The situational and individual determinants of entrepreneurship in the construction industry

Abstract

Purpose

The aim of this paper is to explore the situational and individual factors which motivate entrepreneurs to start a business in the construction industry.

Design/methodology/approach

Semi-structured interviews are undertaken with twenty-five entrepreneurs in the Australian construction industry.

Findings

Findings highlight the importance of eight recurring “situational” themes leading to the decision to start a business in the construction industry: life experiences; family background; roles models; education; previous employment; construction industry experience - especially at an early age; cultural factors and serendipity. Findings also reveal six recurring “individual” themes: individual agency; need for achievement; work–life balance; desire for independence, frustration avoidance and strategic instrumentality.

Research limitations/implications

The findings indicate that mainstream theories of entrepreneurship may underplay the importance of intergenerational traditions and cultural and informal institutional knowledge in the construction industry. The research is limited to interviews undertaken in the Australian construction industry.

Practical implications

The findings have important implications for research, policy and educational practice. For researchers they highlight the potential value of social identity and new institutional theories as novel conceptual lenses in future construction entrepreneurship research. They also raise new methodological questions regarding the use of ethnographic methods which are relatively rare in construction research. This research also has important implications for educators in informing novel pedagogies for delivering entrepreneurial education which engages students in experiential learning. The findings also inform innovation policy to enable more entrepreneurship in what is seen widely as a low-innovation industry.

Social implications

There is widespread agreement about the importance of entrepreneurship as a driver of increased productivity, income, employment, ecological health and social equality and mobility in society. This is especially important to minority groups such as refugees and Indigenous people who employ entrepreneurship to circumvent the many barriers they face in gaining traditional employment in the construction industry.

Originality/value

Drawing on both psychological and sociological schools of thought in entrepreneurship theory, this paper answers calls for more qualitative and industry-specific entrepreneurship research. It contributes new insights to both mainstream and construction entrepreneurship research by contributing new insights by highlighting situational and individual factors which motivate entrepreneurs to start a business in construction.

Citation

Loosemore, M. and McCallum, A. (2022), "The situational and individual determinants of entrepreneurship in the construction industry", Engineering, Construction and Architectural Management, Vol. 29 No. 2, pp. 1038-1060. https://doi.org/10.1108/ECAM-09-2019-0521