An analysis of determinants of construction firm performance : a New Zealand perspective : a thesis submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Construction Management, Massey University, Auckland, New Zealand
Loading...
Files
Date
2023
DOI
Open Access Location
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Massey University
Rights
The Author
Abstract
This research explores the factors critical for the performance of construction firms. It explores Strategic Management principles in terms of Contingency Theory (CT) to understand construction firm performance. CT considers the interactions of Internal Organisational Attributes and contextual factors (business environment uncertainties) in explaining firm’s performance. The rationale of the research comes from the lack of literature on the factors explaining the performance differentials for construction firms in New Zealand and within the field of Construction Management (CM) in general.
The critical identified Internal Organisation attributes are ‘Dynamic Capabilities (DC)’, ‘Competitive Strategies (CS)’, ‘Organisation structure (OS)’ and ‘Resources and Capabilities (RC)’. The relationship between the internal attributes, their interaction with the business environment and the influence of such interactions on firm performance is the main aim of this research. The research uses a mixed-methods approach, including a questionnaire survey and three case studies, to examine the relationship between identified attributes and business environment. The findings of the study suggest that all the considered constructs are important in explaining firm performance. However, in most cases the relationship in not linear or direct. DC and CS have a significant impact on firm performance, and in an uncertain business environments firms equipped with DC will outperform those without DC. However, OS and RC do not have a direct effect on performance, rather an indirect effect. OS aids in successful pursuit of CS, which in turn leads to enhanced performance. Similarly, RC are necessary to support successful CS adoption, which in turn leads to superior performance.
The study contributes to the existing literature by presenting novel conceptual models and providing industry practitioners with an understanding of how to improve firm performance through validated conceptual models. It adds to theory by explaining the interaction of organisational contingencies (DC, OS, CS), Business Environment Dynamism and Firm Performance. It also presents novel conceptual models for hypothesis testing, that explain the interaction of organisation internal attributes and external business environments, which have not been tested before.
Moreover, the research also gives industry practitioners an understanding of what is required to achieve sustained performance in uncertain business conditions in forms of validated models that formulate operational strategies which are effective. For industry professionals, the study establishes the importance of developing strong dynamic capabilities by construction firms, adopting multiple competitive strategies (Hybrid strategies), and an alignment of their Organisation Structure, Competitive Strategy and Resources to achieve some tangible results for performance enhancement. Neglecting such a strategic fit can significantly hinder the firm performance.
Description
Thesis will be uploaded upon the expiry of the journal embargo on Chapter 5 in July 2024.
Keywords
Construction industry, Strategic planning, Economic aspects, Managerial economics