not easy to establish these relationships. However, it is possible to establish the impacts that particular environmental factors such as orders available from the public and private sectors have on orders received by companies in relative and qualitative terms, though it is still necessary to quantify such impacts. Nevertheless, no preceding research has attempted to quantitatively analyze the relationship between environmental changes and management performance of construction firms in Korea. Hence, the objective of this paper is to propose a regression model of the effect of management environment on contract amount of construction firms. The outcomes of this study will help forecast management performance in response to changes in business environment and provide basic inputs for corporate management strategies.
