System dynamics model based on evolutionary game theory for quality supervision among construction stakeholders
Abstract
To address the gap, that is, few studies have explored the influence of the participants’ interactions with one another during construction quality supervision, this paper proposes a system dynamics model based on evolutionary game theory to describe the complex and dynamic interactions among tripartite stakeholders in China, including the project owner (PO), construction supervising engineer (CSE), and construction contractor (CC). First, the replicated dynamic equation set is established in terms of expense targets. Second, the equilibrium solutions of the equation set are obtained to test strategy options. The trends of system fluctuations caused by penalty and reward changes are also analyzed. Finally, the stability of the proposed model is improved by integrating a dynamic penalty–reward scenario into the evolutionary strategy of the PO. Simulation results show that: 1) the evolutionary stable strategy does not exist in initial interactions, 2) the degrees of penalty and reward considerably affect the CC’s rate variable, and 3) the dynamic penalty–reward scenario could effectively improve the stability of the proposed model. The unsteadiness of the quality supervision system and the stability control scenario could help in understanding the impact of interactions among stakeholders and provide suggestions for optimizing quality supervision procedures.
Keyword : construction quality, quality supervision, tripartite stakeholders, evolutionary game theory, system dynamics, dynamic penalty–reward
How to Cite
Guo, S., Zhang, P., & Yang, J. (2018). System dynamics model based on evolutionary game theory for quality supervision among construction stakeholders. Journal of Civil Engineering and Management, 24(4), 318-330. https://doi.org/10.3846/jcem.2018.3068
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Cai, L. R. 2011. Multi-person evolutionary game of environment pollution based on system dynamics, Application Research of Computers 28(8): 2982–2986. https://doi.org/10.3969/j.issn.1001-3695.2011.08.050
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Chen, L.; Luo, H. 2014. A BIM-based construction quality management model and its applications, Automation in Construction 46: 64–73. https://doi.org/10.1016/j.autcon.2014.05.009
Chen, P.; Partington, D. 2004. An interpretive comparison of Chinese and Western conceptions of relationships in construction project management work, International Journal of Project Management 22(5): 397–406. https://doi.org/10.1016/j.ijproman.2003.09.005
Cheng, Y.; Chen, Y.; Wei, R.; Luo, H. 2015. Development of a construction quality supervision collaboration system based on a saas private cloud, Journal of Intelligent & Robotic Systems 79(3–4): 613. https://doi.org/10.1007/s10846-014-0108-8
Cheng, M. 2011. Game study on construction safety supervision based on system dynamics, China Safety Science Journal 21(12): 73–81. https://doi.org/10.3969/j.issn.1003-3033.2011.12.011
Dikmen, I.; Birgonul, M. T.; Kiziltas, S. 2005. Strategic use of quality function deployment (QFD) in the construction industry, Building and Environment 40(2): 245–255. https://doi.org/10.1016/j.buildenv.2004.07.001
Doloi, H.; Iyer, K.; Sawhney, A. 2011. Structural equation model for assessing impacts of contractor‘s performance on project success, International Journal of Project Management 29(6): 687–695. https://doi.org/10.1016/j.ijproman.2010.05.007
Duan, W.; Li, C.; Zhang, P.; Chang, Q. 2016. Game modeling and policy research on the system dynamics-based tripartite evolution for government environmental regulation, Cluster Computing 19(4): 2061–2074. https://doi.org/10.1007/s10586-016-0642-1
Eriksson, P. E.; Westerberg, M. 2011. Effects of cooperative procurement procedures on construction project performance: A conceptual framework, International Journal of Project Management 29(2): 197–208. https://doi.org/10.1016/j.ijproman.2010.01.00
Estalaki, S. M.; Abed-Elmdoust, A.; Kerachian, R. 2015. Developing environmental penalty functions for river water quality management: application of evolutionary game theory, Environmental Earth Sciences 73(8): 4201–4213. https://doi.org/10.1007/s12665-014-3706-7
Friedman, D. 1991. Evolutionary games in economics, Econometrica 59(3): 637–666. https://doi.org/10.2307/2938222
Harris, F.; Mccaffer, R. 2013. Modern construction management. John Wiley & Sons.
Hoonakker, P.; Carayon, P.; Loushine, T. 2010. Barriers and benefits of quality management in the construction industry: An empirical study, Total Quality Management & Business Excellence 21(9): 953–969. https://doi.org/10.1080/14783363.2010.487673
Huang, W.; Feng, X.; Zhao, Z. 2008. Establishment and application of project quality management system of the owner, Construction Economy. https://doi.org/10.14181/j.cnki.1002-851x.2008.s2.045
Jha, K. N.; Iyer, K. C. 2006. Critical factors affecting quality performance in construction projects, Total Quality Management & Business Excellence 17(9): 1155–1170. http://dx.doi.org/10.1080/14783360600750444
Kanji, G. K.; Wong, A. 1998. Quality culture in the construction industry, Total Quality Management 9(4–5): 133–140. http://dx.doi.org/10.1080/0954412988758
Khanzadi, M.; Eshtehardian, E.; Chalekaee, A. 2016. A game theory approach for optimum strategy of the owner and contractor in delayed projects, Journal of Civil Engineering and Management 22(8): 1066–1077. http://dx.doi.org/10.3846/13923730.2016.1210222
Li, Y. Z.; Dong, L. F.; Wu, Z. W. 2017. Analysis of an evolutionary game on information sharing of E-government based on system dynamics, Journal of University of Electronic Science & Technology of China. https://doi.org/10.14071/j.1008-8105(2017)01-0035-08
Li, Y.; Wang, X.; Wang, Y. 2016. Using bargaining game theory for risk allocation of public-private partnership projects: Insights from different alternating offer sequences of participants, Journal of Construction Engineering and Management 143(3): 04016102. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001249
Liu, Q.; Li, X.; Hassall, M. 2015. Evolutionary game analysis and stability control scenarios of coal mine safety inspection system in china based on system dynamics, Safety Science 80: 13–22. https://doi.org/10.1016/j.ssci.2015.07.005
Loushine, T. W.; Hoonakker, P. L. T.; Carayon, P.; Smith, M. J. 2006. Quality and safety management in construction, Total Quality Management & Business Excellence 17(9): 1171–1212. http://dx.doi.org/10.1080/14783360600750469
Love, P. E. D.; Li, H.; Irani, Z.; Faniran, O. 2000. Total quality management and the learning organization: A dialogue for change in construction, Construction Management and Economics 18(3): 321–331. https://doi.org/10.1080/014461900370681
Love, P. E.; Irani, Z. 2003. A project management quality cost information system for the construction industry, Information & Management 40(7): 649–661. https://doi.org/10.1016/S0378-7206(02)00094-0
Lu, W.; Huang, G. Q.; Li, H. 2011. Scenarios for applying rfid technology in construction project management, Automation in Construction 20(2): 101–106. https://doi.org/10.1016/j.autcon.2010.09.007
Meng, X. 2012. The effect of relationship management on project performance in construction, International Journal of Project Management 30(2): 188–198. https://doi.org/10.1016/j.ijproman.2011.04.002
Meng, X.; Gallagher, B. 2012. The impact of incentive mechanisms on project performance, International Journal of Project Management 30(3): 352–362. https://doi.org/10.1016/j.ijproman.2011.08.006
Nasirzadeh, F.; Mazandaranizadeh, H.; Rouhparvar, M. 2016. Quantitative risk allocation in construction projects using cooperative-bargaining game theory, International Journal of Civil Engineering 14(3): 161–170. https://doi.org/10.1007/s40999-016-0011-8
O’Brien, J. J. 2013. Construction inspection handbook: Quality assurance/quality control. Springer Science & Business Media.
Parsapour-Moghaddam, P.; Abed-Elmdoust, A.; Kerachian, R. 2015. A heuristic evolutionary game theoretic methodology for conjunctive use of surface and groundwater resources, Water Resources Management 29(11): 3905–3918. https://doi.org/10.1007/s11269-015-1035-6
Pheng, L. S.; Teo, J. A. 2004. Implementing total quality management in construction firms, Journal of Management in Engineering 20(1): 8–15. https://doi.org/10.1061/(ASCE)0742-597X(2004)20:1(8)
Roca, C. P.; Cuesta, J. A.; Sánchez, A. 2009. Evolutionary game theory: Temporal and spatial effects beyond replicator dynamics, Physics of Life Reviews 6(4): 208–249. https://doi.org/10.1016/j.plrev.2009.08.001)
Sacks, R.; Harel, M. 2006. An economic game theory model of subcontractor resource allocation behaviour, Construction Management and Economics 24(8): 869–881. http://dx.doi.org/10.1080/01446190600631856)
San Cristóbal, J. R. 2015. The use of game theory to solve conflicts in the project management and construction industry, International Journal of Information Systems and Project Management 3(2): 43–58. http://dx.doi.org/10.12821/ijispm030203)
Sullivan, K. T. 2011. Quality management programs in the construction industry: Best value compared with other methodologies, Journal of Management in Engineering 27(4): 210–219. http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000054
Taylor, T.; Counsell, J.; Gill, S. 2013. Energy efficiency is more than skin deep: Improving construction quality control in new-build housing using thermography, Energy and Buildings 66: 222–231. https://doi.org/10.1016/j.enbuild.2013.07.051
Talib, F.; Rahman, Z.; Qureshi, M. N. 2011. Analysis of interaction among the barriers to total quality management implementation using interpretive structural modeling approach, Benchmarking: An International Journal 18(4): 563–587. https://doi.org/10.1108/14635771111147641
Tang, W.; Qiang, M.; Duffield, C. F.; Young, D. M.; Lu, Y. 2008. Incentives in the chinese construction industry, Journal of Construction Engineering and Management 134(7): 457–467. http://dx.doi.org/10.1061/(ASCE)0733-9364(2008)134:7(457)
Tchidi, M. F.; He, Z.; Li, Y. B. 2012. Process and quality improvement using six sigma in construction industry, Journal of Civil Engineering and Management 18(2): 158–172. http://dx.doi.org/10.3846/13923730.2012.657411
Tian, Y.; Govindan, K.; Zhu, Q. 2014. A system dynamics model based on evolutionary game theory for green supply chain management diffusion among chinese manufacturers, Journal of Cleaner Production 80: 96–105. https://doi.org/10.1016/j.jclepro.2014.05.076
Toor, S.-U.-R.; Ogunlana, S. O. 2010. Beyond the “iron triangle”: Stakeholder perception of key performance indicators (KPIs) for large-scale public sector development projects, International Journal of Project Management 28(3): 228–236. https://doi.org/10.1016/j.ijproman.2009.05.005
Vlachos, D.; Georgiadis, P.; Iakovou, E. 2007. A system dynamics model for dynamic capacity planning of remanufacturing in closed-loop supply chains, Computers & Operations Research 34(2): 367–394. https://doi.org/10.1016/j.cor.2005.03.005
Wang, H.; Cai, L.; Zeng, W. 2011. Research on the evolutionary game of environmental pollution in system dynamics model, Journal of Experimental & Theoretical Artificial Intelligence 23(1): 39–50. http://dx.doi.org/10.1080/0952813X.2010.506300
Wang, Y.; Ding, H.; Xiao, Y. 2014. Game analysis on rent-seeking behavior of three participants in overseas engineering project, in Seventh International Joint Conference on Computational Sciences and Optimization, 4–6 July 2014, Beijing, China, 79–82. https://doi.org/10.1109/CSO.2014.24
Wang, X.; Huang, J. 2006. The relationships between key stakeholders’ project performance and project success: Perceptions of Chinese construction supervising engineers, International Journal of Project Management 24(3): 253–260. https://doi.org/10.1016/j.ijproman.2005.11.006
Weibull, J. W. 1997. Evolutionary game theory. MIT press.
Wong, A. 1999. Total quality management in the construction industry in Hong Kong: A supply chain management perspective, Total Quality Management 10(2): 199–208. http://dx.doi.org/10.1080/0954412997956
Zhang, C. 2016. Small and medium-sized enterprises closed-loop supply chain finance risk based on evolutionary game theory and system dynamics, Journal of Shanghai Jiaotong University (Science) 21(3): 355–364. http://dx.doi.org/10.1007/s12204-016-1733-0
Alzahrani, J. I.; Emsley, M. W. 2013. The impact of contractors’ attributes on construction project success: A post construction evaluation, International Journal of Project Management 31(2): 313–322. https://doi.org/10.1016/j.ijproman.2012.06.006
Arditi, D.; Gunaydin, H. M. 1997. Total quality management in the construction process, International Journal of Project Management 15(4): 235–243. https://doi.org/10.1016/S0263-7863(96)00076-2
Bosché, F. 2010. Automated recognition of 3d cad model objects in laser scans and calculation of as-built dimensions for dimensional compliance control in construction, Advanced Engineering Informatics 24(1): 107–118. https://doi.org/10.1016/j.aei.2009.08.006
Cai, L. R. 2011. Multi-person evolutionary game of environment pollution based on system dynamics, Application Research of Computers 28(8): 2982–2986. https://doi.org/10.3969/j.issn.1001-3695.2011.08.050
Chan, A. P. C.; Scott, D.; Chan, A. P. L. 2004. Factors affecting the success of a construction project, Journal of Construction Engineering and Management 130(1): 153–155. https://doi.org/10.1061/(ASCE)0733-9364(2004)130:1(153)
Chen, L.; Luo, H. 2014. A BIM-based construction quality management model and its applications, Automation in Construction 46: 64–73. https://doi.org/10.1016/j.autcon.2014.05.009
Chen, P.; Partington, D. 2004. An interpretive comparison of Chinese and Western conceptions of relationships in construction project management work, International Journal of Project Management 22(5): 397–406. https://doi.org/10.1016/j.ijproman.2003.09.005
Cheng, Y.; Chen, Y.; Wei, R.; Luo, H. 2015. Development of a construction quality supervision collaboration system based on a saas private cloud, Journal of Intelligent & Robotic Systems 79(3–4): 613. https://doi.org/10.1007/s10846-014-0108-8
Cheng, M. 2011. Game study on construction safety supervision based on system dynamics, China Safety Science Journal 21(12): 73–81. https://doi.org/10.3969/j.issn.1003-3033.2011.12.011
Dikmen, I.; Birgonul, M. T.; Kiziltas, S. 2005. Strategic use of quality function deployment (QFD) in the construction industry, Building and Environment 40(2): 245–255. https://doi.org/10.1016/j.buildenv.2004.07.001
Doloi, H.; Iyer, K.; Sawhney, A. 2011. Structural equation model for assessing impacts of contractor‘s performance on project success, International Journal of Project Management 29(6): 687–695. https://doi.org/10.1016/j.ijproman.2010.05.007
Duan, W.; Li, C.; Zhang, P.; Chang, Q. 2016. Game modeling and policy research on the system dynamics-based tripartite evolution for government environmental regulation, Cluster Computing 19(4): 2061–2074. https://doi.org/10.1007/s10586-016-0642-1
Eriksson, P. E.; Westerberg, M. 2011. Effects of cooperative procurement procedures on construction project performance: A conceptual framework, International Journal of Project Management 29(2): 197–208. https://doi.org/10.1016/j.ijproman.2010.01.00
Estalaki, S. M.; Abed-Elmdoust, A.; Kerachian, R. 2015. Developing environmental penalty functions for river water quality management: application of evolutionary game theory, Environmental Earth Sciences 73(8): 4201–4213. https://doi.org/10.1007/s12665-014-3706-7
Friedman, D. 1991. Evolutionary games in economics, Econometrica 59(3): 637–666. https://doi.org/10.2307/2938222
Harris, F.; Mccaffer, R. 2013. Modern construction management. John Wiley & Sons.
Hoonakker, P.; Carayon, P.; Loushine, T. 2010. Barriers and benefits of quality management in the construction industry: An empirical study, Total Quality Management & Business Excellence 21(9): 953–969. https://doi.org/10.1080/14783363.2010.487673
Huang, W.; Feng, X.; Zhao, Z. 2008. Establishment and application of project quality management system of the owner, Construction Economy. https://doi.org/10.14181/j.cnki.1002-851x.2008.s2.045
Jha, K. N.; Iyer, K. C. 2006. Critical factors affecting quality performance in construction projects, Total Quality Management & Business Excellence 17(9): 1155–1170. http://dx.doi.org/10.1080/14783360600750444
Kanji, G. K.; Wong, A. 1998. Quality culture in the construction industry, Total Quality Management 9(4–5): 133–140. http://dx.doi.org/10.1080/0954412988758
Khanzadi, M.; Eshtehardian, E.; Chalekaee, A. 2016. A game theory approach for optimum strategy of the owner and contractor in delayed projects, Journal of Civil Engineering and Management 22(8): 1066–1077. http://dx.doi.org/10.3846/13923730.2016.1210222
Li, Y. Z.; Dong, L. F.; Wu, Z. W. 2017. Analysis of an evolutionary game on information sharing of E-government based on system dynamics, Journal of University of Electronic Science & Technology of China. https://doi.org/10.14071/j.1008-8105(2017)01-0035-08
Li, Y.; Wang, X.; Wang, Y. 2016. Using bargaining game theory for risk allocation of public-private partnership projects: Insights from different alternating offer sequences of participants, Journal of Construction Engineering and Management 143(3): 04016102. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001249
Liu, Q.; Li, X.; Hassall, M. 2015. Evolutionary game analysis and stability control scenarios of coal mine safety inspection system in china based on system dynamics, Safety Science 80: 13–22. https://doi.org/10.1016/j.ssci.2015.07.005
Loushine, T. W.; Hoonakker, P. L. T.; Carayon, P.; Smith, M. J. 2006. Quality and safety management in construction, Total Quality Management & Business Excellence 17(9): 1171–1212. http://dx.doi.org/10.1080/14783360600750469
Love, P. E. D.; Li, H.; Irani, Z.; Faniran, O. 2000. Total quality management and the learning organization: A dialogue for change in construction, Construction Management and Economics 18(3): 321–331. https://doi.org/10.1080/014461900370681
Love, P. E.; Irani, Z. 2003. A project management quality cost information system for the construction industry, Information & Management 40(7): 649–661. https://doi.org/10.1016/S0378-7206(02)00094-0
Lu, W.; Huang, G. Q.; Li, H. 2011. Scenarios for applying rfid technology in construction project management, Automation in Construction 20(2): 101–106. https://doi.org/10.1016/j.autcon.2010.09.007
Meng, X. 2012. The effect of relationship management on project performance in construction, International Journal of Project Management 30(2): 188–198. https://doi.org/10.1016/j.ijproman.2011.04.002
Meng, X.; Gallagher, B. 2012. The impact of incentive mechanisms on project performance, International Journal of Project Management 30(3): 352–362. https://doi.org/10.1016/j.ijproman.2011.08.006
Nasirzadeh, F.; Mazandaranizadeh, H.; Rouhparvar, M. 2016. Quantitative risk allocation in construction projects using cooperative-bargaining game theory, International Journal of Civil Engineering 14(3): 161–170. https://doi.org/10.1007/s40999-016-0011-8
O’Brien, J. J. 2013. Construction inspection handbook: Quality assurance/quality control. Springer Science & Business Media.
Parsapour-Moghaddam, P.; Abed-Elmdoust, A.; Kerachian, R. 2015. A heuristic evolutionary game theoretic methodology for conjunctive use of surface and groundwater resources, Water Resources Management 29(11): 3905–3918. https://doi.org/10.1007/s11269-015-1035-6
Pheng, L. S.; Teo, J. A. 2004. Implementing total quality management in construction firms, Journal of Management in Engineering 20(1): 8–15. https://doi.org/10.1061/(ASCE)0742-597X(2004)20:1(8)
Roca, C. P.; Cuesta, J. A.; Sánchez, A. 2009. Evolutionary game theory: Temporal and spatial effects beyond replicator dynamics, Physics of Life Reviews 6(4): 208–249. https://doi.org/10.1016/j.plrev.2009.08.001)
Sacks, R.; Harel, M. 2006. An economic game theory model of subcontractor resource allocation behaviour, Construction Management and Economics 24(8): 869–881. http://dx.doi.org/10.1080/01446190600631856)
San Cristóbal, J. R. 2015. The use of game theory to solve conflicts in the project management and construction industry, International Journal of Information Systems and Project Management 3(2): 43–58. http://dx.doi.org/10.12821/ijispm030203)
Sullivan, K. T. 2011. Quality management programs in the construction industry: Best value compared with other methodologies, Journal of Management in Engineering 27(4): 210–219. http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000054
Taylor, T.; Counsell, J.; Gill, S. 2013. Energy efficiency is more than skin deep: Improving construction quality control in new-build housing using thermography, Energy and Buildings 66: 222–231. https://doi.org/10.1016/j.enbuild.2013.07.051
Talib, F.; Rahman, Z.; Qureshi, M. N. 2011. Analysis of interaction among the barriers to total quality management implementation using interpretive structural modeling approach, Benchmarking: An International Journal 18(4): 563–587. https://doi.org/10.1108/14635771111147641
Tang, W.; Qiang, M.; Duffield, C. F.; Young, D. M.; Lu, Y. 2008. Incentives in the chinese construction industry, Journal of Construction Engineering and Management 134(7): 457–467. http://dx.doi.org/10.1061/(ASCE)0733-9364(2008)134:7(457)
Tchidi, M. F.; He, Z.; Li, Y. B. 2012. Process and quality improvement using six sigma in construction industry, Journal of Civil Engineering and Management 18(2): 158–172. http://dx.doi.org/10.3846/13923730.2012.657411
Tian, Y.; Govindan, K.; Zhu, Q. 2014. A system dynamics model based on evolutionary game theory for green supply chain management diffusion among chinese manufacturers, Journal of Cleaner Production 80: 96–105. https://doi.org/10.1016/j.jclepro.2014.05.076
Toor, S.-U.-R.; Ogunlana, S. O. 2010. Beyond the “iron triangle”: Stakeholder perception of key performance indicators (KPIs) for large-scale public sector development projects, International Journal of Project Management 28(3): 228–236. https://doi.org/10.1016/j.ijproman.2009.05.005
Vlachos, D.; Georgiadis, P.; Iakovou, E. 2007. A system dynamics model for dynamic capacity planning of remanufacturing in closed-loop supply chains, Computers & Operations Research 34(2): 367–394. https://doi.org/10.1016/j.cor.2005.03.005
Wang, H.; Cai, L.; Zeng, W. 2011. Research on the evolutionary game of environmental pollution in system dynamics model, Journal of Experimental & Theoretical Artificial Intelligence 23(1): 39–50. http://dx.doi.org/10.1080/0952813X.2010.506300
Wang, Y.; Ding, H.; Xiao, Y. 2014. Game analysis on rent-seeking behavior of three participants in overseas engineering project, in Seventh International Joint Conference on Computational Sciences and Optimization, 4–6 July 2014, Beijing, China, 79–82. https://doi.org/10.1109/CSO.2014.24
Wang, X.; Huang, J. 2006. The relationships between key stakeholders’ project performance and project success: Perceptions of Chinese construction supervising engineers, International Journal of Project Management 24(3): 253–260. https://doi.org/10.1016/j.ijproman.2005.11.006
Weibull, J. W. 1997. Evolutionary game theory. MIT press.
Wong, A. 1999. Total quality management in the construction industry in Hong Kong: A supply chain management perspective, Total Quality Management 10(2): 199–208. http://dx.doi.org/10.1080/0954412997956
Zhang, C. 2016. Small and medium-sized enterprises closed-loop supply chain finance risk based on evolutionary game theory and system dynamics, Journal of Shanghai Jiaotong University (Science) 21(3): 355–364. http://dx.doi.org/10.1007/s12204-016-1733-0