Clarke, N P; Spillane, J P and Bradley, J G (2024) Barriers to adopting strategic planning as a management tool in small construction firms. In: Thomson, C (ed.) Proceedings of 40th Annual ARCOM Conference, 2-4 September 2024, London South Bank University, UK.
Abstract
Strategic planning enables firms to determine their long-term direction. Research indicates a positive correlation between strategic planning and improved performance. Yet, small firms within the construction industry are slow to adopt strategic planning in their organisations. To understand why small firms do not use strategic planning, 20 semi-structured interviews are conducted with owners and senior managers from eight principal contractors, eight subcontractors and four consultancies to gain insight. Interviews are transcribed, coded using NVivo, and themes developed using thematic analysis. The results indicate time constraints, expertise/exposure, focusing on operational matters, the owners' motivations for being in business and industry structure as inhibitors to adopting strategic planning in small firms. The negative consequences of not planning strategically in the construction industry have been reported. This paper contributes to strategy and construction management research by discerning the reasons why small firms do not plan strategically. The findings require an integrated approach at governmental level, industry level and behavioural changes within small firms to improve strategic planning.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | construction industry; construction management; small firms; strategic management; strategic planning |
| Index terms: | small construction firm, principal contractor, strategy, owner, motivation, interview, behavioural change, integrated approach, manager, management research, exposure, construction industry, consultancy, subcontractor, strategic planning, strategic management, thematic analysis |
| Subjects: | data collection methods, research design and methodology, organization, practitioner, psychology, contractual arrangements, management, public and environmental health, methods and analysis, sociology, industry analysis, behavioral psychology |
| Topics: | Research Practice, Health and Safety, Business Strategy, Procurement, Roles and Professions, Stakeholder Management, Human Resources, Organizational Design |
| 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