Value Innovation Circulation of Construction Enterprises: A Chinese Case

Although it is true that the issues of low added value growth and disco responding status in the international construction market for China construction market have been dealt with extensively from different perspectives, studies on the value innovation combined with Deming cycle of TQM are few. This study tackles the issues by analyzing the relative theory to purify the broader concepts of value innovation, then, integrates the Deming cycle of TQM by analyzing the relationship between innovation and TQM. During this retrospect, the combined point is identified to build the value innovation circulation model for China construction industry and the criteria of decision making for the value innovation based on the classic theory of marginal value and the four steps of value innovation. Then, the marginal value in the five conditions is compared. It shows that two necessary and sufficient conditions and one necessary condition about the decision criteria are certificated in the value innovation of China construction industry (VICI). Finally, the study provides the model of the VICI evolvement to explain the running of value innovation circulation, and it also further puts forward the element transition matrix of CIVI to interpret the change of the buyers´ claim in the circulation of the CIVI reasonability and the inner mechanism of value innovation circulation. The study provides useful references for further studies that explore the value innovation used in the China construction industry and those used in other construction industries.