Deciphering cultural differences between local and foreign contracting firms using Hofstede’s national culture model in the construction industry

Abstract

Most construction works in the Zambian construction industry are executed by foreign contractors who are eligible to tender for large-scale construction projects. These works amount to 85% of the national contract value. Foreign contractors are seen as better performers in project deliverables of time, cost and schedule compared to local contractors. This research investigated the magnitude to which national culture impacts contractor performance in the Zambian construction industry. A comparison of culture and performance was made between foreign and local firms in the two top construction categories, using Hofstede’s national culture framework to determine performance improvements of local contractors. A total 112 questionnaires were collected and SPSS was used to analyse the data descriptive statistics and inferential statistics. Findings revealed that foreign contractors manage uncertainty avoidance in a more superior manner compared to local contractors. The clients rated foreign contractors as better performers apart from health and safety. The study established that Local contractors must improve their performance if they are to compete favourably with the foreign contractors' success record.