Business Environment, CRM, and Sustainable Performance of Construction Industry in New Zealand: A Linear Regression Model

Abstract

Abstract: Increasing fragmentation of the construction industry makes it riskier and more competitive. Construction management researchers have become intrigued by the factors influencing performance differentials due to such fierce competition. This study examines the relationships between the business environment and customer relationship management and their effect on construction organisations sustainable performance. It develops a model to explain performance differential between construction organisations in New Zealand by using the linear regression technique. A questionnaire was administered to professionals within construction organisations. A total of 101 usable responses were analyzed for descriptive statistics and correlations. Following the balanced scorecard performance metric, the organisations’ sustainable performance was measured using customers, financials, internal processes, and growth and learning metrics. Results indicated that environmental dynamism had a significant regression with internal business processes and perspectives on learning and growth, with 0.259 and 0.607, respectively. CRM was significantly associated with financial (0.327), customer (0.373), and internal business process (0.451) perspectives. This study provides an integrative framework to construction enterprises, and determinants of organisational sustainable performance, which are substantial developments in the current literature on CRM practices. Given the significance of the construction sector to the global economy, ecology, and social well-being, its sustainable performance can lead to a sustainable future for communities