Skip to main content

The Paradox of Small and Medium Construction Firms Sustainability in Less Developed Countries

  • Conference paper
  • First Online:
Proceedings of the 24th International Symposium on Advancement of Construction Management and Real Estate (CRIOCM 2019)

Abstract

Different construction firms from less developed countries have either introduced or adopted various policies, strategies, and support programs aimed at enabling the growth of construction industries. Although some strategy and supportive programs witnessed a little success, still many firms are experiencing many challenges that contribute to unsustainable growth. This study ought to identify potential strategies for small and medium firms in less developed countries for sustainable growth. Using a structured questionnaire and mean score analysis, twenty potential strategies were identified. The findings shows that, a certified training, recruitment of competent and qualified professionals, effective allocation and utilization of resources, strengthening of public-private-partnership, empowering local monetary organizations, use of quality local materials, abiding to professional ethics, reviewing short & long strategic plan, focusing on core business, maintaining low firm operational cost, adoption of joint venture with overseas firm and strategic alliance, ensure availability of modern equipment, guaranteeing stable financial of the firm and establishing good relationship and networking with stakeholders while ensuring client satisfaction were the highly ranked strategies for firm sustainability. It is proposed that a further study on strategy prioritization depending on a firm’s possessed attributes should be undertaken to come up with a strategy prioritization model.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 259.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 329.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 329.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Giraldi, D., & Mura, A. (2013). Construction and economic development: Empirical evidence for the period 2000–2011. Universita di Siena, Quaderni del Departimento de Economia e Estatística, Italy.

    Google Scholar 

  2. Navon, R. (2005). Automated project performance control of construction projects. Automation in Construction, 14, 467–476.

    Article  Google Scholar 

  3. Jorge, L., Rui, O., & Isabel, A. M. (2017). The sustainability of the construction industry in Sub-Saharan Africa: Some new evidence from recent data. Procedia Engineering, 172, 657–664.

    Article  Google Scholar 

  4. Khan, R. A. (2007). Role of construction sector in economic growth: empirical evidence from Pakistan economy. In First International Conference on Construction in Developing Countries, Pakistan.

    Google Scholar 

  5. Rameezdeen, R. (2007). Image of the construction industry, Sri Lanka. Department of Building Economics, University of Moratuwa.

    Google Scholar 

  6. Geraldine, J. K., & Cecilia, E. (2018). Role of the construction sector and key bottlenecks to supply response in Tanzania. WIDER Working Paper, UNU-WIDER, Dar es Salaam.

    Google Scholar 

  7. DESA. (1962). Report of the ad hoc group of experts on housing and urban development (GEHUD). United Nations, New York.

    Google Scholar 

  8. Ofori, G. (2018). Construction in developing countries: Need for new concepts. Journal of Construction in Developing Countries, 23(2), 1–6.

    Article  Google Scholar 

  9. Sophia, M. (2013). Framework and value drivers for real estate development in Sub-Saharan Africa. International Real Estate Business School, University of Regensburg, Germany.

    Google Scholar 

  10. Shifidi, I. (2012). Small builders and the Namibian construction sector: Opportunities, challenges and support strategies. [Online]. Available at: https://econrsa.org/system/files/workshops/papers/2012/shifidi-small-builders.pdf. Accessed April 23, 2019.

  11. UACE. (2008). The draft local construction industry policy of the Republic of Uganda. [Online]. Available at: https://www.uace.or.ug/index.php. Accessed July 8, 2019.

  12. Ofori, G. (2001). New perspectives on construction in developing countries. Abingdon: Spon Press.

    Google Scholar 

  13. Long, N. D., Stephen, O., Truong, Q., & Ka, C. L. (2004). Large construction projects in developing countries: A case study from Vietnam. International Journal of Project Management, 22, 553–561.

    Article  Google Scholar 

  14. Kim, D. Y., Han, S. H., Kim, H., & Park, H. (2008). Structuring the prediction model of project performance for international construction projects: A comparative analysis. Expert Systems with Applications. [Online]. Available at: https://yonsei.pure.elsevier.com/en/publications/structuring-the-prediction-model-of-performance. Accessed May 26, 2019.

  15. Mhando, B. Y. (2017). Perspectives of the causes of variations in public building projects in Tanzania. International Journal of Construction Engineering and Management, 6(1), 1–12.

    Google Scholar 

  16. URT. (2018). Tanzania GDP growth (2007–2017) construction, National Bureau of Statistics, Dar es Salaam, Tanzania. National Bureau of Statistics, Dar es Salaam.

    Google Scholar 

  17. Kikwasi, G. (2012). Causes and effects of delays and disruptions in construction projects in Tanzania. In Proceedings of the 6th International Conference on Built Environment in Developing Countries ‘Fragmented Futures: The Built Environment in a Volatile World’ (pp. 138–148), December 4th–5th, 2012, University of South Australia, Adelaide, Australia.

    Google Scholar 

  18. George, H., & Adewale, B. (2015). Performance in the construction industry—A conceptual and theoretical analysis. Journal of Business and Management, 3(2), 177–184.

    Google Scholar 

  19. Ofori, G. (2000). Challenges of construction industries in developing countries: Lessons from various countries. In Proceedings of the 2nd International Conference of Construction in Developing Countries, Gaborone, Botswana.

    Google Scholar 

  20. Temtime, Z. (2000). Reducing strategic uncertainty through environmental scanning. In D. Groenewald, S. J. Le Roux, & D. Roussow (Eds.), An applied South African perspective Cape Town: New Africa books. Strategic management (pp. 1–14).

    Google Scholar 

  21. Ehlers, T., & Lazenby, K. (2010). South African concepts and cases. Pretoria: Van Schaik.

    Google Scholar 

  22. Aspire, I. (2019). Business strategy for contractors (why you need one and the difference between tactics & strategy).

    Google Scholar 

  23. Michael, A. H. R., Ireland, R. D., & Hoskisson, E. (2011). Concepts and cases competitiveness and globalization. Strategic management (12th Ed.).

    Google Scholar 

  24. Fanie, B., & Roelof, V. R. (2014). The strategic management of construction companies during recessionary cycles. [Online]. Available at: https://www.ajol.info/index.php/actas/article/viewFile/116175/105705. Accessed September 18, 2019.

  25. Ruddock, L., Amir, K., & Steven, R. (2014). UK construction companies’ strategies in the face of business cycles. International Journal of Strategic Property Management, 8(3), 225–237.

    Article  Google Scholar 

  26. Arditi, D., & Suat, G. (2015). Factors affecting international construction. Journal of Construction Engineering and Management, 131(3), 273–282.

    Google Scholar 

  27. Kurien, S. A. (2004). Business development strategies used by general contracting construction companies in Texas for market diversification. Texas: Texas A&M University.

    Google Scholar 

  28. Florence, Y. Y. L., William, C. I., & Ewen, W. C. (2008). Strategies adopted by international architectural, engineering, and construction firms in Southeast Asia. Journal of Professional Issues in Engineering Education and Practice, 134(3).

    Google Scholar 

  29. Lee, Y., & Lee, S. (2007). Capability, processes, and performance of knowledge management: A structural approach. Human Factors and Ergonomics in Manufacturing, 17(1), 21–41.

    Article  Google Scholar 

  30. Akintoye, A., Beck, M., & Hardcastle, C. (2003). Public-private partnerships: Managing risks and opportunities. Osney Mead, Oxford: Blackwell.

    Book  Google Scholar 

  31. Lim, B. (2010). The survival strategies of Singapore contractors in a prolonged recession. Engineering, Construction and Architectural Management, 17(4), 387–403.

    Google Scholar 

  32. Fei, D., Liu, G., & Jin, Z. (2013). Factors formulating the competitiveness of the Chinese construction industry: Empirical investigation. Journal of Management Engineering, 29(4), 435–445.

    Google Scholar 

  33. Tabassi, A. A., Mahyuddin, R., & Abu, H. A. B. (2011). Training, motivation and teamwork improvement: The case of construction firms. African Journal of Business Management, 5(14), 5627–5636.

    Google Scholar 

  34. Seung, H. H., Du, Y. K., Hyoun, S. J., & Seokjin, C. (2010). Strategies for sustain contractors to sustain growth in the global construction market. Department of Civil and Environmental Engineering, Yonsei University, Seoul, Republic of Korea.

    Google Scholar 

  35. Ho, A. T., & Tobin, I. (2015). Challenges in building effective and competitive government in developing countries: An institutional logics perspective. American Review of Public Administration, 45(3), 263–280.

    Article  Google Scholar 

  36. Jauch, H., & Sakaria, I. (2009). Chinese investments in Namibia: A labour perspective. A paper written for Labour Resource and Research Institute LaRRI, LaRRI, Namibia.

    Google Scholar 

  37. Hillebrandt, P. M., Cannon, J., & Lansley, P. (1995). The construction company in and out of recession. London: Macmillan.

    Book  Google Scholar 

  38. Wang, G., & Yang, J. (2011). Business development strategy and Australian construction industry. International Journal for Construction Marketing, 2(1).

    Google Scholar 

  39. Martin, L. (2002). Responsive global partnership.

    Google Scholar 

  40. Carr, A., & Pearson, N. (2002). The impact of purchasing and supplier involvement on strategic purchasing and its impact on firm’s performance. International Journal of Operations and Production Management, 22, 1032–1053.

    Article  Google Scholar 

  41. Delivery, J., & Doty, D. (1996). Theoretical frameworks in strategic human resource management: Universalistic, contingency and configurational perspectives. Academy of Management Journal, 39, 802–835.

    Google Scholar 

  42. Linder, M. (1994). Projecting capitalist: A history of the internationalization of the construction industry. London: Greenwood Press.

    Google Scholar 

  43. Momaya, K., & Selby, K. (1994). Strategic management practices in Japanese construction industry—Impact of a strategic initiative. In: Proceedings of the 12th Construction Management Conference (pp. 85–94), Japan Society of Civil Engineers, Japan.

    Google Scholar 

  44. Shawn, L. B., Jonathan, D., & Charles, W. L. (2002). Tacit knowledge as a source of competitive advantage in the National Basketball Association. Academy of Management Journal, 45, 13–31.

    Google Scholar 

  45. Weisheng, L., Liyin, S., & Michael, C. H. Y. (2008). Critical success factors for competitiveness of contractors: China study. China, Journal of Construction Engineering and Management, 134(12), 972–982.

    Article  Google Scholar 

  46. Bain, C. (2017). Strategy identification. [Online]. Available at: https://www.bain.com/publications/articles/management-tools-strategic-planning.aspx. Accessed August 14, 2019.

  47. Wegner, T. (2012). Applied business statistics: Methods and Excel-based applications (3rd Ed.). Juta Cape Town.

    Google Scholar 

  48. Bernard, H. R. (2006). Social research methods: Qualitative and Quantitative approaches. Thousand Oaks: Sage Publication.

    Google Scholar 

  49. Kumar, R. (2008). Research methodology, a step by step guide for beginners (3rd Ed.). New Delhi: Sage.

    Google Scholar 

  50. Maree, K., & Pietersen, J. (2007). Surveys and the use of questionnaires. In K. Maree (Ed.), First steps in research (pp. 155–170). Pretoria: Van Schaik.

    Google Scholar 

  51. Flynn, B. B., Roger, G. S., & Sadao, S. (1994). A framework for quality management research and an associated measurement. Journal of Operations Management, 11, 339–366.

    Article  Google Scholar 

  52. Tzafrir, S. (2006). A universalistic perspective for explaining the relationship between HRM practices and firm performance at different points in time. Journal of Managerial Psychology, 21(2), 109–130.

    Google Scholar 

  53. Jackman, M. (2010). Investigating the relationship between residential construction and economic growth in a small developing country. The Case of Barbados, International Real Estate Review.

    Google Scholar 

  54. Lopes, J. (2011). Construction in the economy and its role in socio-economic development. In G. Ofori (Ed.), New perspectives on construction in developing countries. Abingdon, UK: Spon Press.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ramadhani Tekka .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2021 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Tekka, R., Ye, K. (2021). The Paradox of Small and Medium Construction Firms Sustainability in Less Developed Countries. In: Ye, G., Yuan, H., Zuo, J. (eds) Proceedings of the 24th International Symposium on Advancement of Construction Management and Real Estate. CRIOCM 2019. Springer, Singapore. https://doi.org/10.1007/978-981-15-8892-1_76

Download citation

Publish with us

Policies and ethics