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Academy of IRMBR Volume  2, October, 2014
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Business Strategies of Small and Medium Sized Contractors in Malaysia
Vibrant growth of the construction industry has offered many business opportunities to the small, medium and large sized firms and companies. One of the important components in the construction industry is the contractor firms. It is mandatory for all construction companies to register with the Construction Industry Development Board (CIDB) before they undertake any projects. They are classified into different categories based on paid-up capital and tendering capacity. Despite the declining number of the projects awarded to the small and medium contractors every year, there is a positive incline in the active small and medium contractors. Therefore, these contractors need to have a series of business strategies in order to sustain themselves in such competitive environment. A detailed literature review was conducted for identifying the different dimensions of the business strategies. Structured interview sessions with openended questions are then carried out based on the strategies discussed in the literature review to collect the primary data. Ten interviews were conducted with small and medium size contractors. The sample is selected by deploying the simple random method with reference to the CIDB list of active small and medium contractors situated in the Klang Valley area. This study concluded that supply chain management, quality management and knowledge management to be the most widely adopted strategies. Key Words: Business strategies, Contractors, Small and Medium Enterprise.

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