Abstract

The prevailing competitive forces compel Malaysian construction firms to modernize the construction process through industrialization with the aim of improving efficiency, and lowering costs by reducing construction time, improving site management, reducing wastage and enhancing building quality. Application of Industrialized Building Systems (IBS) as one of the options to solve the construction problems and modernize the industry. This underlines the need to achieve competitive advantage by adopting and implementing appropriate strategic approaches. This study will be undertaken from the perspective of dynamic capabilities which offers new insights on how competitiveness can be operationalized by construction firms by exploring an integrated approach between strategic approaches and management practices in order to improve the project performance and business performance of construction firms. It is therefore, the aim of this research to develop a theoretical framework on how a clear and specific strategic approaches will be built on the configuration of the construction firms’ management practices such as value-adding activities and resources form the input to these practices or activities, whereas competences and core competences provide the skills and knowledge required to undertake IBS. It was found that Strategy Formulation was directly related to both Management Practices and Project Performance, that Management Practices are directly related to Project Performance, and that Project Performance was directly related to firm performance. Although Strategy Formulation and Management Practices were not directly related to Firm Performance, they were related to Firm Performance indirectly.