Small but Complex: The Construction Industry in North Cyprus

Organizational functioning depends on the behaviour and attitude of people within a given society; organizational behaviour is extremely influenced by the socio-cultural environment within which the organization operates. The construction industry in North Cyprus is a very young industry and application of advanced project management methods and adaptation to the changing environment is a challenging process for this sector. The trauma caused by the political conflict on the island is presented as a serious challenge for this industry. The future of North Cyprus's construction industry is embedded in its past, this has given it certain social, political and historical characteristics. The on-going political unrest in North Cyprus escalates and diminishes at certain intervals. These fluctuations can sometimes be absorbed by the industry, however the frequency is such that the industry struggles to adapt and sometimes even to absorb the shocks.This paper analyses the socio-political environment of North Cyprus's construction industry. Although the organization of SMEs in the construction sector in North Cyprus are very simple, the inter-relationships between the companies, the fragmentation of the industry and the participation of families in the businesses make this a socially complex system. In this environment, the decision making processes of the managers are not based on structured management disciplines but on abrupt decisions that emphasize the family interest of the owner manager under severe uncertainties. Therefore, the unpredictable environment within this sector creates a complex environment to manage regardless of the industry's size.