Strategic or operational perspectives on performance: what is prioritized in a large construction company?

2006 ◽  
Vol 10 (1) ◽  
pp. 36-47 ◽  
Author(s):  
Peter Samuelsson ◽  
Per Ekendahl ◽  
Petter Ekevärn
Keyword(s):  
Competitive Advantages ◽  
Content Type ◽  
Strategic Objectives ◽  
Large Organization ◽  
Construction Company ◽  
Construction Companies ◽  
Corporate Strategies ◽  
Organizational Levels ◽  
Operational Criteria

PurposeThis case study sets out to discuss the balance of operational and strategic perspectives on performance measurement in a large construction company.Design/methodology/approachIn interviews, managers at two middle organizational levels in the case company were asked to prioritize which criteria they found most important to direct their business. The results from these interviews were compiled in success maps in order to describe how the managers thought these criteria were interrelated.FindingsA gap was found between operational and strategic perspectives at the two organizational levels: lower management ranked criteria that corresponded to strategic objectives lower than did the middle management. One reason for this gap seems to be the lack of incentives for aligning with the strategic objectives. If there were no incentives, lower managers tended to prioritize operational criteria prior to strategic criteria.Practical implicationsThis study emphasizes the need to link strategic objectives to criteria that give incentives for lower management to comply with the strategic objectives, to formulate unambiguous strategies and to communicate these strategies clearly.Originality/valueIn large construction companies, measurement of effectiveness is particularly complicated since adjustment to local markets must be balanced with alignment with corporate strategies in order to benefit from the competitive advantages of a large organization. Managers in a large construction company have to combine operational and strategic perspectives in measurement and management. Little research has been done to investigate and understand this area and therefore this paper can make a useful contribution.

Managing renewal in fragmented business networks

IMP Journal ◽  
2016 ◽  
Vol 10 (1) ◽  
pp. 81-106 ◽  
Author(s):  
Malena Ingemansson Havenvid ◽  
Håkan Håkansson ◽  
Åse Linné
Keyword(s):  
Business Environment ◽  
Business Networks ◽  
Business Relationships ◽  
Core Network ◽  
Content Type ◽  
Internal Resources ◽  
Business Context ◽  
Construction Company ◽  
Construction Companies

Purpose – The authors argue that the construction industry is characterised by a fragmented business context with three main features: the project-based character, the strong focus on price in all parts of the supply chain along with the great importance of suppliers. This fragmentation has been identified as problematic for the industry’s ability to innovate and engage in renewal. The purpose of this paper is to investigate this further by focusing on how construction companies manage renewal in a fragmented business context. Design/methodology/approach – The authors use an in-depth case study of a housing project in Sweden to discuss how firms manage renewal in a fragmented type of business environment. The authors identify the challenge of achieving renewal in an individual construction company as an issue of handling intra- and inter-organisational issues in both intra- and inter-project environments. Findings – The case study indicates that renewal can be partly handled and managed through long-term business relationships and partly through opening up to new business relationships. Moreover, innovations and learning developed in other projects can be used in the focal project, and due to a repetitive task it is possible for the construction company to use a core network of individuals and organisations to enhance overall renewal among actors. Research limitations/implications – The study needs to be supported by further empirical observations. The paper encourages IMP scholars to further investigate projects from an industrial network approach. Practical implications – The study shows that the internal resources of firms can be used systematically to create continuity in a multi-project organisation, and that relationships can be used to bridge learning and innovation among actors across projects. Originality/value – The paper addresses why firms in fragmented (project-based) businesses might struggle with achieving renewal in a novel way by outlining and investigating four organisational challenges they must handle.

EVALUATION OF THE COMPETITIVENESS OF CONSTRUCTION COMPANY OVERHEAD COSTS

2009 ◽  
Vol 15 (2) ◽  
pp. 215-224 ◽  
Author(s):  
Ala Šiškina ◽  
Arvydas Juodis ◽  
Rasa Apanavičienė
Keyword(s):  
Work Organization ◽  
Evaluation Methodology ◽  
Competitive Advantages ◽  
Construction Operations ◽  
Strategic Objectives ◽  
Construction Company ◽  
Construction Companies ◽  
Advantages And Disadvantages ◽  
Bidding Price ◽  
Office Employees

The enhancement of the competitiveness of a construction company is one of the most important strategic objectives in construction industry. The company's management system, work organization and employment of available assets are some of the most important factors upon which overhead costs and the bidding price of a construction company depend directly. A statistical analysis of a homogenous group of construction companies reveals the company's overhead costs value distribution function, which can be used to evaluate the competitive advantages and disadvantages of a specific construction company. A detailed overhead costs categorization and the findings of a survey conducted among contractors influenced the selection of the principal parameters of the company's activity, on which the value of overhead costs depends; they are the number of company's head office employees and the area of company's facilities. The developed competitiveness evaluation methodology enables the construction managers to adequate and scientific position the company on the market of homogenous construction companies group, to estimate its activity as well as to evaluate the competitive advantages and disadvantages of bidding prices and certain costs in public tendering of construction operations and services. Santrauka Didinti statybos įmonės konkurencingumą yra vienas svarbiausių statybos verslo strateginių uždavinių. Įmonės valdymo struktūra, veiklos organizavimas, turimo turto naudojimas yra vieni iš svarbiausių veiksnių, nuo kurių tiesiogiai priklauso statybos įmonės pridėtinės išlaidos, kartu ir siūlomos statybos darbų kainos. Statistiškai tiriant homogeninę statybos įmonių grupę nustatyta statybos įmonių pridėtinių išlaidų reikšmių pasiskirstymo funkcija, pagal kurią gali būti įvertinti konkrečios statybos įmonės konkurenciniai pranašumai ar trūkumai. Išsamiai apibrėžta pridėtinių išlaidų struktūra ir statybos rangovų apklausos rezultatai darė įtaką pagrindinių įmonės veiksnių, nuo kurių priklauso pridėtinių išlaidų dydis, parinkimui – tai įmonės administracijos darbuotojų skaičius ir nekilnojamojo turto plotas. Sudarytas statybos įmonės valdymo sistemos ir infrastruktūros charakteristikų regresinis modelis yra patogus planavimo ir prognozavimo įrankis parenkant tinkamą įmonės veiklos pridėtinių išlaidų struktūrą ir pritaikant įmonės plėtrai reikalingą strategiją. Siūloma statybos įmonių konkurencingumo įvertinimo metodika leidžia statybos organizacijų vadovams adekvačiai ir moksliškai pagrįstai nustatyti įmonės padėtį homogeninės statybos įmonių grupės rinkoje, įvertinti jos veiklos efektyvumą ir nesunkiai nustatyti kainos, išlaidų konkurencinius pranašumus bei trūkumus dalyvaujant statybos darbų ir paslaugų viešuosiuose pirkimuose.

Intellectual capital in family firms: human capital identification and measurement

2015 ◽  
Vol 16 (1) ◽  
pp. 199-223 ◽  
Author(s):  
Enrique Claver-Cortés ◽  
Patrocinio Carmen Zaragoza-Sáez ◽  
Hipólito Molina-Manchón ◽  
Mercedes Úbeda-García
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Family Firms ◽  
Balance Sheet ◽  
Research Approach ◽  
Competitive Advantages ◽  
Content Type ◽  
Starting Point ◽  
Practical Implications

Purpose – Based on the literature devoted to family firms and the intellectual capital-based view of the firm, the purpose of this paper is not only to identify the most important human capital intangibles owned by family firms but also to show a number of indicators that can help measure them. Design/methodology/approach – A qualitative case-study-based research approach was adopted taking as reference: 25 family firms belonging to different sectors; previous works existing in the literature; and the intellectus model. Findings – The present study identifies ten intangibles associated with the human capital of family firms and shows 60 indicators that can be used to measure them. It additionally provides empirical evidence and gives examples of these intangibles through the analysis of 25 international family firms. Research limitations/implications – The difficulty in collecting all the human capital intangibles of family firms; the problems associated with the creation of accurate indicators; and those specific to the research methodology adopted. Practical implications – Identifying the human capital intangibles of family firms and their indicators can help managers become aware of their importance, and this will consequently help them improve their management. This could be an interesting starting point to value these intangibles in the balance sheet as well as to draw comparisons between family and non-family organisations. Originality/value – The framework provided by family firms sheds light on several intangibles specific to these firms – precisely for their condition as “family” firms. Those intangibles – human capital intangibles being especially highlighted in this study – provide the basis for the achievement of competitive advantages.

Unlocking the value of HR to drive a change-ready culture

2017 ◽  
Vol 16 (4) ◽  
pp. 171-176
Author(s):  
Campbell Macpherson
Keyword(s):  
Real World ◽  
Culture Change ◽  
Design Methodology ◽  
Lessons Learned ◽  
World Culture ◽  
Content Type ◽  
Large Organization ◽  
The Real ◽  
Personal Experiences

Purpose This paper aims to present a case study focused on developing a change-ready culture within a large organization. Design/methodology/approach This paper is based on personal experiences gleaned while driving an organization-wide culture change program throughout a major financial advisory firm. Findings This paper details over a dozen key lessons learned while transforming the HR department from a fragmented, ineffective, reclusive and disrespected department into one that was competent, knowledgeable, enabling and a leader of change. Originality/value Drawing on the real-world culture change intervention detailed here, including results and lessons learned, other organizations can apply similar approaches in their own organizations – hopefully to similar effect.

New CEOs’ previous experience and acquisition performance

2019 ◽  
Vol 27 (3) ◽  
pp. 745-758 ◽  
Author(s):  
Heejin Woo
Keyword(s):  
Abnormal Returns ◽  
Competitive Advantages ◽  
Upper Echelon ◽  
Acquisition Performance ◽  
Content Type ◽  
Corporate Strategies ◽  
Cumulative Abnormal Returns ◽  
The Us ◽  
Event Study Method ◽  
Industry Experience

Purpose This study aims to investigate how new CEOs’ previous experiences in other organizations and other industries create value in acquisitions. Drawing on the upper echelon perspective, this study theorizes that the multiorganizational experience of new CEOs is positively associated with acquisition performance and, in particular, that the multi-industry experience of new CEOs leads to better performance in diversifying acquisitions than in related acquisitions. While new CEOs without multiorganizational experience undergo a cognitive entrenchment in firm-specific experience, new CEOs with multiorganizational experience can lead acquisitions with more flexibility and agility. Design/methodology/approach Acquisition and organizational data were drawn from the US manufacturing industries (SIC 20-39) between 2008 and 2010. The event study method was used to test hypotheses. In 346 acquisitions made by 139 firms, acquisition performance was measured according to cumulative abnormal returns. Findings Consistent with the hypotheses, the multiorganizational experience of new CEOs was positively associated with acquisition performance and, in particular, the multi-industry experience of new CEOs led to better performance in diversifying acquisitions than in related acquisitions. Originality/value This paper contributes to the CEO literature and acquisition literature by suggesting that the multiorganizational experience of new CEOs can be a valuable source of competitive advantages, particularly when implementing corporate strategies involving interorganizational integration processes.

Exploring the use of financial capacity as a predictor of construction company corporate performance

2015 ◽  
Vol 13 (4) ◽  
pp. 596-611 ◽  
Author(s):  
George Cyril Tucker ◽  
Abimbola Windapo ◽  
Keith Stone Cattell
Keyword(s):  
Financial Performance ◽  
Construction Industry ◽  
South African ◽  
Corporate Performance ◽  
Financial Capital ◽  
Content Type ◽  
Financial Capacity ◽  
Construction Company ◽  
Construction Companies ◽  
Operational Variables

Purpose – The purpose of this paper is to examine the resilient operational variables that impact the corporate performance of construction companies in the South African construction industry and to explore whether financial capacity can be used as a predictor of construction company performance in the context of the South African construction industry. Design/methodology/approach – The operational variables of construction companies that impact their corporate performance were identified through an in-depth review of the extant literature. A combination of convenience and snowball sampling techniques were used in identifying 185 building and civil engineering construction companies based in four provinces of South Africa and registered in Grades 2-6 of the Construction Industry Development Board (CIDB) contractor grading register. The data used in the study were collected from this cohort of respondents through the use of structured questionnaires. At the end of the study period, 62 valid responses representing a response rate of 33.5 per cent were received. Data collected were analyzed using descriptive and inferential statistics. Findings – The findings of this study indicate that there is a significant positive relationship between the financial capital and net assets of construction companies and their corporate performance in terms of turnover. The data collected did not support any significant relationship between other operating financial variables, such as Return on Capital Employed and profitability and financial performance. Research limitations/implications – A predictive model for predicting the financial performance of firms was developed from the data collected. The implication of this is that the more financial capital possessed by a construction company, the more the company’s financial performance in terms of turnover. The CIDB can use financial capacity as a measure when grading contractors, as a good number of contractors are not performing. The predictive model developed could be adopted by the CIDB as an instrument for predicting the corporate financial performance of construction companies that seek to be listed on their contractor grading register. Originality/value – This research will be of significance to researchers and members of the research community in providing new knowledge as well as to contractors in enabling them to understand the importance of having financial capital. It is also of importance to the CIDB in their quest for contractor and construction industry development. Further research to validate the results obtained in this study using a larger sample size across more provinces of South Africa will form the basis of future studies.

M-Tour: A new socio-technological design application for destination competitiveness in Egypt

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseck Nyaboro ◽  
Kwangsoo Park ◽  
Jaehyun Park
Keyword(s):  
Qualitative Interviews ◽  
Field Studies ◽  
Competitive Advantages ◽  
Tourism Destination ◽  
Technical Design ◽  
Content Type ◽  
Destination Competitiveness ◽  
Flow Of Information ◽  
Smart Tourism

PurposeThe study explores how the comparative tourism destination could incorporate the merits of the competitive tourism destination by implementing a socio-technical design application for smart tourism.Design/methodology/approachTo address this issue researchers have conducted a case study in Egypt, because Egypt is one of the most popular tourism comparative destination. It includes two field studies and qualitative interviews conducted in Cairo and Alexandria in Egypt.FindingsEgypt has diverse comparative advantages in terms of touristic features; however, the dysfunctional flow of information among the stakeholders was a hindrance to be a competitive destination. Based on this problem statement, the researchers synthesized “M-Tour” as a new socio-technical design application, moving toward the competitive destination from the comparative ones.Originality/valueThe present study makes two contributions. First, it theoretically conceptualizes an integrated model of how a tourism comparative destination can incorporate the competitive advantages by a socio-technical design application called M-Tour. Second, it empirically explores the tourists' latent requirements in Egypt by two field studies in order to develop a smart tourism design application as a new socio-technology.

A study on how to improve the throughput time of Lean Six Sigma projects in a construction company

2014 ◽  
Vol 5 (2) ◽  
pp. 212-226 ◽  
Author(s):  
Aat van den Bos ◽  
Benjamin Kemper ◽  
Vincent de Waal
Keyword(s):  
Six Sigma ◽  
Selection Process ◽  
Lean Six Sigma ◽  
Throughput Time ◽  
Content Type ◽  
Construction Company ◽  
Construction Companies ◽  
Project Completion ◽  
Depth Analysis ◽  
Improvement Programs

Purpose – The purpose of this paper is to study the use of the Lean Six Sigma (LSS) methodology in a construction company. Design/methodology/approach – In our study we analyze 62 LSS improvement projects carried out within a Dutch company. In our analysis we focus on both speed, in terms of throughput time (THT), and impact, in terms of project completion, of each project. Findings – From the analysis we conclude that the current THT of a project is about a year and we identify important factors that cause large project's THTs These factors are then translated into recommendations for an efficient execution of LSS improvement projects. Research limitations/implications – The analysis is based on a sample from one company of the Dutch construction industry. The scope should be broadened as more companies adopt quality and process improvement programs, such as LSS. Originality/value – The narrowed scope, only one company and focused mostly on the speed of projects, helped to do an in-depth analysis. Therefore, we are able to present concrete and useful recommendations that relate to practical issues in the execution of improvement projects. These recommendations offer a checklist for construction companies in the project selection process, in situations of starting or improving an LSS program

The promoters and the barriers for organizational culture change in a Finnish construction company

2019 ◽  
Vol 19 (4) ◽  
pp. 672-688
Author(s):  
Ville Juhani Teräväinen ◽  
Juha-Matti Junnonen
Keyword(s):  
Organizational Culture ◽  
Knowledge Management ◽  
Construction Industry ◽  
Culture Change ◽  
Holistic Approach ◽  
Organizational Level ◽  
Content Type ◽  
Construction Company ◽  
Organizational Culture Change

Purpose The construction industry has struggled with efficiency issues for decades. Organizational culture is identified as one of the biggest hindrances for the enhancement of efficiency in a highly labor-intensive sector such as construction. Based on recent academic studies, Finnish construction industry professionals would embrace clan and adhocracy culture features to achieve a better level of construction efficiency. The purpose of this paper is to investigate the promoters and the barriers for making the desired culture change happen in the case company. Design/methodology/approach The paper presents a semi-structured theme interview case study, including 12 in-depth interviews. The interviews were recorded, and later, transcribed into text, which forms the empirical data of this paper. Findings The Finnish construction industry must adopt a holistic approach to enhance its prevailing level of efficiency through the culture change. Basic learning and knowledge management processes seem to be missing from the industry and organizational levels. Better knowledge management in the case company would be the first step to start fixing this problem. Research limitations/implications Because of the nature of a case study, the research results can be generalized only with caution in the Finnish construction industry. Generalizing the findings in another country would require further studies in a different cultural environment, e.g. in another European country. Practical implications The paper includes implications for the development of the organizational culture on the Finnish construction industry level and on an organizational level. Originality/value The found influencers are discussed through Engeström’s activity model for the first time in the construction culture context.

scholarly journals “Future-proof your Degree”

2019 ◽  
Vol 20 (8) ◽  
pp. 1329-1342
Author(s):  
Fiona Winfield ◽  
Tabani Ndlovu
Keyword(s):  
Sustainable Development Goals ◽  
Self Awareness ◽  
Content Type ◽  
The Sustainable Development ◽  
Strategic Objectives ◽  
The Past ◽  
Postgraduate Level ◽  
Sustainability Literacy ◽  
Development Goals

Purpose The purpose of this paper is to present a case study of how a UK business school has explicitly linked sustainability to employability and embedded these into all levels of its undergraduate and postgraduate degree portfolio. Design/methodology/approach This case study features Nottingham Business School’s (NBS’s) journey of linking sustainability with employability to achieve the University’s strategic objectives and help deliver on the sustainable development goals (SDGs). After reviewing all courses, a cross-school approach was adopted in re-designing the curriculum, first at undergraduate and later postgraduate level. Partnerships, both internal and external were developed, involving the employability and enterprise teams, the University’s students and alumni, local employers, local authorities and businesses and charities. Feedback from graduates is included. Findings When NBS introduced new undergraduate modules in 2012, there was resistance with concerns over already crammed curricula and the perceived irrelevance of sustainability. This changed as students realised that an understanding of sustainability was benefiting them at interviews and adding value to their employers. While it cannot be proved that increased self-awareness and sustainability literacy have a direct effect on graduate prospects (as measured by the Destinations of Leavers from Higher Education survey), NBS has seen the percentage of students in graduate level employment and/or study increase from 71 to 89.6 per cent over the past five years. Originality/value Linking sustainability to employability, and embedding these in the curriculum, should benefit any institution, its students, employers and society, and can be replicated anywhere in the world.

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