Strategic Assets Driving Organizational Capabilities of Thai Construction Firms

This research study aims to identify strategic assets which currently drive and enhance the organizational capabilities of construction firms. There were 258 sets of questionnaires assessing the level of importance given to 106 substantial resources underlying six organizational capabilities of Thai construction firms that were analyzed. Using factor analysis, these 106 items were reduced to 14, which were termed strategic assets. These 14 strategic assets were then classified based on their influence on the six organizational capabilities. The results indicate that Thai construction firms concentrate mostly on developing excellent reputation, creating strong bargaining power with suppliers and subcontractors, and strengthening the firm’s financial stability. However, they do not give much importance to effective risk and investment management, continuous development and innovation, and explicit strategic management. These findings provide in-depth insight to comprehensively understanding a Thai construction firm’s capabilities. These 14 strategic assets should thereafter be used to develop a practical tool for managers of construction firms to evaluate their firm’s strengths and weaknesses as well as to identify strategic assets required to enhance competitiveness in the market.     

Knowledge Management to Learning Organization Connection

The changes in the engineering-construction industry of the 21st century require organizations to take a more active role in developing knowledge management and learning organization initiatives. The need to both retain knowledge within the organization and focus on continuous human resource development throughout all levels of the organization is becoming a primary challenge throughout the industry. This paper addresses this challenge by focusing on the question of the link between knowledge management and learning organizations, and how to transform an organization from a focus on knowledge management to a focus on developing a learning culture. Based on a series of studies by the writers into the characteristics of both knowledge management and learning organizations, this paper outlines models of each of these concepts and introduces a bridge that details the level of knowledge management implementation that must be in place prior to an organization having the capacity to move to a learning focus. Additionally, the case studies conducted during the current study provide a basis for presenting potentially unsuccessful paths that may be selected by organizations during the implementation of a knowledge management to learning organization transition.     

Action Research as a Proactive Research Method for Construction Engineering and Management

Academic research in applied disciplines such as construction engineering and management (CEM) has the dual mission of simultaneously contributing to the solution of practical problems and creating theoretical and conceptual knowledge. To do so, appropriate research approaches are needed. However, extant literature in the field has paid little attention to this issue and research methods used have been almost entirely either quantitative surveys or case studies. In this paper, action research (AR) is proposed as an answer to this knowledge gap. AR aims at building and testing theory within the context of solving an immediate practical problem in a real setting. The paper describes the underlying philosophy and application procedure of AR and highlights its strengths and weaknesses. Then, the applicability of the method to CEM is illustrated through a case study of improving access to information to support planning and decision making in a construction owner organization through designing and implementing a data warehouse. The findings indicate that AR is a reliable, structured, and rigorous research approach that is very useful for conducting applied research in construction and enabling academia to influence and improve construction industry practices. It can also effectively help to improve collaboration between academic researchers and industry practitioners in research and development projects.     

Authority Structures for Construction Project Management

Many practitioners believe that how one organizes to support a major construction project will have a significant impact on the successful completion of the project. This paper provides a primer on authority structures. The basic corporate organizational forms are described and construction examples are given. The basic authority structures for project management are also described. These forms are the functional, pure project, and matrix. For each form, the advantages and disadvantages as they relate to the project manager's ability to support the project are cited. Nine factors that influence the choice of authority structure are discussed. The role of the project manager is described. His effectiveness as a manager is related to the organizational form, hierarchy within the organization, authority gap, management style, and the ability to resolve conflict. Six principles for developing a project organization and selecting a project manager are given.     

Empirical Study of Strategic Performance of Global Construction Firms

This paper presents an empirical study of factors contributing to the success and failure of 24 large international construction firms originating in the United States, Europe, and Japan. The study is conducted using fundamental analysis, a methodology that is commonly applied in economics and investment practices to study the prospects of a company. Based on publicly available data, both quantitative and qualitative measures are developed and assessed collectively to derive insightful knowledge about corporate strategy and firm outlook. Preliminary conclusions drawn from this study include: (1) A universal formula for success is elusive—critical success factors can be uniquely derived from different modes of operational, financial, technological, and human-related conditions and (2) causes of failure are diverse, thus construction firms must consistently check the downside risks of all measures. Thus, debates concerning the merits of common dichotomies such as diversification versus focused differentiation appear rather hollow. These aspects of strategy are far from fixed and should instead be treated as variables. The findings suggest that an open perspective of strategy is necessary in construction organizations and provide the foundation for the development of a new strategic model for the industry.     

Factors Affecting the Success of a Construction Project

Different researchers have tried to determine the factors for a successful project for a long time. Lists of variables have been abounded in the literature, however, no general agreement can be made. The aim of this paper is to develop a conceptual framework on critical success factors (CSFs). Seven major journals in the construction field are chosen to review the previous works on project success. Five major groups of independent variables, namely project-related factors, project procedures, project management actions, human-related factors, and external environment are identified as crucial to project success. Further study on the key performance indicators (KPIs) is needed to identify the causal relationships between CSFs and KPIs. The causal relationships, once identified, will be a useful piece of information to implement a project successfully.     

Strategic Management Practices in Turkish Construction Firms

This paper presents a study that aims to define the present position of Turkish construction companies in terms of strategic management. It is based on a survey measuring strengths and weaknesses in the “strategic management” practices of Turkish construction companies, and thus reveals potential opportunities and threats in a generalized manner. The results highlight the current strategic management practice of construction firms for designing their own future. Toward this aim, a detailed questionnaire was administered to 52 construction companies. The culture of companies and their perceptions of strategic management were shown to have serious shortcomings. However, specialization on different project types through joint venture companies established by their partners was found to be a major strength of many companies. These companies also pointed out the developing and unstable nature of both the political and economic structure of Turkey as their most significant threat. This disadvantage has inclined many firms to choose investment in the private sector as a response.     

Adoption and Use of Interorganizational ICT in a Construction Project

The objective of this research is to explain why actors are not using interorganizational information and communication technology (ICT) in construction projects in the intended way, by determining the mechanisms that influence the way actors use this ICT over time during a construction project. This explorative research results in a theoretical model that contains four key categories that explains the way actors use ICT in construction projects: (1) personal motivation; (2) external motivation; (3) knowledge and skills; and (4) acting opportunities. The model is compared with three existing influential models about the adoption and use of ICT: the unified theory of acceptance and use of technology, the theory of planned behavior, and the technology acceptance model. In these models missing elements are found. In addition, it is found that fundamental characteristics of construction projects, such as the fragmented and temporarily nature of construction projects, and the different working practices, resources, and objectives of the organizations involved cause most of the barriers to the intended use of interorganizational ICT.     

Stakeholder Management during Project Inception: Strategic Needs Analysis

The project inception stage has been the focus of intense research activity for a number of years. The need to establish the project parameters and performance requirements has been an imperative in many organizations. Predesign processes and activities are being instituted that work through client strategic and organizational issues, needs, and requirements before the design team is involved. The participation of stakeholders in predesign workshops is a common feature of these project inception approaches. These approaches prepare a clear and workable statement of the project requirements in performance terms that the client group has agreed and committed itself to. This document can then provide a sound basis for the development of the design. One approach to these early stages of the project is strategic needs analysis. This approach uses a workshop setting to focus stakeholder involvement in proposing and identifying a range of strategic options for the proposed project. A case study of strategic needs analysis involving university faculty relocation to a new site is presented. The developments of organizational strategic options are described with the development of user performance indicators to guide the design development process.     

Relationship between Governance Structure and Financial Performance in Construction

Although corporate governance has emerged as an issue of considerable importance in shaping the organizational structure and the vision of the firm, this entity has yet to receive sufficient scrutiny in the construction industry. The purpose of this study is to determine the extent by which the configuration of corporate governance may impact on the financial performance of construction firms. The investigation utilizes 100 companies of differing sizes. The analysis reveals that a critical mass of outside independent directors and the dissociation of the roles of CEO and Chairmanship of the board do translate into superior financial market returns for the firms. Other corporate governance variables have no apparent impact on the financial performance of the firms. These findings are significant to construction firms that are already established or in the process of being formed.     

Enhancing Total Quality Management by Partnering in Construction

Total quality management (TQM) has increasingly been introduced into the construction industry across many countries as an improvement strategy, but there are many barriers impeding its effectiveness in implementation. Many researchers pointed out that partnering can facilitate TQM application, yet the quintessential nature on the linkage between the two techniques is still not clear due to a lack of rigorous verifiable empirical evidence. With support of the data collected from a survey of the Chinese construction industry, together with a case study of the Three Gorges Dam Project, this study reveals the mechanism of how partnering, associated with incentives, can enhance the implementation of TQM into the construction industry. It is concluded that partnering can enhance TQM largely due to enhancing the links across the boundaries of organizations within a trust environment; and the impacts of incentives on TQM are through both aligning strong motivations to encourage participants using the established links efficiently and aligning the necessary financial resources for participants to directly assist the investment on improving TQM. Further studies should be conducted to build optimum links and alignments among all project participants to ensure intraorganizational TQM activities are congruent with the interorganizational interactions, which require future project organizations to change in order to fit this.     

Effective Construction Site Management: A Review

The contribution of site management to the achievement of construction performance objectives is examined. Drawing upon existing empirical data and linking them with research findings in the social sciences, the writers argue that there is often insufficient attention paid towards the range of complex and interdependent variables that can influence construction site activity. As a consequence, the predictive capacity of such research is limited, and the recommendations often derived, particularly concerning appropriate managerial actions, often fail to account for significant variability in circumstances. The applicability of the concept of “leadership” to the construction site situation, and its relationship with key component variables are singled out for attention.     

Interface Management within Construction: In Particular, Building Facade

This paper discusses the need for interface management within construction, with particular reference to building facade interfaces. It categorizes the three different types of interface management—physical, contractual, and organizational. The implication of interface management in construction contracting is discussed; it is explained how the U.K. procurement trends have changed, affecting the interface management within projects. U.K. cladding procurement is very fragmented, and the paper maps the development of a typical cladding system showing the complexities of interface management. Finally, the paper discusses CladdISS, a U.K. government funded research project to develop a standardized strategy for the design and management of window and cladding interfaces. It explains the principles of CladdISS with reference to process maps, action plans, management strategy, bibliography, advice on standards, materials, maintenance, joints, movement, and tolerances. This will enable strategies to be developed to avoid the endemic interface problems occurring on-site. It will also guide the management of the interfaces throughout the project.     

Paving the Way to the Vision of Digital Construction: A Strategic Roadmap

The paper provides a synthesis of the construction industry needs and requirements in relation to the adoption and use of information and communication technologies (ICT). This is based, on the one hand, on existing research and technology development initiatives commissioned at a national and European level, and, on the other, on a wide consultation with construction industry key players across Europe. A framework, used as a basis for capturing industry requirements, and formulating an ICT vision, has been defined. Five priority areas have been identified with the potential to solve the ICT related problems of the construction industry, namely: knowledge management, legal and contractual aspects management, quality and performance management, total lifecycle management, and human aspects management. The ICT vision, enabled by addressing these priority areas, has been formulated on a consensus basis, and a detailed roadmap has been developed providing a pragmatic implementation of the proposed vision.     

Inter- and Intraorganizational Trust in International Construction Joint Ventures

International joint ventures in construction often face a highly complex and dynamic environment because, in most instances, they are formed to build large-scale engineering projects. One can distinguish two organizational levels that together constitute the joint venture system: (1) the interorganizational level formed by the partners and (2) the intraorganizational level of the joint venture. The partners seek to reconcile their different interests on the interorganizational level, as each of them follows the goal of profit optimization. Here, formal control mechanisms are more important than trust. Actors on the intraorganizational level face the construction task. One of the primary requirements is to reduce the project complexity. Within the joint venture, many international construction joint ventures disentangle their responsibilities by functional separation and delegation of work. In a social group, delegation of work requires trust in the capability and willingness of others to perform their duties without supervision. Especially during the initial phase, international construction joint ventures are high-pressure environments without established teams. Trust is a mechanism that allows to reach goals efficiently within this setting. As a consequence, we can find a special form of trust in international construction joint ventures: necessitated general trust that is extended to everyone even without prior knowledge. These findings are new and have high practical relevance as trust proves to be a most important success factor.     

Effectiveness of ICT for Construction Information Exchange among Multidisciplinary Project Teams

The use of information and communication technology (ICT) has been commonplace in the construction industry, with the increased functionalities of intranets and extranets in a web-based environment. Yet, human and organizational hindrances bring about consequences which affect the effectiveness of these online collaboration tools. Through a cross-sectional study of six construction-related organizations via interviews with ICT developers and users, these hindrances and consequences are highlighted against contextual backgrounds which depict a wide spectrum of ICT use in the construction industry. The results underpin a questionnaire survey which identified the most frequently encountered hindrances, such as self-discipline, technical support, and system capacity, both for internal and external information exchanges. These hindrances, together with undesirable behaviors such as the tendency to forward information to irrelevant parties and ignore information, would result in double handling and missing of time targets. Results also show that public organizations seem to be less prone to the discipline problems. While ICT advances, it is imperative that users make the best use of it by understanding and avoiding the pitfalls.     

Understanding and Improving Your Risk Management Capability: Assessment Model for Construction Organizations

Implementing risk management in construction projects and organizations may bring a number of benefits and therefore it is necessary to have risk management as an integral part of a construction organization’s management practice. The aim of this paper is to develop a risk management maturity assessment model for construction organizations. The paper describes the development process of a Web-based RM3 (risk management maturity model), including its contents, its validation and testing, as well as its applications. The RM3 developed has five attributes namely, management, risk culture, ability to identify risk, ability to analyze risk, and application of standardized risk management process/system. These attributes are measured against four levels: initial, repeated, managed, and optimized. It is found that the proposed RM3 was suitable and useful. Using the RM3, it is found that the Australian construction industry’s overall risk management maturity level was relatively low (where 32% rated at Level 2 and 52% rated at Level 3). Furthermore, it is found that the weakest attribute was “analyzing risks” followed by “application of standardized risk management process.” It is therefore necessary to provide more training on qualitative and quantitative risk analysis to construction personnel and to develop and apply standardized enterprise risk management. It is concluded that the proposed RM3 is suitable for construction organizations to assess their risk management maturity levels and find ways for improvement.     

Subcontractor Evaluation and Management Framework for Strategic Partnering

Recently, main contractors have shifted their attitudes about subcontract procurement to more strategic and long-term partnering philosophies. The objective of this study was to present a framework for subcontractor evaluation and management to help main contractors develop more strategic and productive relationships with their subcontract partners. As the strategic performance feedback model, the balanced scorecard concept was adopted with modification. A case study was also conducted to evaluate the framework with subcontracting strategy, performance indexes, weighting, evaluation of subcontractor performance data, and feedback methods. The research results obtained can be useful as a guideline of subcontractor management for long-term partnering and also to enhance overall productivity within the construction supply chain.     

Domain Taxonomy for Construction Concepts: Toward a Formal Ontology for Construction Knowledge

With the advancement of the semantic web, the construction industry is at a stage where intelligent knowledge management systems can be used. Such systems support more effective collaboration, where virtual teams of skilled users, not software, exchange ideas, decisions, and best practice. To achieve that, there is a need to create consistent semantic representation of construction knowledge. Existing representations, in the form of classification systems and product data models, lack effective modeling of concept semantics—a fundamental requirement for human-based exchange of knowledge. Toward this objective, this paper presents a domain taxonomy that was developed as part of the e-COGNOS project. The taxonomy was developed as a first step in the establishment of domain ontology for construction. The taxonomy was developed to be process-centered and to allow for utilization of already existing classification systems (BS6100, Master Format, and UniClass, for example). The taxonomy uses seven major domains to classify construction concepts: Process, Product, Project, Actor, Resource, Technical Topics, and Systems. The taxonomy was developed and validated through extensive interaction with domain experts. The taxonomy was used to develop a prototype ontology for the construction domain including semantic relationships and axioms. The ontology was used to support several applications in semantic knowledge management as part of the e-COGNOS portal, including semantic indexing and retrieval of information and ontology-based collaborative project development.     

Organizational Culture and Knowledge Management Success at Project and Organizational Levels in Contracting Firms

This research focuses on contracting firms within the construction sector. It characterizes and evaluates the composition of organizational culture using four culture types (clan, adhocracy, market, and hierarchy), the strategic approach for knowledge flow, and the success of knowledge management (KM) systems at different hierarchical levels of contracting organizations (project and parent organization level). Responses from managers of local or overseas contracting firms operating in Hong Kong were collected using a carefully constructed questionnaire survey that was distributed through electronic mail. The organizational value is analyzed in terms of the four cultural models. Clan culture is found to be the most popular at both project and organization levels, which means that the culture of contracting firms very much depends on honest communication, respect for people, trust, and cohesive relationships. On the other hand, hierarchy culture, which focuses on stability and continuity, and analysis and control, seems to be the least favored at both levels. Another significant finding was that the two main KM strategies for knowledge flow, codification and personalization, were employed at both project and organization levels in equal proportion. This indicates that successful KM efforts at both enterprise levels utilize a hybrid and balanced approach for their knowledge flow, and that they complement each other. The findings also revealed that knowledge management system success factors emphasize the support of the management level. The results show that KM is critical and beneficial as indicated by 64% at the project and 74% at the organization level. The expectation is higher for organizations as they are the organizational memories in which experiences of past projects are archived and connected. Understanding these factors and the relationships among them has been demonstrated to be critical in order to increase the chances of success or to help with making decisions when applying KM.