Mahdavi, A; Naderpajouh, N; Choi, J; Ketabi, A B; Hastak, M and Cui, Q (2021) Dynamics of project selection and growth in project-based organizations. International Journal of Construction Management, 21(12), pp. 1200-1217. ISSN 1562-3599
Abstract
Expected long-term growth of organizations is path dependent and hinged to a series of decisions. In project-based industries, this path is shaped by decisions such as project selection. In this paper, we aim to explore the hypothesis that decisions regarding project selection are dynamic in nature, and the sequential strategies of organizations can have a butterfly effect on their long-term growth. For this purpose, we explored different project selection strategies based on the payback period of projects and their profitability, and considering capacity of the organizations. A real case study based on a midsize construction company in the United States is then used to showcase the application of the model to develop strategies for the long-term growth of organizations. Theoretically and thematically, the proposed simulation suggests that the emergent long-term impact of project selection strategies can be added to considerations in portfolio management to develop more informed long-term strategies.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | bonding capacity; growth of organizations; portfolio management; profitability; project selection; project size; simulation; strategic planning |
| Index terms: | United States, strategy, construction company, project-based organization, payback, portfolio management, case study, dynamics, strategic planning, project selection, profitability, project-based industry |
| Subjects: | systems engineering, Geography, management, economic analysis, value management, organization, data collection methods |
| Topics: | Engineering Principles, Research Practice, Project Management, Geographical Context, Business Strategy, Organizational Design |
| Descriptive scope: | 3 PCE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here