The Relationship Between Business Strategy and Project Strategy in Innovation Projects 1st edition by Hedieh Yousefi Zadeh, Wan Mei Ching

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Author: Hedieh Yousefi Zadeh, Wan Mei Ching

Whilst the South African government has harnessed Emerging Contractor Firms (ECFs) as vehicles for promoting economic transformation and redressing historical economic disadvantage amongst previously disadvantaged groups, the capacity of these firms to transform the construction industry has been hampered by their lack of project management (PM) skills and techniques. The drive towards Broad-based Black Economic Empowerment in this industry, therefore, has been marred by evidence of poor quality construction, delays in project execution and completion leading to cost overruns and general public frustration with ECFs’ structures. Since these challenges are attributed to poor project management practices and a dearth of project management skills by most ECFs, there is scope to examine the interface between construction entrepreneurship and adoption of project management practices and/or techniques. Mindful of the ECFs’ involvement in construction programmes and projects on behalf of government, this theoretical study explores the extent and significance of project management readiness of emerging contractors (ECs) in the adoption and implementation of construction projects. The thesis of this article is that effective project execution can be conceived to be a chain reaction process: one in which organisational change management presupposes organisational readiness, whilst organisational readiness cultivates the situated context for a relevant organisational culture, structure and strategy base that trigger effective project implementation. PM skills constitute the foundation for successful project management and any effective model on project management readiness of ECFs should strongly dovetail with the aforementioned organisational variables as well as an appropriate business strategy. This study recommends a holistic approach to effective project management that rides on the exploitation of business strategy and these organisational variables

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