Statistical Insights into Construction Industry Diversification: A Pathway for Sustainable Growth of Highway Enterprises in China
This study statistically evaluates the suitability of the construction industry as a diversification target for infrastructure corporations by integrating Data Envelopment Analysis (DEA-BCC), panel data regression, and entropy-based diversification metrics. Twenty actively operating highway companie...
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MDPI AG
2025-06-01
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| Online Access: | https://www.mdpi.com/2075-5309/15/12/1974 |
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| author | Guandong Liu Haicheng Xu Ce Gao |
| author_facet | Guandong Liu Haicheng Xu Ce Gao |
| author_sort | Guandong Liu |
| collection | DOAJ |
| description | This study statistically evaluates the suitability of the construction industry as a diversification target for infrastructure corporations by integrating Data Envelopment Analysis (DEA-BCC), panel data regression, and entropy-based diversification metrics. Twenty actively operating highway companies in China were selected, and their annual reports from 2011 to 2021 were meticulously reviewed. This study quantifies the impact of diversification strategies on firm performance, resource allocation efficiency, and X-inefficiency. The findings reveal that strategic diversification into construction-related activities enhances operational efficiency and mitigates X-inefficiency, aligning with Penrose’s theory of surplus resource deployment. The study contributes a robust analytical framework for assessing diversification in the infrastructure sectors, offering actionable insights for corporations considering expansion into construction. The results underscore the importance of organizational optimization and business capability in reducing X-inefficiency and enhancing sustainable development, particularly in maturing markets where traditional growth avenues are limited. |
| format | Article |
| id | doaj-art-aa8b09dbd75d495586d5a6e7cfa4fa50 |
| institution | Matheson Library |
| issn | 2075-5309 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Buildings |
| spelling | doaj-art-aa8b09dbd75d495586d5a6e7cfa4fa502025-06-25T13:35:36ZengMDPI AGBuildings2075-53092025-06-011512197410.3390/buildings15121974Statistical Insights into Construction Industry Diversification: A Pathway for Sustainable Growth of Highway Enterprises in ChinaGuandong Liu0Haicheng Xu1Ce Gao2College of Transportation Engineering, Chang’an University, Xi’an 710064, ChinaSchool of Economics and Management, Chang’an University, Xi’an 710064, ChinaSchool of Civil Engineering and Architecture, Guangzhou City Construction College, Guangzhou 510000, ChinaThis study statistically evaluates the suitability of the construction industry as a diversification target for infrastructure corporations by integrating Data Envelopment Analysis (DEA-BCC), panel data regression, and entropy-based diversification metrics. Twenty actively operating highway companies in China were selected, and their annual reports from 2011 to 2021 were meticulously reviewed. This study quantifies the impact of diversification strategies on firm performance, resource allocation efficiency, and X-inefficiency. The findings reveal that strategic diversification into construction-related activities enhances operational efficiency and mitigates X-inefficiency, aligning with Penrose’s theory of surplus resource deployment. The study contributes a robust analytical framework for assessing diversification in the infrastructure sectors, offering actionable insights for corporations considering expansion into construction. The results underscore the importance of organizational optimization and business capability in reducing X-inefficiency and enhancing sustainable development, particularly in maturing markets where traditional growth avenues are limited.https://www.mdpi.com/2075-5309/15/12/1974statistical analysisdiversification strategyconstruction industrysustainable developmentcorporate management |
| spellingShingle | Guandong Liu Haicheng Xu Ce Gao Statistical Insights into Construction Industry Diversification: A Pathway for Sustainable Growth of Highway Enterprises in China Buildings statistical analysis diversification strategy construction industry sustainable development corporate management |
| title | Statistical Insights into Construction Industry Diversification: A Pathway for Sustainable Growth of Highway Enterprises in China |
| title_full | Statistical Insights into Construction Industry Diversification: A Pathway for Sustainable Growth of Highway Enterprises in China |
| title_fullStr | Statistical Insights into Construction Industry Diversification: A Pathway for Sustainable Growth of Highway Enterprises in China |
| title_full_unstemmed | Statistical Insights into Construction Industry Diversification: A Pathway for Sustainable Growth of Highway Enterprises in China |
| title_short | Statistical Insights into Construction Industry Diversification: A Pathway for Sustainable Growth of Highway Enterprises in China |
| title_sort | statistical insights into construction industry diversification a pathway for sustainable growth of highway enterprises in china |
| topic | statistical analysis diversification strategy construction industry sustainable development corporate management |
| url | https://www.mdpi.com/2075-5309/15/12/1974 |
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