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VUCA: nature of the construction industry and implications for action in developing countries

Frank Ato Ghansah and George Ofori

Chapter 8 in Research Companion to Advances in the Construction Industry in the Global South, 2026, pp 178-198 from Edward Elgar Publishing

Abstract: The construction industry is large, complex and fragmented. It has little control of its market, and its projects involve many participants, leading to uncertainties and risks. These are exacerbated by external influences such as economic crises, disasters and pandemics. Developing countries face additional economic, resource, institutional and legal challenges. The Volatility, Uncertainty, Complexity and Ambiguity (VUCA) framework can be applied to examine an organisation's capacity and capability to understand its operating environment, the issues it faces, and necessary actions. A VUCA perspective can help design actions for developing the industry. This chapter evaluates the nature of the construction industry in developing countries and proposes actions for enhancing its performance. It is based on a review of the literature. The chapter identifies VUCA as a method to help formulate measures in dealing with the challenges of construction industries of developing countries. It is suggested that the industry should develop the ability to face complex and ambiguous challenges.

Keywords: Construction challenges; Construction industry; Developing countries; Mitigation measures; VUCA (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035349012
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