Opportunities and Strategies of Developer Organizations in the Context of Project Financing

Abstract

The prevailing positive assessments of the results of the introduction of project financing overshadow the consideration of unresolved problems of a strategic nature for the state, the construction industry, developers and homebuyers. Especially noteworthy is the assessment of unequal strategic opportunities for large, medium and small developers, which affect the banks' choice of whether to start lending or refuse project financing of real estate objects construction. The aim of the study is to examine the strategic opportunities and strategies of developer organizations that determine their activities in project financing schemes and affect the choice of business and competitive strategies, depending on the availability of their strategic resources. The authors propose to evaluate the strategic opportunities of developers and the strategies they choose from the position of presence or absence of strategic resources, the formation and accumulation of which depend not only on the size and profitability of companies, but also on the established rules of project financing. The authors substantiate the ways of improving the conditions of project financing which enable medium and small construction companies to accumulate strategic resources and move from forced survival strategies to growth strategies. They also describe the areas of choice for business and competitive strategies of construction organizations depending on their capabilities and market situation.