CBPM Conference 2026 · Vol. 2026, Issue 1

Project Governance under Economic Turbulence: Adaptive Decision Routines of Micro-Scale AEC Firms

Burcu Balaban-Ökten, Yaprak. Ar?c?-Üstüner, Hakk? Can Özkan, Bü?ra Nur Toprak, Heba Sofie

Keywords: Adaptive decision routines, Economic turbulence, Micro-scale AEC firms, Organisational Resilience, Project governance.

Abstract

Micro-scale architecture, engineering, and construction (AEC) firms are particularly exposed to economic turbulence due to limited financial buffers and high dependency on project-based cash flow. Existing studies largely document the survival strategies adopted by such firms under uncertain economic conditions; however, less attention has been paid to how these strategies are translated into project-level governance routines. This study addresses this gap by proposing a conceptual approach that explains how micro-scale AEC firms embed adaptive decision-making practices into their project governance structures. The study adopts a conceptual research design based on the synthesis and reinterpretation of findings derived from the authors’ previously published empirical and review-based studies, including systematic literature reviews, qualitative interviews with micro-scale AEC firms in Türkiye, and analyses of crisis and post-crisis construction contexts. Through a secondary qualitative synthesis, firm-level strategies are reframed as adaptive project governance routines operating across key decision domains, including contracts, cash flow management, procurement timing, stakeholder relations, and project portfolio configuration. The findings suggest that micro-scale AEC firms do not rely on formalized management systems to cope with economic turbulence; instead, they develop repeatable governance routines that enable flexibility, rapid decision-making, and risk redistribution at the project level.