1. 1
Client
Contractor
DESIGNER
"Enhancement of housing and real estate construction entrepreneurs'
operational efficiency in Nepal's construction business"
By
Roman man shrestha
Phd candidate
65402021-3
Presented to:
Prof. Dr. Eksiri Niyomsilp
Consultant
Report on:
Purposal Presentation of RM-II
2.
3. Page 01
• The construction industry is one of the fastest-growing industries in Nepal, contributing significantly to the
country's GDP and providing employment opportunities.
• Enhancing the operational efficiency of housing and real estate construction entrepreneurs is crucial for
industry growth and development.
• The construction industry in Nepal contributes around 10% to the country's GDP (Source: World Bank,
2021).
• The demand for housing in Nepal is estimated to be around 60,000 units per year, with a current housing
deficit of over 1.6 million units (Source: National Planning Commission, 2021).
• Despite the growth in the industry, the construction sector's labor productivity in Nepal is only around 5% of
that in developed countries (Source: World Bank, 2019).
• According to a survey by the International Labor Organization, over 70% of construction workers in Nepal
have no formal training (Source: International Labor Organization, 2019).
4. Page 02
•Nepal's construction industry has seen significant growth in the housing and real estate construction sector
due to increased demand for affordable housing and infrastructure development.
•Entrepreneurs in this sector face challenges that hinder their operational efficiency, such as inadequate
infrastructure, lack of skilled labor, and limited access to finance (World Bank, 2019).
•Enhancing the operational efficiency of housing and real estate construction entrepreneurs is crucial for the
sustainable growth of the construction industry in Nepal.
•According to a study by Yadav et al. (2021), operational inefficiency in the Nepalese construction industry
can be attributed to various factors, including inadequate resources, poor project management, and
limited technology adoption.
•Gurung et al. (2018) found that training programs for entrepreneurs and workers can also enhance
operational efficiency by improving skills and knowledge.
5. There is a lack of research on effective strategies to enhance their
operational efficiency and competitiveness in the industry.
Construction industry in Nepal is highly fragmented, with
large number of small and medium-sized enterprises
(SMEs) dominating the industry
Problem 1
Problem 2
Problems Page 03
Problem 3
Housing and real estate construction entrepreneurs in Nepal
may face challenges in attracting and retaining skilled labor,
which can limit their ability to improve operational efficiency
and quality of work
SME are
dominating
the industry
Skill manpower
problem
Problem in
Quality of work
Problems
6. Page 04
What are the most effective strategies to enhance the operational
efficiency and competitiveness of housing and real estate
construction entrepreneurs in Nepal's highly fragmented
construction industry?
How can small and medium-sized enterprises (SMEs) in Nepal's
construction industry overcome the challenges posed by their
fragmented nature and improve their operational efficiency?
RQ 1
RQ 2
What are the key factors influencing the attraction and retention
of skilled labor in Nepal's housing and real estate construction
sector, and how can entrepreneurs address these factors to improve
their operational efficiency and quality of work?
RQ3
7. Page 05
To identify and evaluate effective strategies for
enhancing the operational efficiency and
competitiveness of housing and real estate construction
entrepreneurs in Nepal's highly fragmented construction
industry.
RO 1
RO 2
RO 3
To investigate the challenges faced by small and medium-
sized enterprises (SMEs) in Nepal's construction industry
and develop recommendations for improving their
operational efficiency.
To examine the factors influencing the attraction and retention
of skilled labor in Nepal's housing and real estate construction
sector and provide recommendations for addressing these
factors to improve operational efficiency and quality of work.
8. Hypothesis 1: Effective strategies for enhancing the operational efficiency and competitiveness
of housing and real estate construction entrepreneurs in Nepal's highly fragmented construction
industry will result in increased profitability and improved quality of work.
Hypothesis 2: Addressing the challenges faced by small and medium-sized enterprises (SMEs)
in Nepal's construction industry, such as limited access to financing and market barriers, will
improve their operational efficiency and lead to increased growth and development of the
industry.
Hypothesis 3: Improving the attraction and retention of skilled labor in Nepal's housing and
real estate construction sector, through measures such as investing in training and development
and providing competitive wages and benefits, will result in improved operational efficiency
and higher quality of work.
Page 06
9. Transaction Cost Economics (TCE) Theory
This theory suggests that the competitive advantage of firms lies in their
unique resources and capabilities, including skills, knowledge, and
technology. RBV can be used to analyze the resources and capabilities of
housing and real estate construction entrepreneurs in Nepal and how they
can be leveraged to enhance operational efficiency.
This theory suggests that the choice of governance structure in a transaction is influenced by
the relative transaction costs of different modes of governance. TCE can be used to analyze
the factors influencing the choice of governance structure in the construction industry in
Nepal, including the use of subcontracting and alliances.
Page 07
Resource-Based View (RBV) Theory
10. Dynamic Capabilities Theory
This theory suggests that organizations are influenced by the norms, values,
and rules of the institutional environment in which they operate.
Institutional theory can be used to analyze the institutional environment in
which housing and real estate construction entrepreneurs in Nepal operate
and how it affects their operational efficiency.
This theory suggests that firms can develop and exploit their dynamic capabilities to respond to
changes in the business environment. Dynamic capabilities theory can be used to analyze the
ability of housing and real estate construction entrepreneurs in Nepal to respond to changes in the
industry and enhance their operational efficiency.
Page 08
Institutional Theory
11. Page 09
"Efficiency Improvement of the Construction Industry in Nepal" by R. Shrestha and B.
Maharjan (2018) - This study identified the key challenges faced by the construction
industry in Nepal and proposed strategies for enhancing its efficiency, including
improving project management practices and promoting collaboration among
stakeholders.
"Entrepreneurship in the Nepalese Construction Industry" by R. Karki and R. Bhandari
(2019) - This study explored the role of entrepreneurship in the development of the
construction industry in Nepal, highlighting the importance of innovation, risk-taking,
and resource utilization.
"Enhancing the competitiveness of SMEs in the Nepalese construction industry" by M.
Khatiwada (2016) - This study proposed strategies for enhancing the competitiveness of
small and medium-sized enterprises (SMEs) in the construction industry in Nepal,
including improving access to finance, developing human capital, and promoting
innovation.
12. Intrinsic Independent Variables
• Technology adoption
• Adoption of project management tools and
techniques
• Quality management systems
• Innovation
Extrinsic Independent Variables
• Access to finance
• Availability of skilled labor
• Regulatory environment
• Collaboration with other stakeholders
Operational efficiency of housing and
real estate construction entrepreneurs in
Nepal's construction business.
Mediating Variables
• Improved productivity
• Improved quality of work
Independent Variable
Dependent Variable
Page 10
13. Literature review
• Journal papers
• Articles
• Books
• Web search
Development of three
objectives
3. METHODOLOGY Research Methodology
Conceptualization
Construction industry
in Nepal
Operational
efficiency in
construction industry
Construction
entrepreneur in
SME’s
Questionnaire
Development
Expert Validity
Pilot Test
Final Questionnaire
Consultation with 5 experts
• Two Executive member of
construction companies involved
with real estate and housing sector
• Two top management officials of
Nepal Government sector
• One associate professor in
Construction management
13
Page 11
14. 3. METHODOLOGY Research Methodology
Data
collection
Data Collection
Data Analysis
Analysis and
Model by using
SPSS and AMOS
Qualitative approach
(20 maximum
number of
respondent)
Grounded theory
Quantitative
approach
(Maximum 300
number of
respondent)
14
Conclusion and
Recommendation
Page 12
15. Identification and evaluation of effective strategies for enhancing the
operational efficiency and competitiveness of housing and real estate
construction entrepreneurs in Nepal's construction industry.
Page 13
Addressing challenges faced by small and medium-sized enterprises
(SMEs) in Nepal's construction industry
Improving the attraction and retention of skilled labor in Nepal's
construction industry
16. Month 1st week 2nd week 3rd week 4th week
2023
October
-Proposal
defense
-Expert validation conducting with expert
- Make changes in question if needed
-Making changes in
Questionnaire and
factors
2023
December
-Data collection starting -Data collection
starting
2024
February
-Data analysis Data analysis Data analysis Data analysis
2024
December
- - -Final Defense -
Expectation Gantt chart Schedule
2023 October
2nd week
2023, November
4th week
February
2023,December
Data collection start
Proposal defense
Data Analysis
2024,
2024, December
Final Defense
13
Changes in Questionnaire
