Omopariola, E D and Windapo, A (2019) Financial management strategies that influence project and organisation performance. In: Gorse, C and Neilson, C J (eds.) Proceedings of 35th Annual ARCOM Conference, 2-4 September 2019, Leeds Beckett University, Leeds, UK.
Abstract
The study examines the financial management strategies used by construction organisations and whether these approaches result in competitive advantages, and improved project and organization performance. The grounds for the examination stems from arguments held by scholars that the type of financial management strategy used by organisations on construction projects affect performance and corporate sustainability. Also, there is limited research that explores how financial management strategies influences project and organization performance. The study employs a systematic review of extant literature into financial management strategies and project and organisation performance to obtain information required to address the research objective. Using this approach, the study develops a conceptual framework that links the financial management strategies used by construction organisations to their construction projects and organisation performance. It emerged that adequacy of financial management strategies employed by contractors on construction projects is a factor in the effective and efficient delivery of the construction project. Based on these findings, the study concludes that success in today’s competitive settings necessitates that a company employs a financial management approach that is aligned to its growth plan, goal attainment and adequate resource deployment. Hence, the study recommends that further studies using empirical data should be undertaken to determine which of the financial management strategies in the construction industry – cash flow forecast/projection strategy, budgeting strategy, credit worthiness strategy, risk management strategy and review and evaluation strategy best fits the need for construction businesses to deliver successful construction projects and improved organisation performance.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | budgeting strategy; cash flow forecasting; creditworthiness; evaluation strategy; project performance; organisation performance; risk management strategy |
| Index terms: | construction project, cash flow, construction organization, strategy, cash flow forecasting, competitive advantage, financial management, risk management, project performance, construction industry, conceptual framework, systematic literature review, budgeting |
| Subjects: | theoretical framing, financial management, risk assessment, management, organization, market analysis, industry analysis, economic analysis, financial and cost management, project management theory and practice, research evaluation and metrics, production management |
| Topics: | Research Practice, Project Management, Cost Management, Business Strategy, Risk Management |
| Descriptive scope: | 5 PCTEA |
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