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Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
1 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
IMPACT OF PRODUCTIVITY ON THE SURVIVAL OF
CONSTRUCTION ORGANISATIONS IN A
COMPETITIVE MARKET
OBOREH Justina, Delta State University
EZE Emmanuel, Federal University of Technology
EGWUNATUM Samuel, Federal University of Technology
ABSTRACT
The construction industry plays an essential role in the life of every nation, as it
makes a meaningful contribution to countries GDP, shelter and infrastructure provisions and
employment generation. A critical problem that is challenging the delivery of these benefits to
citizens is declining productivity among construction organisations, and pressure from
competition, modern technologies and management techniques. These have led to
construction projects being delivered behind schedule, over budgets and reduced quality
standard. Productivity is found to have a link with the performance of construction projects
and organisations growth and survival. This study showed that increase in productivity
influence the growth and survival of construction organisations. This study was carried out
among construction organisations in the south-south geopolitical zones of Nigeria. The study
adopted quantitative and qualitative approaches using a well-structured electronic
questionnaire and semi-structured interview as the tool for data collection. The survey
participants were construction organisation employees (i.e. both construction professional
and non-construction professionals) of middle to top management levels in their various
organisations. The snowball sampling technique and electronic means was used in selecting
both quantitative and qualitative participants. With a sample size of 114 and a reliability
index of over 0.70, the quantitative data collected were analysed using mean item score,
Mann-Whitney U test, and correlation analysis. While the thematic analysis was used for the
qualitative data. A significant correlation was found between productivity and organisational
growth and survival. Productivity brings about increase organisational profitability,
improves competitive advantage, customer loyalty and repeat patronage, excess profits are
available for re-investment for expansion purposes, and opportunity for expansion and
growth. Regular leadership improvement was recommended as effective
leadership/management is at the centre of ensuring sustainable productivity and organisation
survival.
Keywords: Productivity; Construction organisation; Competitive market; Organisational
survival; Nigeria.
INTRODUCTION
Globally, the construction industry regardless of the level of industrialisation of a
country is a very critical sector that serves as a pillar for supporting economic growth and
development. According to Onyejeakor et al. (2020), the construction industry is the prime-
mover that influence and catalyse national growth and development Onyeagam et al. (2019)
maintained that the construction industry is an influential sector of a nation’s economy that
stimulate economic growth and provides jobs for the citizenry. In different nations, the
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
2 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
construction industry contributes a range of 8-10% on average to the GDP, and it is linked to
providing mass employment, encourage growth, and act as a cord that connect the other
sectors to the economy (Wells & Evans, 1985; Dixit et al., 2017; Dixit et al., 2019). The
industry is however faced with the problem of declining productivity in the face of high
competitive pressure and modern management techniques.
Productivity problems have impacted construction organisations’ capabilities to
deliver projects on schedule and within budget and with the required quality standard. The
labour-intensive nature and inability of the construction organisations and their managers to
manage this labour effectively have remained a problem confronting labour productivity,
organisational and project performance. Construction labour productivity is among the
crucial issues the construction managers face on every business day, as they endeavour to
improve on it and satisfy their clients (Attar et al., 2012). Construction productivity
improvement helps organisations to increase their revenue drive and survival in the extreme
competition that characterise the construction sector.
According to Awodele et al. (2020), the survival of construction companies within the
industry depends mainly on effective competition. In order to remain competitive,
construction firms have devised various means of improving productivity. Productivity
triggers organisational success, growth, and guarantees continuous customer satisfaction,
loyalty and patronage. Owing to the need to remain above competitors, the recruitment and
engagement of experienced and knowledgeable workers is the order of the day for
construction organisations. The productivity of the construction workers (tradespeople,
construction professionals, non-construction professionals) is critical to the survival of
construction organisations and the success of construction project delivery. The skill and
knowledge of the construction workforce is an important factor to the success of the firms,
especially as it has to do with surviving the kind of competitive market of the construction
sector. Therefore, human capital is now being realized to be a key asset of organisations (UK
Essay, 2017). Furthermore, the survival and growth of companies is a goal that requires
investment in terms of resources and energy (Jones & Bartlett, 2008). Staying above
competitors is the sole reserve of the construction companies’ leaders or owners but also the
entire workforce. This is because the company’s workforce is its resources that appreciate
over time in terms of skills, abilities, experiences and knowledge (Olughor & Oke, 2014).
Over time, if they are properly managed, they become more productive and contribute
meaningfully to providing solutions to the myriads of problems of the construction projects.
Construction organisations in Nigeria have continued to experienced failures in the
delivery of construction projects owing to poor productivity among other factors (Usman et
al., 2012). The construction industry of Nigeria has continuously experienced a decline in the
number of construction organisations which are mostly SMEs. The National Bureau of
Statistics (Kale, 2019) of Nigeria reported a -45.1% decline in the number of SMEs in river
state alone. The reason may not be far from poor productivity and inefficient management of
organisational resources as well as harsh economic condition (Eze et al., 2020a). According
to Eze et al. (2020b), productivity is a key criterion for the survival and sustenance of
construction-based organisations and other organisations in other sectors of the economy. It
was further added that an organisation that wishes to be ahead and above its competitors,
such an organisation must be productive and productivity comes from a motivated workforce.
It is based on this knowing that this study assessed the impact of productivity on the survival
of construction organisations in the south-south region of Nigeria, with a view to determining
the critical factors for sustainable productivity and organisational growth. In addition,
sustaining a place in the competition is the responsibility of both managers/owners and their
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
3 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
employees. It is based on this that this study assessed the perception of both construction and
non-allied construction professionals on the subject of this study.
The outcome of this study will be useful to managers and owners of construction
organisations as it showcases how critical and essential of productivity is to organisational
growth and survival. Corporate survival is crucial in a highly competitive sector like the
construction industry. Furthermore, sustainable productivity is possible where every
stakeholder is doing their part. Companies in the construction sector will be better informed
on the most important factors that could trigger the needed change in production and
construction project delivery that will help sustain the organisation and its client base.
LITERATURE REVIEW
Productivity and Its Importance in the Construction Industry
Productivity is simply the ratio of the total resources input to the total production
output. Bawa (2017) defined productivity as the optimum use of available resources in the
production of goods and services with the sole aim of meeting pre-established objectives.
Regarding labour productivity (Allan & Yin, 2010) defined it as the measure of Labour
productivity as the volume measure of output to a volume measure of input. Labour
productivity is a key indicator of the economy. This is because it is linked with growth,
competitiveness and the living standards in economies.
The productivity of individual labour (workforce) has an influence on the productivity
of construction organisations and their performance on construction projects. Allan & Yin
(2010) submitted that the number of hours worked, workforce and the number of people
employed are the three commonly used measures for labour productivity. Furthermore, these
measures are impacted by the quality of labour, social norms and innovation. It follows that
productivity is positively and /or negatively influenced by the quality of labour. More
qualified and experienced workforces are more productive. The higher the quality of labour,
the better and more improved the productivity will be. A summary of the productivity
definition is shown below:
According to Conlon (2018), a lot of benefits exists from having a productive
workforce and efficient production lines. The implementation of a suitable productivity
strategy will aid the organisations' growth rate and survival. Conlon (2018), highlighted some
major benefits of productivity in the construction industry, and they are;
Improve profitability
As the efficiency of employees improves, they become productive as tasks are taken
lesser time to deliver. It further means more output for reduced or same input level. With a
less expensive production system, more savings for expansion and continuous business are
available.
Reduced Cost of Operation/Production
Through the introduction of initiatives like investing in technology and ICT-based
tools; could over time result in lower cost expended on labour, thus, having the production
cost appreciably lowered. Improving the workflow of labour would often lead to a reduction
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
4 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
in the length of time work gets done. Meaning that the same output can be achieved at a
reduced time.
Improved Competitive advantage
Increase in efficiency and faster delivery of projects, give organisations a competitive
edge over their competitors. Reduced cost of production means that charges on clients will be
less. Also, faster delivery of projects implies that more clients can be satisfied at a lesser time
and more projects can be handled. A better competitive edge increases revenue and profits;
therefore, firms are in a better position to re-invest for expansion and this would strengthen
their longevity and survival.
Increase Workers Morale and Commitment to Work and Company
Increasing production efficiency has a positive impact on the well-being of the
workforce. When work items are executed with ease and less stress, the workers experience
less stress and burnout and could be more focused. The benefits of improved productivity in
the organisations must be felt by the workers so that they can be more motivated to work and
support the project delivery goals.
Better Services to Customers
Productivity improvement influences the level of time and attention given to clients
(customers). An organisation that is generating more revenue and profits will have a system
that runs well. Customers are happy because they feel the benefits from the company, through
the improved services delivered to them.
Less Stress and Employee Burnout
Efficient working leads to better employees’ productivity and performance. Work is
delivered in a lesser time and workers will be more relaxed, organised and focused in their
daily assignments.
Resources Optimisation
An effective human resource management leads to reduced cost and improved
productivity. The distribution of roles and responsibilities ensure that workers are used
optimistically for the benefits of the company and the clients. Workforce optimisation and
utilisation brings change and improve workflow and assist in tracking overlaps for
responsibilities.
Opportunity for Expansion and Growth
A sustainable improvement in productivity is equally an opportunity for growth and
expansion (Colon, 2018) increase in productivity influence the profitability of firms and these
profits could be used for expansion and /or diversification of portfolio.
Less Waste and Environmental Issues
Increase productivity means that the production process is efficient and time of tasks
execution is reduced. Declining productivity leads to inefficiency which results in loss of
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
5 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
time, money and other resources. Office buildings should be designed to maximize natural
lights and reduce the cost of lighting as well as workers' productivity and health and safety.
Critical Factors for Sustained Productivity and Survival of Organisations
According to the findings of Karimi et al. (2014), a significant, strong and direct
relationship exists between socialisation and productivity. Organisational sociability has an
effect on workforce productivity and performance. It was pointed out that a reasonable
amount of organisational budget should be dedicated to human resource management, as it is
the foundation for a glowing manpower's productivity (Akbari et al., 2005).
The success of businesses is to a very large extent dependent on leadership (Sakiru et
al., 2013). Effective leadership plays a very vital role in ensuring the upliftment of the human
resource of an organisation, and this has an impact across the entire value chain. Among the
key areas of leadership have effects according to (Sakiru et al., 2013), are inspires access to
new information and ideas, organises training and enhance the capabilities of the workforce.
New information, ideas gained through adequate knowledge sharing via training; help to
increase employees' capabilities, skills and knowledge for sustainable productivity and
survival and growth.
Productivity is central to every business to grow and succeed. Employees play a very
crucial role in the success of every business and the level of support and commitment to their
employers can make or mar the progress and survival of organizations. Also, business
growths and survival is central to and have an impact on the careers of the employees
(Mackay, 2014).
According to Mackay (2014), factors that can influence the productivity, growth,
survival and fortunes of an organization over the long run are;
1. An atmosphere of trust across every level of the organisation is a very strong factor required
for business growth and survival. This involves the organization providing an environment
where the employees believed and trust them, and they in turn can hold the employees to their
words. Customers want to know that the organization is dependable and reliable.
2. Promptness of decision making. A productive and progressive organization is one that is
decisive; decisions are made without delays to avoid ideal time for both human and material
resources.
3. Know your competitors; being at the defensive end might not be good for the progress and
survival of the company. Companies should know their environment, especially other players
in the industry. The construction industry is a competitive sector, and only the strong and
competitive construction organizations live for long.
4. Effective and sufficient record-keeping shows that an organization is serious and wants to
succeed. Record keeping encourages and preserved knowledge and ideas, establish credibility
and improve transactions and productivity of the organizations.
5. Building strong networks of relationship and connections with stakeholders in and outside the
construction industry. Networking is a source of knowledge, information, people and advice;
that could change the fortune of the company.
6. Minimize risk and build every stakeholder confidence through a habit of slow but incremental
progress. As the popular saying goes 'slow and steady wins the race'.
7. Organizations should exercise optimism in all their activities and operations. Maintaining a
positive disposition towards investment risks and a look at the bright side of every decision
should be engendered in the minds of every stakeholder.
Relationship between Productivity and Organisational Survival
Balestrero & Udo (2013) submitted that the design of strategies to create a durable
business that will satisfy today's customers need and still position the organisation to outpace
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
6 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
its competitors while making a significant impact on the environment, community, society
and bottom line; is the rationale for organisational survival. Engendering sustainable
productivity is the responsibility of organisational management (leadership). Making
productivity an integral part of the organisational culture is the bedrock for ensuring the
stability and survival of an organisation. It is also the mechanism for a sound competitive
advantage (Karimi et al., 2014). Burgelman & Grove (2007) posit that the dynamics of
competition impacts the positions and survival of companies.
In the USA, Wu (2017) found that the survival and growth of new firms is dependent
on productivity more than profitability. It was confirmed that the impact of productivity is 14
times more than the impact of profitability on a company's survival and growth rates. Conlon
(2018) assert that a sustainable improvement in productivity is equally an opportunity for
growth and expansion by organisations. The survival and sustenance of organisations is
dependent on productivity (Eze et al., 2020b). This implies that an organisation that is not
productivity will be unsuccessful and will not grow and survival in a competitive
environment like the construction sector. Construction project being undertaken by such
company will suffer from time and cost overruns, quality issues, disputes and claims,
customer dissatisfaction and loss of future businesses.
FIGURE 1
RELATIONSHIP BETWEEN PRODUCTIVITY AND ORGANISATIONAL
SURVIVAL
Construction firms like other companies are made of construction professionals,
construction tradespeople are the major employees of the industry. When these employees are
productive, work is delivered in less time or lesser time to accomplish work. The noticeable
impact is in the lowering of the cost of production/operation as fewer workforces are needed
to produce the same or more output. This has an influence on the profitability of the firm
(Mansinghka & Moha, 2021). In addition, high productivity helps to meet customers’
satisfaction and their expectation. The implication of a happy customer is that there is
stronger loyalty, repeat patronage, referrals of potential clients. These will give an
opportunity for an organisation have a better edge over its competitors, and growth and
survival chances. It was posited that productivity guarantees business profitability, employees
retention, among others; thus, providing an opportunity for growth, survival and a more
sustainable business outfit (Mansinghka & Moha, 2021). A conceptual framework showing
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
7 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
the relationship between productivity and organisational growth and survival is presented in
Figure 1.
RESEARCH METHODOLOGY
This study adopted a quantitative and qualitative approach in achieving its aim. The
purpose of this study is to assess the impact of productivity on the survival of construction
organisations in a competitive market. The study was carried out in the south-south
geopolitical zone of Nigeria and among construction employees (i.e. construction
professionals and non-construction professionals). The south-south region is rich in oil and
gas and has six states (Akwa Ibom State, Bayelsa State, Cross River state, Delta state, Edo
state, and Rivers state). Thus, this region is a huge revenue generator for the nation. The
presence of oil in these states makes them a business and investment destination for all
categories of companies. The construction professionals form a majority of the employees of
the construction companies. The non-allied construction professionals employees such as
(legal experts, accountants, medical experts, among others), were considered because they
also a play vital role in the management of the organisations and in project delivery.
For the quantitative data, a well-structured questionnaire was used to gather responses
from the participants who met the sample selection criteria. Similarly, for the qualitative data,
a semi-structured interview was used to gather responses from nine (9) top management level
construction professionals.
In order to ensure that only quality data are collected with little or no bias, the
following criteria were set: 1) the organisations must have been working in the region for at
least 5 years, 2) participants must be well informed about the running of his/her employer, 3)
have an understanding of productivity and how to improve it, 4) must have at least 5 years
working, and 5)must be willing to take part in the study.
The questionnaire used has two divisions, the first part gathered information on the
respondents' background information, and the second part gathered responses to the 16
selected importance of productivity from a literature review. The respondents were required
to rate the variables based on their perceived level of influence ad contribution to
organisational growth and survival, using a 5-point Likert scale, where (1=lowest scale; 5
=highest scale). The snowball sampling technique was used in the administration of the
questionnaire using electronic means. The snowball sampling technique depends on referrals
and it is suitable to reach difficult to access participants (Naderifar et al., 2017). The sampling
method has the capability to increase survey sample size, reduce survey time and cost
(Ramsey et al., 2016; Heckathorn, 2011; Atkinson & Flint, 2001). Furthermore, since there
was no database of construction employees with this study's set criteria, the use of snowball
sampling technique became essential. The questionnaire is suitable for a large audience and it
is economical and fast (Tan, 2011). The electronic means of questionnaire distribution is fast,
economical and environmentally friendly (Nwaki & Eze, 2020). Initial contacts were
established among 28 potential survey participants that met the survey criteria during a
preliminary survey of the study areas. The emails and WhatsApp details of these potential
participants were collected and the questionnaires were sent to them. Thus, they were the first
set of participants who referred the study to others who met the study’s sample criteria.
A total of 114 completed and useable questionnaire responses were received, after a
survey period that lasted for 20 weeks. It was impracticable to ascertain the response rate
because there was no sample size established initially. The 114 responses were deemed
adequate for analysis, and were subsequently used for the study.
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
8 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
The questionnaire data were analysed using frequency and percentage, mean item
score, Mann-Whitney U test and correlation analysis. The data garnered on the background
information of the respondents were analysed using frequencies and percentages. Data
gathered on the influence of productivity on organisation survival were analysed using the
mean item score. In order to justify the use of the Mann-Whitney U test to determine the
difference in the rating style of the construction professionals and non-construction
professional employees of the construction industry, the normality assumption of the gathered
data was ascertained using the Shapiro-Wilk test. This was based on the knowledge that the
sample size of 114 is less than 2000 as suggested by (Ghasem & Zahediasl, 2012). A p-value
of zero (0) was obtained for the assessed variables, thus, indicating that the data are non-
parametric. Since, there a possibility to have some differences in the perceptions of the
construction professionals and non-construction professional employees of the construction
industry, the Mann-Whitney U test was used to determine if a difference exist in the rating
style for the variables assessed. The reliability evaluation result indicates that the
questionnaire is reliable and has high internal consistency. This is based on the Cronbach’s
alpha value of 0.852 obtained for the 16 variables assessed.
Nine (9) top management staff participated in the interview session. The semi-
structured interview contained two sections; section 1) collected data on the background
information and section 2) contain question related to the relationship between productivity
and organisational survival, and question related to the critical factors for sustainable
productivity for project success and organisational growth and survival. The responses from
the interviewees were recorded and later transcribed to aid analysis. The interviewees'
responses were examined thematically to identify common themes and commonality in their
responses.
RESULTS AND DISCUSSION
Respondents Background Information (Questionnaire Participants)
Table 1 shows the result of the analysis of the data from the questionnaire
participants' background information. From the respondent category, 71.93% are construction
professionals, while 28.07% of them are non-allied construction professionals working in
various capacities with construction organisations. The average working experience of the
sampled participants is 11.94 years. A further look at the years of experience revealed that;
42.11% have about 5-10years in the construction industry, 36.84% have 11-15years of
experience, 14.04% have 16-20years of experience, and 7.02% have spent 21years and
above. These indicate that they have gained reasonable and useful experiences in areas of
building and civil engineering construction that could be useful in meeting the study aim.
Furthermore, in terms of the highest academic qualification of the respondents,
25.44% holds HND, 15.79% have PGD, 47.37% have B.Sc./B.Tech., 11.40% holds
MSc./M.Tech., and none of them have a PhD. This shows that the sampled participants have
an appreciable level of education to understand the major aim of this study.
Table 1
QUESTIONNAIRE RESPONDENTS’ GENERAL INFORMATION
Variables
Classification
Freq.
Per cent
Organisational size
Construction professional
82
71.93
Non-construction Professionals
32
28.07
Total
114
100.00
Years of experience
5-10years
48
42.11
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
9 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
11-15 years
42
36.84
16-20 years
16
14.04
21-above
8
7.02
Total
114
100.00
Highest Educational
Qualification
Higher National Diploma (HND)
29
25.44
Postgraduate Diploma (PGD)
18
15.79
Bachelor of Science/technology
(B.Sc./B.Tech)
54
47.37
Master’s Degree (MSc./M.Tech.)
13
11.40
Doctorate degree (PhD)
0
0.00
Total
114
100.00
Interviewee’s General Information
From Table 2, it can be seen that the interviewees are top management staff of their
various organisations. This is evident in their positions which range from being site
superintendents to project director. In terms of their profession, Architects and Quantity
Surveyors are 2 each, 1 builder and 1 project management expert, and 3 Engineers. In terms
of their educational qualification, 6(66.67%) of them holds a master's degree, while
3(33.33%) holds a bachelor's degree.
Furthermore, the participants are members of their respective professional bodies
except for the project management expert who was silent about his professional cadre. The
average years of experience of the interviewees are 19.44years, with a maximum of 22 years
and a minimum of 15years. In addition, the participants are experts in building and civil
engineering construction.
It can be drawn from the interviews general information that, they are experienced
enough and with the requisites professional and education and industry experiences to give
information that could be relied upon, as regards the subject of this study.
Table 2
INTERVIEWEES GENERAL INFORMATION
S/No
Profession
Position
Highest
Educational
Qualification
Professional
Cadre
Year of
experience
Areas of
expertise
A
Architect
Project manager
Master’s
degree
Fellow
22 years
Building/wood
B
Builder
Site superintendent
Bachelor
degree
Corporate
19 years
Building/civil
projects
C
Engineer
(Civil/structural)
Production manager
Master’s
degree
Corporate
19 years
Civil/steelworks
D
Quantity
Surveyors
Commercial
/Estimating manager
Master’s
degree
Fellow
20 years
Building/civil
projects
E
Project
management
Procurement/Logistics
manager
Bachelor
degree
-
15 years
Developmental
projects
F
Engineer
(M&E)
Project director
Master’s
degree
Corporate
23 years
Building/civil
projects
G
Quantity
Surveyors
Contract manager
Bachelor
degree
Corporate
18 years
Building/civil
projects
H
Engineer
(Civil/structural)
Project manager
Master’s
degree
Corporate
22 years
Building/civil
projects
I
Architect
Design manager
Master’s
degree
Corporate
17 years
Building
projects
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
10 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
Influence of Labour Productivity of Organisational Growth and Survival
Table 3 and Figure 2 contains the results of the analysis of the data collected on the
influence of productivity on organisation survival. It can be seen that the most influenced
increased productivity have on an organisation are; increase organisational profitability
(MIS=4.70), Improves competitive advantage (MIS=4.70), Opportunity for expansion and
growth (MIS=4.67), Customer loyalty and repeat patronage (MIS=4.62), and Excess profits
are available for re-investment for expansion purposes (MIS=4.54). While, the least
influenced is observed to be in; Less waste and environmental issues (MIS=3.65), and
Resources optimisation (MIS=3.52).
Regardless of the relative ranking of the variables, they all have a significant impact
on the productivity of an organisation. The mean average of the MIS scores is 4.28 (85.60%),
with a minimum of 3.52(70.4%) and a maximum of 4.70(94.0%). This implies that
productivity has an influence on the growth and survival of construction organisations.
These results corroborate the findings of (Karimi et al., 2014; Wu, 2017; Colon, 2018;
Mansinghka & Moha, 2021). It was found by Wu (2017) that the growth and survival of
firms are dependents on productivity. Productivity ensures that the organisation survives
harsh competitions and remain progressive (Karimi et al., 2014). Conlon (2018) assert that a
sustainable improvement in productivity is equally an opportunity for growth and expansion
by organisations. Mansinghka & Moha (2021) submitted that productivity guarantees
business profitability, employees' retention, among others; thus, providing an opportunity for
growth, survival and a more sustainable business outfit.
The same view on the importance of productivity was held by the interviewees. Top
of the major themes are; improved revenue drive, increase in profitability, delivery of a
project on time, cost savings, better competitive advantage, improved patronage and market
share, and organisational progress.
Further analysis of the variables using the Mann-Whitney U Test (see columns 7 &
8), showed that out of the 16 variables assessed, the two participants group rated 14 variables
in a similar pattern. These 14 variables represent 87.50% of the assessed variables. This
implies that the sampled participants have a convergence opinion on 87.50% of the assessed
variables. This decision is based on the significant p-value for the variables which is greater
than 0.05. it was then concluded that there is no significant statistical difference in the
perception of construction professionals and non-allied construction professionals regarding
the benefits of productivity organisational survival. A statistically significant difference was
however observed in the perceptions of the participants on 2 (12.50%) of the assessed
variables. This implies a divergent opinion among the participants from the sampled
organisations. This decision is based on the facts that these variables have p-values of less
than 0.05.
The two variables with their respective Z and p-values scores displayed in (column 7
& 8 of Table 3) are; Resources optimisation (Z=-2.2847, Sig.=0.0223) and Less waste and
environmental issues (Z=-2.6693, Sig.=0.0076). This difference in the rating style of these 2
variables could be as a result of 1) the varying level of production and efficiency
enhancement factors implemented in the organisations sampled, 2) differences in
understanding of the participants of what benefits productivity brings to organisations, and 3)
varying productivity levels and associated impact on the participants and organisations.
As can be observed from Figure 2, these variables also show a clear divergence from
the 4.0 and 4.5 MIS marks on the web (contours). Notwithstanding the differing views on
these variables, productivity still have a significant and meaningful impact on them as the
mean score is higher than 3.5
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
11 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
Table 3
INFLUENCE OF LABOUR PRODUCTIVITY OF ORGANISATIONAL GROWTH AND
SURVIVAL
S/No
Variables
MIS
S.D
S.EM
Rank
Mann-Whitney
Z
Sig.
Decision
1
Increase organisational
profitability
4.70
0.609
0.0617
1
-
1.130
0.290
Accept
2
Excess profits are available for re-
investment for expansion purposes
4.54
0.864
0.0809
5
-
0.805
0.414
Accept
3
Increase organisational reputation
4.39
1.060
0.1013
8
-
1.065
0.286
Accept
4
Lower production/operational cost
which leads to stability in the long
run
4.53
0.844
0.0790
6
-
0.761
0.441
Accept
5
Results in improved wages and
bonuses of the workforce
4.52
0.801
0.0750
7
-
1.365
0.172
Reject
6
Improve the standards of living of
construction stakeholders
3.86
1.382
0.1294
14
-
0.875
0.382
Accept
7
Less stress and employee burnout
3.97
1.201
0.1125
12
-
0.558
0.577
Accept
8
Creates a better working
environment and satisfaction
among stakeholders
4.39
1.060
0.0993
8
-
0.678
0.434
Accept
9
Improves competitive advantage
4.70
0.752
0.1033
1
-
0.946
0.344
Accept
10
Increase workers morale and
commitment to work and company
3.97
1.286
0.1205
12
-
1.721
0.085
Accept
11
Better services to customers
4.20
0.904
0.0847
10
-
0.602
0.547
Accept
12
Customer loyalty and repeat
patronage
4.62
0.846
0.0792
4
-
0.059
0.953
Accept
13
Resources optimisation
3.52
1.403
0.1314
16
-
2.285
0.022**
Accept
14
Opportunity for expansion and
growth
4.67
0.838
0.0785
3
-
0.126
0.900
Accept
15
Less waste and environmental
issues
3.65
1.596
0.1495
15
-
2.669
0.008**
Reject
16
increase the engagement level of
employees
4.17
1.088
0.1019
11
-
0.933
0.336
Accept
**Sig<0.05
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
12 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
FIGURE 2
INFLUENCE OF PRODUCTIVITY ON ORGANISATION GROWTH AND
SURVIVAL
An additional Mann-Whitney U test shown in Table 4 was conducted to ascertain the
general perception of the participants regarding the impact of productivity on organisations
growth and survival. The results show that there is no statistically significant difference in the
views of the construction professionals and non-construction professionals from the different
construction organisations within the study area. This decision is premised on the significant
p-value (0.56) obtained. This obtained p-value of 0.56 is greater than 0.05.
Table 4
MANN-WHITNEY U TEST
Participants group
N
Mean
Rank
Sum of
Ranks
Mann-
Whitney U
Wilcoxon
W
Z
p-
value
Construction professionals
82
64.372
5278.50
1223.50
1751.50
-
0.618
2
0.56
Non-Allied construction
professionals
32
39.891
1276.50
Total
114
Correlation Analysis Results
Further to the Mann-Whitney U test which revealed a no statistical significant
difference in the views of the construction professionals and non-construction professionals
from the different construction organisations within the study area.
Correlation analysis was executed to determine the nature of the relationships that
exist between the variables. The 16 variables correlated significantly with each other and with
at least two other variables (see Appendix A). The top five constructs from the descriptive
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
13 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
analysis showed a significant correlation with at least three other influences of productivity
on construction organisations (Table 5).
Table 5
CORRELATION ANALYSIS RESULTS
Constructs
Variables
Correlation
coefficient
increase organisational
profitability
1
Lower production/operational cost which leads to stability at
the long run
0.278**
2
Creates a better working environment and satisfaction among
stakeholders
0.257**
3
increase the engagement level of employees
0.348**
Excess profits are
available for re-
investment for
expansion purposes
1
Lower production/operational cost which leads to stability in
the long run
0.260**
2
Improve the standards of living of construction stakeholders
0.302**
3
Customer loyalty and repeat patronage
0.193**
4
Creates a better working environment and satisfaction among
stakeholders
0.271**
5
Increase workers morale and commitment to work and
company
0.276**
6
Resources optimisation
0.189*
7
Less waste and environmental issues
-0.29**
Customer loyalty and
repeat patronage
1
Creates a better working environment and satisfaction among
stakeholders
0.230*
2
Improves competitive advantage
0.393**
3
Increase workers morale and commitment to work and
company
0.578**
4
Less stress and employee burnout
0.356**
Improves competitive
advantage
1
Better services to customers
0.369**
2
Less stress and employee burnout
0.256**
3
Resources optimisation
0.224*
Opportunity for
expansion and growth
1
increase organisational reputation
0.299**
2
Results in improved wages and bonuses of the workforce
0.22*
3
Improve the standards of living of construction stakeholders
0.456**
4
Creates a better working environment and satisfaction among
stakeholders
0.405**
5
Better services to customers
0.23*
6
Less stress and employee burnout
0.296**
7
Resources optimisation
0.284**
**Correlation is significant at the 0.01 level (2-tailed); *Correlation is significant at the 0.05 level (2-tailed).
Critical Factors for Sustainable Productivity of Labour
The interview participants were asked to mention some critical factors that could
bring about sustainable construction labour productivity for a continuous organisations
progress and project performance. Interviewee (A) said that
“Project leadership is style and experience is the most important factors that can
negative or positively influence productivity. He further maintains that if the project leader
can manage properly the various categories of workers and other stakeholders on the
project, he would have achieved at least 85% success”.
A similar theme was obtained from Interviewees (B, D, I), they were of the opinion
that ‘investment in modern technologies, construction equipment and tools, and the use of
modern construction methods, like pre-cast components, is another was an organisation can
improve efficiency and sustain productivity level for organisational survival and growth.
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
14 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
For Interviewee (E), “A good and conducive working environment where they feel
safe and comfortable, where there is an atmosphere of trust between workers and
management, an experienced human resource management, good networking and social
programmes for workers; are needed to achieve improved and lasting productivity on
construction projects”.
Interviews (G) said that "for a company to survive the level of competition in the
construction industry, there must be proper competitors' analysis, sound decisions must be
made regarding resource utilisation, and modern management methods must be brought in to
improve the value and reduce waste experienced on construction site".
From the responses of (interviewees F & H), it was deduced that a good motivational
package, knowledge-sharing culture, and good safety and health packages; could help to
improve the productivity of workers.
It can be deduced from the interviewees that for a sustained productivity performance
of construction organisations, the major factors are summarised as; experienced
leadership/management, use of modern equipment, tools and ICT based technologies, use of
modern management techniques, a conducive workplace environment, sound knowledge of
competitors, social networking, knowledge sharing, organisational optimism, and motivation
& safety packages. This results support the reports of (Mackay, 2014; Karimi et al., 2014;
Sakiru et al., 2013; Akbari et al., 2005).
Relationship Between Increased Productivity and Organisational Growth
Figure 3, shows that a sustainable increase in productivity can be achieved by having
a sound and effective organisational leadership system, investment in modern methods and
technologies, social networking, a good work environment and a culture of knowledge
management. Organisations have the opportunities for improving their competitive edge,
revenue and profitability and prospects for growth and expansion. A company with a superior
competitive advance will have a better market share and generate more revenue and profits
for its shareholders. Excess profits are used for diversification or invested in other aspects of
the business for expansion purposes.
FIGURE 3
IMPACT OF PRODUCTIVITY ON ORGANISATIONAL GROWTH
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
15 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
It can be concluded that a productive organisation is a prosperous organisation.
Therefore, an increase in productivity has an impact on the growth and survival of
construction organisations.
RECOMMENDATIONS
This study was aimed at showing that a sustainable increase in productivity influences
the growth and survival of construction organisations. This study was carried out among
construction organisations in the south-south geopolitical zones of Nigeria. The well-
structured questionnaire administered through electronic means and a semi-structured
interview questionnaire was used to gather data from the target samples. The survey
participants were construction employees (i.e. both construction professional and non-
construction professionals) of middle to top management level in their various organisations.
The snowball sampling technique was used in selecting both quantitative and qualitative
participants. Mean item score, Mann-Whitney U test and correlation analysis were used to
analyse the data gathered; thus leading to vital findings.
It was found that productivity influence the growth and survival of construction
organisations. The greatest influence of productivity is the areas of; increased organisational
profitability, Improves competitive advantage, customer loyalty and repeat patronage, Excess
profits are available for re-investment for expansion purposes, and opportunity for expansion
and growth. Also, for sustainable productivity to be achieved, the critical factors are;
experienced leadership/management, use of modern equipment, tools and ICT based
technologies, use of modern management techniques, a conducive workplace environment,
sound knowledge of competitors, social networking, knowledge sharing, organisational
optimism, and motivation & safety packages.
It is obvious that labour productivity is very necessary for organisations productivity.
A productive organisation is a competitive and winning organisation; it means that a
construction organisation that is at the top of its competition, will generate more revenue and
profits than its components. Productivity ensures that works are efficiently delivered in terms
of time, quality and meeting customers' needs. A satisfied client is sure likely to come back in
future to patronise the same company. In addition, achieving sustainable productivity is in the
hands of the management/leadership. An effective leader will drive other critical factors
identified in this study.
Construction organisations are encouraged to ensure regular training and retraining of
project leaders and management for the continuous improvement of their skills and
knowledge, and the need to ensure sustained efforts at increasing and maintain productivity
should be emphasised. This study is unique in that it considered non-allied construction
professionals other than the usual method of considering only construction professionals.
This study gave non-allied construction professionals who are working under the
employment of construction companies to contribute to such a very important subject that
affect their employers and careers. The consequences of poor productivity affect both the
construction and non-construction employees of the construction firms.
CONCLUSION
The outcome of this study is very essential to the construction industry which has
been experiencing a declining level of productivity in spite of the level, of sophistication of
operations in the 21st century. The management of construction organisations will find this
study useful in areas of increasing capacities for efficiency and survival of the fierce
completion of the construction industry. The leadership of construction projects sites are
Journal of Management Information and Decision Sciences Volume 25, Special Issue 3, 2022
16 1532-5806-25-S3-009
Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
25(S3), 1-18.
informed of the benefits of productivity and the need to motivate the productivity of their
workforce for the success of the project being undertaken and for the overall progress of the
company. This study also adds to the body of knowledge on productivity and organisation
survival. Notwithstanding the benefits of this study, it is limited by geographical boundary
and sample size. A similar study in other regions of the country or other country should be
carried out so that data will be available for comparison. The role of leadership style on
productivity and performance of construction organisations could be studied.
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Citation Information: Justina, O., Emmanuel, E., & Samuel, E. (2022). Impact of productivity on the survival of construction
organisations in a competitive market. Journal of Management Information and Decision Sciences,
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Appendix A: Correlation analysis
Correlations
S/N
Variables
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
1
Increase
organisational
profitability
1
0.017
0.103
0.278
**
0.137
0.027
0.101
0.257
**
0.102
0.105
-
0.038
0.048
0.174
0.059
-0.16
0.348
**
2
Excess profits
are available for
re-investment
for expansion
purposes
0.017
1
0.158
0.260
**
0.114
0.302
**
0.193
**
0.271
**
0.161
0.276
**
0.108
0.005
0.189
*
0.069
-
0.29*
*
0.1
3
Increase
organisational
reputation
0.103
0.158
1
0.508
**
0.621
**
0.401
**
0.266
**
0.449
**
0.266
**
0.121
0.242
**
0.14
0.238
*
0.299
**
0.217
8
0.106
4
Lower
production/oper
ational cost
which leads to
stability at the
long run
0.278
**
0.260
**
0.508
**
1
0.523
**
0.276
**
0.136
0.562
**
0.202
*
0.233
0.034
-
0.054
0.299
**
0.163
-
0.203
*
0.386
**
5
Results in
improved wages
and bonuses of
the workforce
0.137
0.114
0.621
**
.523**
1
0.218
*
0.346
**
0.419
**
0.292
**
0.254
**
0.295
**
0.212
*
0.177
0.22*
0.081
0.245
**
6
Improve the
standards of
living of
construction
stakeholders
0.027
0.302
**
0.401
**
.276**
.218*
1
0.350
**
0.484
**
0.278
**
0.491
**
0.384
**
0.250
*
0.334
**
0.456
**
-
0.079
-
0.008
7
Customer
loyalty and
repeat patronage
0.101
0.193
**
0.266
**
0.136
0.346
**
0.350
**
1
0.230
**
0.393
**
0.578
**
0.144
0.356
**
-
0.002
0.141
-
0.111
0.179
8
Creates a better
working
environment and
satisfaction
among
stakeholders
0.257
**
0.271
**
0.449
**
0.562
**
0.419
**
0.484
**
0.230
*
1
0.417
**
0.416
**
0.426
**
0.450
**
0.406
**
0.405
**
-
0.123
0.281
**
9
Improves
competitive
advantage
0.102
0.161
0.266
**
0.202
**
0.292
**
0.278
**
0.393
**
0.417
**
1
0.142
0.369
**
0.256
**
0.224
**
0.099
-0.09
0.039
10
Increase
workers morale
and commitment
to work and
company
0.105
0.276
**
0.121
0.233
0.254
**
0.491
**
0.578
**
0.416
**
0.142
1
0.362
**
0.365
**
0.297
**
0.148
-
0.194
*
0.256
**
11
Better services
to customers
-
0.038
0.108
0.242
**
0.034
0.295
0.384
0.144
0.426
**
0.369
**
0.362
**
1
0.564
**
0.287
**
0.23*
0.007
0.172
12
Less stress and
employee
burnout
0.048
0.005
0.14
-
0.054
0.212
**
0.250
**
0.356
**
0.450
8*
0.256
**
0.365
**
0.564
**
1
0.211
*
0.296
**
0.006
0.271
**
13
Resources
optimisation
0.174
0.189
*
0.238
*
0.290
**
0.177
0.334
**
-
0.002
0.406
**
0.224
*
0.297
**
0.287
**
0.211
*
1
0.284
**
-
0.195
*
0.244
**
14
Opportunity for
expansion and
growth
0.059
0.069
0.299
*
0.163
0.22
0.456
**
0.141
0.405
**
0.099
0.148
0.230
*
0.296
**
0.284
**
1
0.031
0.032
15
Less waste and
environmental
issues
-0.16
-
0.29*
*
0.217
8
-
0.203
*
0.081
-
0.079
-
0.111
-
0.123
-0.09
-
0.194
*
0.007
0.006
-
0.195
*
0.031
1
-
0.307
**
16
Increase the
engagement
level of
employees
0.348
**
0.1
0.106
0.386
**
0.245
**
-
0.008
0.179
0.281
**
0.039
0.256
**
0.172
0.271
**
0.244
**
0.032
-
0.307
**
1