Strategies for Local-less-competitive Contractors to Compete Against Overseas Counterparts: A Tanzania Case<sub>

Abstract

The consequence of globalization resulted from the world economic growth, development and the agreement on free market has necessitated the struggle for the global construction industry market competitive environment, which has largely affected the construction industry of developing and less-developed countries. Thus, un-maintainable and less competition resulted from several hindrances facing Local-less-competitive firms in less-developed countries has raised the need to identify effective strategies as a competitive advantage for improving and thus attaining an effective performance. A questionnaire survey tool was used to gather and collect potential data from the experienced construction industry practitioners and stakeholders including engineers, architects, quantity surveyors and surveyors. Ranking, factor analysis, and structural modeling techniques were adopted and hence facilitated the identification of twenty two (22) potential strategies for the sustainable competitiveness of Local-less-competitive firms. Assets (A), processes (P), performance (PER), and government support (GS) related strategies (β1=0.223, p=0.05; β2=0.208, p=0.04; β3=0.391; p=0.00, β4=0.153, p=0.06) respectively has proved to have an optimistic statistical positive significance prediction in accelerating sustainable competitiveness of local-less competitive firms of less-developed countries’ domestic market. The study findings may serve as valuable input for policymakers and construction industry stakeholders in understanding the effective strategies adopted by Local less-competitive firms in domestic construction.