Diagnosis of Sustainable Business Strategies Implemented by Chilean Construction Companies

Carlos Giannoni,Luis Alarcón,Sergio Vera

doi:10.3390/su10010082

Abstract

Construction companies need to formulate sustainable construction business strategies to create a competitive advantage and remain in the market. This requires that construction firms incorporate sustainability into their business model. However, the current situation of the firm must be known before following the path to be a sustainable construction firm. Therefore, the aim of this research is to identify sustainable business strategies and their level of implementation in Chilean construction companies. A survey was designed and applied to 245 construction firms to provide statistically valid and reliable information, thus supporting both the senior managers’ decision-making process and the companies’ strategic planning. The main results show that the companies do not pursue business strategies that promote profound organizational changes; instead, they focus their short-term efforts on urgent market demands. This is evidenced by the lack of the function of sustainability management as a permanent role in the organization. Also, this study found that only 32% of Chilean construction companies implement business strategies towards sustainability. Construction firms with higher turnover and subjected to stricter regulations, such as construction companies working in the mining sector, incorporate more sustainable business strategies across their organizations. The lack of a sustainability-oriented vision can affect the transformation of strategy into a competitive advantage, a step that is necessary to support both the company’s permanence in the market and its long-term sustainability.

Highlights

Sixty percent of the most important goods and services that sustain life in the world’s ecosystems have been degraded or consumed in an unsustainable manner [1]
The purpose of this research is to diagnose sustainable construction strategies implemented in Chile by construction companies, uncover which strategies are applied and analyze the main associations that favor the development of sustainable construction firms
Construction companies implement sustainable construction strategies focused on introducing their construction projects to the market

Summary

Introduction

Sixty percent of the most important goods and services that sustain life in the world’s ecosystems have been degraded or consumed in an unsustainable manner [1]. The construction industry generates negative impacts related to the processes of raw material extraction, material manufacturing, and infrastructure construction, operation and demolition These impacts can be summarized as the consumption of non-renewable resources, the decline of biological diversity, the destruction of forest zones, the loss of agricultural areas, the destruction of natural spaces, global warming, and water, air and soil contamination [4]. To mitigate this situation, sustainable construction can promote sustainable development that eliminates or mitigates these negative impacts. Its purpose is to achieve a balance among the economic, social and environmental dimensions of sustainability [24]

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