Rethinking the Attributes for Competitive Advantage of Indigenous Construction Firms in Developing Countries: A Ghana Study

Abstract

ABSTRACT Though studies in the past have advanced some attributes for competitive advantage in certain national contexts, little is known of the empirical studies that identify the principal attributes for competitive advantage of indigenous construction firms in developing countries to adduce empirical findings toward firms’ competitive advantage policy. This study identifies the principal and sub attributes for competitive advantage of indigenous construction firms in developing countries using Ghana as a case study. The use of principal component analysis, varimax rotation in data analysis aided in reducing the large set of attributes to four principal components. Using a questionnaire survey, 667 respondents were invited to rate 21 attributes identified from literature and structured interview based on their knowledge and/or experience. Correlations between the 21 variables showed that four principal components underlay the attributes for competitive advantage of indigenous construction firms: firms’ internal factors, firm-industry conditions, collaborations, and firm owners’ competencies and influence. It was also revealed that 4 out of the 21 attributes were peculiar to Ghana only. Findings and recommendations of this study may be useful for industry stakeholders who are seeking innovative ways to enhance indigenous construction firms’ competitive advantage, pedagogy, and curriculum review.