Analysis of Theoretical Viewpoints Explaining the Performance Differentials of Construction Firms

ABSTRACT

Much research has been carried out in the field of business management to understand why some organizations perform better than others, while others fail. Strategic management field has a strong focus on exploring how firms operate and the performance differentials among them. In strategic management, predominantly, three theories are applied to assess firm performance. These theories are Resource-Based View (RBV), Dynamic Capabilities theory (DC), and Contingency Theory (CT). Through a systematic literature review, this paper explores how these three theories have been applied to construction management literature to review and examine the performance of the construction firms. Review of 46 articles was carried out to identify the factors that affect the performance of the construction firms in line with the frameworks presented by the aforementioned theories. The findings of the study hold significance for future researches on performance determinants of construction firms by evidencing the application of RBV, DC, and CT in construction management literature, which paves the way to future research aiming at combining the underlying principles of these theories to explore construction firm’s performance.

KEYWORDS:

• Construction industry
• firm performance
• resource-based view
• dynamic capabilities
• contingency theory

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

The work was supported by the Higher Education Commission (HEC), Pakistan.