Encouraging Internationalization and Sustainable Competitiveness in Construction: A Preliminary Approach in Portugal

Encouraging Internationalization and Sustainable Competitiveness in Construction: A Preliminary Approach in Portugal

José Maria Gomes, Bruno Barbosa Sousa, Teresa Dieguez
DOI: 10.4018/IJSESD.290321
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Abstract

The Civil Construction and Public Works sector in Portugal has undergone huge oscillations over the last years, reflected on the number of companies, turnover and number of direct employees assigned to the activity. This sector is an important sector for economic growth and companies must adopt strategic analysis and control tools in order to survive and remain competitive. Companies operate in a large, highly competitive and demanding market, with new players and new business models. Companies need to find new ways of competing worldwide and internationalization emerges as one of the business responses to the challenge of globalization. Sustainability is a commitment to the future, a route that organizations must travel to search the best solutions to humankind problems, whether they are economic, social or environmental.
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1. Introduction

Change is a constant and companies need to be increasingly competitive to cope with the widespread rise in competition. The great challenge will be to adjust systematic strategic planning to the complex and unpredictable environment in order to anticipate changes and maintain or create competitive advantages (Jacobides, 2010, Wright, Paroutis & Blettener, 2013, Shu-Hsiang, Jaitip & Ana, 2015; Ferreira & Proença, 2017). Also, strategic tools are needed to provide information from a holistic perspective and to support managers in decision making and strategic thinking (Clark, 1997, Gunn & Williams, 2007, Tassabehji & Isherwood, 2014). In recent years many have been the authors and studies that have searched the "formula for performance’s improvement" (Nobre, 2016, 18), being developed some models such as SWOT (1960s), BCG Matrix (1970s), Porter’s Five Forces (beginning of the 80s), Value Chain Analysis (1980s), Capacity Analysis (1990s), and Strategic Options Analysis (1990s) (Bowman, Singh & Thomas, 2002). Taking into account that the Civil Construction and Public Works (CCPW) sector in Portugal is a sector with a great tradition and impact on the economy, it is relevant to understand the strategies used by the companies to face the counter-cycle lived in the sector. The economic and financial crisis of 2008 had a strong impact in this sector and caused a sharp decline, scenario that has been reversing since the first half of 2017 with an increase on production. Bearing in mind that strategy is increasingly important for the construction of a sustainable future, the study intends to evaluate whether the Portuguese companies in the construction sector, based in the north of Portugal, are awakened to the reality that directly affects their practical results. In addition, it is intended to sensitize the various stakeholders to the importance of using strategic analysis and control tools in order to improve the performance of companies. The study is divided into two parts. In Part I, a theoretical framework on the theme of strategy is carried out as well as on sustainability. Part II presents the case study, referring the used methodology and data collection. It also presents the analysis and discussion of the results, and finally, the conclusions, limitations and recommendations for future lines of research. This study should allow a better understanding of the internationalization decisions and sustainability domains by some companies in the construction sector on the north of Portugal. From an interdisciplinary perspective, this study presents a set of contributions to strategic management and sustainable development. At the end of the study some limitations will be identified and some guidelines for future research work will be presented.

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