External Contingency Factors that Affect Contractors' Performance in Developing Countries- A Jordanian Case Study ; Revolutionizing the Architecture, Engineering and Construction Industry through Leadership, Collaboration and Technology

Abstract

The performance of construction firms hinges upon the influence of both external environment and firms' specific factors. A less obvious, and possibly a more critical, line of inquiry is that what are the most significant external contingency factors that influence small and medium (SM) sized contractors' performance in developing countries? Using a dataset comprising 409 participants representing the construction stakeholders in Jordan, the factors that attributed to external contingency factors that impact on SM sized local contractors in Jordan were empirically examined. Findings from the analysis of the data show that all of the main groups of external contingency factors are considered as important factors that having impact on the contractors' performance in Jordan. Client performance was found the most significant group of factors, followed by the consultant performance. Regulations, laws, policies, and high taxes were identified as the most external attributes that impact negatively on the contractors performance. The study findings have implications for management practice and the government as it could help managers and decision makers of construction organisations to acknowledge the influence of external environment as sources of performance differences among contractors. The study contributes to current debate on the causes of performance differentials among small and medium size contractors firms in developing countries.