Sustaining Construction Organisations in NZ: A Linear Regression Model Approach to Analysing Determinants of Their Performance

Abstract

The characteristics, strategies, capabilities, and resources of an organisation contribute to its competitive advantage and superior performance. A model to explain performance differences in the New Zealand context will be developed by examining the relationships between construction organisational performance and these constructs. The information was obtained using a questionnaire survey. A total of 101 organisations participated in the research. For the instrument used to elicit data, the literature was used to identify indicators associated with characteristics of organisational strategies for competition, resources and capabilities, and performance of the organisation. Analyses of descriptive, parametric, and linear regression were conducted to examine the effects of these constructs on organisational performance. The results suggest that organisational characteristics are significantly associated with internal business processes, learning, and the growth perspectives of an organisation’s performance, while competitive strategies, resources, and capability perspectives are significantly related to financial perspectives. As a result, these findings add to the current discourse regarding organisational performance differentials in the construction industry. The study demonstrates that it is critical to take into account the different organisational characteristics that are implemented within organisations and how they influence organisational performance beyond rational processes.