Perceptions of small business executives on determinants of performance in the construction industry in Gauteng, South Africa

Abstract

Orientation: The South African (SA) government expects emerging contractors (ECs) to become the main players in economic transformation and growth, job creation and income generation. However, ECs fail to live up to the expectations as some are characterised by low performance levels and are at risk of business closure.
Research purpose: The purpose of this research was to examine the perceptions of small business executives (SBEs) on determinants of ECs’ performance so that a performance model that could guide ECs in the construction industry is developed.
Motivation for the study: Despite the significance of ECs to the SA economy, researchers have constantly omitted to identify and examine the role played by the perceptions of SBEs on the determinants of performance and this gap in the body of knowledge would be closed by this study.
Research design, approach and method: A mixed approach was used to examine the perceptions of SBEs on determinants of performance by applying both qualitative and quantitative research approaches. Data were obtained from 433 urban based ECs registered with the Construction Industry Development Board (CIDB) in the construction industry in Gauteng Province. A structured questionnaire and an interview guide were administered as the data collection instruments. Content analysis, regression analysis and multiple linear regressions were performed.
Main findings: The analysis of qualitative data demonstrated the perceptions of SBEs that financial factors, manpower, materials, machinery and equipment, project implementation, quality of work, legal and environmental factors and strategic planning were the determinants of ECs’ performance. Multiple linear regressions carried out based on the perceptions of SBEs identified strategic planning, project implementation and project performance as the most statistically significant factors in predicting the performance of ECs in Gauteng Province.
Contribution and value add: Based on perceptual analysis of the ECs and multivariate results, a performance prediction model was developed. Furthermore, a new set of significant determinants of performance as perceived by SBEs in South Africa’s (Gauteng Province) construction industry was established.