Modeling COVID-19 impacts and response strategies in the construction industry: PLS-SEM approach

• Main Authors: Radzi, Afiqah R., Rahman, Rahimi A., Almutairi, Saud
• Format: Article
• Published: MDPI 2022
• Subjects: Q Science (General); TK Electrical engineering. Electronics Nuclear engineering
• Online Access: http://eprints.um.edu.my/42849/
• Institution: Universiti Malaya

Policymakers are developing response strategies to reduce the impacts of COVID-19. However, developing response strategies without considering their relationships with the impacts of COVID-19 is ineffective. This study aims to model the causal relationships between COVID-19 impacts and response strategies in the construction industry, using Malaysia as a case study. To achieve this, a systematic literature review and semi-structured interviews with forty industry professionals were conducted, yielding 12 impacts and 22 response strategies. The impacts and strategies were inserted into a survey, and 107 valid responses were received. Exploratory factor analysis (EFA) was conducted to group the impacts and strategies. Then, partial least-squares structural equation modeling (PLS-SEM) was employed to identify the causal relationship between the impacts and strategies. The EFA results indicate that the underlying impacts are project- or material-related, and the underlying strategies are market stability and financial aid, supply chain and project support, and information and legislation. The PLS-SEM results indicate that supply chain and project support are required to address material-related impacts, and market stability and financial aid are required to address project-related impacts. This is the first paper that models the relationships between COVID-19 impacts and response strategies in the construction industry.