Strategic management practices and opportunities for adapting SMEs to construction industry conditions: towards a qualitative grounded conceptual framework

Date

2023

Authors

Thompson, D.
Chileshe, N.
Coggins, J.
Stevels, A.

Editors

Neilson, A.

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Conference paper

Citation

Proceedings of the 39th Annual ARCOM Conference, 2023 / Neilson, A. (ed./s), pp.659-668

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39th Annual ARCOM Conference (4 Sep 2023 - 6 Sep 2023 : Leeds, UK)

Abstract

Small and medium-sized enterprises (SMEs) make up most of the construction industry in Australia. The recent COVID-19 crisis emphasized the challenges of strategically managing labour; materials; interdependencies; customers; and financial solvency/viability. While existing studies have provided insights into strategic responses taken by construction firms generally; there is a lack of research regarding how and why construction SMEs implement such responses. This paper introduces a novel conceptual framework for analysing strategic management practices and identifying opportunities for adapting to industry conditions. The framework incorporates 10 key strategic response measures identified from extant literature and has been qualitatively tested through 30 semi-structured interviews of employees in the South Australian construction industry. Responses were thematically analysed following general theories of resource allocation and stakeholder management. All 10 measures were verified as pertinent. Four additional strategies were identified as being especially important to SMEs during times of crisis: collaborative culture; promoting corporate values/objectives; succession planning and human resource management. This framework will assist practitioners and policymakers in ensuring a more robust future for construction SMEs.

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Copyright 2023 Association of Researchers in Construction Management

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