BARRIERS TO ADOPTING STRATEGIC PLANNING AS A MANAGEMENT TOOL IN SMALL CONSTRUCTION FIRMS

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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.

Original languageEnglish
Title of host publicationAssociation of Researchers in Construction Management, ARCOM 2024 - Proceedings of the 40th Annual Conference
EditorsCraig Thomson, Christopher J Neilson
PublisherAssociation of Researchers in Construction Management
Pages573-583
Number of pages11
ISBN (Electronic)9780995546387
Publication statusPublished - 2024
Event40th Annual Conference on Association of Researchers in Construction Management, ARCOM 2024 - London, United Kingdom
Duration: 2 Sep 20244 Sep 2024

Publication series

NameAssociation of Researchers in Construction Management, ARCOM 2024 - Proceedings of the 40th Annual Conference

Conference

Conference40th Annual Conference on Association of Researchers in Construction Management, ARCOM 2024
Country/TerritoryUnited Kingdom
CityLondon
Period2/09/244/09/24

Keywords

  • construction industry
  • construction management
  • small firms
  • strategic management
  • strategic planning

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