The Impact of Cost Strategy Policies on Company Performance in the Construction Industry in Brazil

Abstract

Purpose– This article aims to assess the influence of cost strategy policies on the performance of sole traders, small and medium-sized companies in the civil construction sector in Curitiba and the Metropolitan Region (southern Brazil).Design/methodology/approach– Using a questionnaire, the survey collected data from 95 companies. The data has been analyzed based on descriptive statistics and multivariate analysis using discriminant analysis.Findings– Results showed that a lack of a strategic process is more evident in companies classified as low to medium performance companies. Only 36% of companies are positioned for only one of the positioning strategies. The cost strategy variable, which had the greatest impact on performance, was the policy with “greater simplification/standardization of products/services” compared to the other variables analyzed in the study.Originality/value– Results imply that most companies do not have a strategic position and that it is possible to obtain better performance through strategic management, encouraging the development of this perspective in companies in the sector.Keywords - Construction Industry; Strategy; Strategic management; Cost strategy; Survey.