The Impact of Diversification Strategy on the Construction Organisations Corporate Level Performance

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The British University in Dubai (BUiD)
The construction industry has expanded rapidly in the past decade. As this industry grew, it became overloaded with players that made it difficult for each one to sustain their competitive advantage and create a strategic lock in and increase its value. As a result, firms are forced to look for new ways to compete, attract clients and to reengineer their business practices effectively and efficiently. Diversification is a strategic direction that many construction firms are pursuing so that they can improve the performance level of their firms. This research will investigate the diversification strategy as a strategic direction at the corporate level. Diversification is a form of growth strategy that is divided into two routes; related and unrelated. This study investigates the impact of diversification on the performance factors financial, productivity and quality. The SPSS will be used for the qualitative research. The sample population considers 100 respondents from local based contractors which are also studied as part of the case study analysis. 5 firms will be critically investigated and 20 interviews will be conducted to capture the nature of diversification strategies in these firms and the impact it has on overall corporate performance This dissertation is aimed at testing three propositions that contribute to the literary texts on the relationship between diversification strategy and firm performance. There are other issues that determine the success of diversification to positively affect performance that will be further investigated. These include corporate capabilities, vertical integration strategies and performance measurement methods. The findings achieved have been supported by prior research with new future directions suggested.
diversification, performance, strategy, construction, corporate