[DBG324 : SITE MANAGEMENT] Session 1: 2016/2017 (Jun 2016 – Oct 2016)

UiTM Perak, FSPU.

Programme: Diploma in Building (AP116)
Course: SITE MANAGEMENT (DBG324)
Summarised/Essay (individual work) - Abstract

Sample

Construction management
strategy and developer
performance
Michael A. Anikeef
The Edward St John Department of Real Estate, Carey Business School,
Johns Hopkins University, Baltimore, Maryland, USA, and
Ven Sriram
Department of Management and Marketing, Merrick School of Business,
University of Baltimore, Baltimore, Maryland, USA
ahmad000@perak.uitm.edu.my

Abstract

Purpose/ objective – Construction and development firms are

going through major reorganizations in trying to define a profitable
structure – including deciding whether to include construction
operations as part of the firm or to outsource it. This paper aims to
analyze the relationship between firm size, construction
management strategy and performance.
Design/methodology/approach – The paper reviews relevant
strategic management literature and reports the results of an
empirical survey research study of 80 US real estate developers.
Findings – The results showed that there was no significant
performance diference between firms that performed
construction activities in-house as opposed to those that
outsourced it. However, the impact of construction strategy on
performance may occur through its efect on size and size was
negatively associated with performance. In addition, among the
smaller firms, the ones that outsourced construction outperformed
those that did construction in-house.
Research limitations/implications – The results are in line with the findings
of similar studies from other industries. In order to add to the generalizability of
these findings, future studies should include larger samples and non-US firms.
Originality/value – The study links the general strategic management
literature to organizational issues of construction and development firms.
Findings suggest that the scale of operation of the industry is such that even
large development firms have too small a market share to take advantage of
vertical integration of construction.

Keywords - Construction operations, General management, Outsourcing, Real

estate, United States of America

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 [DBG324 : SITE MANAGEMENT] Session 1: 2016/2017 (Jun 2016 – Oct 2016)

Paper type - Research paper

Date of submission : week 3 of lecture schedule.

Construction management
strategy and developer
performance
Michael A. Anikeef
The Edward St John Department of Real Estate, Carey Business School,
Johns Hopkins University, Baltimore, Maryland, USA,
abu123@perak.uitm.building.edu.my
Ven Sriram
Department of Management and Marketing, Merrick School of Business,
University of Baltimore, Baltimore, Maryland, USA
ahmad000@perak.uitm.edu.my

Abstract

Construction and development firms are going through major

reorganizations in trying to define a profitable structure –
including deciding whether to include construction operations
as part of the firm or to outsource it. This paper aims to
analyze the relationship between firm size, construction
management strategy and performance. The paper reviews
relevant strategic management literature and reports the
results of an empirical survey research study of 80 US real
estate developers. The results showed that there was no
significant performance diference between firms that
performed construction activities in-house as opposed to those
that outsourced it. However, the impact of construction
strategy on performance may occur through its efect on size
and size was negatively associated with performance. In
addition, among the smaller firms, the ones that outsourced
construction outperformed those that did construction in-
house.
Keywords - Construction operations, General management, Outsourcing,
Real estate, United States of America

2|Page