Major Strategies on Building Production Innovation Influencing Competitive and Growth Strategies in Construction Companies

1.154 368


This study aims to identify the impact of two factors –growth and competitive strategies- on a set of strategies for building production innovation. A questionnaire survey was conducted to collect data from construction professionals, who were asked to rate the importance level of predicted innovation strategies on some corporate strategy combinations. Multiple analysis of variance (MANOVA) was employed to see the main and interaction effects of corporate strategies on building innovation strategies. The results indicate that growth strategies such as entering in a new a market or new project types has a greater effect on innovation strategies than competitive strategies such as cost leadership or differentiation strategies. However, the interaction effect of competitive and growth strategies together have been found to be much bigger than the effect of competitive strategies alone. The descriptive statistics of innovation strategies for different competitive and growth strategy types has also been analyzed in the study.

Keywords  :Competitive strategy, growth strategy, innovation, construction company, MANOVA


Competitive strategy, growth strategy, innovation, construction company, MANOVA

Full Text:



Kale, S. and Arditi, D., “Competitive positioning in United States construction industry”, Journal of Construction Engineering and Management, 128(3): 238–47 (2002).

Lansley, P., “Corporate strategy and survival in the UK Management and Economics, 5:141–55, (1987). Construction

Hillebrandt, P.M., Cannon, J. and Lansley, P., “The Construction Company in and out of Recession”, Macmillan, London, (1995).

Langford, D. and Male, S., Strategic Management in Construction, 2nd ed., Blackwell Science, Oxford, (2001).

Seaden, G., Guolla, M., Doutriaux, J., and Nash, J., “Strategic decision and innovation in construction firms”, Economics, 21(6):603-612 (2003). Management and

Green, S.D., Larsen, G.D. and Kao, C-C, “Competitive strategy revisited: contested concepts and Management and Economics, January (26):63–78, (2008). Construction

Abdul-Aziz, A.-R., “Global strategies: a comparison between Japanese and American construction firms”, Construction Management and Economics, 12(6):473-484 (1994).

Warszawski, A., “Strategic Planning Journal of Construction Construction Engineering and Management, 122(2):133-140 (1996).

Chinowsky, Paul S. and Meredith, James E., “Strategic Management in Construction,” Journal of Construction Engineering and Management, 126(1):1-9 (2000).

Yongtoa, T., “Contractors competitiveness and competitive strategy in Hong Kong”, Ph.D. Thesis, The Department of Building and Real Estate (2008). University

Thompson, A. A., Jr. & Strickland, A.J. III., “Strategic management concepts and cases”, 8th ed., Chicago, (1995)

Zhao, Z. Y., Shen, L. Y. and Zuo, J., “Performance and Strategy of Chinese Contractors in the International Market”, Journal of Construction Engineering & Management, 135(2):108-118, (2009)

Porter, M.E., “Competitive Advantage”, Free Press, New York, (1985)

Tatum, C. B., “Organizing to increase innovation in construction firms”, Journal of Construction Engineering and Management, 115(4):602-617, (1989).

Slaughter, E. S., “Builders as sources of construction innovation”, Journal of Construction Engineering and Management, 119(3):532-549, (1993)

Nam, C.H., Tatum, C.B., “Toward understanding of product innovation process in construction”, Journal of Construction Engineering and Management, 115(4):517-534 (1989)

Lampel, J., Miller, R. and Floricel, S., asymmetries “Information innovation in large engineering projects”, R&D Management, 26(4):357-369 (1996) technological

Bernstein, H. M., “Bridging the globe: Creating an international construction innovation”, Industrial Environment, 19(2):26-28, (1996) engineering and

Seaden, G and Manseau, A., “Public policy and construction innovation”, Building Research & Information, 29(3):182-196, (2001)

Bossink, B.A.G., “Effectiveness of innovation leadership styles: a manager’s influence on ecological innovation in construction projects”, Construction Innovation, 4(4):211-228 (2004).

Hair, J., Black, W., Babin, B., Anderson, R., and Tatham, R., “Multivariate Data Analysis”, 6th ed. Pearson Prentice Hall, Upper Saddle River, New Jersey (2006)

Caves, R.E., “Multinational enterprises and technology transfer”, in Rugman, A.M. (ed.) New Theories of the Multinational Enterprise, St Martin’s Press, New York,254–79, (1982)

Ling, F.,Ibbs, C.W. and Cuervo, J.C., “Entry and business strategies used by international Construction Management and