Demystifying performance difference between local and foreign contractors through organisational culture

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chipozya Kosta Tembo ◽  
Franco Muleya ◽  
Emmanuellie Phiri

PurposeThis research aimed to investigate the extent to which organisational culture is practised in local and foreign contractors in grade one and two categories and how it affects their performance.Design/methodology/approachThe approach for this research was positivist in nature adopting a mono-method of data collection through a survey using self-administered questionnaires. A total of 138 questionnaires were distributed among public clients and large-scale contractors registered in the stated grades, and 112 questionnaires were returned for analysis representing an overall response rate of 81% for contractors and clients.FindingsFindings revealed that in organisational culture, significant differences were found for management style and dominant characteristics of the organisation between local and foreign contractors. Differences were not found for leadership styles, measures of success and organisational glue. Results suggest that for local contractors to perform better, significant changes are needed to their management style and dominant characteristics of their organisations.Originality/valueForeign contractors in the Zambian construction industry are reportedly outperforming local contractors making them preferred contractors on larger public projects accounting for 85% of construction projects by value of works. This study presents the differences in organisational culture between foreign and local firms. It further demonstrates that organisational culture plays a key role in determining performance of a contracting firm. The study presents areas that local contractors can improve in organisational culture in order to remain competitive.

Author(s):  
Habeeb Kusimo ◽  
Lukumon Oyedele ◽  
Olugbenga Akinade ◽  
Ahmed Oyedele ◽  
Sofiat Abioye ◽  
...  

Purpose The purpose of this paper is to identify challenges faced in resource management in the UK construction industry and to propose some solutions to these problems. Design/methodology/approach Based on a qualitative research methodology, 14 experts from the UK construction industry were chosen to be participants in the study. The participants were equally divided into two focus groups to discuss resource management using five projects as case studies. Thematic analysis of the discussion reveals seven key factors that affect resource management. Findings The results show that most of the problems identified are due to poor data management processes and the practice of having data in silos. Overcoming this challenge requires the adoption of big data approaches for resource management to allow the integration of large and different forms of data. Originality/value This study seeks to bring to the fore challenges faced in resource management by the UK construction industry and to outline some solutions to address them.


2017 ◽  
Vol 24 (4) ◽  
pp. 593-609 ◽  
Author(s):  
Farshid Rahmani ◽  
Tayyab Maqsood ◽  
Malik Khalfan

Purpose The purpose of this paper is to review the use of various construction procurement systems in the past and present, specifically within the Australian construction industry and to overview the historical development of procurement both globally and in the Australian context through the existing literature. Design/methodology/approach The paper is an in-depth literature review of various construction procurement systems used in the past and present, both in general and within the context of Australian construction industry. Findings The findings suggest that even though relationship-based procurement (RBP) systems offer significant benefits to all project participants, they are unproved by many decision makers because of lack of robust theoretical concept and inability in demonstrating value for money (VfM) for public projects, which would be one of the factors causing move away from RBP in the future. Originality/value This review is one of its kind. There is no such review done before within the context of Australian construction industry in such a detail. This review is a part of a recently completed PhD study.


2019 ◽  
Vol 9 (5) ◽  
pp. 597-615 ◽  
Author(s):  
Sadi Assaf ◽  
Mohammad A. Hassanain ◽  
Abdullatif Abdallah ◽  
Ahmed M.Z. Sayed ◽  
Abdulrahman Alshahrani

Purpose Projects in the construction industry have been confronted with an unprecedented volume of claims, which negatively impact the construction business environment. The purpose of this paper is to identify and assess the major causes of claims and disputes, from the perspectives of three key stakeholders. Design/methodology/approach An online and paper-based questionnaire was distributed to a random sample of 250 professionals. Responses from 86 construction professionals were obtained. The significance index was employed to rank the factors and hence assess their relative significance. Results were analyzed from both the individual stakeholder, and collective perspectives. Test of agreement was also conducted. Findings The research found the following causes to be the most significant contributors to claims and disputes in Saudi Arabia: “change or variation orders due to new requirements from client” (78 percent), “variations in quantities due to new requirements from client” (74 percent), “delay caused by contractor” (74 percent), “design errors or omissions” (72 percent) and “inconsistencies in the drawings and specifications” (70 percent). Originality/value The research provides an in-depth assessment of the causes of claims and disputes, in the setting of a fast growing industry, in which strong performance is essential to continued success. Unlike several of the reviewed studies which reported “delay caused by the owner” or “delayed in payment” as a major cause of claims and/or disputes, the findings of the current study indicated that this cause was not the most significant. Instead, it was determined that the top causes of claims and disputes were attributed to all parties, including consultants, contractors and clients.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shang Gao ◽  
Sui Pheng Low ◽  
Sarah Xin Xuan Lee

PurposeDue to the fragmented and complex nature of the construction industry, many countries, including Singapore, have progressively encouraged greater collaboration amongst major stakeholders in the industry. It is hoped that doing so will result in an increase in the quality of construction projects. Given the long duration of typical construction projects, it is plausible for collaborating parties to develop close and personal relationships. In recent years, corruption cases arising from familiar collaboration have caught the public's attention. This study seeks to better understand familiar collaboration and its adverse impacts on the quality of construction projects.Design/methodology/approachA mixed research method was adopted, with a questionnaire survey distributed to 32 respondents representing client and contractors. This was followed by interviews to validate the survey findings.FindingsThe findings suggest that, when there is a lack of surveillance, familiar collaboration is likely to lead to favouritism and dishonesty, which can have an adverse impact on the quality of construction projects. The findings additionally suggest that value for money, conformance to specifications and fitness for purpose are the main aspects of quality that are likely to be adversely affected by corrupt practices bought about by familiar collaboration.Originality/valueIn this paper, these relationships are described using the term familiar collaboration. Strong and intimate relationships of this type may lead to a danger of parties committing corrupt practices. This study is one of the very attempts seek to better understand familiar collaboration and its adverse impacts on the quality of construction projects.


2019 ◽  
Vol 17 (1) ◽  
pp. 102-114
Author(s):  
Matthew Osivue Ikuabe ◽  
Ayodeji Emmanuel Oke

Purpose Construction contractors serve as economic partners to owners of construction projects, but often times, they could depict opportunistic tendencies which are to the detriment of the client. This study aims to focus on the awareness of construction professionals with respect to influencing factors of construction contractors’ opportunism. Design/methodology/approach A questionnaire survey was adopted in eliciting responses from construction professionals, namely, architects, quantity surveyors, builders and engineers. In total, 337 questionnaires were distributed, of which 264 were retrieved and deemed fit for analysis. Methods of data analysis used are mean item score, factor analysis, analysis of variance, Kruskal–Wallis and Student Newman Kaul post hoc test. Findings The study revealed that the level of construction professionals’ awareness of contractors’ susceptibility of opportunism is very high. Equally, the most ranked factor is “No sanction for not reporting inconsistency of drawings.” The postulated hypothesis was subjected to a test, and the result showed that there is a significant difference in professionals’ perceived level of awareness of factors responsible for contractors’ opportunistic behaviors. Originality/value The study brings to the fore professionals’ knowledge of the awareness of influencing factors to contractors’ opportunism. The established level of its awareness portends a dangerous trend and has a large negative impact on the construction industry as this opens a vista to discouraging prospective investors, developers and owners, taking into cognizance the effect this would have on the economy.


2018 ◽  
Vol 18 (2) ◽  
Author(s):  
Rami Sariola

Purpose The manufacturers of construction components and materials are the suppliers in construction projects, and represent a significant portion of their value. However, their knowledge is not used sufficiently when it comes to construction innovation. This research paper focuses on the suppliers’ innovation potential in construction projects. The purpose of this paper is to identify practices for enhancing the contractor–supplier relationship and using the suppliers’ innovation potential in construction projects. Design/methodology/approach A qualitative exploratory research strategy is used in the context of construction projects. In total, 18 interviews were conducted with contractors to discover the experiences and practices related to the contractor–supplier relationship and construction innovation. Findings The contractors perceive that the suppliers have innovation potential, and that they are often a source of construction innovation. The findings reveal business- and project-level practices for enhancing the contractor–supplier relationship and for overcoming barriers that hinder the suppliers’ innovation potential. Research limitations/implications The research conducted for this paper is limited to the contractors’ perspectives based on construction projects in one country. Further research is encouraged to verify the success of identified practices and cover the perspectives of the suppliers, clients and designers. Originality/value Limited research and attention is directed toward the role of the suppliers in projects within the construction industry. This paper offers important information about the part that both the suppliers and the contractors play in construction innovation and its facilitation.


2017 ◽  
Vol 10 (1) ◽  
pp. 84-108 ◽  
Author(s):  
Sjur Børve ◽  
Tuomas Ahola ◽  
Bjorn Andersen ◽  
Wenche Aarseth

Purpose The purpose of this paper is to evaluate to which extent partnering practices observed in earlier research focussing on the construction industry are applied in offshore development drilling projects. Design/methodology/approach The paper reviews earlier research on project partnering and the relationship-based procurement (RBP) taxonomy. The taxonomy is then empirically applied to describe partnering practices in an incentive-based drilling project in Norway. Findings Many elements of project partnering observed earlier in construction projects were found to characterize offshore development drilling projects. However, as assessed using the RBP framework, the authors found that partnering elements in observed context rated consistently lower than elements previously reported in the construction industry, indicating a lower maturity of partnering practices in the studied context. Practical implications The present study provides a multi-dimensional and systematic description of partnering practices in offshore drilling projects. Project owners can utilize this information to identify partnering elements requiring particular emphasis when initiating and managing drilling projects. Based on the findings, such elements include transparency and open-book auditing, integrated risk mitigation and insurance practices and establishment of authentic leadership. The findings further imply that partnering models cannot be directly applied across industry boundaries but must be tailored to fit the salient characteristics of each context. Originality/value The paper systematically describes to which extent specific partnering elements of the RBP taxonomy are applied in offshore drilling projects.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Innocent Chigozie Osuizugbo

Purpose Buildability analysis has a potential of improving the outcomes of construction projects. However, the usage of buildability analysis is not well pronounced within the construction sector. This study aims to provide understanding of the concept of buildability analysis with the view to predicting the future stance for buildability analysis. Design/methodology/approach The study adopted a survey research method. Questionnaires were administered to purposively selected group of construction professionals working in Nigeria. A total of 82 questionnaires were administered among the sampled respondents, out of which a total of 51 (62.2%) were adequately filled and returned. The data collected were analysed using descriptive and inferential statistics. Findings The results revealed inability of the designers and constructors to have a common upstanding of the entire construction process, fragmented nature of the construction industry and poor correlation between design and construction as the most essential needs for buildability analysis. On the benefits of buildability analysis, the results showed increase in efficiency, save wasteful efforts and quality improvement as the most significant ones. In addition, the results from the study revealed that there is a statistically significant difference in some of the needs for and benefits of buildability analysis among the survey participants. Originality/value The study identified three future stances for buildability analysis to include building unity, efficient and effective construction and high competition. Framework for buildability analysis was developed aimed at providing guidance to professionals in achieving enhanced project production information. The findings provide in-depth insight of the needs for and benefits of buildability analysis that can inform professionals in the construction industry to adopt buildability analysis programme as a lasting solution to most design challenges and buildability problems confronting the sector.


2020 ◽  
Vol 20 (3) ◽  
pp. 313-330 ◽  
Author(s):  
Ernest Kissi ◽  
Theophilus Adjei-Kumi ◽  
Samuel Twum-Ampofo ◽  
Caleb Debrah

Purpose The non-achievement of projects of best value remains a perennial problem within the construction industry. This paper aims to identify the latent shortcomings affecting the achievement of value for money (VfM) within the Ghanaian construction industry. Design/methodology/approach From a comprehensive literature review and pilot survey, 18 variables responsible for the non-achievement of VfM were identified. Through purposive and snowballing sampling techniques, a questionnaire was administered to the target professionals. Factor analysis was used to establish the latent shortcomings underlying the same dimensions of VfM achievement in the Ghanaian construction industry. Findings A total of six components were identified and explained as external factors; institutional culture and policy constraints; technical and decision-making factors; human-related factors and accountability and transparency constraints. The relative importance index was used in analysing the strategies to addressing the shortcomings. Social implications The prevalent situation of poorly delivered projects and the continuous campaign for VfM necessitated the need for a study into explaining the latent shortcomings in achieving VfM within the Ghanaian construction industry. It is recommended that governments give VfM in public projects serious attention. This would help to reduce the overall cost of construction projects without compromising quality. When VfM is taken seriously, governments can save more money and undertake more projects as well as gain public acceptance in terms of transparency and accountability. Originality/value This study has set the pace for further research in the VfM analysis by identifying the latent shortcoming, which other developing countries can emulate.


2019 ◽  
Vol 13 (2) ◽  
pp. 388-408 ◽  
Author(s):  
Sam Fernando ◽  
Kriengsak Panuwatwanich ◽  
David Thorpe

Purpose This research examined how Australian construction projects perform in the area of client-led innovation. The purpose of this paper is to test the influence of a set of enablers in promoting the innovative performance of construction projects and examine how Australian construction projects perform in relation to innovation. Design/methodology/approach A questionnaire was developed and distributed to over 300 construction industry practitioners to obtain perceptions of industry practitioners regarding client-led enablers to promoting innovation at the project level, with 131 valid responses received. The data from the survey were subjected to statistical analyses including mean comparisons, using the Mann–Whitney U-test and Kruskal Wallis Test. Findings This research identified a number of enablers that clients can employ in construction projects to enhance innovative performance. It also revealed that the innovative performance of construction projects in Australia appears to be above average, although the perceived level is not too high. The main finding of the research is that Australian clients could achieve higher outcomes from construction projects by promoting innovativeness in their projects, especially by promoting innovativeness in their own organizations and providing incentives/rewards and other support for innovative activities in projects. Originality/value Past research focusing on client-led enablers at the project level is limited. This research identified a number of enablers that clients can employ to achieve greater benefits from their projects through innovation.


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