Managerial approaches of small and medium sized construction firms in macro-economic crises

This study focuses on small- and medium-sized firms (SMEs) in the construction industry in Turkey and aims to present a model that can help such firms in surviving during macro-economic crises. In this study, a questionnaire survey was applied to small and medium sized 191 construction companies in order to test the proposed model. The obtained data was tested by using Exploratory Factor Analysis and modeled by using Structural Equation Modeling. As a result of this study, 4 out of the suggested 6 hypotheses were supported and 2 were rejected. According to the accepted hypotheses, firms' innovation capabilities directly and positively affect focus and differentiation strategies which have direct and positive impacts on performance. The hypotheses stating that innovation capabilities directly and positively affect cost leadership strategy and that cost leadership strategy affects performance directly and positively were not supported. Other than these propositions in the model, it was revealed that innovation capabilities directly and positively affect performance and that focus strategy directly and positively affects differentiation strategy. In addition, it was also found out that performance directly and positively affects cost leadership strategy and that cost leadership strategy affects innovation capabilities directly and positively.