No full-text available
To read the full-text of this research,
you can request a copy directly from the authors.
Competition Environment, Strategy, and Performance in the Hong Kong Construction Industry
Abstract
Given a changing competition environment, strategic management has become of essential importance to construction firms. Effective strategy enables construction firms to match their activities to the changing environment and achieve superior performance in competition. Therefore, there is a need for studying contractors’ competitive strategies. This paper does that in relation to the Hong Kong construction industry. The impact of competition environment on contractor performance, and the relationship between competitive strategy and performance are examined by a questionnaire survey. The findings show that competition environment has a great impact on contractor performance, and four generic competitive strategies have been applied by contractors. Contractors can indeed be classified into four groups according to their different strategic orientations: prospectors, analyzers, defenders, and reactors. As a result, the strategies that contractors should pursue in the local construction industry can be identified with confidence.
... As noted in the works of Tan et al. (2012Tan et al. ( , 2017, Lee and Sawang (2016), Manley and Chen (2016) and Mooi and Sarstedt (2011), assessment of relationship clusters and attachment to teams and groups as well as evaluation of influence of variables on constructs have largely and traditionally adopted a positivist approach using a deductive approach in the research design. The theoretical position and crux of this study is to evaluate the relationship clusters in project teams, groups and organization and the performance of conflict management strategies across these relationships based on the four attributes on relationship following the attachment theory and using cluster analysis. ...
... The theoretical position and crux of this study is to evaluate the relationship clusters in project teams, groups and organization and the performance of conflict management strategies across these relationships based on the four attributes on relationship following the attachment theory and using cluster analysis. Based on the shared attributes of this study with previous studies (see Tan et al., 2012Tan et al., , 2017Lee and Sawang, 2016;Manley and Chen, 2016;Mooi and Sarstedt, 2011), the positivist approach was adopted to ensure triangulation and theoretical validity. In ensuring consistency, the study further adopted quantitative paradigm using questionnaire survey largely due to suitability and appropriateness for testing prior formulations, testing theories and objective evaluations among constructs and variables that is consistent with the positivist paradigm (Fellows and Liu, 2008;Kwofie et al., 2015a, b). ...
... The questionnaire survey elicited responses from these project teams, groups, organisations and participants on the 52 on-going projects in Ghana to ascertain the cluster of relationship prevalent in construction project delivery and the performance of conflict management strategies in these relationships in the Ghanaian construction industry. This approach can be affirmed to be consistent with Tan et al. (2012Tan et al. ( , 2017, Manley and Chen (2016) and Mooi and Sarstedt (2011) primarily due to it suitability to objectively elicit opinions in the assessment of the simultaneous impact of given characteristics when occurring in specific combinations to determine a cluster attribute. Amaratunga et al. (2002) also explained that, this approach is appropriate for advancing a new perspective to an existing knowledge as is the case of the aim of the study in the area of relationship clusters and conflict management strategies. ...
Purpose
The link between relationship typologies and effectiveness of conflict resolution approaches remains to be tested despite its significance in conflict management in construction project delivery. By using the four relationships attributes based on the group attachment theory, the purpose of the study was to explore the cluster of relationships among project teams and organisations and the performance of conflict management strategies across these clusters in the Ghanaian construction industry.
Design/methodology/approach
Using a deductive questionnaire survey in the Ghanaian construction industry, a total of 137 responses were gathered and analyzed using cluster analysis, mean scores and ANOVA to reveal the relationship clusters and performance of conflict management strategies across these clusters.
Findings
The results revealed eight relationship clusters that exist among project teams and organisations with distinct influence of roles & tasks function, cognition, emotions and behavior attributes across the relationship clusters. In the aspect of the effectiveness of conflict management strategies, it was noted that the performance of these strategies were significantly different across the groups. For instance, integrating as a conflict management strategy was deemed to be effective in resolving conflict in unitary, adversarial, pluralist, mutuality, collaborative and partnering relationship clusters. In the case of coopetitive and coercive relationships, the performance of integrating as a conflict management strategy was less effective. This study thus has empirically proved that, different relationship clusters of teams and organizations exist within the Ghanaian construction industry, and that they perform different roles & tasks functions, cognition, emotions and behavioural attributes in their formation. Additionally, the performance effectiveness of conflict management strategies differed across the relationship clusters.
Originality/value
By aligning the relationship attributes to the dynamics of relationship clusters experienced in project teams and organisations, relationship quality, suitability and effectiveness of conflict management strategies can be optimized. The findings can inform project teams and stakeholders to develop fit-for-purpose relationship attributes among teams and organisations to enhance team effectiveness, relationship quality and conflict management in the industry.
... Beard and Dess [30] claim that comparative strategies are essential for analysing profit margins and performance heterogeneities in organisations. A competitive strategy's impact on the performance of construction organisations has gained attention [31][32][33]. According to Li and Ling [34], architecture, engineering, and construction companies in China employ fundamental strategies for their companies to be profitable. ...
... Construction companies are experiencing great difficulties around staying in business and competing due to the highly competitive environment of the construction industry [33,55]. Accordingly, the value of measuring organisational performance has become evident. ...
... The primary goal of the implementation of competitive strategies is to enable an organisation to attain enhanced performance and a competitive edge over others. In strategic management, however, there is no one-size-fits-all strategy, because no one strategy can sustain competitiveness in a company forever or under all conditions [33]. Based on empirically explored hypotheses associating competitive strategies and organisational performance in the New Zealand construction sector, this study explored financial and nonfinancial variables to provide insight into what factors influence competitive strategies and business performance. ...
The characteristics, strategies, capabilities, and resources of an organisation contribute to its competitive advantage and superior performance. A model to explain performance differences in the New Zealand context will be developed by examining the relationships between construction organisational performance and these constructs. The information was obtained using a questionnaire survey. A total of 101 organisations participated in the research. For the instrument used to elicit data, the literature was used to identify indicators associated with characteristics of organisational strategies for competition, resources and capabilities, and performance of the organisation. Analyses of descriptive, parametric, and linear regression were conducted to examine the effects of these constructs on organisational performance. The results suggest that organisational characteristics are significantly associated with internal business processes, learning, and the growth perspectives of an organisation’s performance, while competitive strategies, resources, and capability perspectives are significantly related to financial perspectives. As a result, these findings add to the current discourse regarding organisational performance differentials in the construction industry. The study demonstrates that it is critical to take into account the different organisational characteristics that are implemented within organisations and how they influence organisational performance beyond rational processes.
... This is followed by measured benchmarks, merger and realistic timescale for adoption. [36], [37], [38], [39], [40], [43], [46], [47], [48] Benchmarking of best practice [37], [39] Change Management [34], [43] Communicating benefits [34], [38], [39], [40], [47] Communicating with vendors [42], [47], [48] Development of government policies [35], [37], [38], [40], [43], [45], [46], [47], [48] Evaluating Project Delivery Method [44] Example projects [37] Financial incentives for AI adoption [36], [45] Industry leadership [38] Legal contracts and property rights [38], [41], [43], [48] Low-cost loans and subsidies from government and financial institutions [36], [37], [42], [44], [45], [46], [47], [48] Mandatory AI policies and regulations [36], [37], [38], [45], [46], [47] Measured benchmarks [34] Merger [33] Provision of trail usage [40], [42], [45], [46] Public awareness and initiative [36], [37], [42], [44], [45], [46], [47] Realistic timescale for adoption [34] Senior Leadership Commitment [34], [36], [44], [48] Sharing of knowledge of AI technologies [35], [46] Standardisation of AI practice in the construction industry [33], [35], [37], [38], [39], [43], [46], [47] Training and skills acquisition of personnel [33], [34], [35], [37], [39], [40], [43], [44], [46], [47], [48] ...
... This is followed by measured benchmarks, merger and realistic timescale for adoption. [36], [37], [38], [39], [40], [43], [46], [47], [48] Benchmarking of best practice [37], [39] Change Management [34], [43] Communicating benefits [34], [38], [39], [40], [47] Communicating with vendors [42], [47], [48] Development of government policies [35], [37], [38], [40], [43], [45], [46], [47], [48] Evaluating Project Delivery Method [44] Example projects [37] Financial incentives for AI adoption [36], [45] Industry leadership [38] Legal contracts and property rights [38], [41], [43], [48] Low-cost loans and subsidies from government and financial institutions [36], [37], [42], [44], [45], [46], [47], [48] Mandatory AI policies and regulations [36], [37], [38], [45], [46], [47] Measured benchmarks [34] Merger [33] Provision of trail usage [40], [42], [45], [46] Public awareness and initiative [36], [37], [42], [44], [45], [46], [47] Realistic timescale for adoption [34] Senior Leadership Commitment [34], [36], [44], [48] Sharing of knowledge of AI technologies [35], [46] Standardisation of AI practice in the construction industry [33], [35], [37], [38], [39], [43], [46], [47] Training and skills acquisition of personnel [33], [34], [35], [37], [39], [40], [43], [44], [46], [47], [48] ...
... This is followed by measured benchmarks, merger and realistic timescale for adoption. [36], [37], [38], [39], [40], [43], [46], [47], [48] Benchmarking of best practice [37], [39] Change Management [34], [43] Communicating benefits [34], [38], [39], [40], [47] Communicating with vendors [42], [47], [48] Development of government policies [35], [37], [38], [40], [43], [45], [46], [47], [48] Evaluating Project Delivery Method [44] Example projects [37] Financial incentives for AI adoption [36], [45] Industry leadership [38] Legal contracts and property rights [38], [41], [43], [48] Low-cost loans and subsidies from government and financial institutions [36], [37], [42], [44], [45], [46], [47], [48] Mandatory AI policies and regulations [36], [37], [38], [45], [46], [47] Measured benchmarks [34] Merger [33] Provision of trail usage [40], [42], [45], [46] Public awareness and initiative [36], [37], [42], [44], [45], [46], [47] Realistic timescale for adoption [34] Senior Leadership Commitment [34], [36], [44], [48] Sharing of knowledge of AI technologies [35], [46] Standardisation of AI practice in the construction industry [33], [35], [37], [38], [39], [43], [46], [47] Training and skills acquisition of personnel [33], [34], [35], [37], [39], [40], [43], [44], [46], [47], [48] ...
The construction industry has seen an increase in Artificial Intelligence(AI) in recent years, a paradigm shift in many industries. It puts under pressure for technological advancement. Therefore, AI is under great attention in the construction industry as a new strategic paver. This paper adopts a systematic literature review (SLR) approach and followed the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines to observe and understand the influencing factors and strategies for AI adoption. The SLR for AI-related research carried out between 2010 and 2020. Data was collected from ASCE Journals, Emerald Insight, Elsevier ScienceDirect, Engineering Village, Google Scholar, ICE virtual library, IOPscience, IEEE Xplore, ScienceDirect, Scopus, SpringerLink and Taylor & Francis. The paper identifies and classifies the new developments in AI research, making its implementation and adoption a reality in the construction industry. This review has the potential for construction industry stakeholders, especially those in developing countries, to utilise the accumulated evidence from selected systematic reviews to enable the usage of AI for infrastructure development
... Historically, construction industry faced unstable environments and battled with increased competition, both in developing and developed countries (Tan et al., 2012). Consequently, "competitive advantage" and its contributing factors continue to receive attention in construction management studies (Tan et al., 2012;Oyewobi et al., 2016). ...
... Historically, construction industry faced unstable environments and battled with increased competition, both in developing and developed countries (Tan et al., 2012). Consequently, "competitive advantage" and its contributing factors continue to receive attention in construction management studies (Tan et al., 2012;Oyewobi et al., 2016). Competitive advantage is an advantage over competitors by offering consumers greater value, either utilising lower prices or providing greater befits and service that justifies higher prices (Porter, 1985). ...
... Competitive strategies, organisational characteristics, management strategies, total quality management, knowledge management, and human resources management are min managerial determinants of organisational performance. Competitive advantage has a positive relationship with competitive strategies (Porter, 1980;Miller & Cardinal, 1994;Tan et al., 2012, Oyewobi et al., 2016, strategic management (Dikmen et al., 2005;Isik et al., 2009), total quality management (Lee et al., 2011;Duh et al., 2012;Panuwatwanich & Nguyen, 2017), knowledge management (Bakar et al., 2016;ElFar et al., 2017), and human resource management (Zhai et al., 2013). The business environment positively influences competitive strategies and moderates its relationship with a competitive advantage (Nandakumar et al., 2010;Oyewobi et al., 2017). ...
There are certain factors within and outside organisations that can influence organisational performance. The presence or absence of those factors impacts organisations' ability to gain a competitive advantage over their rivals. As a risk-prone business sector, construction organisations need to identify those determinants that could ensure their superior performance. To date, global studies have identified many determinants that govern the performance of construction organisations. However, few of these are known in New Zealand, and their weightings could be useful in forming business strategies. Therefore, this paper measures the significance of identified determinants of construction organisational performance. A total of 100 professionals participated in a questionnaire survey administered using a snowball sampling technique. The Relative Importance Index approach was used to rank the determinants according to their importance to organisational performance. Five main determinants were significant and ranked highly, with more than 80% relative importance index scores. These determinants are resources and capabilities, competitive strategies, organisational characteristics, environmental factors, and customers relationship management. This finding provides a useful benchmark for future research on the significance of some determinants that could explain the performance differentials experienced in the construction domain in New Zealand
... Kale and Arditi 2002;Claver et al. 2003). For instance, Tan et al. (2012) used strategic group analysis to classify construction firms in Hong Kong by considering the competitive environment, strategy and performance. Budayan (2008) clustered Turkish construction firm based on their strategy and competencies/resources. ...
... More recently, Tan et al. (2012) explored the competitive environment, strategy and performance of construction organizations in the Hong Kong construction industry. The study adopted Porter's (1980) generic typology of business strategies and classified organizations based on their backgrounds and strategic orientations. ...
... The study adopted Porter's (1980) generic typology of business strategies and classified organizations based on their backgrounds and strategic orientations. Tan et al. (2012) aligned the clusters with Mile and Snow's (1978) taxonomies: defender, analyser, prospector and reactors and argued that these are realities within the context of their study. The main objective of the current study is not to validate these studies but to examine and understand whether different strategic clusters exist within the South African construction industry and to establish whether the models linked with strategic orientation of organizations can offer explanation for performance heterogeneity. ...
This study examines the linkage of strategic clusters and performance of South African organizations, using Porter's generic strategies to determine whether differences exist between clustered organizations in terms of performance, characteristics, resources and capability and how the companies achieve strategic fit within different environments. A questionnaire survey was used to collect data from construction companies registered in Grades 7–9 on the cidb contractor register. The study results show that four clusters of construction organizations exist in the South African construction industry; that the four strategic groups exhibited the characteristics of Miles and Snow's Taxonomy of Strategies; and that human resource capabilities were significantly different across the groups. However, the results show no statistically significant differences among the clusters in terms of performance. It emerged that all the respondents' organizations placed a high premium on employee satisfaction as a measure of achieving success. This study thus proved empirically that different clusters of organizations exist within the South African construction industry, and that they exhibit the characteristics of defenders, prospectors, analysers and reactors.
... The construction business environment, similar to other sectors, has witnessed increased intensity in competition and high instability (Kale and Arditi, 2003;Tan et al., 2012). Thus, research studies are being undertaken to analyse the competitive strategies used by construction organisations, their resources and capabilities and organisational characteristics that help them to achieve desired performance levels under different business environmental circumstances (Lansley, 1987;Chew et al., 2008;Tan et al., 2012). ...
... The construction business environment, similar to other sectors, has witnessed increased intensity in competition and high instability (Kale and Arditi, 2003;Tan et al., 2012). Thus, research studies are being undertaken to analyse the competitive strategies used by construction organisations, their resources and capabilities and organisational characteristics that help them to achieve desired performance levels under different business environmental circumstances (Lansley, 1987;Chew et al., 2008;Tan et al., 2012). ...
... For example, Kale and Arditi (2003) empirically explore the influence of competitive strategy, environmental forces or conformity to institutional forces among 500 US contractors based on neo-institutional scholars' propositions, and the results indicate that different strategies are positively related to performance but not conformity. Tan et al. (2012), in related research on the impact of competitive environment, strategy and performance of contractors in Hong Kong, found that a competitive environment highly influences contractors' performance when generic strategies are utilised. Henderson and Mitchell (1997) assert that there are equal interactions at various levels of analysis between the environment, business strategy that gives shape to an organisation and performance, while the relationship between strategy and performance, in turn, provides shape to both organisational capabilities and competitive environments. ...
Purpose
Literature suggests that there are sets of common variables that are capable of explaining organisational performance differentials. These variables are used to examine performance variance and its contribution to organisation profitability. Therefore, the purpose of this paper is to examine the determinants of large construction organisations’ performance in South Africa using a partial least squares path analytic method.
Design/methodology/approach
This study examines the interrelationship between a number of constructs, namely, organisational characteristics, resources/capabilities, competitive strategies, business environment and performance, using a questionnaire survey to obtain data from 72 large construction organisations in South Africa. Using a path analytic approach, the paper examines the relationship between the constructs discussed in the study.
Findings
The findings from the analysis of the data show that organisational characteristics do indeed influence the performance of organisations, and that the business environment is capable of moderating the relationship between competitive strategies and performance. The results, however, indicate that organisations that combine sustained organisational characteristics and strategy tend to experience high performance over those that do not.
Originality/value
The study findings have implications for management practice, as it could help managers of construction organisations to acknowledge the influence of organisational characteristics, unique resources/capabilities, competitive strategies and business environment as sources of competitive advantage. The study contributes to the current debate on the causes of performance differentials among large construction organisations.
... In social sciences studies, surveys, experiments, archival analysis, histories, and case studies are the five common research methodologies widely used (Tan et al. 2011b). By taking the research question, data type, and data analysis method into consideration, the use of a questionnaire survey was selected as the main research methodology to collect opinions from construction industry respondents in Hong Kong and, thus, to examine the nature of the relationships between main contractors and subcontractors and their impact on main contractor competitiveness. ...
... Because the cluster analysis in this study is based on a questionnaire survey with a five-point Likert scale, it is identified as a nonhierarchical calculation process. Statistically, the K-means algorithm, as a nonhierarchical algorithm to assign each variable point to the nearest cluster center while minimizing the squared error function value, is efficient in clustering large data sets with a simple calculation process (Tan et al. 2011b). As a result, cluster analysis with the K-means algorithm was selected in this research to classify the 18 variables affecting the main contractor and subcontractors' relationships in Part 2 of the questionnaire survey into a proper number of groups or clusters of respondent samples (Tan et al. 2011b). ...
... Statistically, the K-means algorithm, as a nonhierarchical algorithm to assign each variable point to the nearest cluster center while minimizing the squared error function value, is efficient in clustering large data sets with a simple calculation process (Tan et al. 2011b). As a result, cluster analysis with the K-means algorithm was selected in this research to classify the 18 variables affecting the main contractor and subcontractors' relationships in Part 2 of the questionnaire survey into a proper number of groups or clusters of respondent samples (Tan et al. 2011b). There are no standard criteria for selecting an appropriate number for clustering. ...
Subcontracting is a common practice in the modern construction industry. The performance of construction projects will be adversely affected if the relationships between main contractors and subcontractors are not properly managed. Therefore, the relationships between main contractors and subcontractors are becoming more and more important to the success of construction projects. Based on a comprehensive questionnaire survey in the Hong Kong construction industry, the relationship between main contractors and subcontractors was studied. Main contractors in the local industry can be classified into four clusters according to the nature of their relationship with subcontractors, namely, adversarial, coopetitive, collaborative, and partnering. Furthermore, the impact of these relationships on main contractor competitiveness and the critical factors affecting collaborative/partnering relationships and main contractor competitiveness were also explored. The findings of this research reveal that good relationships with subcontractors are positively and advantageously associated with main contractor competitiveness. A long-term partnering relationship, based on win-win principles, is more likely to benefit both parties in construction practice.
... The Construction Industry Development Board (2012) seems to be cognisant of this, as it has called for construction organisations to develop an effective business and growth strategy to improve their competitiveness and efficiency in achieving superior performance. Developing and applying an effective strategy will allow construction organisations to match their internal fit (characteristics) to the rapidly changing business environment and attain sustained competitive advantage (Tan et al., 2012;Wilden et al., 2013). This current study examines three key organisational characteristicsdecision-making style, management style and organisational structurewhich are acknowledged to have an impact on organisational performance (Lansley, 1987;Potosky and Ramakrishna, 2002). ...
... The current study is conducted within the construction management domain where several approaches to measuring the performance of construction organisation have been applied (e.g. Arditi, 2002, 2003;Phua, 2006;Tan et al., 2012). In this study, objective financial measures and subjective measures have been used to determine the influence of strategy on organisational performance, although various organisational performance metrics abound in literature for use in evaluating the influence of business strategy and organisational characteristics on performance. ...
... The findings from the study also indicate that internal characteristics is one of the means through which organisational strategic factors and contextual are organised to achieve greater organisational performance levels. The factor analysis was used to identify some strategic behaviour and internal fit that will permit construction organisation to grow and sustain competitiveness to increase returns and satisfy its stakeholders (Tan et al., 2012). Two components were extracted from differentiation strategy and were referred to as on-schedule attributes and quality attributes. ...
Purpose
The purpose of this paper is to examine the possible moderating role of organisational characteristics (organisational structure, management style and decision-making style) in the relationship between strategy and organisational performance among large construction organisations in South Africa.
Design/methodology/approach
The study adopted a quantitative research approach using a questionnaire survey to obtain data from 72 large construction organisations in South Africa. Using hierarchical multiple regression, the paper examines the relationship between the constructs discussed in the study.
Findings
The internal characteristics of the organisation form the vital basis for achieving optimal performance. The results obtained from the analysis revealed that decision-making style directly influences the measure of organisational effectiveness, while it could also be inferred that organisational characteristics partly moderate the relationship between competitive strategy and organisational performance. The findings indicate that internal characteristics is one of the means through which organisational strategic factors and contextual aspects are organised to achieve greater organisational performance levels.
Originality/value
The findings have theoretical implications for strategic management literature in construction as it extends the scope of research on strategic management from assessing a set of individual management practices to evaluating a complex mechanism that connects internal characteristics and competitive advantage. It is believed that this study will contribute positively to the role of organisational characteristics in the competitive strategy-performance relationships in large construction organisations in South Africa and to the ongoing discussion on emerging strategic management issues in construction.
... Marketing capability was measured with five (5) indicators adapted from the validated scale proposed by Vorhies and Harker [108] [90,91] and Lado et al. [24] (See Table A1). In addition, we used six perceptual scales drawn from the extant construction management literature to measure firm performance [56,[109][110][111][112]. These measures consist of financial and non-financial measures within the last three years. ...
... In addition, the correlation coefficients are less than the square roots of their respective AVEs (in bold in Table 1) [108]. Moreover, all heterotrait-monotrait ratios of correlations (HTMT) for the four (4) constructs are below 0.85 (ranging from 0.076 to 0.756) [109,110], as shown in Table 2. These two results indicate that the four (4) constructs are entirely different. ...
Local Ghanaian construction firms have been accused of underperformance due to inadequate resources and capabilities, lack of market information, poor managerial skills, and other external factors. While construction firms may be unable to control external challenges, how they mobilize internal resources to confront them may be crucial for their performance and survival. An emerging consensus is that how organizations use their resources to respond to externalities is related to their organizational culture (OC). We contend that the unique contribution of organizational culture to firm performance (FP) may diminish in the absence of appropriate firm capabilities. Drawing on the resource-based view and capability theories, we attempt to investigate (a) how the types of OC influence FP and (b) whether innovation and marketing capabilities mediate the link between types of OC and construction firm performance. Results of partial least squares structural equation modelling show that clan, adhocracy, and market culture have significant positive association with FP, while hierarchy culture is negatively related to FP. Furthermore, innovation and marketing capabilities demonstrate a combination of full and partial mediation effects on the link between OC types and FP. Thus, the results direct senior managers’ attention towards the significance of soft assets in construction firm performance outcomes, signaling a shift from a purely technical and rationalistic approach to a more adaptable and humanistic approach. It implies that while emphasizing cultural values, managers should also give priority to these two capability dimensions.
... Contractors must have good relationship with suppliers to maintain a stable production system, and it must be based on long-term collaborations (Johnson et al., 2008;Lessing & Brege, 2015, Lessing & Brege, 2018. By maintaining good relationship with suppliers, contractors are able to deliver better in the competitive construction industry (Tan et al., 2012). This is accomplished by developing the procurement system and the construction supply chain (Lou & Kamar, 2012). ...
... balconies, staircases, toilets, lift chambers, refuse chambers), walls, lightweight precast concrete, and permanent concrete formworks (Din et al., 2012). In adopting IBS, the contractor will need to offer higher quality of products to clients (Tan et al., 2012) with third-party accreditation on products and systems . ...
... Technology exhibitions have been overlooked for investigation in construction, although such a multibillion-dollar business has received intensive attention in the literature outside construction [e.g. 112,[113][114][115][116][117][118][119][120][121][122][123][124][125][126]). Technology adoption studies can take advantage of technology exhibitions by immersing [127] in technology exhibitions in order to test the hypothesis that vendors proactively use a variety of dissemination strategies to support customers in the technology adoption process in the construction industry. ...
... The first face of the cube refers to technology exhibition analysis using cluster analysis. Technology exhibitions have been overlooked for investigation in construction, although such a multibillion-dollar business has received intensive attention in the literature outside construction (e.g., [112][113][114][115][116][117][118][119][120][121][122][123][124][125][126]). Technology adoption studies can take advantage of technology exhibitions by immersing [127] in technology exhibitions in order to test the hypothesis that vendors proactively use a variety of dissemination strategies to support customers in the technology adoption process in the construction industry. ...
Due to the complexity, high-risk and conservative character of construction companies, advanced digital technologies do not become widely adopted in the short term, while vendors make determined efforts to overcome this and disseminate their technologies. This paper presents the methods of an investigation addressing the extremely complex issues related to the current practices of digital technology adoption in construction. It discusses how construction companies follow a specific logical process linked to need, project objectives, the characteristics of the adopting organization and the characteristics of the new technology to be adopted. The study aims to demonstrate a novel method of data collection and analysis, such as data and methodological triangulation techniques, including the use of NVivo and AHP to explore how companies make the decision to uptake new technology (e.g., advanced crane, tunnel boring machine or drones) by focusing on customer and vendor activities, their interactions, contributing factors and people involved in the process. The major original contribution of this paper is developing an innovative methodological cube for investigating the Construction Technology Adoption Process (CTAP) covering technology adoption, acceptance, diffusion and implementation concepts. CTAP is a framework that delineates the phases of the process that customer organizations use when deciding to adopt a new digital technology and the parallel vendor activities. The significance of these contributions is that they enable vendors to understand how to match their strategies with customer expectations in each phase of CTAP. It also provides a benchmark for new construction companies to use the current best practices of decision making. Future research is warranted to more clearly delineate any differences with respect to developing nations or related industries such as mining and property management.
... Simialrly, Shen et al. (2010b) employed a five-point Likert scale to measure the sustainability level of infrastructure projects. Tan et al. (2011) have used a five-point Likert scale to measure the performance levels of contractors in Hong Kong. Similar to these previous studies, a five-point Likert scale was adopted in this study, and respondents were asked to evaluate the relative importance of the identified 29 CSAs from 1 ("very unimportant") to 5 ("very important"). ...
... The use of Likert-type ratings in sustainability or performance assessments is widely documented in previous construction-related studies, e.g. Bevan and Yung (2015) and Tan et al. (2011). Likert-type ratings are also widely used in other areas e.g. the Importance-Performance Analysis and Multi-Criteria Assessment. ...
Construction industries have significant impacts on the economy, society and environment. To transform construction industry towards sustainability, construction enterprises' perceptions and performance on sustainability needs to be understood and evaluated, which has not be fully explored by existing studies. This paper holistically examines the Chinese construction enterprises’ attitude towards and performance on various aspects of sustainability (e.g. the economic, social and environmental aspects) in order to identify those aspects the firms perceive to be the most and least important and those aspects the firms perform best and worst on. The associations among the sustainability attitude, sustainability performance, and firm size are also explored. The findings show that quality management and customer service are perceived as the most important as well as the best-performed aspects by the firms while supporting community development is the least important and worst-performed aspect. Sustainability attitude is positively correlated with performance, and larger firms tend to have better sustainability performance than that of small ones. However, larger construction firms do not necessarily perceive sustainability more important. This study provides a useful reference for policy makers and researchers to understand how sustainability is perceived and implemented by the Chinese construction firms.
... Though there is adequate awareness of strategic management within the construction industry as demonstrated by Betts and Ofori (1992) and Tan, Shen, and Langston (2012), the nature of the relationship between strategy, organizational characteristics, business environment, and performance still remains unclear. Few studies have empirically investigated how the business strategy adopted by construction organizations and the characteristics of these organizations can causally explain performance heterogeneity within the construction industry. ...
... Several studies have explored the levels of organizational performance linked with competitive strategies, both in construction management research and mainstream strategic management studies (Acquaah & Yasai-Ardekani, 2008;Agyapong & Boamah, 2013;Budayan, Dikmen & Birgonul, 2013;Dess & Davis, 1984;Kale & Arditi, 2003, Ling, Ibbs, & Cuervo, 2005Tan et al., 2012). Efforts have been made by previous studies to identify the nature of the relationship between competitive strategy and performance, and the need to establish performance measures that relate to the strategy adopted by organizations (Govindarajan & Gupta, 1985;Jusoh & Parnell, 2008). ...
While mainstream strategic management researchers have paid attention to the causes of performance differential among organizations, there is a dearth of empirical research within the construction industry on the subject. We examine the relationship between environment, organizational characteristics, competitive strategies, and performance of construction organizations in the South African construction industry. In order to develop a model for improving organizations' performance, partial least squares was employed using quantitative data collected from a sample of 72 large construction firms listed on the Construction Industry Development Board contractors' register in South Africa. The results reveal that organizational characteristics have a direct influence on organizational performance, while the relationship between the business environment and organizational performance is mediated by competitive strategies.
... Journal of construction engineering and management (Chan et al., 2004;Chen & Fong, 2013;Deng & Smyth, 2013;Dikmen et al., 2005Dikmen et al., , 2009El-Mashaleh et al., 2006;Jang et al., 2020;Kang et al., 2008;Lu et al., 2008Lu et al., , 2013Mohamed, 2003;Tan et al., 2012;Too, 2012;Wang et al., 2019;Yang et al., 2020) Journal of management in engineering (Choi et al., 2018;Ho, 2016;Isik et al., 2009;Kale & Arditi, 2003;Li et al., 2015;Manley & Chen, 2017;Ozorhon et al., 2010;Tripathi & Jha, 2017;Öztürk et al., 2016) Construction management & economics (Adam & Lindahl, 2017;Cheah et al., 2007;Green et al., 2008;Handa & Adas, 1996;Phua, 2006;Tabish & Jha, 2011) International journal of project management (Doloi et al., 2011;Ozorhon et al., 2007; Engineering, construction and architectural management (Habibi & Kermanshachi, 2018;Tripathi & Jha, 2018) International journal of construction management (Jimoh et al., 2019;Tripathi & Jha, 2019) Automation in construction (Ling et al., 2012) International journal of production economics (Horta et al., 2012) Project management journal (Davies et al., 2016) ...
Much research has been carried out in the field of business management to understand why some organizations perform better than others, while others fail. Strategic management field has a strong focus on exploring how firms operate and the performance differentials among them. In strategic management, predominantly, three theories are applied to assess firm performance. These theories are Resource-Based View (RBV), Dynamic Capabilities theory (DC), and Contingency Theory (CT). Through a systematic literature review, this paper explores how these three theories have been applied to construction management literature to review and examine the performance of the construction firms. Review of 46 articles was carried out to identify the factors that affect the performance of the construction firms in line with the frameworks presented by the aforementioned theories. The findings of the study hold significance for future researches on performance determinants of construction firms by evidencing the application of RBV, DC, and CT in construction management literature, which paves the way to future research aiming at combining the underlying principles of these theories to explore construction firm’s performance.
... Construction performance at the organizational level represents the overall performance that guarantees an organization's survival in a competitive business environment [3]. Therefore, it is critical for construction firms to enhance their performance at the organizational level [4]. ...
While the mainstream of construction management research has paid attention to the causes of poor performance in construction projects, there is a dearth of empirical research that considers the influence of external environment and institutional pressures in the debate. The objective of this research was to examine the impact of external environmental factors and institutional pressures on the performance outcomes of construction firms. The role of institutional pressures as a mediator in that relationship was also evaluated. Using a self-administered questionnaire, primary data was collected from 250 executives working in construction firms. This was then analysed using partial least squares structural equation modelling. The results demonstrated that both external environmental factors and institutional pressures have an impact on the performance of construction firms. In light of the institutional theory, the findings addressed a genuine research gap, as institutional pressures were discovered to mediate the relationship between external environmental factors and construction firm performance outcomes. This study contributes to the current debate about the causes of poor performance in construction firms by assisting managers in recognizing the impact of the aforementioned factors on a firm's performance.
... Contractors who have a good plan can adapt their actions to the changing environment and outperform their competitors (Y. Tan, et al., 2012). Ethiopia's project bid awarding method is currently based on least bid pricing auction system. ...
Identifying the effects of low bid award system in construction projects can be used as benchmark to find alternative method to low bid award system in the future of construction industry. The results of questioner survey conducted to determine the effects of awarding lowest bid award system in construction projects of Ethiopian southern nation are presented in this study. Personnel from consultants, owners and contractors are among the survey`s respondent. The result of the study outlines promote transparency, avoid fraud and corruption, promoting competition amongst contractors, excessive time overrun, compromise quality and hindering profitability of contractors as the top ranked effects of low bid award system. Construction industry participants have started recognizing that accepting the least price bid does not guarantee maximum value. Achieving a value-based procurement approach is a challenge, particularly for the Pakistani public sector clients, who are limited in their ability to evaluate the competitive bids based solely on the lowest-bid award system. Persisting problems of inferior quality of constructed facilities, high incidence of claims and litigation, and frequent cost and schedule overruns have become the main features of public construction works contracts. This research was undertaken to assess the performance of public owned construction projects awarded on a lowest bidder bid awarding system.
... Source: Raftery et al. (1998), Ofori (2000), Birgonul and Ozdogan (2000), Gruneberg and Hughes (2004), Flanagan et al. (2005), Shen et al. (2006), Ofori (2006), Kennel (2007), Lewis (2007), Jensen et al. (2007), Puljeva and Widen (2007), Abdul-Aziz and Wong (2008), Korkmaz andMessner (2008, Geroski et al. (2010), Tan et al. (2010), Laryea (2010), Singh et al. (2010), Schwab (2010), Singh et al. (2010), Ismail (2012), Tan et al. 2012), Kamal and Flanagan (2012), Abidin et al. (2014), Bhala (2014), Han et al.(2015), EPU (2015b), CIDB (2016a), Ho (2016) 3.0 Methodology ...
Despite the benefits, globalisation and liberalisation impose challenges to local contractors. Main problem statement: The local contractors’ lack of competitive advantages provides opportunities to their competitors, limiting chances to secure local projects. This study aims to appraise local contractors’ competitiveness with the objective to assess the challenges to compete in the globalisation and liberalisation. Data from the questionnaire surveys on 60 Malaysian international contractors were analysed using the RASCH model. Three challenges assessed are: unstable economic situation, stiff local competition, and building reputation difficulties. The findings are aligned with the 2021-2025 Strategic Plan to encourage local contractors to venture overseas. Keywords: Challenges, Local contractors, Foreign contractors, Malaysian Construction Industry, Globalisation, Liberalisation eISSN: 2398-4287© 2021. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v6iSI4.2900
... In the Indonesian construction sector, Budiwibowo et al. (2009) used Porter's Diamond framework to analyse factors affecting the competition while Ling et al. (2012) adopted Porter's generic competitive strategies to achieve competitive performance in the Chinese construction market. Tan et al. (2012) utilised Porter's five forces of the industrial environment description in designing a questionnaire to obtain external competition environment information in the local Hong Kong construction industry. On the other hand, Deng et al. (2013) used Porter's diamond model to develop potential competitiveness factors within the Chinese construction industry (CCI). ...
In Malaysia, one of the main challenges of the Internationalisation Thrust under Construction Industry Master Plan (CITP) 2016-2020 is an increasingly competitive local market, especially with the presence of foreign players as a result of globalisation and liberalisation. Apart from specialised and highly technical projects, foreign players are also increasingly gaining various types of projects in Malaysia. The gradual increase in foreign investors’ market share over the last few years indicate the need to enhance the capabilities of local players to remain competitive. Competitiveness frameworks formulated at the nation or industry level in previous studies were mainly focused on the macro level with limited studies measuring the contractor’s competitiveness at the firm level. Therefore, the development of a competitiveness framework at the firm or micro-level for local contractors in the Malaysian construction industry is required.
This paper aims to appraise the competitiveness of local contractors towards globalisation and liberalisation in Malaysia. The objective of this paper is to develop a competitiveness framework for local contractors towards globalisation and liberalisation. This framework consists of five variables namely, competitiveness awareness of local contractors, factors contributing to the competitiveness of local contractors, drivers of competitiveness among local contractors, challenges among local contractors in the Malaysian construction industry in competing with local and foreign contractors and competitive strategies of local contractors in competing with local and foreign contractors.
The partial least square-structural equation modelling (PLS-SEM) was employed to develop the competitiveness framework consisting of five variables. Four variables namely, competitiveness awareness, competitiveness factors, drivers of competitiveness and competitive strategy shared a direct relationship. Meanwhile, challenges of competitiveness reported an indirect relationship with competitive strategy.
This paper addresses the Internationalisation Thrust under CITP 2016-2020 to increase the competitiveness of the domestic market. The competitiveness framework developed in this paper serves as a guideline for local contractors in raising their competitive advantage amid the challenges of globalisation and liberalisation.
... Before we introduced the data into the K-mean algorithm the data were first standardised as zscores (mean = 0, standard deviation = 1) to do away with intrinsic bias in computing Euclidean distance among the variables (Tan et al., 2012). We formed three clusters using the sample size (113 responses). ...
Organisational culture characterisation is indispensable for aspiring organisations that want to measure up with the contemporary business trend in terms of performance. This paper aims to determine the organisational culture characterisation of construction firms in Nigeria to improve the organisational culture power to drive organisational performance of the firms. Thus, the objectives are to enumerate the factors that contribute to the organisational culture capability and to determine the organisational culture characterisation of construction firms in Nigeria. A quantitative method was adopted for this research in which 113 questionnaires from a sample size of 254 disseminated informed by purposive random sampling technique, were used to draw the data from the respondents who are predominantly construction workers. The analysis of the data was done using factor analysis, k-mean analysis, and a one-way ANOVA. The results reveal that there is the presence of three distinct organisational culture clusters in the construction firms in Nigeria. The results also disclosed that family and work policy should be inculcated into the organisational culture and held in regard if performance is inevitable. The study concluded that organisational culture is a vital aspect of construction firms and each firm should improve on their culture to better their organisational performances. It is recommended that family and work policy should be given preference in the organisation, also supervisors should be trained in relevant skills that will aid their commitment to their workforce diversity.
... Many researchers believed that for distinguishing their business from other competitors, the owner-manager must have a good and sound of business strategy (Crema, Verbano, & Venturini, 2014, Wan Yusoff, Jia, Azizan, & Ramin, 2017, and Abdullah & Abdul Kadir, 2017. According to Hashim, (2008), Tan, Liyin, and Langston, (2012), strategy is a management game plan for growing the business, attract and pleasing customers, and achieving targeted objectives. Strategic planning provides a clear sense of purpose and direction to guide the owner-managers of business entity in making decisions (Cheng, Abdul Kadir, & Bohari, 2014). ...
The objective of this research is to examine the validity and reliability of the instrument for measuring the business strategy and organizational culture in pharmaceutical retailers in Peninsular Malaysia context. To date, the performance of the organizations had been studied by the researchers. However, there are still a limited number of studies done in the pharmaceutical industry, particularly among small retailers in Peninsular Malaysia. Thus, the study to examine of this area is needed and to examine the validity and reliability of the instrument is considered as the first step to facilitate further studies. The survey method was adopted for this study. A pilot test data from 30 respondents were collected and tested using factor analysis, construct validity, and reliability using SPSSV19. The results show that the instrument has a certain degree of reliability and validity and itis suitable for a study in Malaysia context. Hence, future studies can extend this finding and conduct a full scale study to establish empirical relationship between the study variables.
... Many researchers believed that for distinguishing their business from other competitors, the owner-manager must have a good and sound of business strategy (Crema, Verbano, & Venturini, 2014, Wan Yusoff, Jia, Azizan, & Ramin, 2017, and Abdullah & Abdul Kadir, 2017. According to Hashim, (2008), Tan, Liyin, and Langston, (2012), strategy is a management game plan for growing the business, attract and pleasing customers, and achieving targeted objectives. Strategic planning provides a clear sense of purpose and direction to guide the owner-managers of business entity in making decisions (Cheng, Abdul Kadir, & Bohari, 2014). ...
The mocaf flour also known asmodified cassava flour is flour that is modified byusing microbial fermentation techniques.It has similar physical and chemical characteristics that could substitute wheat flour. This study aims to obtain the composition or formula inmaking batik–patterned cookies as well as attaining public acceptance of the product.A series of four combinations of mocaf and wheat flour were formulated and an acceptance test was carried out on 30 panelists inYogyakarta within AugustandOctober 2019.The findings disclosed that the cookie sampleX3with the combination of 150grammocaf flourand 50gramwheat flour had the highestvalue (M = color: 3.37; aroma: 3.13;texture: 3.20;and taste: 3.33).This study is the first toassess the acceptance rate of batik –patterned cookiesusing mocaf flour. The significant results deepen our understandings of the demand of the consumers in order to increase selling value thus indirectly promoting the batik motifs to the consumers.
... Beard and Dess (1981) argue that competitive strategies are significant in determining profitability and the heterogeneity of organisational performance. The concept of competitive strategy and its influence on construction organisations' performance is gaining interest (Kale & Arditi, 2002;2003;Tan et al., 2012). For example, Li and Ling (2012) explore the critical strategies used by architectural, engineering and construction firms in China to achieve profitability. ...
This study examines the relationships between competitive strategies, resources/capabilities and organisational performance in construction organisations. The main objective is to establish the mediating role of competitive strategies on the strength of relationship between resources, capabilities and performance of large construction business organisations in South Africa. A survey instrument was administered to Grades 7, 8 and 9 construction organisations listed in the Construction Industry Development Board (cidb) database. 72 usable questionnaires were analysed using descriptive statistics and correlations. The results show that organisational resources and capabilities do not exert a direct impact on performance of construction organisations, but technological resources showed significant relationship, when mediated by competitive strategy. This implies that performance of large construction organisations is contingent upon their competitive strategies and organisational capabilities, for them to achieve performance excellence. Furthermore, differentiation strategy influences an organisations' financial performance negatively whereas cost-leadership strategy has a positive impact. It provides empirical evidence on the relationship between competitive strategy and organisational resources/capabilities in a new setting.
... Beard and Dess (1981) argue that competitive strategies are significant in determining profitability and the heterogeneity of organisational performance. The concept of competitive strategy and its influence on construction organisations' performance is gaining interest (Kale & Arditi, 2002;2003;Tan et al., 2012). For example, Li and Ling (2012) explore the critical strategies used by architectural, engineering and construction firms in China to achieve profitability. ...
This study examines the relationships between competitive strategies, resources/capabilities and organisational performance in construction organisations. The main objective is to establish the mediating role of competitive strategies on the strength of relationship between resources, capabilities and performance of large construction business organisations in South Africa. A survey instrument was administered to Grades 7, 8 and 9 construction organisations listed in the Construction Industry Development Board (cidb) database. 72 usable questionnaires were analysed using descriptive statistics and correlations. The results show that organisational resources and capabilities do not exert a direct impact on performance of construction organisations, but technological resources showed significant relationship, when mediated by competitive strategy. This implies that performance of large construction organisations is contingent upon their competitive strategies and organisational capabilities, for them to achieve performance excellence. Furthermore, differentiation strategy influences an organisations’ financial performance negatively whereas cost-leadership strategy has a positive impact. It provides empirical evidence on the relationship between competitive strategy and organisational resources/capabilities in a new setting.
... Effective strategy enables construction firms to match their activities to the changing environment and achieve superior performance in competition. Therefore, there is a need for studying contractors' competitive strategies [43]. "Effectiveness of strategies" is followed by "organizational capabilities" and "managerial capabilities", respectively. ...
... On the other hand, Thompson et al. (2006) defined strategy as management's game plan for growing the business, staking out a market position, attracting and pleasing customers, competing successfully, conducting operations, and achieving targeted objectives. Effective strategy enables construction firms to match their activities to the changing environment and to achieve superior performance in the competition (Tan, Shen, & Langston, 2012). Embracing IBS requires a strategy in business, as it is important especially in assessing the viability of the project (Lou & Kamar, 2012). ...
This exploratory study outlines the business strategy that are being applied by small and medium-size enterprises (SME) construction companies in adopting Industrialised Building System (IBS) in Malaysia. Case study was employed as the research method in order to achieve the research objective as it can be used to explore and give further understanding of the research issues. Cross-case synthesis and pattern matching technique were applied for the analysis of the case study. Through the study, it was found that the SME construction companies could participate in the IBS business. The companies need to have capital and knowledge in IBS, position themselves as a total IBS solution provider to clients, target projects with large volumes of building components, employ a small number of fulltime employees as well as to have in-house capability and to outsource some facilities in the business operation. In conclusion, the involvement of SME construction companies in the IBS market is important to avoid the monopoly of IBS components supplies among the large companies and to potentially reduce the price of IBS so that it becomes more affordable to be used in the construction projects.
... So to ensure the complete information about clients' needs and priorities, we use such a formal form". [Construction Engineer at Dar Alarkan Real Estate Development Co] This keeps with the notion of today's competitive digital workplace of building & construction industry as mentioned by [43]. Findings of the current study also confirm the findings of previous studies [44], [45] who claimed that QFD is an important procedure that satisfies the clients' needs and preferences in a construction project. ...
The current study intends to examine the safety and quality considerations of clients of housing projects and their impact on the adoption of Quality Function Deployment (QFD) by the construction firm. Mixed method research technique has been used to collect and analyze the data wherein a survey was conducted to collect the data from 220 clients of housing projects in Saudi Arabia. Then, the telephonic and Skype interviews were conducted to collect data of 15 professionals working in the top ten real estate companies of Saudi Arabia. Data were analyzed by using partial least square (PLS) and thematic analysis techniques. Findings reveal that today's customer prioritizes the safety and quality requirements of their houses and as a result, construction firms adopt QFD to address the needs of customers. The findings are of great importance for the clients of housing projects as well as for the construction firms as they could apply QFD in housing projects to address the safety and quality concerns of their clients.
... Lee and Han (2017) proposed a quantitative method for country classification in the construction industry. There are many studies on the construction industry by country or region, mainly including Singapore (Ofori 1996;Ofori et al. 2002), Korea (Lee et al. 2011), Turkey (Kazaz and Ulubeyli 2009;Dikmen et al. 2009;Öz 2010), Hong Kong (Ng et al. 2018;Tan et al. 2012), the United States (Kale and Arditi 2002;Chini and Valdez 2003), Canada (Momaya and Selby 1998), and China (Zhao and Shen 2008;Deng et al. 2013;Xu et al. 2005;Huang et al. 2013). ...
With the development of the economy, many countries or regions worldwide are implementing or planning to implement high-speed railway (HSR) projects. However, the great international demand has attracted fierce competition in the HSR industry. The purpose of this study is to recognize and explain the determinants of international competitive advantages in the HSR industry. A questionnaire survey was used to obtain the relevant data from the international HSR industry. A group of 24 variables was identified through a literature review and verified by a pilot study. According to the international questionnaire survey, the 24 variables were categorized into 6 factors using exploratory factor analysis: Technology Conditions, Industrial Integrality, Firms Coopetition, Demand Conditions, Capital & Economics, and International Reputation. By comparing these to the framework of the existing Diamond Model, a new model, i.e., the Hexagonal Diamond Model, which describes the determinants of international competitive advantages in the HSR industry, was proposed. Finally, the post-survey interviews were performed using a Strength, Weakness, Opportunity, and Threat (SWOT) analysis on the major HSR industrial systems to validate the Hexagonal Diamond Model. This paper presents a novel model for the determinants of international competitive advantage in the HSR industry. The identified variables and the model are of great significance for both practitioners and researchers to enhance their understanding of international competitiveness in the HSR industry.
... By having a business strategy, the owner-manager has a guideline on how to manage his/her firm according to their environment and make decisions on how to improve performance Okumus, Cathoth, & Levent., 2010). According to Nandakumar, Ghobadian, and O'Regan, (2010), Tan, Liyin, and Langston, (2012), and (Hashim, (2008), in today's dynamic and intensely competitive environment, a firm must formulate and implement a coherent business strategy to help the owner-manager to make a correct decision on how to position his/her business entity against rivals, what opportunity they need to pursue, and which market he/she must focus on. Furthermore, business strategy will help the owner-manager on how to coordinate a set of commitments and actions to provide value to their customers (Hanson, Dowling, Hitt, Irelend, & Hoskisson, 2001). ...
... Although several considerations are available to assist in selecting the number of clusters. One consideration is that there should be a substantial increase in the tightness of the cluster, or in other words a decrease in the squared error, when the number of clusters increases (Hambrick 1984;Tan et al. 2012). Hambrick (1984) pointed out that social science data typically yield only steady increments in cluster tightness and thus does not necessarily single out a particular number of clusters. ...
The strategies used by vendors to disseminate information about new construction site technologies such as robotics, drones, and driverless excavators are important in their successful adoption and, ultimately, to the productivity of the construction industry. However, little research has been reported regarding the strategies that construction site technology vendors use to disseminate their products into the construction market. This paper addresses this gap in construction innovation research by focusing on construction site technology exhibitions as a specific technology innovation dissemination strategy. Using observational and documentary data collected from 221 vendors at two technology exhibitions in Australia, hard and fuzzy clustering analysis techniques were used to develop a new vendor dissemination classification framework that shows that construction technology vendors can be classified into five types by the range of dissemination strategies they use. These dissemination strategies can then be classified into five types based on their orientation to physical appearance, interpersonal relationships, and technology demonstration. The results show that the combinations of these strategies are directly related to the type of technology being disseminated. This research and the new theoretical framework presented represent an important counterpoint to the disproportionate focus on customers rather than vendors in the construction innovation literature and the historical focus on information communication technologies (ICTs) rather than emerging construction site technologies. It also addresses a neglect in construction innovation research of recent developments in mainstream innovation research that recognize the importance of customer-vendor relationships.
... Another study by the Singapore Contractors Association Limited (SCAL) surveyed of its members to gauge their business sentiments as well as the measures they may take over the financial crisis (The Contractor, 1998). In Hong Kong, research carried out by Tan, Shen and Langston (2012) assessed the competitive strategies adopted by construction contractors during turbulent times and outlined their effects on performance and its relation to the competition environment. Boon (1996) examined the survival strategies of small professional firms in a volatile construction market (1987)(1988)(1989)(1990)(1991)(1992) in New Zealand. ...
... • Adopt a strategic focus and regularly evaluate the company's goals and direction (Tan, Shen, & Langston, 2012); • Bid on more projects within the company's realm of expertise (Lim, Oo, & Ling, 2010); ...
The 2007–2009 recession significantly affected the U.S. construction industry, with unemployment peaking at approximately 20%. In such circumstances, construction companies must devise strategies to adapt to and even counteract declining revenue. One tactic is to reduce home office overhead costs, such as bonuses, rent, and business development expenses. The purpose of this study was to examine the degree to which construction companies reduced overhead costs in response to a market downturn, and whether these reductions are correlated with companies’ demographic attributes. A total of 437 contractors across the United States completed a survey on how much their companies reduced expenses; 92% of the respondents reported that their companies reduced overhead in at least one area, by an average of about 15%. Companies with revenue of $100.1 million to $500 million and that primarily performed manufacturing work tended to reduce overhead costs more than other types of construction companies. This study also reveals that larger companies made fewer reductions to overhead, with the exception being roofers who made very minimal reductions regardless of their annual revenue. The Architecture, Engineering, and Construction (AEC) industry can use the data presented in this study to anticipate reductions in overhead spending that future distressed market conditions may necessitate.
... Murphy (2013) provided evidence of the need for an in-depth empirical research into the strategy of PSFs in the construction sector, highlighting that the scope of strategic management research in construction will need to extend to how the processes emerge over time in response to an improvement in the construction industry. Tan et al. (2012), argue that the development and implementation of an effective strategy would allow for construction firms to match their activities to the rapidly changing business environment and attain a sustained competitive advantage. ...
The Irish construction industry has undergone substantial change in the past decade.
Following a deep, lengthy recession the improving outlook of the construction sector makes
the inquiry into strategy within the firms both timely and appropriate. Determining how
construction organizations successfully adapt in a highly turbulent industry is critical to
ensure survival in a highly cyclical industry sector. Strategizing in construction professional
service firms (CPSFs) is not well documented, and there is little understanding of the strategy
processes, and implications of these processes in the firms. As part of an ongoing study, the
strategic management process in CPSFs is reviewed in the context of the generic strategy
literature and a set of questions is posed for future research. Using evidence from literature
and drawing on the strategy-as-practice view of competitive strategy, the paper presents a
potential addition to the body of knowledge in SAP research in highly knowledge-driven
project-oriented service firms. The key issues raised in the paper begins to fill the gap in
knowledge for strategy researchers in construction about how strategy is shaped within the
industry on a micro-level, the actors involved and the tools used in strategizing, particularly
within highly turbulent construction markets.
Keywords: Strategic Management, Construction, Professional Service Firms, Strategy-aspractice
... Cluster analysis is considered the best approach to identify homogenous client groups in mixed data circumstances such as these, as supported by Mooi and Sarstedt (2011), Hair et al. (1998) and Ketchen and Shook (1996). This method has previously been used in construction specific studies (Dikmen, Birgonul and Budayan 2009;Tan, Shen and Langston 2012), and has the advantage of performing the data reduction procedure objectively, providing more concise and understandable descriptions of the data than alternative methods, such as classification of respondents using single characteristics, with minimal loss of information (Hair et al. 1998). ...
Purpose
Collaboration is thought to offer significant benefits over traditional contracts, however there is little existing research concerning how these benefits can be optimized. To address this gap, a survey investigated the impact of client characteristics on the time and cost efficiency of collaborative infrastructure projects.
Design/methodology/approach
The survey of experienced senior practitioners of Australian collaborative infrastructure projects yielded 320 valid responses. Cluster analysis, one-way between group ANOVA tests and independent sample t-tests were used to confirm that three client characteristics are critical to time and cost performance: (1) client sector (public/private), (2) client experience with asset procurement, and (3) client approach to price competition).
Findings
Projects procured by experienced private sector clients were found to meet targeted levels of performance, regardless of their approach to team selection. Among projects procured by experienced public sector clients, groups of relatively low and high performing projects could be distinguished, regardless of their approach to team selection. Projects run by teams selected competitively on non-price criteria prior to the pricing stage exhibited significantly better performance than those run by teams that competed on the price of the project to win the work.
Research limitations/implications
This study focused only on analysis of three client characteristics. Future research may consider a broader range of contextual variables. Results are based on perceptual data rather than objective data.
Practical implications
The findings show collaborative infrastructure clients in the construction sector should be less concerned about inexperience than they might have been, and more interested in single-team selection approaches than they might have been.
Originality/value
The results indicate significant performance differences between client types. In particular, experienced public sector clients had more polarised performance outcomes, compared to the private sector.
... With respect to environment/performance relationship, Hambrick (1981), Venkatraman & Prescott (1990), Hairil (2009), andTan et al. (2012), among others, have argued that environment has significant effect on organizational performance. With regard to corporate strategy and performance, relevant extant literature submits that corporate strategy has effect on organizational performance (Bracker, Keats, & Pearson, 1988;Naffziger & Kurato, 1991;Lyles, Baird, Orris, & Kuratko, 1993;Osuagwu, 1996;Osuagwu, 1997;Rue & Ibrahim, 1998;Osuagwu, 2001, Ho, 2015and Budayan et al., 2015, among others Hitt et al. (2005), among others, have argued that an organization's environments impact on its strategic decisions. ...
The paper utilized some relevant empirical and conceptual works in extant literature to sketch a model of the relations among marketing environment, strategic marketing decisions and effectiveness. The paper reveals that some forms of supports exist in extant literature regarding the impacts of marketing environment on strategic marketing decisions and effectiveness, and impacts of strategic marketing decisions on strategic marketing effectiveness. However, relevant extant literature seems to have ignored the impacts of strategic marketing decisions on marketing environment. Also, relevant extant literature contains some gaps regarding the impacts of strategic marketing effectiveness on marketing environment and strategic marketing decisions. The paper concludes that these important relationships in strategic marketing decisions, omitted in extant literature, should be incorporated for a more comprehensive understanding of the relevant issues in strategic management decisions. The paper proposes an empirical research agenda to test the model in some business functions, sectors, cultures, contexts or premises.
... The objective of this study is to examine the effects of the business environment and strategies on the corporate performance of construction organisations with a view to having a better understanding of the nature of relationships that exist between these concepts. Several studies determine the impact of strategies on performance, strategy process or formulation, while others examine the relationship between business environment and organisational performance within the construction industry (Junnonen, 1998;Tan, Shen and Langston, 2012). However, not many of these studies investigate the effects of the business environment and strategies on corporate performance in a single study. ...
The study examines the moderating effects of business environment in the relationship between strategies used by construction organisations and examines how these can be used in attaining competitive advantage, and improved corporate performance. The grounds for the examination stems from arguments by researchers that efficient and effective business strategy is an essential tool employed by organisations to direct their business endeavours to the ever changing business environment and record continuous improved performance. The study involves a meta-study of extant literature on construction business environments and business strategies in-use. From this approach, a conceptual framework is proposed for relating business environment and corporate strategies used by construction organisations to their corporate performance that could serve as the basis for further studies in construction organisation strategic planning. Preliminary results of a pilot survey to examine the moderating effects of environmental dimensions on strategies and organisational performance are provided in support of the concept developed. The results reveal that organisations adopt differentiation strategies to ensure survival in a complex business environment. It thus concluded that dimensions of business environment have moderating effects on organisational strategies and performance.
Construction industry’s contribution to the development of nations has been well documented in the literature. Some authors argue that the construction industry offers one of the most significant avenues through which infrastructure is provided for almost every sector of economy. Yet, studies focusing on the development of the construction industry are replete with problems regarding the numerous competitiveness determinants to consider, not only from where and whom to collect the data but also the type and range of data. This study investigates the essential factors influencing the competitiveness of the Ghanaian construction industry (GCI) using Michael Porter’s Diamond Model. Factor analysis revealed four underlying constructs that determine the competitiveness of the GCI. These include industrial resources availability, construction business strategies and project management, stakeholders’ demands and performance and government role and industry development policy. The study highlights that more emphasis should be placed on macro-variables of GCIs at the national level and senior managers in GCI should integrate advanced management processes and techniques in construction business management to improve upon their performances. In addition, the results from the current study may help inform and direct government policies towards repositioning and engendering the competitiveness of the GCI, while providing international construction firms entering the GCI with first-hand information about the performance of the GCI.
The Ghanaian construction industry is struggling to integrate the Sustainable Development Goals (SDGs) in projects. This study seeks to evaluate competitive strategies adopted by construction firms; assess construction related elements within the SDGs and investigate impact of competitive strategies on achieving SDGs. Mean score ranking and one sample t-test were used to establish relative significance of the variables. Factor analysis clustered the competitive strategies into three components: Pricing and innovation strategies (PIS), Unique products and segmentation (UPS) and Innovative financing and packaging (IFP). Structural Equation Modelling was used to estimate the impact of competitive strategies on achieving the SDGs. The significant competitive strategies were pricing products lower than rivals; packaging same product in different ways to target different markets; and offering individual attention to customer needs. Furthermore, recycling and reusing greywater (under SDG 6); reduction of emissions and waste (under SDG 11) and promotion of sustainable technologies (under SDG 17) were the significant construction-related elements within SDGs. PIS and IFP had positive impact on achieving the SDGs in the construction industry while UPS had a negative impact. Study makes unique contribution to the Ghanaian construction industry through benchmarking the most significant competitive strategies and how these achieve SDGs.
This study aims to identify and analyze factors that influence the development of competitive and cooperative strategies in the industry of jewelry of Guaporé-RS. The methodological procedures employed in the study are explained by qualitative and exploratory studies, along with data collected through a questionnaire presented to randomnly chosen producers of jewelry and semi jewelry. Data were analyzed using the transcription of the questionnaire responses and organized in tables for better understanding. The results indicate that firms using strategies that are competitive and exercise cooperative thinking result in producing low-costs. This result is important due to the fact that this industry is under pressure to compete for consumers from imported products.
In recent years, human life has been affected by new communications. The development of the use of cyberspace has led businesses to welcome social networks. The advent of cyberspace and the possibilities provided by information technology have brought hopes, desires, opportunities and challenges for business owners. Using social media, organizations create opportunities to increase productivity, market share and value, and profitability. The use of social media has also created challenges for entrepreneurs. The present study aimed to investigate and propose a model for entrepreneurship opportunities and challenges in social networks. The research method used is fundamental in terms of purpose and qualitative in terms of approach, and the model is presented using grounded theory. Research data were obtained through open interviews with managers of ten businesses operating in virtual networks that were selected by purposive sampling , and by coding method , in three stages of open, axial and selective coding, have been analyzed. Finally, the information obtained were classified into 6 key opportunity-related codes, including opportunities related to the nature of networks, motivational opportunities, existing capacity to take advantage of opportunities, opportunities related to the distribution system, legal opportunities and productivity-related opportunities, and 4 codes related to challenges were categorized into political, managerial, security, and market challenges. The conceptual model of entrepreneurial challenges and opportunities in virtual social networks is also presented.
Purpose
The purpose of this paper is to analyze and evaluate bidding competitiveness and success rate of contractors bidding for public construction projects (PCPs). Additionally, this research determines the effect of work sector, contractor’s classification category (experience), project size and number of bidders on contractors’ bidding competitiveness, and the influence of work sector and classification category on their success rate.
Design/methodology/approach
The data were collected through 2,296 bidding attempts for 289 tender projects that were announced by the Government Tenders Department in Jordan between 2013 and 2016. The research uses bid competitiveness percentage (BCP) to evaluate contractors’ bidding competitiveness. Pearson correlation is used to investigate the correlation among variables. Hypothesis testing using ANOVA was conducted to evaluate the effect of the abovementioned factors on contractors’ bidding competitiveness, and their success rate.
Findings
The results of the analysis indicate that contractors’ average BCP and success rate in Jordanian PCPs are 83.8% and 13.3%, respectively. The analysis also reveals that work sector, contractor’s classification category, project size and number of bidders significantly affect contractors’ bidding competitiveness, whereas classification category and work sector do not affect bidding success rate. Therefore, experience of contractors affects their bidding competitiveness, but does not affect their success rate.
Originality/value
The present research uses contractors’ bidding success rate as a measure to evaluate their bidding competitiveness for PCPs. The novel model of this research can be applied in any country, after considering local regulations, to measure and evaluate contractors’ bidding competitiveness, and success rate when bidding for PCPs. Also, contractors cannot depend on their experience (i.e. classification category) or increasing bidding attempts to win bids and improve bidding success rate, rather than enhance their bidding strategy.
Construction risk management plays an important role in the area of buying and selling irrespective of measure, activity and organisation. Risk management is a field of ideology and uncertainty which depends on significant projects which vary from nation to nation. It is essential to decrease the losses faced by the firm and to increase the profit, which can be done to forecast and calculate the risk factors relevant to the construction practices on time. Therefore, the research aims to identify and categorise the types of risk factors associated in the Chennai construction industry by developing a cumulative value using Risk management procedural index. The methodology of the study is to examine and rank the types of risk factors disturbing the construction projects by distributing a questionnaire survey administered to participants such as consultant, contractors and client/developers in the major parts of Chennai. In the result, the proposed RMPI method gives a cumulative value which shows the percentage of risks contributed by the various factors and they are ranked in order of the weighted value. The conclusion of this paper gives a clear forecast to reduce the cost and times overrun, which improves the quality of the construction project. The top three risk factors identified by the RMPI for the Chennai sector are listed as management (∼15%), financial (∼12), and environmental (10%).
Keywords
Risk managementRisk assessmentRMPIRisk indexThe construction sector
This chapter defines what competitive advantage means to a company and describes the traditional types of competitive advantage that a company may possess. For cost advantage, the major drivers of cost are explained to provide an understanding of how they, either individually or in combination, cause the cost of a company’s activity. Similarly, for differentiation, the principal drivers of uniqueness are explained, including how they interact to create sustainability of differentiation. The chapter also looks at how advances in Information Technology (IT) affect competition and discusses the sources of competitive advantage. In addition, it covers the strategies that a company needs to pursue to exploit the technology so as to gain an advantage and protect it from rivals. In particular, the attention is shifted to neo-classic competitive advantages, which are generated from business strategies that avoid the classic trade-offs between mass production and invention models, where IT plays a key role by allowing a company to implement improvements more quickly. On the need to sustain a competitive advantage, the chapter reviews Porter’s concept of sustainability and explains the main factors involved. In a construction context, the nature of competition is described. The key sources of competitive advantage for international contractors are reviewed with respect to their distinct abilities to operate in the global markets. It is followed by illustrating how the sources can potentially be converted into critical success factors for the companies using the five cases presented in chapter 1. The chapter concludes with a summary of the main points covered on competitive advantage.
This research was conducted to test whether a conceptual model of manufacturing strategy relevant when applied in different research settings, the small and medium manufacturing companies in Indonesia. The study involved eighty-eight small and medium scale manufacturing companies yielding response rate of 17.6%. The study generally indicates that environmental uncertainty has no significant effect on the choice of competitive strategy and manufacturing strategy in small and medium scale companies. The study also indicate that both cost leadership and differentiation strategy has a significant effect on the flexibility, cost leadership has a significant effect on quality, differentiation strategy has a significant effect on the quality, manufacturing strategy choices that focuses on cost is significantly influenced by the cost leadership strategy but not by a differentiation strategy, while the competitive strategy choices, both cost leadership and differentiation does not significantly effect delivery strategy. Competitive strategies simultaneously effect the financial performance, the partial cost leadership effects financial performance but differentiation does not effect financial performance.
Cancer is awful disease, which makes panicle network in the body system of patients. Cancer is characterized by abnormal and uncontrolled cell growth, which results in the formation of lumps or masses in body known as tumor. There are more than 100 types of cancers and each is classified according to the cell capacity and size. Globally, cancer is accepted as the second leading cause of death. As per a WHO report, cancer is responsible for 8.8 million deaths in 2015. Anti-cancer drugs or oncology medicines are employed in taking the care of different patients. At the present time, many pharmaceutical companies are active in producing oncology medicines. It is probed that by pharmaceutical scientists how cancer treatments under the scheduled time can save life of patients and a delay in treating cancer patients may have unseemly effects on the life of patients. The presented research focuses on two cases. The first was conducted at Jabalpur Hospital & Research Centre (JHRC), where a structure/model related to A-CMsP company is built for assessing the performance under chain of sustainable procurement criteria. The second research focuses on the benchmarking of two A-CMsP companies. A multi objective optimization approach is implemented, accompanied with vague modeling for computing the overall performance index of oncology medicines.
Good organizational performance of project-based firms (e.g. consultants and contractors) could significantly contribute to the development of the construction industry in many developing countries. This study mainly aims to link knowledge enabling factors (KEFs) to various organizational performance outcomes (OPOs) of project-based firms. Through a questionnaire survey, data about KEFs and OPOs are collected from project-based firms in the Vietnamese construction industry. First, the performance degree of KEFs in project-based firms is explored using mean score method. Then, the linkage between KEFs and OPOs is explored using regression analysis. Accordingly, various shortlists of important KEFs that may significantly affect various organizational performance aspects measured by different OPOs are identified. Some key KEFs that may have a significant effect on many OPOs are also highlighted. The results of this study may provide project-based firms with some useful information about the effects of KEFs on various organizational performance aspects. Hence, project-based firms could formulate appropriate KEFs-based management strategies to improve various organizational performance aspects effectively.
In contributing to achieve the Construction 2025 target to reduce the trade gap in construction products and services by 50% by 2025, UK transnational contractors (UKTCs) must seek key opportunities and improve their competitiveness overseas. The Singapore rail sector is a good case in point; the market is mature, rapidly growing and has a strong pipeline of rail projects scheduled for completion by 2030. Despite the strong historical link between the UK and Singapore, UKTCs have been outnumbered and outperformed in the past decade by their rivals within the Singapore rail sector. This study investigates the competitive strategies that are most significant for UKTCs to improve their competitiveness in the Singapore rail sector. Despite its popularity and generalisability, something is fundamentally missing from Porter’s generic typology because it places no emphasis on the entry strategies that are specifically essential for firms that compete overseas. Empirical results obtained from 75 questionnaires and validated in 35 interviews found a combination of Porter’s generic typology in addition to entry strategies to be most significant for UKTCs to compete in the Singapore rail sector. The perceived importance of some strategic practices varied significantly between interviewees from different organisation types. Significant correlations were also found between several strategic practices associated with cost leadership and differentiation, while focus and entry strategies appeared to be mutually exclusive. The findings appear to differ from Porter’s theoretical proposition that firms should adopt a single strategic approach to gain a competitive advantage and achieve superior performance. Instead, a combination of strategies is feasible and more suitable for the construction industry. A hybrid taxonomic framework that comprises the most significant strategic practices associated with Porter’s generic typology in addition to entry strategies is recommended for UKTCs to compete in the Singapore rail sector.
Purpose
This paper aims to present the effect of innovation on implementing competitive strategies (CSs) and to find their relationships on the survival of construction-related small- and medium-sized enterprises (SMEs) in macroeconomic crises.
Design/methodology/approach
Data were compiled from construction SMEs in Turkey. The research used structural equation modeling to investigate the relationships between innovation, CSs and firm survival (FS).
Findings
Innovative construction SMEs may implement differentiation and focus strategies and survive without CSs, whereas innovation may be obtained through cost leadership strategy. Also, differentiation and focus strategies may play a role to survive. However, the cost leadership strategy may be implemented after survival. Finally, differentiation strategy may be triggered by innovation and focus strategies.
Research limitations/implications
The model may be applied on other construction organizations. Future studies may also examine the difference in findings concerning other industries and regions. Moreover, different factors may be added to the model. However, a larger group of samples could cause different results.
Practical implications
This study may be a roadmap for practitioners to plan their firms’ strategies, considering innovation, CSs and FS. In this context, they may pay attention to innovative production processes to survive.
Social implications
Survived SMEs may sustain their works through the prevention of crisis-based unemployment. Hence, this benefit may bring a wealthier society.
Originality/value
This research is first to propose a model connecting innovation and CSs for SMEs’ survival in macroeconomic crises. This is convenient for rivalry of SMEs planning to be long-lasting enterprises.
Due to the complexity, high-risk, and conservative character of construction companies, advanced digital technologies do not become widely adopted in the short term, while vendors make determined efforts to overcome this and disseminate their technologies. This paper presents the methods of an investigation addressing the extremely complex issues related to the current practices of digital technology adoption in construction. It discusses how construction companies follow a specific logical process linked to need, project objectives, characteristics of the adopting organization, and the characteristics of the new technology to be adopted. The study aims to demonstrate a novel method of data collection and analysis including data and methodological triangulation techniques including the use of NVivo and AHP to explore how companies make the decision to uptake a new technology (e.g. advanced crane, tunnel boring machine or drones) by focusing on customer and vendor activities, their interactions, contributing factors, and people involved in the process. The major original contribution of this paper is to develop an innovative methodological Cube for investigating the Construction Technology Adoption Process (CTAP) covering technology adoption, acceptance, diffusion and implementation concepts. CTAP is a framework that delineates the phases of the process that customer organizations use when deciding to adopt a new digital technology and the parallel vendor activities. The significance of these contributions is that they enable vendors to understand how to match their strategies with customer expectations in each phase of the CTAP. It also provides a benchmark for new construction companies to use the current best practice of decision making. Future research is warranted to more clearly delineate any differences with developing nations or related industries such as mining and property management.
The traditional philosophy of management in construction, both in academia and in industry, places great emphasis on the ability to plan and execute projects. In contrast, a similar emphasis on strategic management has received less attention in the construction industry. Although the pressures of project performance can often obscure the broader social, economic, and professional context in which strategic management is undertaken, it is these broad contextual areas that make strategic management an essential issue for construction organizations. Rapidly changing social and technological issues are creating a professional environment that will look very different in the coming decades than that experienced in today's organizations. This paper introduces a study of the current strategic management practices of construction organizations. The paper introduces the concept of strategic management and the areas that organizations must address to compete in the global marketplace. A summary of an industry survey is documented together with the background research that prompted the investigation of these topics.
An in-depth study on 16 major overseas contractors and desk research on 100 others from various countries revealed that some have adopted global strategies during the turbulent 1980s. The world is perceived as a single operating platform. This implies that they harbour no inhibitions to serve anywhere. Their actions include utilizing specific countries as a springboard to enter other national markets as well as sources of landbound competitive advantages. These firms associate with all sorts of private and public bodies from around the world to expedite their advancement. Proper coordination and management is required so that their organizations behave as integrated groups. This paper centres on Japanese and American contractors to indicate the possibility of the former with their global appetite capturing a greater share of the world construction market at the expense of the latter.
The Chinese construction market is composed of 31 local markets which differ from each other in various aspects such as competition intensity. Contractors moving from one market to another need to consider the competition strategies and make due response to new competition situation in order to survive. Nevertheless, the research into response strategies to competition situations has been limited. Effective response strategies can assist contractors to respond to different competition environments. Based on the data collected from major cities in China, five typical competition situations are identified and six strategies are found effective to guide contractors' response to various competition situations. For instance, a closer cooperation between main contractors helps contractors respond effectively where safety accidents occur frequently in the market. The research findings present new perspectives of developing competitive strategies in the Chinese construction market and provide recommendations for adopting a conduct-performance approach for examining response strategies in other construction markets.
Strategy as Practice heralds a defining moment in how strategic management is understood. Paula Jarzabkowski's book leads the way in setting out the meaning and implications of this new field. This book is the first of its kind to help readers bridge the gap between what managers actually do and organizational strategies. It provides an activity-based framework for studying strategy as practice, with empirical evidence to illustrate the dynamics of this framework in real terms. The book supports readers with:- Definition of key terms- The context in which strategy as practice has developed- Clear concepts, frameworks and models for analyzing strategic activity "This is a pioneering work. As the first book in the new strategy-as-practice field, it offers its readers both innovative models and exemplary field research. It should be a rich source of inspiration for future researchers in the field."-- Richard Whittington, Said Business School, University of Oxford, U.K. This book is indispensable reading for graduate students conducting research or doing courses on Strategy and Practice, Strategy Implementation or Strategy in Action as well as Advanced Issues in Strategy. This book will be a resource for both students and professionals alike.
Survey results provide a preliminary assessment of the relative contribution of a range of tactical business strategies to innovation performance by firms in the Australian construction industry. Over 1,300 firms were surveyed in 2004, resulting in a response rate of 29%. Respondents were classified as high, medium or low innovators according to an innovation index based on the novelty and impact of their innovations and their adoption of listed technological and organizational advances. The relative significance of 23 business strategies concerning (1) employees, (2) marketing, (3) technology, (4) knowledge and (5) relationships was examined by determining the extent to which they distinguished high innovators from low innovators. The individual business strategies that most strongly distinguished high innovators were (1) ‘investing in R&D’, (2) ‘participating in partnering and alliances on projects’, (3) ‘ensuring project learnings are transferred into continuous business processes’, (4) ‘monitoring international best practice’, and (5) ‘recruiting new graduates’. Of the five types of strategies assessed, marketing strategies were the least significant in supporting innovation. The results provide practical guidance to managers in project-based industries wishing to improve their innovation performance.
Strategy is a contested concept. The generic literature is characterized by a diverse range of competing theories and alternative perspectives. Traditional models of the competitive strategy of construction firms have tended to focus on exogenous factors. In contrast, the resource-based view of strategic management emphasizes the importance of endogenous factors. The more recently espoused concept of dynamic capabilities extends consideration beyond static resources to focus on the ability of firms to reconfigure their operating routines to enable responses to changing environments. The relevance of the dynamics capabilities framework to the construction sector is investigated through an exploratory case study of a regional contractor. The focus on how firms continuously adapt to changing environments provides new insights into competitive strategy in the construction sector. Strong support is found for the importance of path dependency in shaping strategic choice. The case study further suggests that strategy is a collective endeavour enacted by a loosely defined group of individual actors. Dynamic capabilities are characterized by an empirical elusiveness and as such are best construed as situated practices embedded within a social and physical context.
This review introduces one-way analysis of variance, which is a method of testing differences between more than two groups or treatments. Multiple comparison procedures and orthogonal contrasts are described as methods for identifying specific differences between pairs of treatments.
List of Figures - List of Tables - Preface to the 1994 Reprint - Foreword by W.D.Biggs - Acknowledgements - Abbreviations and Acronyms - Introduction - PART 1 BACKGROUND - The Industry Yesterday and Today - PART 2 OVERALL STRATEGY OF LARGE FIRMS - Objectives and Strategy of Firms - Growth and Diversification - Financial Policy - PART 3 IMPLEMENTATION OF STRATEGY - Marketing and Bidding Policy - International Policy - Structure and Organisation - PART 4 HUMAN RESOURCES - The Management Resource - Manpower Management and Subcontracting - PART 5 CONCLUSIONS - Conclusions - Glossary - Appendix: Principal Contents of the Companion Volume, The Management of Construction Firms: Aspects of Theory' - Index
This book reviews the general theory of strategy, relates it to the particular circumstances of the construction industry, and shows how it can be applied in practice. It brings together ideas from economics, marketing, management, business and politics to develop strategic management for both contractors' firms and the associated professions. Substantial changes have occurred in the industry since the book was first published in 1991. This Second Edition reflects the major developments that have followed the Latham and Egan reports, and includes new chapters on international strategy and marketing, showing how they can contribute to the strategic planning of construction organizations. The book will provide a valuable tool for the strategic development of construction firms. "Ten years separate the editions during which period a significant number of British, (and other), construction firms which had survived generations of proprietors merged, changed beyond recognition or ceased trading. One can not but wonder if publication of a work on strategic planning some twenty year earlier might have saved some of them." Construction Manager. "The book presents the essential elements for managing at this higher level and should be a must for any construction professional who aspires to an executive position in industry as well as any student for construction management, project management and organizational management in construction. It comes highly recommended" Engineering, Construction and Architectural Management.
This article examines the theory and literature of strategy-making in management research. It states that there is little empirical research on the subject. It claims that the strategy-making theory falls into three modes: the planning mode, where strategy-making is depicted as a systematic, neatly integrated process; the adaptive mode, characterized by incremental, disjointed steps in reaction to external pressures; and the entrepreneurial mode, in which the powerful strategy-maker takes bold, positive steps in the face of uncertainty. It states that there has been little attempt either to address the contradictions among these three modes or to subject these abstract depictions of the strategy-making process to empirical research.
A methodology to analyze construction firms' long-term strategies is described. TMs methodology provides a systematic approach to study and analyze external and internal scenarios for a construction firm doing strategic planning. A conceptual model that is a simplified model of the variables and interactions present in the analysis of strategic decisions in the construction industry is built. An analytical model designed to predict the impact of strategic decisions supports the analysis process by integrating expert knowledge and assessments of the strategic planning team into a mathematical model. This model uses concepts of cross-impact analysis and probabilistic inference to capture risks and uncertainties present in the strategic scenarios. Strategies for long-term company development such as marketing programs to emergent markets, systems to implement total quality, etc., can be evaluated using criteria selected by company management. The model allows management to test different combinations of company long-term strategies and predict expected sales, market share, or other measures of company performance. The case of a Chilean construction company is used to illustrate the methodology.
This study examines relationships among strategy, distinctive competence, and organizational performance. The analysis focuses on the perceptions of top managers in four industries (plastics, semiconductors, automotives, and air transportation). Findings indicate that these managers perceive four strategy types, Defender, Prospector, Analyzer, and Reactor, to be present within their industry. Defenders, Prospectors, and Analyzers all show competence in general and financial management. Beyond these two functions, Defenders and Prospectors have identifiable but different configurations of distinctive competence, while Analyzers' special capabilities are considerably less apparent. Reactors, as expected, have no consistent pattern of distinctive competence. Finally, although the data are only suggestive, Defenders, Prospectors, and Analyzers consistently outperform Reactors in competitive industries, but not in an industry that is highly regulated.
The authors test the proposition that the effectiveness of a particular strategic orientation-reactor, defender, analyzer, and prospector-is contingent upon the dynamics of the market. In mildly volatile markets, analyzer organizations are found to outperform other organization strategy types. However, in more volatile markets, the strategy-performance alignment is less clearly determined by the market environment.
Taxonomic inquiry is emerging as an important type of research in the field of strategy. This paper builds a case for strategy taxonomy-building and addresses selected conceptual and methodological issues for researchers interested in such investigations. Among the issues discussed are the following: choosing variables to classify, framing the domain of the taxonomy, developing longitudinal taxonomies, manipulating variables, and incorporating organizational performance into strategic taxonomies. Drawing from the literature and from my own experiences in taxonomic studies, this paper is intended as a special supplement to more generic and technically detailed treatments of numerical classification.
The essence of strategy formulation is coping with competition. Yet it is easy to view competition too narrowly and too pessimistically. While one sometimes hears executives complaining to the contrary, intense competition in an industry is neither coincidence nor bad luck.
Selecting an appropriate competition strategy in bidding is the ambition of most contractors. The multiple requirements of clients encourage contractors to consider other strategies to deliver additional benefits besides offering a low-price bid. Offering low bids will reduce contractors' profits and potentially make development less attractive. Contractors need to understand their specific resources that generate competitive advantage and accordingly develop strategies to win contracts. This paper reports the findings from a recent survey on competition strategies in the Hong Kong construction industry. Thirteen typical bidding strategies, their used frequency in bidding, and their effectiveness for winning contracts of different types and between different groups of contractors are studied. The analysis of findings is explored to provide local contractors and clients with new insights into competition strategies in bidding.
This paper presents an empirical study of factors contributing to the success and failure of 24 large international construction firms originating in the United States, Europe, and Japan. The study is conducted using fundamental analysis, a methodology that is commonly applied in economics and investment practices to study the prospects of a company. Based on publicly available data, both quantitative and qualitative measures are developed and assessed collectively to derive insightful knowledge about corporate strategy and firm outlook. Preliminary conclusions drawn from this study include: (1) A universal formula for success is elusive-critical success factors can be uniquely derived from different modes of operational, financial, technological, and human-related conditions and (2) causes of failure are diverse, thus construction firms must consistently check the downside risks of all measures. Thus, debates concerning the merits of common dichotomies such as diversification versus focused differentiation appear rather hollow. These aspects of strategy are far from fixed and should instead be treated as variables. The findings suggest that an open perspective of strategy is necessary in construction organizations and provide the foundation for the development of a new strategic model for the industry.
The concept of competitive positioning is explored in the context of the United States construction industry along two dimensions-scope and mode of competition. The effects of competitive positioning on construction company performance are also explored while controlling the size of construction companies. Construction firms' choices regarding scope and mode of competition and their economic performance are self-reported. The statistical analyses used in this research include cluster analysis, Duncan multiple range tests, one-way analysis of variance, and one-way analysis of covariance. Research findings point out that construction companies address the challenges of the industry by adopting a number of competitive positioning alternatives. Research findings also reveal that construction companies' choices regarding scope and mode of competition are significantly related to company performance, measured by means of three criteria-profitability, growth in contract awards, and overall performance. Construction firms that place a strong emphasis on all modes of competition and adopt a neutral approach to scope of competition outperform their rivals.
Strategic planning is an essential function of senior management in any business firm. Planning involves the firm's behavior in a competitive market and adaptation of the company's resources towards the selected market strategy. This paper presents a methodological procedure for strategic planning in a construction company. This procedure consists of the following stages. First, examine the company's mission. The mission reflects the owners' views with regard to the company's scope of activities and objectives. Second, survey the company's business environment. The environment includes both general economic factors that affect all types of business activity and additional factors, specific to the construction sector. This survey should reveal the specific "packages" of prospective project opportunities and highlight potential threats to a company's orderly activity. Third, analyze the company's main resources. The main resources in this respect include the construction capacity, the procurement system, the marketing system, the organization, personnel, finances, and knowledge. The relative strengths and weaknesses of each resource, in light of market needs, are identified. Fourth, develop a strategy. The development of a strategy is based on "mapping" of the relative attractiveness of the various possible activity areas. This strategy can follow one of several generic types that must be adapted to particular conditions of the market and company. It affects the subsequent choice of a strategy for development of the company's own resources. The choice of the optimal strategy, from several available alternatives, should follow a careful analysis of the costs and benefits inherent in the implementation of each.
The past decade has witnessed the steady growth of Chinese international contractors (CICs), who have become important and influential players in the international market. The enormous development demands worldwide, especially in developing countries, attract CICs to engage in the market. Similarly, the strong support from the Chinese government plays an important role for the expansion of Chinese contractors globally. Some leading CICs perform very well in certain fields and countries. This brings the competitiveness of CICs to the attention of the international community. The strengths, weaknesses, opportunities, and threats (SWOT) approach was adopted in order to analyze CICs' strengths, weaknesses, opportunities and threats in international construction markets. Literature from various sources was reviewed in the first instance, which is followed by an interview survey with 42 CICs employees. A SWOT strategy matrix is used to establish a framework that can help CICs to select suitable business development strategies in overseas markets. The applicability of the strategy framework was tested through the case study of two CICs. The strategies to reinforce their positions in the international market were studied based on the SWOT analysis. The results indicate that CICs are on their way to becoming major competitors to other overseas contractors. In essence, the research results offer a valuable reference of practices that construction firms need to master in order to survive and grow in the international market.
Scholars have widely asserted that a firm’s manufacturing technologies must be aligned with its competitive strategy. This study tests the existence of such a strategy-technology “fit”, determines whether good fit results in better performance, and examines the nature of fit in light of computer controlled or “advanced manufacturing technologies”. For a sample of 399 metal machining firms, a strategy-technology alignment was found to exist and relate to higher financial performance. Advanced manufacturing technologies were found to both reinforce and alter conventional thinking about the flexibility-efficiency tradeoff. Specific technologies were found to be uniquely bundled or combined to support specific competitive requirements.
The UK construction industry has experienced three quite different business environments durin the last 30 years. These environments have demanded different corporate strategies which in turn have required firms to structure their operations in different ways, for their senior managers to adopt different styles and for management teams to draw on different problem-solving skills.A simple framework for linking the environment with structure, style and skills is developed through considering the differences in the nature of the demands on construction companies during the three periods.
This paper outlines the developments in strategic planning exemplified by the works of Porter (1979, 1985, 1990) and others. After describing the emerging concepts and techniques, it is observed that these have been applied by enterprises in other sectors of the economy in pursuit of competitive advantage. Such applications are taking place at the level of parts of an enterprise's operations and at the overall corporate level. This is contrasted with the situation in construction where strategic planning at any level is less widespread, although it is becoming more common. Several reasons are identified as hindrances to strategic planning in construction. The current and historical situation with regard to planning in construction is described. The ways in which strategic planning can be applied by construction enterprises are outlined. In conclusion, it is observed that Porter's new concepts of strategic planning have relevance to, and considerable scope for application in, construction enterprises. It is suggested that the changing nature of the task of the construction industry and the dynamism of its operating environment imply that the strategic planning techniques put forward by Porter are vital for the survival and progress of construction enterprises of all types.
Whilst there exists a variety of approaches to auditing the potential offirms to respond to major changes in their markets, many of these methods rest on concepts, techniques and perspectives which are not readily accessible to the practising construction manager. This paper describes an alternative auditing method which has been developed specifically for senior line management without heavy reliance on advanced behavioural science concepts or on the advice of consultants. The method is illustrated by reference to two examples of the constraints experienced by construction firms in responding to a major recession. Some general conclusions about the nature of the constraints on flexible and inflexible firms are presented.
Cluster analysis is a statistical technique that sorts observations into similar sets or groups. The use of cluster analysis presents a complex challenge because it requires several methodological choices that determine the quality of a cluster solution. This paper chronicles the application of cluster analysis in strategic management research, where the technique has been used since the late 1970s to investigate issues of central importance. Analysis of 45 published strategy studies reveals that the implementation of cluster analysis has been often less than ideal, perhaps detracting from the ability of studies to generate knowledge. Given these findings, suggestions are offered for improving the application of cluster analysis in future inquiry.
Taxonomies, factor analysis and clustering are discussed as tools to investigate the structure of competitors within an industry (‘strategic groups’). An example using cluster analysis is presented as one means of operationalizing this concept. Careful definition and selection of the dimensions used to identify the boundaries between strategic groups (their mobility barriers) are particularly crucial in the effective application of analytical tools.
Among the schools of thought on strategy formation, one in particular underlies almost all prescription in the field. Referred to as the ‘design school’, it proposes a simple model that views the process as one of design to achieve an essential fit between external threat and opportunity and internal distinctive competence. A number of premises underlie this model: that the process should be one of consciously controlled thought, specifically by the chief executive; that the model must be kept simple and informal; that the strategies produced should be unique, explicit, and simple; and that these strategies should appear fully formulated before they are implemented. This paper discusses and then critiques this model, focusing in particular on the problems of the conscious assessment of strengths and weaknesses, of the need to make strategies explicit, and of the separation between formulation and implementation. In so doing, it calls into question some of the most deep-seated beliefs in the field of strategic management, including its favorite method of pedagogy.
Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed across firms and that these differences are stable overtime this article examines the link between firm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage—value, rareness, imitability, and substitutability—are discussed. The model is applied by analyzing the potential of several firm resources for generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.ABSTRACT FROM AUTHOR
Thesis (doctoral)--University of Reading, 1991.
A two-stage qualitative case study, and Yip's conceptual framework, are used to examine the extent to which British construction firms have adopted 'global' strategies. In the first stage industry experts provided evidence on the forces driving global strategy. In the second stage executives from eight internationally active firms described how they have responded to those forces. Results indicate that the forces driving globalisation, at least for traditional contracting activities, are not strong. Evidence shows that most firms operating internationally organise 'multi-locally' and make little use of globally integrated strategies. However, firms that have moved into 'higher value-added' construction activities have a greater propensity to integrate some aspects of their strategy on a global basis.
Current research on the process of innovation has focused attention on the crucial role of the business firm as the place where new ideas are developed and then implemented in the marketplace. Based on current knowledge, a model was developed which attempts to replicate the strategic decision-making process in a construction firm. It links perceived business environment variables to various business strategy variables (i.e. marketing, human resources and technology). These two sets of variables are linked to the innovativeness of the firm, measured by the number of advanced technologies and/or business practices currently used. Innovativeness is subsequently linked to outcomes (i.e. profitability, competitive advantage) to assess overall effectiveness. The model was tested empirically, using data from the Survey on Innovation, Advanced Technologies and Practices in the Construction and Related Industries carried out by Statistics Canada in 1999 with 1739 usable responses. The results generally support the proposed model; certain perceived business environment and business strategy variables are significantly related to firm innovativeness, however the link between innovativeness and outcomes requires further confirmation. Many construction firms introduce new approaches in information and construction technologies as well as in business practices. A large number of these were found to provide significant competitive advantage. In general, innovative behaviour varies with the size of the firm.
This study examines the market structure of four different sectors within the construction industry in Hong Kong. Market concentrations, expressed in terms of Herfindahl-Hershamann indices (HHIs) and number equivalents (HNEs), are calibrated for the top five contractors and compared with those of the local property industry. The study reveals the following ascending order of market concentrations: private building, public building, property development, and civil engineering. Our explanation is that technological and capital requirements have imposed a strong barrier to entry into the civil engineering sector, resulting in a concentrated market. Conversely, the lack of technological demand and supply in the private building sector has led to easy market entry and exit. Building contractors thus compete intensely on cost reduction rather than technology improvement, leading to poor construction safety and product quality. The paper concludes that the Government, being a major client of construction works and regulator of the industry, can assume a more active role in promoting the overall competitiveness of indigenous local contractors in Hong Kong.
Despite a long-term decline in the circus industry, Cirque du Soleil profitably increased revenue 22-fold over the last ten years by reinventing the circus. Rather than competing within the confines of the existing industry or trying to steal customers from rivals, Cirque developed uncontested market space that made the competition irrelevant. Cirque created what the authors call a blue ocean, a previously unknown market space. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In red oceans--that is, in all the industries already existing--companies compete by grabbing for a greater share of limited demand. As the market space gets more crowded, prospects for profits and growth decline. Products turn into commodities, and increasing competition turns the water bloody. There are two ways to create blue oceans. One is to launch completely new industries, as eBay did with online auctions. But it's much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry. In studying more than 150 blue ocean creations in over 30 industries, the authors observed that the traditional units of strategic analysis--company and industry--are of limited use in explaining how and why blue oceans are created. The most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major market-creating business offering. Creating blue oceans builds brands. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades.
Governments, activists, and the media have become adept at holding companies to account for the social consequences of their actions. In response, corporate social responsibility has emerged as an inescapable priority for business leaders in every country. Frequently, though, CSR efforts are counterproductive, for two reasons. First, they pit business against society, when in reality the two are interdependent. Second, they pressure companies to think of corporate social responsibility in generic ways instead of in the way most appropriate to their individual strategies. The fact is, the prevailing approaches to CSR are so disconnected from strategy as to obscure many great opportunities for companies to benefit society. What a terrible waste. If corporations were to analyze their opportunities for social responsibility using the same frameworks that guide their core business choices, they would discover, as Whole Foods Market, Toyota, and Volvo have done, that CSR can be much more than a cost, a constraint, or a charitable deed--it can be a potent source of innovation and competitive advantage. In this article, Michael Porter and Mark Kramer propose a fundamentally new way to look at the relationship between business and society that does not treat corporate growth and social welfare as a zero-sum game. They introduce a framework that individual companies can use to identify the social consequences of their actions; to discover opportunities to benefit society and themselves by strengthening the competitive context in which they operate; to determine which CSR initiatives they should address; and to find the most effective ways of doing so. Perceiving social responsibility as an opportunity rather than as damage control or a PR campaign requires dramatically different thinking--a mind-set, the authors warn, that will become increasingly important to competitive success.