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.
Highlights
The contribution of emerging contractors (ECs) to South Africa’s economic development has been a focus of discourse for many years (Atkinson et al 2012)
H4 There is a relationship between small business executive Not supported profiles and business performance
The study was set to assess the critical incidents encountered by ECs and the determinants of performance for those registered with Construction Industry Development Board (CIDB)
Summary
The contribution of emerging contractors (ECs) to South Africa’s economic development has been a focus of discourse for many years (Atkinson et al 2012). Emerging contractors are individuals who own small businesses (at least 50%) and are overcoming business impediments arising from the legacy of apartheid. This refers to small-scale construction enterprises in the Construction Industry Development Board (CIDB) graded 2–5. Small business executives (SBEs) refer to employees who make decisions for the ECs’ organisational structures These are top team members of each emerging construction organisation and include chief executive officer (CEO), chief financial officer, contract director and marketing director
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