Strategic assets driving financial capability of Thai construction firms

Technological advancement, innovative procurement patterns such as build‐operate‐transfer, build‐own‐operate‐transfer as well as intrusion of international contractors have immensely changed the construction market. Local contractors need to devise a strategy to raise not only its technological capability but also financial capability which becomes increasingly necessary to compete successfully in this new landscape. This study aimed to investigate strategic assets which have been driving financial capability of construction firms in Thailand. Four large construction firms in Thailand were investigated through case study method and the result was verified with twelve industry experts. Three strategic assets were found contributing to competitive advantage of Thai construction firms including access to capital, efficient cash management, and effective capital investment. It was also found that strong relationship was the needed ingredient in developing these particular assets in Thailand. The findings should assist managers of construction firms in realizing the impact of financial capability, envisaging its driving strategic assets, and comprehending the mechanism which provides competitive advantage.