Contractor’s Competencies, Business Strategy and Business Performance: A Structural Model
Keywords:
Business Strategy, Performance, Organizational Competence, Dynamic capabilities, Competitive advantageAbstract
Many construction firms in developing countries have encompassed Competencies and business strategies that are thought to represent two harmonizing paradigm dimensions of any organization in need to grow and or develop within a multidisciplinary business sector. This study aimed to examine the correlation between the two dimensions toward business performance improvement. Using a structured questionnaire survey instrument, a sample from a high-ranked class construction firms listed by Contractors Registration Board were used to test the raised hypothesis. Ninety-three (93) equal to (67.9%) response rate of the well-administered questionnaires were returned from more than ten years of experienced respondents purposively sampled. Data analysis was performed using Statistical Packages for Social Science (SPSS-24) to produce descriptive and inferential information. SPSS-AMOS software was also used to develop the structural model for the study. The findings of the study have shown the presence of a positive significant correlation between firm capabilities, business strategies, and performance improvement. The relationship between the dimensions has predicted the empirical evidence for the presence of benefits between construct to facilitate the future construction business performance improvement. The study has presented the model suggesting potential dimensions to construction industry practitioners and stakeholders to improve business performance.
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