Although competitiveness is a widely used word in the construction industry, with past papers modelling competitive behaviour (Drew, 1997; Katsanis, 1995), there is considerable variance in both the definition and context of this term.  
As part of a 3-year multi-institutional research project, referred to as ‘The Big Ideas’, Salford University is using the System Dynamics (SD) methodology to model the competitiveness of construction firms.  The competitiveness of a firm is represented in a ‘competitive index’ (CI), which is an amalgamation of elements that impact upon a firms perceived competitiveness.  By incorporating the CI into a SD model firms will be able to increase their understanding of the possible impact their possible actions may have on their competitiveness.
This paper examines competitiveness definitions, when used as a business idiom, and how this is related to a firm’s capabilities.  The SD methodology has then been used to quantify and model firms’ competitiveness.