Network strategy for contractors’ business competitiveness

Abstract

Establishing a cooperative network has emerged as a strategy for contractors to improve their business competitiveness, which can affect a construction business and sustain its future growth opportunities. A survey was conducted in Hong Kong to test the relationships between contractors’ network performance and successful business competitiveness based on the project networks they build. A network strategy was developed by examining the relationships between the network techniques and the network outcomes. The network techniques support contractors’ network, whereas the network outcomes contribute to competitiveness attributes. The findings demonstrate that the key network techniques of supporting information exchange and organizing project communication are highly significant predictors of the business competitiveness attributes (BCA). The network technique of creating learning capacity is positively associated with contractors’ bidding performance and competitive strategies. Interestingly, the techniques of sharing knowledge and promoting networking culture insignificantly contribute to a number of the BCA. The developed network strategy reveals that the key network techniques significantly support contractors’ network performance and that the consequent network outcomes give rise to the BCA, which in turn stimulate contractors’ business competitiveness. Several practical suggestions are offered for contractors to improve their business competitiveness through interfirm cooperation between project network members.

Keywords:

• Network strategy
• business competitiveness
• interfirm relationships
• project networks
• contractors