The Interaction Between the Main Determinants of Construction Organisational Performance in New Zealand

Alqudah, Hamzah Edris
Poshdar, Mani
Rotimi, James
Oyewobi, Luqman
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Doctor of Philosophy
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Auckland University of Technology

The construction industry is dynamic and unpredictable. Similar organisations within the construction industry compete to outdo one another. In New Zealand, construction organisations are facing challenges in many areas that determine their performance. This research investigates the factors that determine organisational performance and their interrelationships in the New Zealand construction industry. It creates a holistic framework to model the causes of the difference in performance among organisations in the construction industry in New Zealand. The thesis identifies the determinants of construction organisations' performance and investigates their interactions, which explains the performance differentials among the construction organisations operating in New Zealand. The Systematic Literature Review and Relative Importance Index revealed various characteristics of organisations, resources and capabilities, competitive strategies, business environment, and customer relationship management, are significant factors that determine the performance of organisations operating in the New Zealand construction industry. A mixed methods research approach was employed to test the hypotheses that the main determinants can explain the performance differentials between organisations. The Partial Least Squares Structural Equation Modelling (PLS-SEM) technique was used to analyse and determine the relationships between variables. The results from this technique showed that competitive strategies, business environment, resource and capabilities, organisational characteristics, and customer relationship management practices were impact factors that influence the performance of organisations in the construction industry. Furthermore, the findings revealed that resources and capabilities are the strongest influences of organisational performance in the New Zealand construction industry. The study adds evidence to the body of knowledge on construction management whilst also developing a model that demonstrates the influence of industrial and dependent factors that influence the performance of organisations in the construction industry. The set of the main determinants are recognised as important factors in shaping organisations' competitiveness. However, according to the literature, organisations should understand the interactions between these factors to develop the most suitable strategy for a particular situation they encounter. A comprehensive understanding of these factors will help to detect risks and opportunities within the operational environment of a construction organisation. Therefore, organisations can adjust their approach in resource allocation to gain a sustainable competitive advantage. Improvements in the performance of firms in the construction industry can support local industry development, which enhances the nation's economic development.

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