An investigation into the relationship between the corporate culture of South African construction firms and performance
Date
2010-04-07T08:46:42Z
Authors
Sidumedi, Kgositsile Samuel
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Abstract
Poor capacity, poor quality, low productivity and low profit margins continue to
characterize the majority of South African construction firms. These shortcomings are
attributable to poor cultural practices that are often associated with construction firms. In
an effort to devise strategies intended to improve the performance of South African
construction firms, this research report investigates the relationship that exists between
the corporate culture and performance of South African construction firms.
An in depth literature review that identified the key corporate culture dimensions that are
critical for the success of construction firms was undertaken. Literature advocating for
the existence of a positive relationship between corporate culture and business
performance was also explored.
To ascertain the level of importance attached to the various corporate culture
dimensions by South African construction firms, a survey was undertaken amongst
senior employees of different sized construction firms in the Gauteng region. The survey
revealed that the respondents from the different sized firms were largely similar in their
level of appreciation of the various corporate culture dimensions.
The study found that there is generally a positive relationship that exists between the
corporate culture and performance of South African construction firms. The degree or
intensity of the relationship is largely dependent on the size of the organization. Small
and medium sized construction firms demonstrated greater appreciation of the positive
relationship between corporate culture and business performance.
To improve the performance of South African construction firms, the study recommends
that research and development, innovation, benchmarking and customer orientation be
prioritized. The study further recommends for the development and adoption of effective
human resources retention strategies, this should be coupled with appropriate
mentoring and career development programmes
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Keywords
Business performance, Construction firms, South Africa, Corporate culture