Structural equation model for construction equipment selection and contractor competitive advantages

The selection and use of appropriate construction equipment contributes to operational efficiency and contractor competitive advantages. However, numerous factors are involved in the selection of suitable construction equipment. A review of the existing literature revealed a lack of research on the causal relationships between construction equipment selection factors and contractor competitive advantages. Therefore, this study attempted to identify the selection factors through a survey of contractors' opinions on the levels of importance of the factors that are relevant to construction equipment selection and competitive advantages. The survey data were analyzed using Structural Equation Modeling (SEM). The results suggest the following six major selection factors and their respective weights of relative importance: compatibility with site characteristics (25%), services and maintenance (19%), costs (15%), safety and environmental effects (14%), ease of acquisition (14%), and technology and innovation (13%). These selection factors influence contractor competitive advantages in terms of financial stability, corporate image and reputation, bidding opportunity, and technical capacity, and their weights of relative importance are 31%, 25%, 22%, and 22%, respectively. The findings of this study shed light on the causal relationships between the selection of appropriate construction equipment and contractor competitive advantages.