Diagnosis of the Ability of Value Innovation and its Stochastic Temptation: Evidenced from China Construction Industry

During the transform periods of China construction industry, the government mainly regulates and integrates the home construction market via the control of enterprise\´s quality. However, there are a few good effects for the added value and the continual growth of construction companies in the international construction market, especially the being "double dilemma" of the building industry in China construction industry, so, it is necessary to rebuild and re-categorize the market to realize the growth value based on the new concept of value innovation of construction products. In view of the relative literatures, we find that researchers focus on the temptation of other fields non on construction project, further China construction industry. Standing on the concept, this study has briefly described the transform from traditional market to the niche market, developed the Temptation of Institution Economic into construction project and constructed the Stochastic Temptation model of project to value innovation for construction companies. Through the diagnosis of Stochastic Temptation model of project, the relative risk range and the minimum stochastic risk have been identified. The study show that this model could make construction enterprises revolving in the construction projects pursuing the value innovation, sensibly avoid the stochastic temptation and maximize the limited resource investment of project to acquire the best benefits. Form the characteristic of quality government of China construction industry, this study make General Contract, Special Subcontract and Labor service as three disjoint sets, and based on this idea, the market contain curve of value innovation for China Construction Enterprises also has been built. The quantification of market contain curve has been confirmed as a three cubed curve, and the corresponding curve of value innovation also has been approved, which is showed that its movement are the converse double wave crests. Finally, this - - study provides mathematical forms to calculate the corresponding market contain capability and the ability of value innovation for China construction enterprises. It is further showed that under the current reform background and quality government of China construction industry, these models could take on the load of forewarning diagnosis of the contain capability and its value innovation for China construction market.