Evaluation of Competitive Strategies for Enhancing the Performance of Construction Firms in Tanzania (The Case Study of Public Construction Firms)

Abstract

Public construction firms are faced with performance challenges such as contract mismanagement, time, and cost overruns at the construction firms’ and projects’ levels. But these challenges can be mitigated by adopting appropriate competitive strategies and enhance their general performance. The study evaluated the competitive strategies adopted and practised in public construction firms. The data were collected through interviews with fifteen (15) directors, senior and middle managers from five organisations (NHC, TBA, CSWS, SUMAJKT, and SHIMA) as case studies. Also, data were collected through document reviews of the case studies, which were strategic plans, financial reports, and company profiles. There were six (06) reviewed documents from all five organisations. The study employed a multi-case study design and the technique adopted was cross-case analysis. Data from all sources were analysed thematically with help of NVivo 12 plus (CAQDAS). The general findings indicate that all participated organisations practised competitive strategies, though the modes of practice were varied from one firm to another. The identified competitive strategies were categorised into three levels such as corporate (Brand, Image, growth, joint ventures), business level (low cost, differentiation, time-based), and functional or operation levels (Human resource, Marketing, relationship, research, and development). However, it was revealed that the majority of participated organisations practised competitive strategies just as business as usual rather than for competitiveness. Also, it was revealed that competitive strategies at all levels influenced firms' performance. At the corporate level growth and diversification were more practised. At the business level cost strategies were more considered and at functional or operational the human resource strategies were found to be significant. Other factors such as organisational structure, internal and external firms’ environments were found to have some effects that intervene between competitive strategies and organisational performance. Also, the implementation guidelines for improving performance in public construction firms through competitive strategies were developed. The guidelines are based on competitive strategy development, strategic levels, and organisational performance. Finally, public construction firms were recommended to adopt competitive strategies effectively, and then the reward is enhanced performance.