Strategic Management Initiatives in Small And Medium Scale Construction Companies in FCT Abuja

Abstract

Small and medium scale construction companies account for the bulk of Nigeria’s construction industry and the impact of this sector on the growth of the national economy is seminal. The practice of strategic management in small and medium scale companies is low, however, this does not imply that these firms lack intent or initiatives to grow and compete. It is on this grounds that this study seeks to examine the initiatives of small and medium construction companies and their performance in the Federal Capital Territory Abuja. The objectives are to examine the competitive strategies adopted by Small and Medium Construction Companies, to evaluate the dynamics involved in initiating and implementing strategic intentions and to determine its relationships with their performance. The study adopted a survey design approach using a questionnaire to gather data from 20 supply chain participants involved in 50 construction projects sites. The study data were analyzed using descriptive statistics, mean item score, and correlation test. Findings revealed that differentiation strategy is the most highly adopted competitive strategy by small and medium construction companies and the formation of strategic alliances improves the delivery of business objectives as a supply chain strategy. A competent workforce is essential for the success of any organisation and a significant correlation exists between the strategic management initiatives of small and medium and organizational performance. The study recommends the harmonization of company efforts in small and medium scale organizations in line with strategic objectives for improved performance and growth of developing economies.