Application of System-Functional Approach in Management of Innovative Development of Construction Enterprises

Abstract

Reducing the cost of construction is a constant goal of the construction industry. One of the ways to reduce the cost of building construction is the innovative development of construction technologies and construction companies that will increase productivity. The purpose of the article is to substantiate the application of a system-functional approach in the management of innovative development of construction companies. It is important to distinguish between cheap or inexpensive and cost-effective production. Cost-effective buildings are buildings that are manufactured at a low cost while maintaining high standards of design and comfort. The hypothesis is that the system-functional approach is advantageous in order to find effective methods of managing the innovative development of construction companies. To achieve a holistic approach, an interdisciplinary approach to research is needed. Approaching effective methods of managing the innovative development of construction companies in terms of system-functional approach, you can achieve optimization with synergy effects and thus find cost-effective and energy efficient solutions. The study also combines a system-functional approach to strategic management with corporate and entrepreneurial thinking. He outlined the further development of the system of identification and classification of opportunities, consisting of three dimensions: 1) the dynamism between specific to the enterprise and industry opportunities, 2) hierarchies of opportunities and portfolios of opportunities, 3) their internal structure. The capacity for innovative development was analyzed in the context of the system-functional approach, technological systems and the type of process of pooling resources (creation of new versus consolidation of existing opportunities). Current portfolio of opportunities and organizational changes at the construction company are described. It also clarifies the mechanism by which companies can influence the balance between knowledge retrieval and the efficiency of knowledge transfer and integration in their daily financial and economic activities, and hence the diversity of their portfolio and the breadth and novelty of the range of services.

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“…The application of the system-functional approach in the management of innovative development of construction enterprises was considered in the paper (Perevozova et al, 2021). Research has determined that due to the innovative development of construction technologies and construction enterprises, a decrease in the cost of construction occurs.…”