IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i5p4143-d1079613.html
   My bibliography  Save this article

Sustaining Construction Organisations in NZ: A Linear Regression Model Approach to Analysing Determinants of Their Performance

Author

Listed:
  • Hamzah E. Alqudah

    (Built Environment Engineering, Auckland University of Technology, Auckland 1010, New Zealand)

  • Mani Poshdar

    (Built Environment Engineering, Auckland University of Technology, Auckland 1010, New Zealand)

  • Luqman Oyekunle Oyewobi

    (Department of Quantity Surveying, Federal University of Technology, Minna 340110, Nigeria)

  • James Olabode Bamidele Rotimi

    (School of Built Environment, Massey University, Palmerston North 4442, New Zealand)

  • John Tookey

    (Built Environment Engineering, Auckland University of Technology, Auckland 1010, New Zealand)

Abstract

The characteristics, strategies, capabilities, and resources of an organisation contribute to its competitive advantage and superior performance. A model to explain performance differences in the New Zealand context will be developed by examining the relationships between construction organisational performance and these constructs. The information was obtained using a questionnaire survey. A total of 101 organisations participated in the research. For the instrument used to elicit data, the literature was used to identify indicators associated with characteristics of organisational strategies for competition, resources and capabilities, and performance of the organisation. Analyses of descriptive, parametric, and linear regression were conducted to examine the effects of these constructs on organisational performance. The results suggest that organisational characteristics are significantly associated with internal business processes, learning, and the growth perspectives of an organisation’s performance, while competitive strategies, resources, and capability perspectives are significantly related to financial perspectives. As a result, these findings add to the current discourse regarding organisational performance differentials in the construction industry. The study demonstrates that it is critical to take into account the different organisational characteristics that are implemented within organisations and how they influence organisational performance beyond rational processes.

Suggested Citation

  • Hamzah E. Alqudah & Mani Poshdar & Luqman Oyekunle Oyewobi & James Olabode Bamidele Rotimi & John Tookey, 2023. "Sustaining Construction Organisations in NZ: A Linear Regression Model Approach to Analysing Determinants of Their Performance," Sustainability, MDPI, vol. 15(5), pages 1-18, February.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4143-:d:1079613
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/5/4143/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/5/4143/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Baines, Annette & Langfield-Smith, Kim, 2003. "Antecedents to management accounting change: a structural equation approach," Accounting, Organizations and Society, Elsevier, vol. 28(7-8), pages 675-698.
    2. Olson, Eric M. & Slater, Stanley F., 2002. "The balanced scorecard, competitive strategy, and performance," Business Horizons, Elsevier, vol. 45(3), pages 11-16.
    3. Li, Yan & Tan, Chuan-Hoo, 2013. "Matching business strategy and CIO characteristics: The impact on organizational performance," Journal of Business Research, Elsevier, vol. 66(2), pages 248-259.
    4. R. T. Lenz, 1981. "‘Determinants’ of organizational performance: An interdisciplinary review," Strategic Management Journal, Wiley Blackwell, vol. 2(2), pages 131-154, April.
    5. Ayirebi Dansoh, 2005. "Strategic planning practice of construction firms in Ghana," Construction Management and Economics, Taylor & Francis Journals, vol. 23(2), pages 163-168.
    6. Maurice Gosselin, 2005. "An empirical study of performance measurement in manufacturing firms," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 54(5/6), pages 419-437, July.
    7. Hoque, Zahirul, 2004. "A contingency model of the association between strategy, environmental uncertainty and performance measurement: impact on organizational performance," International Business Review, Elsevier, vol. 13(4), pages 485-502, August.
    8. John A. Parnell & Nicholas O'Regan & Abby Ghobadian, 2006. "Measuring performance in competitive strategy research," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 7(4), pages 408-417.
    9. Suresh Kotha & Bhatt L. Vadlamani, 1995. "Assessing generic strategies: An empirical investigation of two competing typologies in discrete manufacturing industries," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 75-83.
    10. Yiannis E. Spanos & George Zaralis & Spyros Lioukas, 2004. "Strategy and industry effects on profitability: evidence from Greece," Strategic Management Journal, Wiley Blackwell, vol. 25(2), pages 139-165, February.
    11. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    12. Penrose, Edith, 2009. "The Theory of the Growth of the Firm," OUP Catalogue, Oxford University Press, edition 4, number 9780199573844.
    13. Craig Crossland & Donald C. Hambrick, 2007. "How national systems differ in their constraints on corporate executives: a study of CEO effects in three countries," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 767-789, August.
    14. A. B. Idrus & J. B. Newman, 2002. "Construction related factors influencing the choice of concrete floor systems," Construction Management and Economics, Taylor & Francis Journals, vol. 20(1), pages 13-19.
    15. Suresh Kotha & Daniel Orne, 1989. "Generic manufacturing strategies: A conceptual synthesis," Strategic Management Journal, Wiley Blackwell, vol. 10(3), pages 211-231, May.
    16. N. Venkatraman & Vasudevan Ramanujam, 1987. "Planning System Success: A Conceptualization and an Operational Model," Management Science, INFORMS, vol. 33(6), pages 687-705, June.
    17. Anthony Goerzen, 2007. "Alliance networks and firm performance: The impact of repeated partnerships," Strategic Management Journal, Wiley Blackwell, vol. 28(5), pages 487-509, May.
    18. Scott L. Newbert, 2008. "Value, rareness, competitive advantage, and performance: a conceptual‐level empirical investigation of the resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 29(7), pages 745-768, July.
    19. Said Elbanna & John Child, 2007. "Influences on strategic decision effectiveness: Development and test of an integrative model," Strategic Management Journal, Wiley Blackwell, vol. 28(4), pages 431-453, April.
    20. Gabriel Hawawini & Venkat Subramanian & Paul Verdin, 2003. "Is performance driven by industry‐or firm‐specific factors? A new look at the evidence," Strategic Management Journal, Wiley Blackwell, vol. 24(1), pages 1-16, January.
    21. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    22. David Collis & David Young & Michael Goold, 2007. "The size, structure, and performance of corporate headquarters," Strategic Management Journal, Wiley Blackwell, vol. 28(4), pages 383-405, April.
    23. H. Giritli & G. Topcu Oraz, 2004. "Leadership styles: some evidence from the Turkish construction industry," Construction Management and Economics, Taylor & Francis Journals, vol. 22(3), pages 253-262.
    24. Rudd, John M. & Greenley, Gordon E. & Beatson, Amanda T. & Lings, Ian N., 2008. "Strategic planning and performance: Extending the debate," Journal of Business Research, Elsevier, vol. 61(2), pages 99-108, February.
    25. Acquaah, Moses & Yasai-Ardekani, Masoud, 2008. "Does the implementation of a combination competitive strategy yield incremental performance benefits? A new perspective from a transition economy in Sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 61(4), pages 346-354, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claver-Cortés, Enrique & Pertusa-Ortega, Eva M. & Molina-Azorín, José F., 2012. "Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance," Journal of Business Research, Elsevier, vol. 65(7), pages 993-1002.
    2. Maiga, Adam S. & Nilsson, Anders & Ax, Christian, 2015. "Relationships between internal and external information systems integration, cost and quality performance, and firm profitability," International Journal of Production Economics, Elsevier, vol. 169(C), pages 422-434.
    3. Tomás F. Espino-Rodríguez, 2016. "How hotels compete on the basis of competitive priorities and their relationship with infrastructural and structural decisions," Service Business, Springer;Pan-Pacific Business Association, vol. 10(4), pages 737-773, December.
    4. Maja Pervan & Marijana Curak & Tomislava Pavic Kramaric, 2017. "The Influence of Industry Characteristics and Dynamic Capabilities on Firms’ Profitability," IJFS, MDPI, vol. 6(1), pages 1-19, December.
    5. Hamzah E. Alqudah & Mani Poshdar & Luqman Oyewobi & James Olabode Bamidele Rotimi & John Tookey, 2021. "Business Environment, CRM, and Sustainable Performance of Construction Industry in New Zealand: A Linear Regression Model," Sustainability, MDPI, vol. 13(23), pages 1-17, November.
    6. Adomako, Samuel & Amankwah-Amoah, Joseph & Donbesuur, Francis & Ahsan, Mujtaba & Danso, Albert & Uddin, Moshfique, 2022. "Strategic agility of SMEs in emerging economies: Antecedents, consequences and boundary conditions," International Business Review, Elsevier, vol. 31(6).
    7. Marcos Abilio Bosquetti & Gabriela Gonçalves Silveira Fiates & Jess Ponting, 2017. "Strategic Management at Mormaii - the Brazilian Surf Industry Leader," Brazilian Business Review, Fucape Business School, vol. 14(Special I), pages 110-129, January.
    8. Patrizia Pastore & Antonio Ricciardi & Silvia Tommaso, 2020. "Contractual networks: an organizational model to reduce the competitive disadvantage of small and medium enterprises (SMEs) in Europe’s less developed regions. A survey in southern Italy," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1503-1535, December.
    9. Ahmed Agyapong & Kofi Amanor & Kofi Poku, 2016. "Antecedents To The Implementation Of Hybrid Strategy In A Dynamic Business Environment — An Econometric Analysis Of Business Decisions In Ghana," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 1-24, December.
    10. Jeandri Robertson, 2020. "Competition in Knowledge Ecosystems: A Theory Elaboration Approach Using a Case Study," Sustainability, MDPI, vol. 12(18), pages 1-19, September.
    11. Xiaoming He & Yaqun Yi & Zelong Wei, 2019. "New product development capabilities in China: the moderating role of TMT cooperative behavior," Asian Business & Management, Palgrave Macmillan, vol. 18(2), pages 73-97, April.
    12. John Mugambwa Serumaga-Zake & John Andrew van der Poll, 2021. "Addressing the Impact of Fourth Industrial Revolution on South African Manufacturing Small and Medium Enterprises (SMEs)," Sustainability, MDPI, vol. 13(21), pages 1-31, October.
    13. Sabina Tasheva & Bo Bernhard Nielsen, 0. "The role of global dynamic managerial capability in the pursuit of international strategy and superior performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-20.
    14. Marvello Yang & Norizan Jaafar & Abdullah Al Mamun & Anas A. Salameh & Noorshella Che Nawi, 2022. "Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-28, December.
    15. Theoharakis, Vasilis & Zheng, Yuyan & Zhang, Long, 2024. "Dynamic strategic marketing planning: The paradox of concurrently reconfiguring and implementing strategic marketing planning," Journal of Business Research, Elsevier, vol. 174(C).
    16. Byungjoo Paek & Joohyun Kim & Joonyoung Park & Heesang Lee, 2019. "Outsourcing Strategies of Established Firms and Sustainable Competitiveness: Medical Device Firms," Sustainability, MDPI, vol. 11(17), pages 1-28, August.
    17. Sven Kunisch & Markus Menz & David Collis, 2020. "Corporate headquarters in the twenty-first century: an organization design perspective," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-32, December.
    18. Ferreira, João J.M. & Fernandes, Cristina I. & Ferreira, Fernando A.F., 2022. "What makes organizations unique? Looking inside the box," Journal of Business Research, Elsevier, vol. 139(C), pages 664-674.
    19. Renata Braga Berenguer de Vasconcelos & Joséte Florencio dos Santos & Jackeline Amantino de Andrade, 2021. "Innovation in Micro and Small Enterprises: Resources and Capabilities," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 25(2), pages 190106-1901.
    20. Forliano, Canio & Ferraris, Alberto & Bivona, Enzo & Couturier, Jerome, 2022. "Pouring new wine into old bottles: A dynamic perspective of the interplay among environmental dynamism, capabilities development, and performance," Journal of Business Research, Elsevier, vol. 142(C), pages 448-463.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4143-:d:1079613. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.