Labour productivity in construction SMEs: Perspectives from South Africa

Abstract

Small and medium-sized enterprises (SMEs) are strategic to South African economic performance. Despite their strategic role in economic growth, South African construction SMEs are predominantly confronted with the problem of poor performance, which is partly due to poor productivity. This contributes to a negative outlook for construction and undermines its contribution to the nation’s economy. This study determines essential strategies to help improve construction SMEs’ productivity in South Africa. Qualitative data were collected from registered small and medium-sized construction organisations in South Africa, using a semi-structured interview approach. The research data were analysed, using content analysis. The study reported key strategies, including the need for proficiency at managerial and non-managerial levels, effective teamwork, and effective planning, to improve contractors’ productivity. Although existing studies have widely reported major factors influencing contractors’ productivity, there is still a shortage of research on SMEs’ productivity, especially in South Africa. This research determines SMEs-specific productivity challenges and the interventions needed to improve productivity in the SME sector.

Keywords

• construction industry
• construction organisations
• contractors
• labour productivity
• smes