Impact of organisational structure and strategies on construction organisations’ performance.

Abstract

There is an age long interest that the strategic management literature requires a better understanding of how the structure and strategy of an organisation influence its corporate performance. This standing interest increases the number of studies on structure-strategy-performance trilogy, but yet the outcomes are inconclusive. This paper examines how organisational structure and strategies influence organisation’s corporate performance, and investigate whether organisational structure has a moderating impact on the association between organisational performance and strategy. This is achieved by undertaking a Metaanalysis of literature on strategic management and explores the elements

of organisational structure with respect to strategies and corporate performance. Based on the identified dimensions in literature, a questionnaire survey approach was adopted to obtain quantitative data from large construction organisations in South Africa. The data were analysed using correlation and regression analysis. The results revealed that organisational structure has an explanatory effect on the relationship between strategy and organisational corporate performance. The study provides a better understanding of the relationship between organisational structure, strategies and performance. It will also contribute to current discuss on the strategic planning practices in the global construction environment.