Developing a strategic model for small-and-medium-sized construction firms in Vietnam

This empirical research study focuses on the practice of strategic management in small and medium-sized construction firms (SMCFs) in Vietnam, a country that is currently undergoing transitional progress from a centrally-planned to a socialist-oriented market economy. Relevant theories and works have been reviewed and a model which describes the practice has been developed using a modified grounded theory research approach based on indigenous sources of data. Strategic management has been seen to be applied in some firms concerned at an advanced level though they may not refer to it as such. The research has found out that as a result of the economic transition, firms have different strategic behaviour depending on the degree of the State's involvement as a share holder. Firms from different regions also behave differently in terms of the strategies they apply. In addition to competitive advantage, the Vietnamese SMCFs also seek competitive parity in their chosen markets. However, the strategic management practice in the surveyed firms also shows some problems. Seven disadvantages have been addressed and appropriate solutions have been proposed in this research.