Organisational practices and strategy formation in South African construction firms
Date
2015
Authors
Pillay, Nathan
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Abstract
The strategic environment for construction continues to increase in complexity,
and South African construction firms seem to attempt strategy formation in what is
still a traditional and linear process.
This research aimed to investigate organisational practices and strategy formation
in South African construction firms. It is a dual-pronged approach, looking at both
strategy theory and practice, which, in combination, results in strategy formation.
There are two aspects to the research methodology. The theory of strategy is
carried out by a literature review. Organisational practices in strategy formation
are studied by qualitative research means employing in-depth open-ended
questions to respondents who all are executives of large South African
construction firms.
The key findings provide evidence that traditional strategy planning and
competitive analysis tools are no longer adequate to provide the level of
understanding of complex organisations. Systems thinking was found to be an
appropriate approach to complex strategic environments and strategy. Four
perspectives of organisational practices were found to positively affect strategy
formation, namely, leadership, configuration, strategy and decision making.
Sixteen core practices go on to deepen the definition of these perspectives.
Executive managers have to equip themselves with understanding systems
thinking in order to repsond to the increasing complexity of the strategic
environment. This competence, along with supporting practices as discussed in
this report, is going to provide their organisations with a fundamental
understanding of strategy formation and the resultant strategic advantage.
Description
Keywords
Strategic planning -- South Africa. Project management -- South Africa. Leadership -- South Africa.Construction industry -- South Africa -- Management.