Rambaruth, A; Adam, J K and Krishna, S B N (2022) Contributing elements and issues to strategic management in the construction industry among small and medium enterprises: A case study in South africa's ethekwini region. Journal of Construction Business and Management, 5(2), pp. 20-28. ISSN 2521-0165
Abstract
Small and medium-sized enterprises (SMEs) are vital to the economy and have helped it grow, but they still have a high failure rate. Many businesses fail within the first few months of operation due to a lack of strategic planning. This study aimed to identify persuading factors that contribute to strategic management to improve performance and categorise challenges faced by SMEs in implementing a strategic plan in the eThekwini region of South Africa. The study adopted a quantitative research approach, and the population of interest for the research includes small and medium construction companies, which were sourced via the Construction Industry Development Board (cidb) registry. An online survey tool was used to distribute the questionnaire to 145 small and medium businesses. The data were analysed using descriptive and inferential statistical tools and exploratory factor analysis (EFA). The study's findings reveal that most eThekwini-based SMEs in the construction industry use strategic management practices to improve their business performance. The key factors for strategic management in SMEs, such as improving decision-making processes, increasing productivity, and gaining a competitive advantage, demonstrated high levels of agreement among participants regarding improving business performance. This study also found widespread agreement on the challenges of implementing a strategic plan in an organisation. Therefore, small and medium-sized enterprises (SMEs) must develop procedures and policies to deal with the difficulties that arise when drafting a strategic plan. This will ensure that strategic planning works in their operations. This can be accomplished by implementing strategic management into SMEs training programs offered by government and tertiary institutions that support SMEs. The government should also improve education and broaden its business skills curriculum.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | competitive advantage; skills; SMEs; business performance; construction industry development; strategic management; strategic planning; training; factor analysis; productivity; case study; quantitative research; questionnaire survey; South Africa |
| Index terms: | quantitative research, tertiary, construction industry, South Africa, strategic planning, case study, survey, business performance, exploratory factor analysis, program, productivity, decision-making process, questionnaire, drafting, competitive advantage, construction industry development, construction company, population, factor analysis, strategic management |
| Subjects: | curriculum development, software systems, market analysis, data analysis and analytics, demography, statistical analysis, Geography, industry analysis, decision analysis, technical documentation, performance measurement, organization, data collection methods, management, development economics |
| Topics: | International Construction, Urban Studies, Risk Management, Research Practice, Quality Management, Design Practice, Digital Applications, Business Strategy, Education, Geographical Context |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here