Strategic Management Practices in the Construction Industry
Summary
The construction industry faces unique challenges arising from project complexity, diverse stakeholder demands and fluctuating market conditions. Strategic management practices have evolved to address these demands through integrated planning at corporate, business and functional levels. At the corporate level, firms define their overarching vision, scope and values, while business-level strategy focuses on competitive positioning and market differentiation. Functional strategies translate these high-level aims into specific actions in areas such as procurement, risk management, finance and human resources. Central to contemporary practice is strategic alignment, which ensures coherence between strategy levels and supports adaptability in the face of external shocks. Emphasis on sustainability has led organisations to incorporate environmental, social and governance (ESG) criteria into strategic decision-making, fostering long-term value creation and resilience. Digital tools, including data analytics and Building Information Modelling, are increasingly deployed to optimise resource allocation, monitor performance and enable real-time decision-making. Global supply-chain integration and stakeholder engagement further enhance responsiveness to economic cycles, regulatory changes and community expectations. Overall, strategic management in construction now balances rigorous planning with flexibility, leveraging innovation to secure competitive advantage and sustainable growth.
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Strategic Management Practices in the Construction Industry publication trend
The graph below shows the total number of articles in strategic management practices in the construction industry across all publications each year (not limited to Nature Index journals).
Technical terms
Strategic alignment: The process of coordinating strategies across corporate, business and functional levels to ensure consistency and support organisational objectives.
Corporate strategy: The highest level of strategic planning that defines a firm’s vision, scope, resource allocation and long-term goals.
Business strategy: The set of choices and actions that determine how an organisation competes in particular markets and achieves competitive advantage.
Functional strategy: Detailed plans and practices implemented within specific departments (such as procurement, finance and HR) to execute higher-level strategic objectives.
References
- Sustaining Construction Organisations in NZ: A Linear Regression Model Approach to Analysing Determinants of Their Performance. Sustainability (2023).
- Response Strategies of UK Construction Contractors to COVID-19 in the Consideration of New Projects. Buildings (2022).
- Building renovation business: the effects of specialization on profitability. Construction Management and Economics (2023).
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