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Effects of financial management practices on technical performance of building contractors in northeast Nigeria

Effects of financial management practices on technical performance of building contractors in... The purpose of this study is to assess the effects of financial management practices of small-scale building contractors on the technical performance of the contractors in the northern part of Nigeria with international best practices. Previous studies argued that the technical performance of small-scale building contractors in developing countries is poor because of insufficient cash to acquire strategic resources at the outset of a project. This continues to pose a challenge to the sustainable development of the construction industry, particularly in developing countries like Nigeria. There is, therefore, a need to identify, assess and compare the effects of financial practices of the contractors with technical performance best practices.Design/methodology/approachThe technical performance of each contractor was evaluated using a five-point Likert scale. This is used to obtain the mean technical performance levels of the contractors. A questionnaire survey was administered to the professionals in the industry who were selected by using a proportionate stratified random sampling technique. The contractors’ performance was compared using ANOVA with post hoc, and the effects of contractors’ financial management practices were determined using multiple regression analysis.FindingsThe results of this study indicated that the contractors in Nigeria were average technical performers and there were large effects of financial management practices on the technical performance of contractors in building projects.Research limitations/implicationsThis study is limited to small-scale building contractors in northeast Nigeria. One of the implications of this study is that it provides the criteria for an evaluation of small-scale building contractors’ technical performance in Nigeria and other developing countries that faced similar problems.Practical implicationsThe practical implications of this study are that it establishes the current level of contractors' technical performance and serves as an awareness of contractors' current financial practices.Social implicationsThis study created bases for self-evaluation of contractors’ technical performance and competition among small-scale contractors in Nigeria for the enhancement of productivity particularly in rural areas for national development.Originality/valueThis study emanated from the government reports and past studies in the area of performance management based on the persistence of poor technical performance of small-scale contractors in the construction industry. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Financial Management of Property and Construction Emerald Publishing

Effects of financial management practices on technical performance of building contractors in northeast Nigeria

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1366-4387
DOI
10.1108/jfmpc-07-2019-0064
Publisher site
See Article on Publisher Site

Abstract

The purpose of this study is to assess the effects of financial management practices of small-scale building contractors on the technical performance of the contractors in the northern part of Nigeria with international best practices. Previous studies argued that the technical performance of small-scale building contractors in developing countries is poor because of insufficient cash to acquire strategic resources at the outset of a project. This continues to pose a challenge to the sustainable development of the construction industry, particularly in developing countries like Nigeria. There is, therefore, a need to identify, assess and compare the effects of financial practices of the contractors with technical performance best practices.Design/methodology/approachThe technical performance of each contractor was evaluated using a five-point Likert scale. This is used to obtain the mean technical performance levels of the contractors. A questionnaire survey was administered to the professionals in the industry who were selected by using a proportionate stratified random sampling technique. The contractors’ performance was compared using ANOVA with post hoc, and the effects of contractors’ financial management practices were determined using multiple regression analysis.FindingsThe results of this study indicated that the contractors in Nigeria were average technical performers and there were large effects of financial management practices on the technical performance of contractors in building projects.Research limitations/implicationsThis study is limited to small-scale building contractors in northeast Nigeria. One of the implications of this study is that it provides the criteria for an evaluation of small-scale building contractors’ technical performance in Nigeria and other developing countries that faced similar problems.Practical implicationsThe practical implications of this study are that it establishes the current level of contractors' technical performance and serves as an awareness of contractors' current financial practices.Social implicationsThis study created bases for self-evaluation of contractors’ technical performance and competition among small-scale contractors in Nigeria for the enhancement of productivity particularly in rural areas for national development.Originality/valueThis study emanated from the government reports and past studies in the area of performance management based on the persistence of poor technical performance of small-scale contractors in the construction industry.

Journal

Journal of Financial Management of Property and ConstructionEmerald Publishing

Published: Jul 16, 2020

Keywords: Performance; Nigeria; Technical; Contractors; Financial management practices

References