Integrating Uncertainty Management in Strategic Planning Practice

Abstract

Despite competing in highly turbulent and competitive industry, evidence suggests that construction firms have not put sufficient emphasis on strategic planning. Further, the practice of strategic planning in construction is dominated by informal and sporadic approaches/ processes, which rely heavily on the subjective judgement of top management and tacit knowledge of individuals involved. Literature indicates that the identification of possible risks and opportunities is the most critical in this process, but little guidance is available with regards to the most effective approaches in dealing with the inherent characteristics of strategic planning. A review of underlying aspects (including decision theory, cognitive and behavioural psychology) is presented with a view of developing a framework for improving this process in a construction firm. The framework attempts to engage stakeholders and capture both explicit and tacit knowledge in the strategic thinking for organisational learning. The framework is viewed as a better alternative to the top-down approach of strategic decision making in the construction industry. Benefits from adopting such an approach and future direction of research in this area are then discussed.

Achieving business success through land banking and market analysis

“…On top of that, market research should also consider the existence of competition around the project site (Soetanto and Pan, 2009). Awareness of their presence is insufficient because, without prompt action, it will eventually threaten the business growth.…”

“…It is a hot topic with newfound attention in recent times towards the skyrocketing cost of land for housing, relative to the actual cost of construction. Similar to the UK (Archer and Cole, 2014; Golland and Boelhouwer, 2002; McAllister et al , 2016; Soetanto and Pan, 2009), private housing developers in Malaysia are responsible for seeking and securing their own lands for homebuilding activities. Land in Malaysia is a state matter, whereby supply for housing falls under the jurisdiction of local authorities of the particular state (Jaafar et al , 2015).…”

The Impact of Cost Strategy Policies on Company Performance in the Construction Industry in Brazil

“…The concern of getting the next project may have denied the construction industry the strategic thinking for the future. The lack of strategic thinking is further exacerbated by the prevalence of small construction companies in the sector (SOETANTO;DAINTY, 2009). However, there is evidence that corporate values and strategy are important internal factors in determining the performance of construction companies with a positive impact on the growth of these companies (MAHMOOD et al, 2017;ZAIDI et al, 2018;OYEWOBI, WINDAPO and ROTIMI, 2017).…”