Business continuity management in large construction companies in Singapore

Abstract

PurposeThe aim of this study is to determine whether large construction companies practise business continuity management (BCM), the type of crises which companies deem impactful for their organizations and their reactions to certain crises.Design/methodology/approachA survey of 22 large construction companies in Singapore was conducted.FindingsThe survey suggests that, although the importance and usefulness of having BCM are clear, the receptiveness of BCM among large construction firms is far from ideal. In today's unpredictable environment, there is a tendency for catastrophes to occur unexpectedly and to bring about undesired consequences. A large majority of the respondents did not have any form of BCM practices within their organization. This is mainly because they were unaware of what constitutes a business continuity plan.Research limitations/implicationsThe survey was conducted only among large construction companies; as such, the results obtained cannot be used to represent the entire industry. However, focusing on the larger companies is strategically correct for a start, because BCM‐related initiatives, if any, tend to be undertaken by the larger companies, as they have the necessary resources, such as manpower and finance, to do so.Practical implicationsTo be successful in promoting BCM in the building industry, the relevant authorities in Singapore, such as the Building and Construction Authority, should demonstrate to construction companies how beneficial BCM is for the company's operations, so that they can be better equipped to meet future challenges more confidently.Originality/valueAs with all other businesses, an effective business continuity plan is critical to companies in the construction industry. Being in an industry that is constantly subjected to internal and external pressure, construction companies are likely to incur costly errors if they are caught unprepared when a crisis strikes. This is the first ever study of BCM in the construction industry.