Empirical research on competitiveness factors: Analysis of real estate industry of Beijing and Tianjin

Abstract

Purpose

The purpose of this paper is to develop a model to analyze the interactions among the competitiveness factors of the real estate industry on the basis of Porter's Diamond Model. The model provides insights into the relationship between these factors in the context of the Beijing and Tianjin real estate industries.

Design/methodology/approach

Based on Porter's Diamond Model, this paper establishes the competitiveness factors model and divides the factors into four key categories. (i.e. productivity element, demand constraint, the strategy or structure of relevant and supportive industry and corporation, and horizontal competition). After relevant indices are picked up in each category, the paper utilizes structural equation modeling to analyze the contribution of each factor on competitiveness of real estate industry. Data are collected from Beijing and Tianjin in China and the model is practiced in the context of the real estate industry of the two cities.

Findings

Supported by empirical evidence, this study finds out that related industries have the most significant influence on competitiveness of real estate industry and the second important is demand factors. Based on these, four pieces of suggestion are given to improve the competitiveness of real estate industry combining with the condition of Beijing and Tianjin in this paper.

Originality/value

This research builds a conceptual model based on Porter's Diamond model to provide a much more comprehensive understanding of the interactions between competitiveness factors of real estate industry, and introduces structural equation modeling to quantitatively analyze the contribution of each factor to competitiveness.

Citation

Sun, H., Fan, Z., Zhou, Y. and Shi, Y. (2010), "Empirical research on competitiveness factors: Analysis of real estate industry of Beijing and Tianjin", Engineering, Construction and Architectural Management, Vol. 17 No. 3, pp. 240-251. https://doi.org/10.1108/09699981011038042