| Title |
Determinants of Efficiency Gaps and Productivity Trajectories in the Specialty Construction Industry by Region |
| DOI |
https://dx.doi.org/10.6106/KJCEM.2026.27.3.064 |
| Keywords |
Specialty Construction Industry; Data Envelopment Analysis; Malmquist Productivity Index; Regional Productivity |
| Abstract |
The specialty construction industry faces an unprecedented crisis due to declining orders and rising material costs, necessitating sustainable growth strategies through productivity enhancement. This study empirically analyzed the static efficiency and dynamic productivity changes of the industry from 2020 to 2024 using Data Envelopment Analysis (DEA) and the Malmquist Productivity Index (MPI). To ensure statistical reliability, regions with severe "spatial mismatch" between headquarters and site locations were defined as outliers and controlled to mitigate data distortion. The analysis reveals that specialty construction markets in major metropolitan areas are experiencing "diseconomies of scale," characterized by Decreasing Returns to Scale (DRS). This suggests that the phenomenon stems from structural market saturation rather than individual firm inefficiency. Dynamic analysis indicates a slight decline in Total Factor Productivity; however, decomposition shows that firms have maintained stable internal management efficiency (TECI) through self-reliant efforts despite harsh conditions. Instead, the decline of external environmental factors (TCI), such as institutional shifts and economic downturns, was identified as the decisive cause of productivity stagnation. This study holds academic significance by addressing spatial data distortions to enhance the objectivity of regional productivity evaluations. From a policy and practical perspective, it substantiates that the industry's crisis stems from external constraints rather than internal capacity. Consequently, these findings provide an empirical basis for shifting the policy paradigm from simple protectionism toward structural improvements, such as ensuring appropriate construction costs and optimizing regional supply and demand. |