Critical Determinants of the Competitiveness of the Ghanaian Construction Industry

Abstract

. Construction industry's contribution to the development of nations has been well documented in the literature. Some authors argue that the construction industry offers one of the most significant avenues through which infrastructure is provided for almost every sector of an economy. Yet, studies focusing on the development of the construction industry are replete with problems regarding the numerous competitiveness determinants to consider, not only from where and whom to collect the data but also the type and range of data. This study investigates the essential factors influencing the competitiveness of the Ghanaian Construction Industry (GCI) using Michael Porter’s Diamond framework. Factor analysis revealed four underlying constructs that determine the competitiveness of the GCI. These include Industrial Resources Availability, Construction Business Strategies and Project Management, Stakeholders' Demands and Performance, and Government Role and Industry Development Policy. The study highlights that (1) more emphasis should be placed on macro-variables of GCIs at the national level and (2) senior managers in GCI should integrate advanced management processes and techniques in construction business management to improve upon their performances. In addition, the results from the current study may help inform and direct government policies towards repositioning and engendering the competitiveness of the GC1, while providing international construction firms entering the GCI with firsthand information about the performance of GCI.