Knowledge on global strategies in revitalising construction industry

Abstract

Construction is a growth engine for a country’s economy development. At the same time, the construction industry is heavily influenced by general economy. A structural change of construction sector will induce a ripple effect to the economy if no immediate and effective measures are introduced to revitalize the industry. In the past, the construction industry of some advanced economies had already experienced recession periods, and various organizational strategies were introduced to stimulate the construction industry. Since not much research is attributed to identifying effective strategies to cope with a structural change in the construction industry, knowledge and lessons learnt from other advanced economies may help executives of construction establishments to map out viable and suitable policies and strategies at the corporate levels to sustain and revive the business. This paper aims to capture the knowledge in which the construction establishments adopted to react to a permanent change in construction demand and represent the knowledge in a structured manner, through a series of interviews conducted in selected advanced countries. Revitalization strategies include corporate restructure / reengineering, diversification in other sectors, and exploring the international market. Their effectiveness is discussed. The strategies are being put under the knowledge management initiatives of construction firms for policy and decision-makers’ future reference. The knowledge learned from advanced countries should eventually lead to change and improvement of the construction organizations’ business processes.