Measuring and improving strategic performance of contractors
The major objective of this research is to describe how the BSC and trength-Weakness-Opportunity -Thread (SWOT) matrix can be used to formulate the business strategies and to measure the strategic performance of construction. Angiang Construction Enterprise (ACE) is selected as a case study to measure the strategic performance. An applicable simulation model of a construction enterprise was built using system dynamics methodology. The DBSC model was calibrated to a construction enterprise to measure the strategic performance and to formulate and evaluate practical policies to improve its performance. In order to considerably improve performance, some integrated policies combining the separate policies having the most effects were evaluated. This research reveals that the DBSC model should be considered as a promising tool for the construction enterprise to experiment with the effects of its strategies and policies prior to implementing them in the real project. This also proves that the integration between SD and BSC has enormous potentials in the performance measurement of construction organizations. The findings imply that the low training frequency of human resource and high proportion of direct costs and administrative expenses to turnover are generally “Achilles’ heel” of medium-sized construction enterprises in Vietnam and very likely in other developing countries. The findings from this case study provide valuable lessons for practitioners in the application of new management frameworks (i.e. BSC and SWOT) in managing their strategic performance in other developing countries and region. The integration of BSC approach and SWOT analysis can help medium-sized construction enterprises in developing countries identify short-term objectives and longterm strategies, establish the performance measurement.