Strategic Management

Linking response strategies adopted by construction firms during the 2007 economic recession to Porter’s generic strategies.

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Authors:

Tansey, Paul1,2 (AUTHOR) [email protected]

Spillane, John P.2 (AUTHOR)

Meng, Xianhai2 (AUTHOR)

Source:

Construction Management & Economics. Aug2014, Vol. 32 Issue 7/8, p705-724. 20p.

Document Type:

Article

Subject Terms:

*Construction industry

*Recessions

*Leadership

*Business planning

*Construction contractors

Construction industry -- Sweden

Public works

Geographic Terms:

Great Britain

Author-Supplied Keywords:

Case study

generic competitive strategies

recession

response strategies

strategic management.

NAICS/Industry Codes:

236110 Residential building construction

237990 Other Heavy and Civil Engineering Construction

237310 Highway, Street, and Bridge Construction

236220 Commercial and Institutional Building Construction

236116 New Multifamily Housing Construction (except For-Sale Builders)

236115 New Single-Family Housing Construction (except For-Sale Builders)

238110 Poured Concrete Foundation and Structure Contractors

Abstract:

The time period bridging the years 2007 to 2012 will be remembered as one characterized by dramatic changes in the Irish and UK construction industries. Construction companies witnessed unprecedented changes in the environment, namely the coincidence of a sharp economic downturn, the significant decline of public works, a reduction in lending, increased competition, and structural changes in the marketplace. Nevertheless, little has been documented on what response strategies construction companies adopt as a result of an economic recession. Based on four exploratory case studies, a taxonomy framework of the response strategies adopted by Irish and UK construction companies during the 2007 economic recession was developed relative to Porter’s generic strategies of cost leadership, differentiation, and focus. Porter’s model is a well-known theoretical framework among business strategists and industrial economists worldwide. The analysis provides strong support for the adoption of cost leadership strategies as a means to surviving the 2007 economic recession. The case studies further suggest that cost control initiatives are one of the most important attributes in companies’ responses to the 2007 recession. The findings provide valuable assistance for construction contractors in developing effective strategies and thus reducing business failures during recessionary periods. [ABSTRACT FROM AUTHOR]

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Author Affiliations:

1Department of Civil Engineering and Construction, Institute of Technology Sligo, Sligo, Ireland

2School of Planning, Architecture and Civil Engineering, David Keir Building, Queens University Belfast, BelfastBT9 5AG, Northern Ireland, UK

ISSN:

0144-6193

DOI:

10.1080/01446193.2014.933856

Accession Number:

97189046

Database:

Business Source Complete

Publisher Logo: