Technology and Strategic Management in Construction

Abstract

Construction is no stranger to change; both weather and business cycles affect the industry. But something different is happening. Companies that have survived previous economic downturns are faltering, and sometimes, failing. U.S. firms are being challenged not only overseas but also at home. Foreign participation in the U.S. construction market has increased steadily during the 1980s. Other industries have incorporated technology into overall business strategy; can technology provide competitive advantage in construction? Although little material is directed specifically at the construction industry, much has been written about business strategy. This paper summarizes some current thinking on strategic management and develops ways of incorporating technology into strategy. Construction firms can acquire technology and encourage technological change and innovation. The technologies worth developing are those that contribute to overall business strategy and enhance competitive advantage.