Impact of Competitive Aggressiveness on Performance of Small and Medium Construction Firms in Nigeria

Abstract

One of the key challenges confronting construction organizations especially small and medium size firms is the issue of poor performance and survival due to the uncertain environment of the construction industry. Firms must therefore, respond by adopting suitable business strategies that ensure their survival and success in the industry. Competitive aggressiveness is regarded as one of the appropriate business orientations for firms in sectors like construction. This study examined the level of adoption of competitive aggressiveness orientation and its impact on the performance of small and medium construction enterprises (CSMEs) in Nigeria. Using a quantitative approach, data was obtained from a sample of 139 Owners/CEOs and top managers of Nigerian CSMEs via a cross sectional questionnaire survey. Data collected was analyzed using SPSS and Structural Equation Modeling (SEM) using SMARTPLS 3.0 to test the hypothesized relationship between the studied constructs. The finding shows a significant level of adoption of competitive aggressiveness orientation among the studied samples. A positive and significant relationship was also established between competitive aggressiveness and financial performance of the CSMEs in the study. It was concluded from the study that competitive aggressive impacts positively on the financial performance of Nigerian CSMEs. It was therefore recommended that construction firms should adopt and encourage competitive aggressive approach in decision making in order to boost their performance and maintain relevance in the construction industry.

Keywords: Competitive Aggressiveness, Entrepreneurship Orientation, Firm Performance, Construction Small and Medium Enterprises (CSMEs)