Evaluating Growth Dimensions of Construction Firms via Domestic Joint Ventures: An Empirical Study in Tanzania
Evaluating Growth Dimensions of Construction Firms
Keywords:
Organizational growth, Growth Dimensions, Domestic Joint Venture, Local contractors, TanzaniaAbstract
Construction firms in many developing countries often struggle to achieve sustainable growth and compete for large and complex construction projects. Joint ventures have been recognised as effective strategies for enhancing competitiveness and capacity building for local contractors. However, there is limited knowledge on domestic joint ventures (DJVs) and their implication on the development of local contractors. This study therefore, investigates the growth pathways achieved by local contractors through domestic joint ventures in Tanzania. A survey was conducted among 69 local contractors involved in DJV projects. A structured questionnaire was used to validate 18 growth dimensions identified in previous literature. Exploratory Factor Analysis (EFA) was applied to analyse the data resulting in 15 significant growth dimensions grouped into three categories. These grouped include managerial and technical capability, financial stability and organization size. The findings indicate that domestic joint ventures significantly enhance managerial and technical capability and financial stability among local contractors, while growth in organization size was limited. The study highlights he role of DJVs in strengthening the competitiveness and the development of local contractors and provides empirical insights for policymakers and industry stakeholders to promote collaborate construction practices. However, the study recommends that effective procurement reforms that require DJVs should be paired with capacity building programs and clear performance monitoring to ensure partnerships are developmental rather than purely transaction.
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