Organizational Capabilities and Resilience of Small and Medium-Sized Construction Firms in Ghana: The Mediating Role of Innovation and Moderating Effect of Environmental Factors

Abstract

This study examined the relationship between organizational capabilities and resilience of small and medium-sized construction firms in Ghana. It emphasized that innovation would mediate the relationship between organizational capabilities and construction firms’ resilience, and environmental factors would moderate the relationship between organizational capabilities and construction firms’ resilience. A descriptive survey research design was adopted. The population of the study consisted of management members of construction firms. The convenience sampling technique was used for selecting and reaching out to the sample respondents. A closed-ended questionnaire was used to elicit data from the respondents. Data from 261 respondents were collected and analyzed. The study found a significant positive relationship between organizational capabilities and firms’ resilience; a significant positive relationship between organizational capabilities and firms’ innovation; and a significant positive relationship between innovation and firms’ resilience. Furthermore, it was found that innovation wholly mediates the relationship between organizational capabilities and firms’ resilience; and environmental factors partially moderate the relationship between organizational capabilities and firms’ resilience. It was concluded that for small and medium-sized construction firms to grow and become resilient to various turbulences, there is a need for them to strengthen their capabilities, innovativeness, and environmental factors.