Siamuzwe-Manase, V; Halcro, K R; Kumar, B and Skitmore, M (2024) Project-oriented strategic management of UK construction firms: Towards corporate diversification: critical literature review. Built Environment Project and Asset Management, 14(6), pp. 937-955. ISSN 2044-124X
Abstract
Purpose: The paper analyses the strategic management strategies of UK Construction Contracting Firms (CCFs) and their impact on the industry, highlighting their fragmentation, high-risk, low-profit nature and low profit returns. It suggests proactive strategies for sustainable growth and explores the potential of corporate diversification. Design/methodology/approach: Utilising a thematic critical literature review, specific inclusion/exclusion criteria are used to select relevant literature together with a thematic qualitative synthesis data analysis approach to identify trends and challenges. Findings: UK CCFs primarily use reactive and project-based strategic management, which may not align with long-term success due to market volatility, reactive supply, fragmentation, high competition and lack of differentiation. The short-term business cycle makes medium- to long-term strategy development difficult. It is recommended that CCFs adopt proactive strategic management and consider corporate diversification for enhanced competitiveness, stability and performance. Although there are conflicting findings on the impact of diversification on firm performance, this research suggests that it is a viable strategy for achieving enhanced firm performance and competitive advantage. Research limitations/implications: The importance of proactive corporate strategies for CCFs is emphasised to overcome industry challenges, promote sustainable growth and enhance competitiveness. Corporate diversification, cultural transformation, management qualifications promotion and talent development collaboration are advocated, providing valuable insights for practitioners, policymakers and researchers. Practical implications: The practical implications of this research involve fostering a shift towards proactive and dynamic strategic management in the UK construction industry, addressing the historical neglect of broader strategic perspectives and empowering practitioners and academics to drive positive change and innovation within the sector. Social implications: The social implications of this research encompass the potential to enhance the overall efficiency, sustainability and collaborative dynamics within the UK construction industry, which can ultimately contribute to improved infrastructure development and the well-being of communities. Originality/value: Project-driven strategic management in the UK construction industry is explored, questioning the reactive approach used by CCFs. It provides insights, best practices and improvement areas, emphasising diversification, proactive corporate strategies, cultural shifts and industry improvement, spanning theory, practice and theory.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction contracting firms; diversification; project-based strategies; strategic management; UK |
| Index terms: | differentiation, construction industry, competition, practitioner, competitiveness, diversification, strategic management, dynamics, collaboration, methodology, best practice, well-being, construction contracting firm, profit, infrastructure development, construction firm, transformation, stability, literature review, firm performance, strategy, fragmentation, corporate strategy, data analysis, promotion, qualification, competitive advantage, efficiency |
| Subjects: | management, structural engineering, business analysis, research methods, educational resources, performance management, infrastructure engineering, market analysis, industry analysis, systems engineering, business, organization, mental health and wellbeing, practitioner, data analysis and analytics, economic analysis |
| Topics: | Governance, Roles and Professions, Engineering Principles, Research Practice, Health and Safety, Business Strategy, Organizational Design, Education, Human Resources, Quality Management |
| 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