Competitive strategic performance benchmarking (CSPB) model in international construction companies

The process of globalization has obliged construction companies to go beyond local competition and compete internationally. In these new type competitive environment the companies should have a greater competitive strategic performance to gain competitive advantage. Strategic performance is about measuring the level of meeting companies goals under some predicted criterias. However, the basic problem on strategic performance in construction companies is that in practice strategies are developed company oriented and implicitly with limited data. In this context the main objective of this study is to develop a competitive strategic performance benchmarking model for large-scale international construction companies which allows companies benchmark themselves with competitiors and the best?s of the market. Main aim of the study is to create a benchmarking model as a strategic performance benchmarking scale based on competition, defining the best, average and negative performance ranges as a result of scrutinizing the competition-based strategies of the best players in the market. The data was obtained to develop this model in two stages with questionnaire technique. The first stage is to obtain the key parameters of the strategic performance measurement system according to learned opinion and identify them with the Relative Importance Index (RII) and principal component analysis. In the second stage, large-scale international construction companies assess themselves in the context of their own strategic performances according to the measurement system identified as a result of the first stage studies. In this stage, we analyzed the data with double logistic regression analysis and developed the ?Competitive Strategic Performance Benchmarking (CSPB) Model?. The main finding of the study is a strategic performance logit benchmarking model designed according to the three dependent variables: profitability, growth and market share. The parameters of the model attained various precisions according to each one of the three independent variables. The independent varaibles of the model are consist of 21 variables under three main strategic levels namely competitive, functional and operational. The strategic performance criterias were predicted though expert opinion and they comprise the most prominently measures for strategic performance in international construction. Accordingly, the logit models established with profitability and growth-dependent variables (Profitability CSPB and Sales Growth CSPB) are more affected from strength in functional level of strategies; whereas the model with the market share independent variable (Market Share CSPB) is more affected from success in competitive strategies. The model allows for identifying the position of each company with respect to their competitors; it is further beneficial during the companies? process of improving their competitive strategies. The study elucidates the competitive strategic performance of international companies in a versatile and multi-level aspect; yet introduces a holistic approach to fill the gap in the literature. In addition to that, CSPB comparison model will also contribute to the managerial activities of the construction companies as an instrument that the managers of construction companies can use during strategy formulation and selection, and identify the position of the company compared to its competitors. Developed CSPB model is not only a benchmarking approach but also it should be considered as a self-assesment model for construction companies. Key words: strategic performance, benchmarking, construction companies, competitive advantage, logistic regression analysis