Survival of construction SMEs in macroeconomic crises: Innovation-based competitive strategies
Journal of Engineering, Design and Technology
ISSN: 1726-0531
Article publication date: 16 August 2018
Issue publication date: 4 September 2018
Abstract
Purpose
This paper aims to present the effect of innovation on implementing competitive strategies (CSs) and to find their relationships on the survival of construction-related small- and medium-sized enterprises (SMEs) in macroeconomic crises.
Design/methodology/approach
Data were compiled from construction SMEs in Turkey. The research used structural equation modeling to investigate the relationships between innovation, CSs and firm survival (FS).
Findings
Innovative construction SMEs may implement differentiation and focus strategies and survive without CSs, whereas innovation may be obtained through cost leadership strategy. Also, differentiation and focus strategies may play a role to survive. However, the cost leadership strategy may be implemented after survival. Finally, differentiation strategy may be triggered by innovation and focus strategies.
Research limitations/implications
The model may be applied on other construction organizations. Future studies may also examine the difference in findings concerning other industries and regions. Moreover, different factors may be added to the model. However, a larger group of samples could cause different results.
Practical implications
This study may be a roadmap for practitioners to plan their firms’ strategies, considering innovation, CSs and FS. In this context, they may pay attention to innovative production processes to survive.
Social implications
Survived SMEs may sustain their works through the prevention of crisis-based unemployment. Hence, this benefit may bring a wealthier society.
Originality/value
This research is first to propose a model connecting innovation and CSs for SMEs’ survival in macroeconomic crises. This is convenient for rivalry of SMEs planning to be long-lasting enterprises.
Keywords
Acknowledgements
The authors gratefully acknowledge the chairpersons, managers and other technical/administrative staff of the surveyed companies for their generous collaboration and contributions. The authors also thank for the financial supports provided by Committees on Research Grants of Bulent Ecevit University and Akdeniz University.
Citation
Ulubeyli, S., Kazaz, A. and Sahin, S. (2018), "Survival of construction SMEs in macroeconomic crises: Innovation-based competitive strategies", Journal of Engineering, Design and Technology, Vol. 16 No. 4, pp. 654-673. https://doi.org/10.1108/JEDT-03-2018-0057
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited