A Prioritization Model of Strategies for Small and Medium Firms in Less-Developed Countries: A Tanzania Case

Abstract

Most construction industries (CIs) from less-developed countries (LDC) have been overwhelmed with many construction project’s challenges. The challenges have always been leading to prolonged unimproved performance of small and medium firms (SMFs). This study aimed to develop a prioritization model of strategies for performance improvement of SMF. Business process re-engineering (BPR) is adopted to facilitate the identification of the re-engineering core process as value activities and develop a conceptual framework for the study. The study used the questionnaire and interview survey to collect data from 253 respondents sampled through purposive sampling. Respondents were obtained from twenty-eight firms obtained through a systematic approach that helped to get firms practicing BPR. Data were analyzed using SPSS 24-AMOS to create structural equation modelling. Findings have revealed twelve (12) weakness indicators, seven (7) performance measure indicators, eleven (11) construction core process strategies, and sixteen (16) organizational strategies. Strategies were clustered into the seven-cluster matrix, namely: resources, capacity building, operational, government policy, design, procurement, and construction management, having a positively significant correlation on SMF’s performance improvement. The study findings revealed that the BPR technique has globally become a useful tool for many organizations seeking to attain an improved performance since it provides a chance to re-engineer the organization process. Thus, for the firm(s) to enhance performance improvement, it is recommended for LDC’s construction firm(s) to adopt re-engineering process management techniques to identify and prioritize the construction core process and organizational strategies to attain improved performance.