Cheah, C; Kang, J and Chew, D (2007) Strategic analysis of large local construction firms in China. Construction Management and Economics, 25(1), pp. 25-38. ISSN 1466433X
Abstract
The many transitory changes in China have raised the intensity level of competition among construction firms. Despite having a high growth economy, some construction firms continue to suffer from low profitability. Meanwhile, practical cases and empirical findings related to Chinese construction firms remain lacking. This research develops a conceptual model for improving the competitiveness of large construction firms in China. The model integrates two main streams of strategic management theories - the industrial organisation theories, and the resource-based and competence-based views. Critical variables that form the model are initially identified from an environmental analysis and the case studies of 12 large Chinese construction companies. The relationships between competitive strategies, important resources and competencies, and competitive advantage are then verified using survey results. The statistical findings suggest that two strategies - differentiation and market/product diversification, and three important resources and competencies - technological innovative capabilities, financial capabilities and guanxi (relationship), directly affect firm performance as measured by revenue and profit growth.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | competence; competition; competitive advantage; competitiveness; differentiation; construction firms; diversification; strategic analysis; strategic management; China; case study |
| Index terms: | diversification, competitiveness, profitability, Guanxi, strategic analysis, environmental analysis, competitive advantage, case study, firm performance, strategic management, stream, competence, competition, China, competitive strategy, differentiation, industrial organization, strategy, survey, construction company, revenue, construction firm, profit |
| Subjects: | management, business analysis, water management, Geography, personnel development, market analysis, sociology, industry analysis, data collection methods, business, organization, environmental impact, economic analysis |
| Topics: | Organizational Design, Human Resources, Urban Studies, Sustainability, Research Practice, Geographical Context, Business Strategy |
| Descriptive scope: | 3 PCE |
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