Sommerville, J; Farquhason, S and Campbell, C (2000) The potential influence of institutional investors on construction organizations. In: Akintoye, A (ed.) Proceedings of 16th Annual ARCOM Conference, 6-8 September 2000, Glasgow, UK.
Abstract
A small number of investment companies seem to be on the verge of prescribing the future direction of management philosophy in the UK construction industry. Prominent industrial figures have called for the industry to embrace radical change. Egan in his "Rethinking Construction" Report personifies client power, however a more cogent force is the institutional shareholders who epitomise investor power. The strength of the major shareholders is perhaps far greater than any other stakeholder in the industry. This paper considers the inter-relationships of the major shareholders in the UK construction industry with particular reference to the leading 20 contractors and materials suppliers. Detailed analysis of significant cross-border holdings found within the construction organisations major shareholders indicates the impact of such holdings and the influence upon strategic management perspectives. The nature of shareholder investment patterns suggests that changes brought about will lead to a paradigm shift in construction management philosophy and practice. Shareholder tactics may surpass single organisational survival as the underlying strategic objective, i.e. shareholders maximising the return from their investment.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | shareholder; cross border holding; financial institution; change management |
| Index terms: | paradigm, survival, philosophy, change management, strategic management, construction organization, construction industry, investor |
| Subjects: | environmental science, industry analysis, education and knowledge transfer, organization, sociology, management, philosophical studies |
| Topics: | Stakeholder Management, Sustainability, Organizational Design, Research Practice, Business Strategy |
| Descriptive scope: | 3 PCT |
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