Market strategies and core capabilities in the building industry

Abstract

The objective of this study is to show that the core competence approach has validity when applied to construction. The focus is on the analysis of the fit between market strategies of firms in the building industry and their core capabilities. Certain strategies require specific core capabilities and key external and internal conditions supporting these capabilities. The resource-based approach focuses on the conditions in a firm, the internal capabilities, and supports a core capability that is demanded. The network literature will be related to external conditions that support a core capability of a firm active in a certain market. In a multiple case study, firms are analysed that are involved in different stages of the building process. The case studies demonstrate firms with consistent patterns of market strategies, core capabilities, and supporting internal and external conditions. The specific core capability of the firm under investigation determines the types of external and internal conditions that are critical.

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