Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)


The Role of Organization Structure and Hybrid Strategy on the Construction Firm Performance: A Contingency Theory Perspective

Author(s): Muhammad Farooq & Laraib Fatima

The factors influencing construction firm performance are numerous, and their interrelationship is often complex. The use of contingency theory to analyze construction firm performance has recently been advocated by the researchers. The contingency theory advocates for achieving a ???fit??? between various factors to achieve sustained enhanced performance. This study explores the influence of such performance-related contingencies, i.e. the Organization Structure (OS), and Hybrid strategy for the firm performance. Design/methodology/approach Data is collected from the construction industry via a questionnaire survey. A quantitative data analysis method, i.e. Partial Least Squares ??? Structural Equation Modelling (PLS-SEM), is used to validate the hypothesized relationships. Findings Our findings suggest that OS does not directly impact the performance. However, OS is directly linked to adaption of Hybrid Strategy, which in turn significantly influences the construction firm performance, suggesting a ???mediating??? role of hybrid strategy in OS to performance relationship. The results suggest that construction firms can improve their performance by designing suitable OS, which will aid in successful application of hybrid strategy, ultimately leading to enhanced performance. Originality There is a limited understanding of dimensions of OS which can aid in hybrid strategy development and successful application, which would then result in enhanced performance. As per author???s knowledge, no research in Construction, Engineering and Management (CEM) literature has been carried out to explore such a relationship
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