STRATEGIC BEHAVIOUR APPLICATION IN MEDIUM-SIZE CONSTRUCTION: A CASE STUDY OF CAMBODIAN CONTRACTOR

By

Vannaro Kao

Abstract

             

The research aimed to study the strategic behavior application in medium size contractor in term of corporate strategies, business strategies, functional strategies, project operational strategies and strategic performance. Using an applied case study methodology, one road infrastructure construction company interviewing the president, general manager, each functional manager and senior project manager readjusted the strategic behavior theory in Thai contractors applying in Cambodian contractor. Under the case, the research findings of Hastheetham and Hadikusumo could be validated in case of Cambodian contractor. Moreover, the case proposed that the leadership style should be included as another component of project operational strategy. The readjusted framework could serve as a systematical guideline to develop integrated each level of strategic behavior and suggest the way of choosing an appropriate strategy in a specific situation.

Key words:      Strategic behavior, corporate strategies, business strategies, functional strategies, project operational strategies, strategic result performance, contractor.

Executive summary

Rationale of research

This research has been conducted to identify behavioural strategies of medium size contractors from Cambodia.

Objectives of study

The main objective of this research is to analyse strategic behavior application in medium size contractor in term of corporation strategies, business strategies, functional strategies, project operational strategies and strategic performance.

Methodology

The methodology for qualitative study is formed by instrument design, data collection, data analysis, and compiling the finding. Qualitative study methodology (Case study) has its purpose to fulfill the study’s objective which essays to study in medium size contractor of strategic behavior.

Findings and conclusion

The objective is to study strategic behaviour application in medium size contractor in term of corporation strategies, business strategies, functional strategies, project operational strategies and strategic performance. The literature review had been completely conducted to synthesize the key terminology related to strategic management in all level of the firm. The data analysis is purpose to validate the case of Arthasith’s strategic behaviour framework which is applied in Cambodia. To validate the data, the president and general manager of the firm ‘A’ are the key respondents to choose, to recommend, to advise, to adjust the attributes and provide more information the real firm practice.

Research Findings

The research findings under the case of Cambodian contractor are significantly valid the finding of (Hadikusumo & Hastheetham, 2011) in the theoretical framework of strategic behavior in Thai construction.

·         Besides, it is keen that the case in Cambodia proposed a very logical sense that company should know itself about the internal strength and weakness. The case suggested that expanding the horizontal growth whenever it intends to maximize the strength while extending the vertical growth whenever it intends to overcome its weakness.

·         Company could not implement Knowledge management as to manager the project via electronic media because of the limitation of communication infrastructure of Cambodia.

·         Further to another key finding that the case proposed is leadership style should be integrated into the project operational strategy since it is one of the key important success factors in the project.

Strategic behavior application in Cambodian medium size contractor case

Key implication of environment while the attributes finding stated below are the Strategic behavior applied in each level of company’s case from the top level management to the operational level. And it ends up with strategic performance measurement. The information of each level strategy is analyzed in detail and the framework which is applied and already adjusted by the case of Cambodian contractor.  The main factors found are:

·         Implication of environment emphasizing on the internal and external environment

·         Corporation strategy attributes are horizontal and vertical integration growth

·         Business level attributes are mode and scope competition

·         Functional strategy attributes include functional strategy, technology strategy, IT strategy, procurement strategy, HR strategy, and marketing strategy.

·         Interestingly, the project operational level attributes includes the leadership style of the project management and followed by project focus, project structure, project manager authorization, project knowledge management, and project communication.

·         The strategic performance is subjectively and objectively measured.