Organizational performance measurement of Nigerian indigenous contractors using key performance indicators
No Thumbnail Available
Date
2019-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Environmental Design, Ahmadu Bello University, Zaria-Nigeria
Abstract
Measuring organizational performance of construction firms with project level Key Performance indicators (KPIs) is the norm in Nigerian construction industry like in many other countries. This has been found inadequate to measure overall performance of construction firms hence KPls measured at organizational level are necessary rind already relevant to contracting firms in several countries. Nigerian Indigenous Contractors (NICs) are largely assessed through project level KPIs and this has contributed to below average organizational performance resulting in close down of many firms and difficulties in delivering large construction projects. Current studies into KPIs on competitive advantage, but the NICs lack KPI¢ that address the peculiarities of the industry in the global front have helped construction firms shape performance strategies and enhanced their Nigeria. This study critically examines KPIs at organizational level of NICs. Through literature review, 75 KPIs were synthesized and used. Factor analysis was used to reduce the KPIs to 53 separated into ó measurable factors. Structured questionnaire was administered to a sample of 486 construction firms obtained from a population of 1669 firms in Abuja, Lagos and Rivers, 256 were returned representing 53% response rate. Factors were ranked using mean and standard followed by business procedure and financial which equally ranked high at 5.94 and 5.79 deviations. Results revealed Procurement factors ranking highest with an average mean of 5.98, respectively. Other factors identified include organizational knowledge and project management factors with means of 5.72 and 5.43 respectively, while environmental factors ranked lowest at 4.41. The study identified latent KPIs relevant jor measurement of organizational performance in NICs. The study concluded that the KPIs identified are organizational performance of NICs considering the high mean scores (above 4.41) of derived significant indices for measuring factors. It is recommended that NICs include these measurable indices for adequate assessment of their organizational performance.
Description
Keywords
construction, key performance indicators, Nigerian indigenous contractor, organizational performance
Citation
Rasheed, A. . . et al. (2019) ‘ORGANISATIONAL PERFORMANCE MEASUREMENT OF NIGERIANN INDIGENOUS CONTRACTORS USING KEY PERFORMANCE INDICATORS’, Environ Journal of Environmental Studies, 4(9), pp. 118–134.