Advancing Networking-Based Business Management in Construction Markets

Author: Pekka Huovinen
Publisher: 10th Nordic Conference on Construction Economics and Organization

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Purpose This study aims to advance networking-based, construction-related business management (BM) knowledge, concepts and practices. The focus is on the supply side and therein networking between three or more companies on an equal, legal, managerial and organisational basis. Design/Methodology/Approach The literature reviewing process has resulted in the identification of 79 construction-related BM concepts published between the years 1990 and 2017. In this paper, the focused review reveals the degrees to which the authors have designed their BM concepts along the networking dimension. Findings Indeed, 33 (42 per cent) construction-related BM concepts have been designed along the networking dimension. There are 7 (9 per cent) high-degree, 11 (14 per cent) medium-degree and 15 (19 per cent) low-degree BM concepts. The high-degree ones include Bennett’s (2000) tapestry, Hobday’s (2000) project-based organisation, Cheng and Li’s (2002) partnering model, Love et al.’s (2002) long-term alliance, Kiiras and Huovinen’s (2004) virtual PM company, Helander and Möller’s (2007) network resources as well as Wikström et al.’s (2010) business networks. Research Limitations/Implications Aligning with Penrose (1995), networking-based BM may imply a paradigm shift vis-à-vis managing in construction markets, i.e. it is envisioned that many researchers replace a firm with a business network as a unit of theorising. Practical Implications It seems that the seven high-degree BM concepts enable firms to manage businesses with similar contexts embedded within construction markets in networking-based, viable ways. Originality/Value There is very little applied theoretical knowledge about networking as part of construction-related BM. This exploratory, focused review may trigger future BM research along the networking dimension.

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