Purpose: The construction industry is a very important part of the Malaysian economy. The government's aim is to make the industry more productive, efficient and safe. Small to medium‐sized enterprises (SMEs) are at the core of the Malaysian construction industry and account for about 90 per cent of companies undertaking construction work. One of the main challenges faced by the Malaysian construction industry is the ability to absorb new knowledge and technology and to implement it in the construction phase. The purpose of this paper is to consider absorptive capacity in Malaysian construction SMEs in rural areas.Design/methodology/approach: The research was conducted in three stages: first, understanding the Malaysian construction industry; second, a literature review on the issues related to absorptive capacity and discussions with the Construction Industry Development Board (CIDB); and third, multiple case studies in five construction SMEs operating in a rural area to validate the factors influencing absorptive capacity.Findings: Nine key factors were identified influencing absorptive capacity in Malaysian construction SMEs operating in rural areas. These factors involved: cost and affordability; availability and supply; demand; infrastructure; policies and regulations; labour readiness; workforce attitude and motivation; communication and sources of new knowledge and; culture.Originality/value: The key factors influencing absorptive capacity presented in this paper are based on validation from the case studies in five construction SMEs in Malaysia. The research focuses on how they operate in rural areas; however, the research results have wider application than just Malaysia. The key factors identified as influencing absorptive capacity can serve as a basis for considering knowledge absorption in the wider context by SMEs in other developing countries.

The recent debate on innovation within an organizational setting has shifted focus toward discussing whether innovation is being adopted or being created. This shift is due to the failure of many innovation efforts and the fact that for each innovation creation or innovation adoption, different skills, resources, and cultures are needed to encourage each innovation. The objective of this article is to explore the type of innovation implemented by the construction participants. A conceptual model of innovation creation and innovation adoption was developed using four criteria: by justification of new ideas, by purposes, by activities involved, and by nature. Face-to-face questionnaires were conducted with developers, consulting firms, and contractors in Penang, Malaysia. The data were analyzed using descriptive analysis. Factor analysis was used to classify the innovation creation and innovation adoption. The results show that the construction participants in Malaysia are categorized as an innovation adopter. This result provides better understanding about the type of innovation implemented by the construction participants, in particular the contractors and the consulting firms. The results could also be used as a foundation for conducting future research to identify appropriate skills, knowledge, culture, and resources for such innovations.

Purpose: – This study aims to assess the construction firm’s innovation orientation and to investigate its relationship with firm characteristics. Design/methodology/approach: – A structured survey was conducted among 105 firms in the Malaysian construction industry. The results of the factor analysis revealed two underlying dimensions of innovation, namely, innovation creation and innovation adoption. For the cluster analysis, the firms were segmented into four subgroups according to four dimensions, namely, non-innovative, innovation-creator, imitator and innovative firms. Findings: – Firm’s business scale and age significantly affected the innovation orientation of construction firms. Originality/value: – This research contributes to the existing body of knowledge by adding a new firm characteristic, business scale, as a potential predictor of firms’ innovativeness. This study is the first to explore the effect of firm characteristics on the innovation orientation of firms.

This informative study explores the elements of housing price in Malaysia and found the price is affected by many factors. This study of great practical significance has shown that house prices are determined by the demand for attributes, not only of the dwelling units themselves, but also of the region in which the units are located. There are many structural, neighborhood and locational attributes that could have brought impacts on house prices (Chin, Chau, & Ng, 2004). Structural characteristics, location-specific factors, and neighbourhood characteristics may define various sub-markets. Sub-markets may be defined by structure type (e.g. single-family detached, row house, town home, and condominium), by structural characteristics (property age housing consumers may have strong preferences for newly constructed properties or for historic properties), or by neighbourhood characteristics (e.g., public education and public safety). Results show that the housing price in Malaysia evidently depends on population, demand and supply, location, physical characteristic, accessibility, developer, cost of material and income. It is also influenced by neighbourhood factors as people nowadays will likely choose a better neighbourhood. These factors determine whether the housing price will be high or low. In summary, the government must take an active role to monitor and take appropriate measures to control property prices.

Purpose: Innovation is defined as the creation and adoption of changes that are new to an organisation or industry. The high probability of failure and the lack of innovation in the construction industry have highlighted the importance of innovation (both creation and adoption) as a business orientation. Although they are related to the construction industry, architectural firms receive little attention from an innovation perspective despite being perceived as important drivers of innovation. Thus, this paper aims to examine the distinctive characteristics of various innovation orientations and determine the state of innovation among architectural firms. Design/methodology/approach: A postal survey was sent to 1,004 registered architectural firms in Malaysia. The data were processed using descriptive analysis. A factor analysis was conducted to categorise innovation creation and adoption, and a paired samples t-test was performed to examine the innovation orientations of architectural firms. Findings: Innovation creation and innovation adoption are two distinct orientations with different characteristics. Architectural firms in Malaysia are oriented towards innovation creation, which intersects with innovation adoption. Research limitations/implications: This study used a questionnaire survey that generated only statistical results. Future research should conduct interviews or focus group discussions to obtain comprehensive findings. Practical implications: The innovation concept is expanded in terms of its orientations. Originality/value: This study illustrates significant differences between innovation creation and innovation adoption in the architectural firms of a developing country, i.e. Malaysia.

Purpose: – This paper aims to examine the external factors that influence the implementation of the new concept of public-private partnerships (PPPs) in Yemen.Design/methodology/approach: – This study used a self-administered questionnaire that was distributed to Yemeni organizations. Data were analyzed using factor analysis, with appropriate tests of reliability, consistency, correlation and multiple regression analysis.Findings: – The findings indicate that implementation of PPPs are affected through the government policies, market readiness and environmental uncertainty. The empirical evidence also suggests that government policies are the main predictor to PPPs implementation in Yemen. The proposed conceptual framework can be useful in developing PPPs implementation.Originality/value: – This study contributes to the existing literature on PPPs by providing empirical evidence to identify the external factors that influence the readiness to implement PPPs. Furthermore, the study adds value through its contextual originality, given that this study is the first to empirically use the readiness theory in PPP implementation. Moreover, this paper describes the first attempt to investigate the implementation of PPPs in the context of Yemen.