Competitive strategy in a context of low financial resources

Traditionally, firms in developing countries, especially in Africa, cannot mobilize large-scale financial resources and assets to create competitive advantage against larger international companies from developed countries. An alternative strategy is developed to create new competitive advantages for construction firms with low financial resources. Resource-based strategic management is reviewed and its relevance extended to the construction industry. A pilot study involving ten construction companies in Botswana assessed their attempts to create competitive advantages. This case study indicates that small construction firms with low financial resources can build competitive advantages by creating firm-specific capabilities rather than imitating the strategies of large construction firms that are often based on the accumulation of large physical and financial resources.