“Green” or maturing? Environmental sustainability in marketing and business development amongst construction majors

Perhaps international construction majors are “green” or maturing their green credentials and credibility. Thus, to what extent are major international contractors addressing environmental sustainability? The degree to which this is happening could be reasonably expected to be evident in marketing strategies and business development practices. Three possible options are examined: i) regulatory compliance, ii) alignment with best practice, iii) technical and service development to levels yielding competitive advantage. Four international construction majors are examined at several levels: a) amongst personnel with direct marketing and business development responsibilities, b) amongst other key functions that hold indirect marketing and business development roles in these respects, and c) the extent of effective vertical and cross-functional interfaces with marketing and business development. An inductive and qualitative case-based methodology and methods using semi-structured interviews was applied. The research found that international contracting majors are responders and followers to market drivers rather than proactive developers of technologies and services for injection into their projects to the benefit of clients and society. At a detailed level, marketing and business development proclaimed the “green” policies and practices, but these were largely framed around compliance and best practice rather than proactive development. This finding was supported in the hierarchy and cross-functionally with the result that the construction majors, which are leaders in the sector, have yet to add value in terms of environmental sustainability. In sum, they are “green” rather than maturing their green credentials and credibility

The business development management function: processes at the front of the front end of the management of projects

The strategic front-end of the management of projects is where the construction is scoped, defined and designed client-side prior to engagement with main contractors on the supply side through procurement. At the front of the front end on the supply side is the business development management (BDM) function, the euphemism for sales. BDM is claimed to be isolated from other processes along the project lifecycle. Applying marketing theorization around securing work and delivering value for the analysis, this paper addresses BDM in ten major contractors to examine the extent of integration. Marketing offers three theoretical lenses: the transactional marketing mix, the more transformational relationship marketing and the current emergence of the service-dominant logic. Each lens facilitates conceptual evaluation of BDM in terms of current practice at the front of the front end, the extent of integration in the project lifecycle from its own theoretical position, and the rigor of value propositions and delivery. This is complemented at a detailed BDM level by an interaction sales approach. The findings show elements of all theories across the main contractors and in BDM processes in each contractor. A lack of integration is evident using all three analytical lenses and value propositions and delivery are constrained as a result. Management awareness of theory and applied configurations in BDM are thin and provide an explanation for the low integration, resulting in firms constraining their ability to effectively articulate and differentiate value propositions, deliver value propositions to clients and constrain growth in a competitive market

The business development manager as a value creation worker

The sales function, called business development management in construction, is located at the front of the front-end of the project. The work of the business development manager is twofold: to secure sales opportunities and to align client needs with firm capabilities through value propositions. The balance between sales role and value related work depends upon the theoretical marketing lens applied. Applying the lens of the service-dominant logic implies the business development manager helps to configure value propositions derived from their work in contacting and understanding potential clients. This work is conceptually part of the co-creation of value and feeds into value realization in two ways: (i) value in use and context as serviced provision during the project lifecycle, (ii) value in terms of benefits and impact post-completion. The empirical examination addresses the extent to which practice aligns with the theorization of the service-dominant logic. Semi-structured interviews across ten different main contractors provide the source of information over the period during the economic downturn. Interpretative analysis is employed. The findings show a low level of awareness of the theoretical scope of the work among business development managers, a lack of support from senior managers and variable involvement at different stages of the project lifecycle. The theory-practice gap is broad and an evaluation of the appropriateness of the theory and practitioner work is provided as a conclusion

Innovation and the co-creation of value in construction

Construction businesses balance market and project risks in resourcing innovation and value creation. Technical, technological and management innovation are considered using the marketing lens of the service-dominant logic. The co-creation of value is a primary concept, which is largely unexplored in construction, especially related to innovation. Co-created by main contractors and clients is defined as value generated in context and use. The paper is part of a programme of work, applying an interpretative qualitative approach. The method for data collection was semi-structured interviews, derived from six major international main contractors. Thirty-nine interviews were conducted with a range of senior management, functional heads and project managers responsible for identifying innovation and value creation opportunities. The overall findings fall into three main areas. First, management perceived construction to be suppliers of technical expertise. Second, projects are perceived in terms of expert inputs. Third, associated tasks are conducted to meet programme schedules and requirements. Opportunities to co-create value are largely pursued reactively and opportunities to innovate through top down or project induced capabilities are largely overlooked. Where innovation occurred it was largely initiated through a combination of co-creation drivers supported by management pull factors rather than innovation drivers and a technology push

Effects of PMS process quality in construction firms

Performance measurement has received significant research interests in the construction industry, but the literature in construction mainly focuses on developing a set of key performance indicators (KPIs) or a conceptual framework (e.g. balanced scorecard). However, little is known about how these KPIs or performance measurement system (PMS) in a much broader scope are designed, implemented, used, reviewed, and updated in a specific organizational context. Thus, the purpose of this paper is to identify structured processes of developing PMS – including organizing, designing, and implementing (follow the literature in operations management) – and to empirically investigate their effects on perceived PMS effectiveness and organizational performance in construction. The hypotheses were tested using partial least squares structural equation modeling (PLS-SEM). The data were collected in the UK construction industry by a web-based questionnaire survey. Consistent with the theory, the results strongly suggest that PMS process quality can be treated as a hierarchical construct including three dimensions: PMS organization quality, PMS design quality, and PMS implementation quality. The results also point out that the more extensive adoption of structured processes (better PMS process quality) leads to higher perceived PMS effectiveness and organizational performance. While perceived PMS effectiveness does not directly lead to the improvement of organizational performance, it partially mediates the effect of PMS process quality on organizational performance. This paper primarily contributes to providing an alternative approach (in comparison with KPI identification) of developing PMS in construction. It also contributes to the provision of empirical evidence on the usefulness of structured processes in general

Super-charging supply chains - through 'relational integration' for 'overall value'

‘Relational integration’ means more than mere ‘structural integration’; and is needed for generating ‘genuine’ and sustainable collaboration in construction. However, higher levels of integration can evidently not be reached without a specially formulated and consolidated set of focal points. Relational integration and convergent agendas can therefore be targeted through directing a common focus on the ‘overall value’ of the ‘supply network’. To this end, ‘Relationally Integrated Value Networks’ (RIVANS) are conceptualised to engage and empower their members towards both short-term and long-term overall ‘network value elements’ that must be suitably structured and made explicit. These common network value elements and corresponding goals should then loom larger in project landscapes, but should also be designed to co-exist with each set of network member-specific value objectives. Whilst aligning the latter as much as possible towards the former, it is recognised that each organisation e.g. a sub-contractor or specialist supplier, will have some other (‘extra-network’ or ‘beyond network’) needs; and may indeed be part of other value networks. However, each network can benefit from healthy inputs from, and benchmarking against other networks. Secondly, the strengths of each network will be enhanced by the steady development of each of its members. The paper will explore the potential and pitfalls in developing such RIVANS, incorporating relevant outputs from two case studies of enlightened teamworking, and two subsequent Workshops deliberating RIVANS possibilities. The needs for, and potential impacts of the RIVANS initiative are heightened in the present major economic downturn, and indeed during other periodic troughs in industry and market cycles. Relationally integrated networks should be more resilient in withstanding such pressures, while achieving critical efficiencies for reaching necessarily higher performance levels in general.postprintThe International Conference on Changing Roles: New Roles; New Challenges, Rotterdam, the Netherlands, 5-9 October 2009. In Conference Proceedings, 2009, p. 397-40

Multiplex value cocreation in unique service exchanges

While the temporal nature of value cocreation (i.e., the interdependencies between/among past, present, and future value cocreation) is acknowledged in the literature, the processes and mechanisms through which these interdependencies are deliberately managed (i.e., multiplex value cocreation) are not examined. Our study aims to unravel the “black box” of multiplex value cocreation by investigating the processes and mechanisms through which actors manage the temporal nature of value cocreation in unique service exchanges. The research design is a multiple case study comprising four firms engaged in the definition, design, and delivery of mega-infrastructure projects. Our results showed that multiplex value cocreation involves two core processes of institutional work and resource reconfiguration that are reciprocally interrelated, driven by actor motives and conflicts and facilitated by interaction mechanisms. We further propose that emerged institutions and existing previous similar service exchanges may eliminate the need for multiplex value cocreation in routine service exchanges

Business development and bid management's role in winning a public–private partnership infrastructure project

This paper focuses on a single real project delivered successfully using principles of public–private partnership (PPP). The case uses detailed accounts from both the winning and losing bidder of an infrastructure project delivered in the UK. The research enquiry focuses specifically on the bidding phase of the project and gains a unique perspective of this phase through primary data that are considered very rare to acquire. Using an inductive approach involving both multiple interviewing and an in-depth reflective workshop, and through drawing upon the marketing literature, the insight gathered from both the winner and loser reveals different marketing strategies used by major commercial contracting organizations as well as contributing to the relatively unexplored area of bid management. The case reveals how both the emerging principles and practices of entrepreneurial marketing can lead to the formation of successful win-strategies for complex PPP projects

Value co-creation at the front-end of project management: a service-dominant logic perspective

Research is needed to understand how value co-creation could improve project outcomes and benefits. Many studies have shown projects do not meet mandatory objectives. Further, few projects configure and design value propositions to deliver a service experience and value beyond the minimum requirements. A solution to these problems may lie in a shift on projects: from production to a service focus. ServiceDominant Logic (yet a contested arena) has become a paradigm in the marketing and is providing influence in management studies. It offers a fresh perspective to see projects as a service with a focus on outcomes. It also provides an alternative standpoint to analyse the benefits delivery and effectiveness for the long-term: valuein-use and context. However, Service-Dominant Logic needs to be operationalised as it might not work in isolation. Service Design could be used to make a bridge between practice and theory. Contrary to Service-Dominant Logic, Service Design is rooted in practical applications and could mobilise a service logic. This paper contributes to the research community by exploring the link among value co-creation, service-dominant logic and service design in the project context