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Environment, competitive strategy, and organizational characteristics: A path analytic model of construction organizations’ performance in South Africa
Author(s) -
Oyewobi Luqman Oyekunle,
Windapo Abimbola Olukemi,
Rotimi James O. B.
Publication year - 2016
Publication title -
canadian journal of administrative sciences / revue canadienne des sciences de l'administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 48
eISSN - 1936-4490
pISSN - 0825-0383
DOI - 10.1002/cjas.1384
Subject(s) - mainstream , business , organizational performance , competitive advantage , order (exchange) , sample (material) , construction industry , structural equation modeling , empirical research , partial least squares regression , knowledge management , industrial organization , marketing , process management , computer science , engineering , political science , philosophy , construction engineering , chemistry , finance , chromatography , epistemology , machine learning , law
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.