Performance in the Construction Industry— A Conceptual and Theoretical Analysis
ABSTRACT
Small businesses growth and profitability is a national problem in South Africa (SA) and the Emerging Contractors (ECs) in the construction industry are no exception. ECs are alleged to fail to live up to the expectations of different stakeholders. This paper looks back at the level of understanding of the performance construct especially the ECs and their stakeholders in South Africa. It establishes that there are no unique characteristics that have been translated into the performance construct and contributed by defining performance for ECs in the construction in the context of today’s South African changing environment.
Small businesses growth and profitability is a national problem in South Africa (SA) and the Emerging Contractors (ECs) in the construction industry are no exception. ECs are alleged to fail to live up to the expectations of different stakeholders. This paper looks back at the level of understanding of the performance construct especially the ECs and their stakeholders in South Africa. It establishes that there are no unique characteristics that have been translated into the performance construct and contributed by defining performance for ECs in the construction in the context of today’s South African changing environment.
Cite this paper
Hove, G. and Banjo, A. (2015) Performance in the Construction Industry— A Conceptual and Theoretical Analysis. Open Journal of Business and Management, 3, 177-184. doi: 10.4236/ojbm.2015.32017.
Hove, G. and Banjo, A. (2015) Performance in the Construction Industry— A Conceptual and Theoretical Analysis. Open Journal of Business and Management, 3, 177-184. doi: 10.4236/ojbm.2015.32017.
References
[1] Ofori, G. (1990) The Construction Industry: Aspects of Its Economics and Management. Singapore University Press, Singapore. [2] Dlungwana, W.S. and Rwelamila, P.D. (2005) Contractor Development Models for Promoting Sustainable Building— A Case for Developing Management Capabilities of Contractors. Proceedings of the 2005 World Sustainable Building Conference, Tokyo, 27-29 September 2005, 4208-4215. [3] Windapo, A. and Cattell, K. (2011) Research Report: Mapping the Path to Becoming a Grade 9 Contractor. University of Cape Town, Cape Town. [4] Hauptfleisch, D., Lazarus, S., Knoetze, T. and Liebenberg, S. (2007) An Integrated Emerging Contractor Development Model for the Construction Industry: Practical Implementation and Statistical Quantification.
http://researchspace.Csir.co.za/dspace/bitstream/10204/1850/1/Hauptfleisch_2007 [5] Buys, F. and Ludwaba, D. (2012) The Potential of Built-Environment Professionals’ Contribution towards Emerging Contractor Development. ACTA Structilia, 19, 74-89 [6] Kaplan, R.S. and Norton, D.P. (1992) The Balanced Scorecard Measures That Drive Performance. Havard Business Review, 70, 71-79. https://hbr.org/2005/07/the-balanced-scorecard-measures-that-drive-performance [7] Greyling, E. (2012) Opportunities for Employment Creation through SME Development in the Construction Sector, Free State. International Labour Organisation, Pretoria. [8] MAIA Intelligence (2009) KPIs for Construction Industry.
http://maia-intelligence.com/kpis-for-construction-industry/ [9] Hancott, D.E. (2005) The Relationship between Transformational Leadership and Organisational Performance in the Largest Public Companies in Canada. Doctoral Dissertation. Capella University, Minneapolis. [10] Akbaba, A. (2012) Business Performance of Small Tourism Enterprises: A Comparison among Three Sub-Sectors of the Industry. An International Journal of Tourism and Hospitality Research, 23, 177-195.
http://dx.doi.org/10.1080/13032917.2012.662907 [11] Reijonen, H. and Komppula, R. (2007) Perception of Success and Its Effect on Small Firm Performance. Journal of Small Business and Enterprise Development, 14, 689-701.
http://dx.doi.org/10.1108/14626000710832776 [12] Venkatraman, N. and Ramanujam, V. (1986) Measurement of Business Performance in Strategy Research: A Comparison of Approaches. Academy of Management Review, 11, 801-814. [13] Murphy, G.B., Trailer, J.W. and Hill, R.C. (1996) Measuring Performance in Entrepreneurship Research. Journal of Business Research, 36, 15-23.
http://dx.doi.org/10.1016/0148-2963(95)00159-X [14] Thomas, S.N., Palaneeswaran, E. and Kumaraswamy, M.M. (2002) A Dynamic E-Reporting System for Contractors’ Performance Appraisal. Advances in Engineering Software, 33, 339-349.
http://dx.doi.org/10.1016/S0965-9978(02)00042-X [15] Keats, B.W. and Bracker, J.S. (1988) Toward a Theory of Small Firm Performance: A Conceptual Model. American Journal of Small Business, 12, 41-58. [16] Santos, J.B. and Brito, L.A. (2012) Towards a Subjective Measurement Model for Firm Performance. Brazilian Administration Review, 9, 95-117.
http://dx.doi.org/10.1590/S1807-76922012000500007 [17] Cameron, K. (1986) A Study of Organizational Effectiveness and Its Predictors. Management Science, 32, 87-112.
http://dx.doi.org/10.1287/mnsc.32.1.87 [18] Cho, H. and Pucik, V. (2005) Relationship between Innovativeness, Quality, Growth, Profitability and Market Value. Strategic Management Journal, 26, 555-575.
http://dx.doi.org/10.1002/smj.461 [19] Glick, W.H., Washburn, N.T. and Miller, C.C. (2005) The Myth of Firm Performance. Proceedings of the Annual Meeting of American Academy of Management, Honolulu, 5-10 August 2005. [20] Kagioglou, M., Cooper, R. and Aouad, G. (2001) Performance Management in Construction: A Conceptual Framework. Construction Management and Economics, 19, 85-95.
http://dx.doi.org/10.1080/01446190010003425 [21] Faridi, A. and El-Sayegh, S. (2006) Significant Factors Causing Delay in the UAE Construction Industry. Construction Management and Economics, 24, 1167-1176.
http://dx.doi.org/10.1080/01446190600827033 [22] Kotler, P. and Keller, K.L. (2006) Marketing Management. 12th Edition, Pearson Prentice Hall, Upper Saddle River. [23] Marx, H.J. (2012) Construction Industry Indicators Affecting Contractors. Journal for the Advancement of Performance Information and Value, 4, 119-132. [24] Brush, C.G. and Vanderwerf, P. (1992) A Comparison of Methods and Sources of Obtaining Estimates of New Venture Performance. Journal of Business Venturing, 7, 157-170.
http://dx.doi.org/10.1016/0883-9026(92)90010-O [25] Wickham, P.A. (2001) Strategic Entrepreneurship: A Decision-Making Approach to New Venture Creation and Management. 2nd Edition, Financial Times/Prentice Hall, London. [26] Luk, S.T.K. (1996) Success in Hong Kong: Factors Self-Reported by Successful Small Business Owners. Journal of Small Business Management, 34, 68-74. [27] Harter, J.K., Schmidt, F.L. and Hayes, T. (2002) Business Unit Level Relationship between Employee Satisfaction: A Meta-Analysis. Journal of Applied Psychology, 87, 268-279.
http://dx.doi.org/10.1037/0021-9010.87.2.268 [28] Chakravarthy, B.S. (1986) Measuring Strategic Performance. Strategic Management Journal, 7, 437-458.
http://dx.doi.org/10.1002/smj.4250070505 [29] Waddock, S.A. and Graves, S.B. (1997) The Corporate Performance—Financial Performance Link. Strategic Management Journal, 18, 303-319.
http://dx.doi.org/10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.3.CO;2-7 [30] Liu, A.M.M. and Walker, A. (1998) Evaluation of Project Outcomes. Construction Management and Economics, 16, 209-219.
http://dx.doi.org/10.1080/014461998372493
[1] Ofori, G. (1990) The Construction Industry: Aspects of Its Economics and Management. Singapore University Press, Singapore. [2] Dlungwana, W.S. and Rwelamila, P.D. (2005) Contractor Development Models for Promoting Sustainable Building— A Case for Developing Management Capabilities of Contractors. Proceedings of the 2005 World Sustainable Building Conference, Tokyo, 27-29 September 2005, 4208-4215. [3] Windapo, A. and Cattell, K. (2011) Research Report: Mapping the Path to Becoming a Grade 9 Contractor. University of Cape Town, Cape Town. [4] Hauptfleisch, D., Lazarus, S., Knoetze, T. and Liebenberg, S. (2007) An Integrated Emerging Contractor Development Model for the Construction Industry: Practical Implementation and Statistical Quantification.
http://researchspace.Csir.co.za/dspace/bitstream/10204/1850/1/Hauptfleisch_2007 [5] Buys, F. and Ludwaba, D. (2012) The Potential of Built-Environment Professionals’ Contribution towards Emerging Contractor Development. ACTA Structilia, 19, 74-89 [6] Kaplan, R.S. and Norton, D.P. (1992) The Balanced Scorecard Measures That Drive Performance. Havard Business Review, 70, 71-79. https://hbr.org/2005/07/the-balanced-scorecard-measures-that-drive-performance [7] Greyling, E. (2012) Opportunities for Employment Creation through SME Development in the Construction Sector, Free State. International Labour Organisation, Pretoria. [8] MAIA Intelligence (2009) KPIs for Construction Industry.
http://maia-intelligence.com/kpis-for-construction-industry/ [9] Hancott, D.E. (2005) The Relationship between Transformational Leadership and Organisational Performance in the Largest Public Companies in Canada. Doctoral Dissertation. Capella University, Minneapolis. [10] Akbaba, A. (2012) Business Performance of Small Tourism Enterprises: A Comparison among Three Sub-Sectors of the Industry. An International Journal of Tourism and Hospitality Research, 23, 177-195.
http://dx.doi.org/10.1080/13032917.2012.662907 [11] Reijonen, H. and Komppula, R. (2007) Perception of Success and Its Effect on Small Firm Performance. Journal of Small Business and Enterprise Development, 14, 689-701.
http://dx.doi.org/10.1108/14626000710832776 [12] Venkatraman, N. and Ramanujam, V. (1986) Measurement of Business Performance in Strategy Research: A Comparison of Approaches. Academy of Management Review, 11, 801-814. [13] Murphy, G.B., Trailer, J.W. and Hill, R.C. (1996) Measuring Performance in Entrepreneurship Research. Journal of Business Research, 36, 15-23.
http://dx.doi.org/10.1016/0148-2963(95)00159-X [14] Thomas, S.N., Palaneeswaran, E. and Kumaraswamy, M.M. (2002) A Dynamic E-Reporting System for Contractors’ Performance Appraisal. Advances in Engineering Software, 33, 339-349.
http://dx.doi.org/10.1016/S0965-9978(02)00042-X [15] Keats, B.W. and Bracker, J.S. (1988) Toward a Theory of Small Firm Performance: A Conceptual Model. American Journal of Small Business, 12, 41-58. [16] Santos, J.B. and Brito, L.A. (2012) Towards a Subjective Measurement Model for Firm Performance. Brazilian Administration Review, 9, 95-117.
http://dx.doi.org/10.1590/S1807-76922012000500007 [17] Cameron, K. (1986) A Study of Organizational Effectiveness and Its Predictors. Management Science, 32, 87-112.
http://dx.doi.org/10.1287/mnsc.32.1.87 [18] Cho, H. and Pucik, V. (2005) Relationship between Innovativeness, Quality, Growth, Profitability and Market Value. Strategic Management Journal, 26, 555-575.
http://dx.doi.org/10.1002/smj.461 [19] Glick, W.H., Washburn, N.T. and Miller, C.C. (2005) The Myth of Firm Performance. Proceedings of the Annual Meeting of American Academy of Management, Honolulu, 5-10 August 2005. [20] Kagioglou, M., Cooper, R. and Aouad, G. (2001) Performance Management in Construction: A Conceptual Framework. Construction Management and Economics, 19, 85-95.
http://dx.doi.org/10.1080/01446190010003425 [21] Faridi, A. and El-Sayegh, S. (2006) Significant Factors Causing Delay in the UAE Construction Industry. Construction Management and Economics, 24, 1167-1176.
http://dx.doi.org/10.1080/01446190600827033 [22] Kotler, P. and Keller, K.L. (2006) Marketing Management. 12th Edition, Pearson Prentice Hall, Upper Saddle River. [23] Marx, H.J. (2012) Construction Industry Indicators Affecting Contractors. Journal for the Advancement of Performance Information and Value, 4, 119-132. [24] Brush, C.G. and Vanderwerf, P. (1992) A Comparison of Methods and Sources of Obtaining Estimates of New Venture Performance. Journal of Business Venturing, 7, 157-170.
http://dx.doi.org/10.1016/0883-9026(92)90010-O [25] Wickham, P.A. (2001) Strategic Entrepreneurship: A Decision-Making Approach to New Venture Creation and Management. 2nd Edition, Financial Times/Prentice Hall, London. [26] Luk, S.T.K. (1996) Success in Hong Kong: Factors Self-Reported by Successful Small Business Owners. Journal of Small Business Management, 34, 68-74. [27] Harter, J.K., Schmidt, F.L. and Hayes, T. (2002) Business Unit Level Relationship between Employee Satisfaction: A Meta-Analysis. Journal of Applied Psychology, 87, 268-279.
http://dx.doi.org/10.1037/0021-9010.87.2.268 [28] Chakravarthy, B.S. (1986) Measuring Strategic Performance. Strategic Management Journal, 7, 437-458.
http://dx.doi.org/10.1002/smj.4250070505 [29] Waddock, S.A. and Graves, S.B. (1997) The Corporate Performance—Financial Performance Link. Strategic Management Journal, 18, 303-319.
http://dx.doi.org/10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.3.CO;2-7 [30] Liu, A.M.M. and Walker, A. (1998) Evaluation of Project Outcomes. Construction Management and Economics, 16, 209-219.
http://dx.doi.org/10.1080/014461998372493