Strategic group analysis: Strategic perspective, differentiation and performance in construction

Budayan, C (2008) Strategic group analysis: Strategic perspective, differentiation and performance in construction. PhD thesis, Middle East Technical University, Turkey.

Abstract

The aim of strategic group analysis is to find out if clusters of firms that have a similar strategic position exist within an industry or not. In this thesis, by using a conceptual framework that reflects the strategic context, contents and process of construction companies and utilising alternative clustering methods such as traditional cluster analysis, self-organizing maps, and fuzzy C-means technique, a strategic group analysis was conducted for the Turkish construction industry. Results demonstrate that there are three strategic groups among which significant performance differences exist. Self-organising maps provide a visual representation of group composition and help identification of hybrid structures. Fuzzy C-means technique reveals the membership degrees of a firm to each strategic group. It is recommended that real strategic group structure can only be identified by using alternative cluster analysis methods. The positive effect of differentiation strategy on achieving competitive advantage is widely acknowledged in the literature and proved to be valid for the Turkish construction industry as a result of strategic group analysis. In this study, a framework is proposed to model the differentiation process in construction. The relationships between the modes and drivers of differentiation are analyzed by structural equation modeling. The results demonstrate that construction companies can either differentiate on quality or productivity. Project management related factors extensively influence productivity differentiation whereas they influence quality differentiation indirectly. Corporate management related factors only affect quality differentiation. Moreover, resources influence productivity differentiation directly whereas they have an indirect effect on quality differentiation.

Item Type: Thesis (Doctoral)
Thesis advisor: Birgönül, M T and Toker, İ D
Uncontrolled Keywords: cluster analysis; competitive advantage; differentiation; productivity
Index terms: differentiation, conceptual framework, indirect effect, cluster analysis, construction company, strategy, structural equation modelling, maps, project management, clustering, construction industry, self-organizing, productivity, competitive advantage
Subjects: sociology, industry analysis, statistical analysis, management, project management theory and practice, data analysis and analytics, data science, market analysis, theoretical framing, spatial and geospatial analysis, analytical methods, organization
Topics: Project Management, Research Practice, Business Strategy, Organizational Design, Digital Applications
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