Environment, competitive strategy and organisational characteristics: a path analytic model of construction organisations’ performance.

Abstract

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