METHODOLOGY FOR DEVELOPING AN ADAPTIVE BUSINESS STRATEGY FOR A SMALL ENTERPRISE IN THE CONSTRUCTION INDUSTRY BASED ON AN INTEGRATED APPROACH

Abstract

This article aims to develop a methodological framework for formulating a business strategy for small construction companies operating under conditions of high uncertainty and resource constraints. This study focuses on organizational and managerial relationships arising during strategic planning, operational activities, and risk management in small construction companies. The aim of the study is to create an adaptive business strategy that integrates strategic, operational, and risk-oriented approaches, as well as to develop a practical methodology for its implementation. The study utilizes systems analysis, empirical data collection, economic and mathematical modeling, and testing at three companies. It is demonstrated that classical strategic management models, oriented toward large businesses, are inappropriate for the scale and specificity of small construction organizations. A three-loop adaptive strategy model is proposed, comprising strategic, operational, and risk management approaches. A step-by-step strategy formation methodology consisting of five sequential steps has been developed. A risk management toolkit tailored to small businesses is proposed: an identification matrix, a three-point consequence scale, and a monthly risk update. Testing the methodology on three small construction companies demonstrated positive trends in key indicators and confirmed its cost-effectiveness. The study contributes to the development of strategic management theory applicable to small businesses by substantiating the need to replace rigid, planned models with adaptive, three-loop frameworks and provides a practice-oriented tool for small construction companies.