Strategic decisions impacting construction organisations’ performance: Evidence from South Africa

Abstract

This study examines the strategic decisions of construction company leaders in South Africa. The central objective of this study is to determine how the strategic decisions of construction company leadership impacts on the organisation’s performance. The rationale of the study stems from continuous failure of large contractors and the view of some scholars that leadership makes the difference. However, there are limited studies that investigate the strategic decisions of construction leaders and how it affects the company health and survival. First, the study used a qualitative approach employing semi-structured interviews to obtain information from twelve Chief Executive Officers (CEOs), of construction companies with head offices in the Western Cape, South Africa and listed in grades 6-9 of the cidb Register of Contractors. A survey of large contractors was then carried out across the nine provinces of South Africa. The findings of this study reveal that decisions on change and innovation have the most impact on organisational performance (ORP). The findings explain that strategic decision is a major role in construction company leadership. The leadership of construction companies is expected to cast visions, channel new opportunities, and reposition their companies according to the current and future economic situations.