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Environment, competitive strategy, and organizational characteristics: A path analytic model of construction organizations’ performance in South Africa

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  • This paper was presented at the 2014 International Conference on Infrastructure development and Investment strategies for Africa, Livingstone, Zambia. The financial assistance of the National Research Foundation (NRF) towards this research is hereby acknowledged. Opinions expressed or conclusions drawn are those of the authors and are not necessarily attributed to the NRF.

Abstract

While mainstream strategic management researchers have paid attention to the causes of performance differential among organizations, there is a dearth of empirical research within the construction industry on the subject. We examine the relationship between environment, organizational characteristics, competitive strategies, and performance of construction organizations in the South African construction industry. In order to develop a model for improving organizations’ performance, partial least squares was employed using quantitative data collected from a sample of 72 large construction firms listed on the Construction Industry Development Board contractors’ register in South Africa. The results reveal that organizational characteristics have a direct influence on organizational performance, while the relationship between the business environment and organizational performance is mediated by competitive strategies. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.

Résumé

L'intérêt des chercheurs en gestion stratégique classique pour les causes de la différence des performances entre les organisations contraste avec la pénurie des recherches empiriques sur ce sujet à l'intérieur de l'industrie de construction. Dans cet article, nous examinons la relation entre l'environnement, les caractéristiques organisationnelles, les stratégies concurrentielles et la performance des entreprises de construction appartenant à l'industrie sud-africaine de la construction. Le modèle élaboré pour l'amélioration de la performance organisationnelle s'appuie sur l'analyse partielle par les moindres carrés effectuée à partir de données qualitatives recueillies auprès d'un échantillon de 72 grandes firmes de construction inscrites dans le registre des entrepreneurs du Construction Industry Development Board en Afrique du Sud. Les résultats montrent que si les caractéristiques organisationnelles ont un impact direct sur la performance organisationnelle, en revanche, la relation entre l'environnement des affaires et la performance organisationnelle est subordonnée aux stratégies concurrentielles. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.

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