Acknowledgement
This research was supported by a grant (12TRPI-C064106-01) from the R&D Program funded by the Ministry of Land, Infrastructure, and Transport Affairs of the Korean government.
International conference on construction engineering and project management (국제학술발표논문집)
- 2015.10a
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- Pages.210-212
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- 2015
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- 2508-9048(eISSN)
An Empirical Study on the Applicability of Growth-share Matrix in the Construction Industry
- Lee, Seulbi (Dept. of Architecture and Architectural Engineering, Seoul National Univ.) ;
- Park, Moonseo (Dept. of Architecture and Architectural Engineering, Seoul National Univ.) ;
- Lee, Hyun-Soo (Dept. of Architecture and Architectural Engineering, Seoul National Univ.) ;
- Jang, Youjin (Dept. of Architecture and Architectural Engineering, Seoul National Univ.)
- Published : 2015.10.11
Abstract
The growth-share matrix is a portfolio planning tool developed by the Boston Consulting Group (BCG) to assist competitive positioning in the international market including those in the construction industry. This matrix is helpful in balancing the firm's cash-flow, and it can suggest strategic directions for each business unit. However, its effectiveness and applicability have long been debated in the academic field due to the complex and unique industrial context of construction. To solve the dispute, this research clarifies the applicability of theories underlying the growth-share matrix to the construction industry. Empirical research based on actual financial data of Korean construction firms is adopted for the statistical analysis including one-way analysis of variance and correlation analysis. The results of this research show that empirical findings on the relationship between performance variables. In this context, this research can provide important insights on the concept of portfolio management in the construction industry.