Strategy formation in construction firms
Research output: Contribution to journal › Article › Scientific › peer-review
|Number of pages||8|
|Journal||ENGINEERING, CONSTRUCTION AND ARCHITECTURAL MANAGEMENT|
|Publication status||Published - 1 Feb 1998|
|Publication type||A1 Journal article-refereed|
The aim of the present paper was to examine strategy formation in construction firms. Strategic thinking has become increasingly important because the environment of construction has changed dramatically in recent years. An organizational strategy is the result of a formation process over time and an organization uses strategy when dealing with a changing environment. Therefore, strategies are formed in an iterative process of social interactions involving various activities. The basic unit of analysis strategy must be a distinct business and corporate entity. Corporate strategy should grow out of a deep understanding of how construction firms prosper in individual business areas, i.e. ‘the parenting advantage’. Parenting advantage is a criterion for guiding corporate strategy formation. Business strategy is formed by accepted common thinking and on the basis of business strategy in general. Business strategy and competitive advantage is based on the competencies and resources of firms.