This paper aims to assess COVID-19 (C-19) pandemic influence in the 37 factors identified from extant literature as factors influencing the viability of local construction firms…
Abstract
Purpose
This paper aims to assess COVID-19 (C-19) pandemic influence in the 37 factors identified from extant literature as factors influencing the viability of local construction firms (LCFs).
Design/methodology/approach
A sample size of 65 staff of 31 LCFs that were awarded construction projects contracts in institutions in Nigeria was purposefully selected and accessed based on relevant predetermined criteria. Respondents’ views on factors determining the viability of LCFs were obtained. Factors known to be influenced by C-19 are 25 of the 37 factors rated on a five-point Likert scale of importance by the respondents. Mean scores were used to rank the factors and principal component analysis was used to obtain key component factors (CFs) influenced by the C-19 pandemic.
Findings
Six of the first ten “extremely important” and “very important” factors are known to be influenced by C-19 pandemic. A total of 8 CFs having 20 variables with factor loadings of more than 0.5 each were known to be influenced by C-19. The C-19 pandemic influenced LCFs’ cash flow and management of construction labour, plant and equipment amidst variables that had above 0.8 factor loading.
Research limitations/implications
A limitation of this study is the inability to conduct close contact interview during this period to obtain personal views on the influence of C-19 on LCFs. However, this does not reduce the quality of findings of this study, as there are valid literature basis hinging this study findings.
Practical implications
The paper recommends that all stakeholders pay prompt attention to the factors adversely affected by the C-19 pandemic to improve or at the least sustain the viability of LCFs.
Originality/value
This paper fulfils a present pertinent need of assessing the influence of the C-19 pandemic on various factors influencing the viability of construction firms.
Details
Keywords
Olubimbola Oladimeji and Omotayo Olugbenga Aina
This paper aims to appraise a decade (2004-2013) of annual financial statements of 58 locally owned construction firms’ (LOCOFs’) financial statements on turnover, fixed assets…
Abstract
Purpose
This paper aims to appraise a decade (2004-2013) of annual financial statements of 58 locally owned construction firms’ (LOCOFs’) financial statements on turnover, fixed assets, gross profit and after-tax profit to assess their financial performance in the Nigerian construction industry. It serves as a check on firms’ financial performance, analysis and benchmarking of LOCOFs’ financial statement values to assess firms’ financial health and psychosocial environment.
Design/methodology/approach
A purposively sampled frame of 580 LOCOFs’ financial values (turnover, fixed asset and gross profit) from 212 turnover, 207 fixed assets, 184 gross profit and 217 after-tax profit data points was obtained. Firms’ capacities were obtained by categorisation, industrial average median was obtained and a regression analysis was used to describe the relationship and test of significance of the variables. A review of the possible effect of the research findings on LOCOFs’ psychosocial environment was undertaken.
Findings
Most LOCOFs were categorised as micro scale construction contracting business enterprises. LOCOFs’ financial performance was less than the performance of similar construction firm types and profits were not necessarily influenced by the cost of its investments on fixed asset but rather on firms’ turnover.
Research limitations/implications
A limitation of this study is the paucity of financial data because of poor information access and storage.
Practical implications
The paper recommends more funding of infrastructural developmental projects and better patronage of LOCOFs which will positively influence firms’ turnover, profit and the psychosocial well-being of organisation and personnel.
Originality/value
This paper fulfils an identified need to periodically assess LOCOFs’ financial values so as to appraise financial performance and its possible effect on firms’ psychosocial environment.