Issues facing small and medium construction enterprises in industrial South Wales: Can they survive beyond the year 2000?

Strategic management theory within the construction industry implies that decisions made inside the firm are determined mainly by the flow of information and knowledge from the environment. Best Practices are instruments that purport to provide firms with strategic capabilities but it is argued that research is required to understand the diverse nature of firms operating within a particular region. It is also recognized that the way knowledge and information is used within the firm is essentially determined by the internal capabilities of the firm together with the values and aspirations of the entrepreneur. Skills are enhanced through the continuous co-ordination of production and the integration of differing technologies. It is recognized that the construction industry in the United Kingdom trails foreign competition in terms of training and development. It is argued that industrial South Wales should be the focus of further research due to the sectoral differences that exist together with the heterogeneity of the firms within the region. This paper aims to determine the link between small business theory and small and medium sized construction enterprises offering an understanding of how such firms operate strategically within their environments.