The application of social network theory on small and medium private housing developers in Malaysia
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Date
2009
Authors
Muhammad Hijas Sahari
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Abstract
Malaysian Private Housing Developers (PHDs) have been the dominant suppliers of housing in the country and a key industry partner to the government’s housing program in providing adequate and affordable housing to the citizens. The housing sector has been identified to have link with more than 100 related industries.
Despite the importance of the network formation, this study looks into the life of the company (i. e. before, at the start up and currently) when appointing the right consultants, contractors and suppliers (CCS) from social network perspective. Social Network Theory was used as a theoretical framework. The main respondents were small and medium private housing developers. 600 postal surveys were distributed, only 54 were returned. Findings showed that before PHDs start-up the business, their family, relatives and friends had help PHDs in providing land and finance. While at the start-up and on-going business, individuals from the same industries, bank officers, government officers and professional bodies turn to be very important people to PHDs. Most of the PHDs’ families, relatives and close friends work with construction firms and most of their acquaintances work with material suppliers. The reason for PHDs to have linkages with competitors is to get information on marketing. PHDs maintain their networking with acquaintances to support them with information related to local authorities. It is important to note that PHDs prefer to select consultants and contractors based on social factors but use non-social factors in selecting material supplier. Before start-up, PHDs get more advice from family, relatives and friends before selecting the most suitable consultants, contractors and material suppliers. While at the start-up, PHDs get more advice from individuals from the same industry and at the current phases, PHDs also get advice from individuals from the same industry and their acquaintances. Lastly, personal trust is more on family, relatives and close friends in providing information related to CCS.
Description
Master
Keywords
Housing, Building and Planning , Social network , Private housing developers