SUSTAINABILITY & DECISION-MAKING DYNAMICS: EXPLORING INSTITUTIONAL LOGICS AT A DESIGN-BUILD CONTRACTING FIRM IN SWEDEN

Abstract

The Swedish construction industry is navigating a perfect storm of economic recession, geopolitical tensions, and escalating sustainability requirements. This master's thesis explores how key players in the Swedish commercial construction sector adapt to these pressures, using Institutional Theory to analyze decision-making dynamics. Utilizing an exploratory approach, the research integrates a comprehensive literature review with qualitative data from interviews with stakeholders in a major Swedish design-build contracting firm, referred to as "The Organization." Findings reveal that internal power dynamics, influenced by institutional logics, play a crucial role in prioritizing and integrating sustainability within the firm’s strategy and operations. The study identifies three strategic responses to sustainability pressures: conformity, compromise, and avoidance. These strategies result from a complex interplay of business, sustainability, project, and professional logics. The research highlights the necessity for firms to innovate and integrate sustainability into their core business models, ensuring both compliance and a competitive edge. This study enriches the understanding of organizational behavior in the construction industry, illustrating how firms tackle sustainability challenges in a risky economic landscape. It provides valuable insights into the decision-making processes that shape sustainable practices, offering a solid framework for future research on institutional logics and their influence on organizational strategy.