Cheah, C Y J; Garvin, M J and Miller, J B (2004) Empirical study of strategic performance of global construction firms. Journal of Construction Engineering and Management, 130(6), pp. 808-817. ISSN 0733-9364
Abstract
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.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | accounting; construction companies; financial factors; management methods; strategic planning |
| Index terms: | construction organization, Europe, corporate strategy, global construction, empirical study, diversification, strategic planning, international construction, financial factor, United States, strategy, construction firm, construction company, Japan, methodology, management method, critical success factor, accounting, differentiation |
| Subjects: | Geography, research methods, management, physical geography and landforms, market analysis, control systems, organization, business, strategic management, economic analysis |
| Topics: | Governance, Business Strategy, Geographical Context, Project Management, Research Practice, Organizational Design, International Construction |
| Descriptive scope: | 4 PCTA |
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