A conceptual model for transforming construction companies into full-fledged project-based organizations : the case of Ethiopia

Abstract

Local construction firms in Ethiopia and other emerging economies face fierce competition from international construction giants, local market dynamics, and other economic setups. A plethora of studies on the Ethiopian Construction Industry (ECI) indicated that most local construction firms have failed to deliver government and private projects within a scheduled time and anticipated cost due to capacity-related problems. Creating a conducive environment for successful projects needs a rethink of the organisational design of the parent organisations. A Project-based Organisation (PBO) is a unique organisational form suitable for implementing and managing business activities around projects. A construction firm is inherently a PBO as it executes most of its activities through projects. However, PBO design and development still depend on emerging research studies based on a limited empirical foundation. This study aimed to fill the research gap by developing a conceptual model to help transform Ethiopian construction firms (ECFs) into full-fledged PBOs by assimilating PBO characteristics. The study used an exploratory QUAL-quant mixed methods research design. Semi-structured interviews were initially conducted with 12 selected individuals with sufficient knowledge and experience in the ECI. A thematic content analysis was performed to analyse the qualitative research data. The survey questionnaire was designed by performing an extensive literature review and enriched with the interview findings. The questionnaire was distributed to 223 ECI representatives and 180 responses were obtained. Means, standard deviations, frequencies, percentages, one-way ANOVA, and Pearson correlations were used to analyse the quantitative data. This study confirmed the ten antecedents as PBO organisational design dimensions identified in previous studies. It also recognised six other antecedents (including unique PBO characteristics) necessary to transform ECFs into full-fledged PBOs. A transformational conceptual model (CM) was designed to incorporate the core organisational dimensions and their antecedents. The proposed model illustrates transformation needs to begin by assessing the environment, strategic documents, and PBO characteristics. Assimilating lacking PBO characteristics into ECFs is vital to realise organisations' transformation into full-fledged PBOs.