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THE STUDY ON ENTREPRENEURIAL ORIENTATION, MARKET ORIENTATION AND SUSTAINABLE
PERFORMANCE AMONG CONTRACTORS
SID ALI CHAHI (822114)
Master of Science (Management) UNIVERSITI UTARA MALAYSIA
April 2019
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TITLE PAGE
The study on Entrepreneurial Orientation, Market Orientation and Sustainable Performance among Contractors
By
SID ALI CHAHI
Thesis Submitted to
Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia,
in Fulfillment of the Requirement for the Degree of Master of science (management)
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PERMISSION TO USE
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ABSTRACT
Sustainable performance has recorded few from prior studies. Market-oriented companies can integrate sustainability activities into their business strategies and perform, and it is also the case for Entrepreneurially oriented companies. Since construction companies have often been charged for the environmental liabilities of their activities, there has been urgency for integration of environmental initiatives, not only within the walls of the company, but across the entire strategy and organisational behaviour in order to ensure the company’s sustainable performance.
This study is aimed the association between Entrepreneurial Orientation, Market Orientation and Sustainable Performance among construction firms. To test the hypotheses, this study was used a quantitative research. The data was collected from a survey of 117 construction firms. A Statistical Package for Social Science (SPSS) 25.0 was used to analyse a data and multiple regression analyses were performed to test the hypotheses of the study.
The research findings were significant except the impact of innovativeness on sustainability performance. This study contributed to theoretical knowledge, and the results would also be valuable in providing new insights to management.
.
Keywords: Construction firms, entrepreneurial orientation, market orientation, sustainable performance.
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ABSTRAK
Prestasi mapan telah direkodkan amat sedikit dalam kajian yan lepas. Syarikat berorientasi pasaran boleh mengintegrasikan aktiviti kemapanan ke dalam strategi perniagaan mereka, untuk berjaya dan seperti juga kes terhadap orientasi
keusahawanan. Oleh kerana syarikat-syarikat pembinaan sering
dipertanggungjawabkan dengan tanggungjawab alam sekitar untuk aktiviti mereka, terdapat keperluan yang mendesak untuk mengintegrasikan inisiatif alam sekitar, bukan sahaja di dalam syarikat tetapi juga strategi dan tingkah laku organisasi secara menyeluruh untuk memastikan prestasi syarikat yang lestari. Untuk menguji
hipotesis, kajian ini digunakan secara kuantitatif dan data dikumpulkan dari kaji selidik 117 syarikat. Pakej Statistik untuk Sains Sosial (SPSS) 25.0 telah digunakan untuk menganalisis data dan analisis regresi dilakukan untuk menguji hipotesis kajian. Keputusan kajian adalah signifikan kecuali kesan inovasi terhadap prestasi yang berterusan. Oleh itu, kajian ini menyumbang kepada teori pengurusan dan hasilnya juga berguna dalam memberikan pandangan baru terhadap pengurusan.
Kata kunci: Firma pembinaan, orientasi keusahawanan, orientasi pasaran, prestasi mapan.
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ACKNOWLEDGEMENT
In the Name of Allah, the Most Forgiving, Most Merciful
All praise and gratitude be given to Allah, Lord of the Lords, for giving me such a great strength, patience, courage, and ability to complete this study. The completion of this study would not have been possible without the contribution of a number of people that help and guide me to complete this research. To begin with, my highest appreciation goes to Assoc Prof. Dr. Darwina bt Hj. Ahmad Arshad, my amazing supervisor who has provided unlimited amount of encouragement and professional support. Thank you Dr. Darwina, for your time, opinion, constructive suggestion, a superb positive attitude, outlook and approachable. Without your support, this research would not have been come in to reality. Secondly, an honest gratitude and special thanks for my family (father, mother, brother and my two sisters) that always give a support and motivation to finish this study. Moreover, I want to express a sincere appreciation to Sir. Mustapha Saadoune who represent for me a symbol of leadership, and to friends and other lecturer in Universiti Utara Malaysia who always gave a great support during this research. Last but not lease, I hope this research will be of assistance of someone in the future despite this is the fundamental tool necessary for academic work. May Allah blessing be upon the readers for this research.
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TABLE OF CONTENTS
CHAPTER ONE INTRODUCTION ... 1
1.1 Background of Study ... 1
1.2 Problem statement ... 3
1.3 Research Questions ... 5
1.4 Research Objectives ... 6
1.5 Significance of the Study ... 6
1.6 Scope of the Study ... 7
1.7 Definition of the Key Terms ... 7
1.8 Organisation of the Thesis ... 8
CHAPTER TWO LITERATURE REVIEW ... 10
2.1 Introduction ... 10
2.2 Sustainable Performance ... 10
2.3 Entrepreneurial Orientation ... 17
2.3.1 Relationship between Autonomy and Sustainable Performance ... 21
2.3.2 Relationship between Competitive Aggressiveness and Sustainable Performance ... 23
2.3.3 Relationship between Proactiveness and Sustainable Performance ... 24
2.3.4 Relationship between Innovativeness and Sustainable Performance ... 25
2.3.5 Relationship between Risk Taking and Sustainable Performance ... 28
2.4 Market Orientation ... 29
2.4.1 Relationship between Market Orientation and Sustainable Performance .. 32
2.5 Literature Gap ... 33
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2.6 Summary ... 34
CHAPTER THREE RESEARCH METHODOLOGY ... 35
3.1 Introduction ... 35
3.2 Theoretical framework ... 36
3.3 Research Hypotheses ... 36
3.4 Operational Definition ... 37
3.5 Research Design ... 40
3.6 Research Sample and Population ... 42
3.6.1 Population ... 42
3.6.2 Sample and Unit of Study ... 43
3.7 Sampling Design ... 43
3.8 Unit of Analysis ... 45
3.9 The Sampling Method ... 45
3.10 Reliability and Validity ... 48
3.10.1 Reliability ... 49
3.10.2 Validity ... 49
3.11 Data Collection Method ... 50
3.11.1 Questionnaire Design ... 50
3.11.2 Rating Scales for the Response ... 51
3.11.3 Data Collection Procedures ... 52
3.12 Technique of Data Analysis ... 52
3.13 Chapter Summary ... 53
CHAPTER FOUR RESULTS ... 54
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4.1 Introduction ... 54
4.2 Data Screening ... 54
4.2.1 Missing Data ... 54
4.2.2 Response Rate ... 54
4.2.3 Outlier Detection ... 56
4.2.4 Normality Test ... 57
4.3 Factor Analysis ... 58
4.3.1 Factor Analysis for Sustainable Performance ... 58
4.3.2 Factor Analysis for Entrepreneurial Orientation ... 59
4.3.3 Factor Analysis for Market Orientation ... 61
4.4 Reliability Analysis ... 63
4.5 Respondents’ Profile ... 63
4.6 Correlation... 65
4.7 Regression ... 66
4.8 Hypotheses Testing ... 67
4.9 Summary ... 68
CHAPTER FIVE DISCUSSION AND CONCLUSION ... 69
5.1 Introduction ... 69
5.2 Recapitulation of the Study ... 69
5.3 Discussion ... 70
5.3.1 Autonomy towards Sustainable Performance ... 71
5.3.2 Competitive Aggressiveness towards Sustainable Performance ... 71
5.3.3 Proactiveness towards Sustainable Performance ... 72
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5.3.4 Innovativeness towards Sustainable Performance ... 73
5.3.5 Risk Taking towards Sustainable Performance ... 73
5.3.6 Market Orientation towards Sustainable Performance ... 74
5.4 Theoretical Contribution of the Study ... 75
5.5 Practical Contribution of the Study ... 76
5.6 Limitation of the Study ... 77
5.7 Conclusion ... 78
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LIST OF TABLES
Table 3-1 Operational Definition... 37
Table 3-2 Summary of the Questionnaire ... 47
Table 4-1 Response Rate of The Survey ... 55
Table 4-2 nonresponse bias of the survey ... 55
Table 4-3 Summary of Skewness and Kurtosis Value of the Variables... 57
Table 4-4 Component Matrix of Sustainable Performance ... 59
Table 4-5 Component Matrix of EO... 60
Table 4-6 Component Matrix of MO ... 62
Table 4-7 Summary of the Reliability Results of the Study Variables ... 63
Table 4-8 Correlation Among Variables Constructs ... 65
Table 4-9 Regression Analysis ... 67
Table 4-10 Summary Hypotheses Results ... 67
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LIST OF FIGURES
Figure 3.1 ... 36 Figure 4.1 ... 96
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LIST OF APPENDICES
Appendix A Research Questionnaire ... 87 Appendix B DATA ANALYSIS ... 93
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LIST OF ABBREVIATIONS
EO = Entrepreneurial Orientation MO = Market Orientation
SP = Sustainable Performance
CIDB = Construction Industry Development Board CREAM = Construction Research Institute of Malaysia IMP = Industrial Malaysia Plan
CIMP = Construction Industry Malaysian Plan CSR = Corporate Social Responsibility
SME = Small and Medium Enterprises
OECD = Organisation for Economic Co-operation and Development WCED = World Commission on Environment and Development FP = Firm Performance
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CHAPTER ONE INTRODUCTION
1.1 Background of Study
Sustainability in construction become a composite agenda which, have a specific aims to achieve it in practice (Bamgbade et al., 2019). In a current business scenario, the construction firms have revolved a great significant challenge due to rapid development and execution of new products and services (Azman, Hon, Skitmore, Lee, & Xia, 2019; Gann & Salter, 2000). A moderate growth at 7.4% in 2016 have been recorded from construction sector in Malaysia which attracted and opened the door for many firms for entry and compete in construction sector. The number of contractors increase by 5.8% and the personnel worker rise by 7.1%. at that effect, the productivity of the whole sector marked at 12.4% (CIDB, 2017).
In Malaysia, the major activities that contribute to the development of the economy growth are came from the residential, industrial, commercial and services sectors.
Essentially, according to Jatarona, Md Yusof, Ismail, and Saar (2016), the Malaysian government is the major client for the construction industry in Malaysia. The projects mostly concentrate on the development of the basic infrastructure likes roads, dams, irrigation works, schools, houses, and other physical foundations. These projects are very useful to boost and sustain the standard of living of the nation.
Thus, firms operating in the construction industry can grab the opportunity to contribute the strategic plan for the nation.
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Malaysian construction firms were out of the top 250 international contractors according to Engineering News Record (2013). However, a shamed number of 115 Malaysian construction firms have worked aboard, representing 2.2 % of the total number of registered under Grade 7 and class A with Construction Industry Development Board, Malaysia (CIDB).
There are many initiatives have been introduced by the Malaysian government. The government has keep supporting the construction industry through several plans such as the 10th Malaysian plan (10MP), 3ed Industrial Malaysia Plan (IMP) and Construction Industry Malaysian Plan (CIMP). But this sector is still reported low profitability and lack management on training of staff as well as the research and development (Yong & Mustaffa, 2012). Several problems were experienced in the Malaysian construction industry such as lack of communication and collaboration, limited trust, minimal cooperation and commitment, among their stakeholders (Yong
& Mustaffa, 2012). Besides, the least awareness among the construction firms on the business sustainable performance may harm not only the outcome of the firm, but also the people and environment.
For example, several social and environmental hazards occur due to the excessive solid waste, extensive land area (Kucukvar & Tatari, 2013) and deforestation which executed by the construction activities. For instance, in the United States, the construction activities consume almost 80 per cent of the overall resources, including renovation and retrofitted infrastructures and buildings (Kucukvar & Tatari, 2013).
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To maintain and survive in the business is not an easy task, especially in balancing the economic, social and ecological components. The firms responsible on clients’
specification and at the same time aware on legislative environmental pressure (Bamgbade et al., 2019; Salimon, Bamgbade, Nathaniel, & Adekunle, 2017).
The implementation of business sustainability is one of the ways to reduce disaster engender from the construction activities (Birkeland, 2014). Therefore, according to Zou and Moon, (2014), there is a need for the research to solve the issue of sustainable performance, specifically in construction industry. Whereby, Shi, Yan, Zuo, and Yu (2016) argue about benefits of triple bottom line practices in construction projects is considerable and not only for the environment but also for the economy, society and user comfort.
1.2 Problem statement
The business sustainability model has a composition of three pillars namely economic, social and environment. It can be defined as the mix way of satisfying present needs and leaving this opportunity to be fulfilled the future generations.
Thus, sustainability is also associated with the triple bottom line term which consists of profit, people and planet. This means that the organizations have to equalize between short-term goals that are focussing about economic profit and social welfare, in other hand encompasses environmental sustainability in the long-term interests (Dubois & Dubois, 2012).
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Sustainable development is a fragmented topic across managerial and technical levels, but the smart cities concept may enhance its performance regarding the environment (Angelidou et al., 2018). “The construction industry today is facing numerous challenges and it is in need of a radical sector-wide transformation to remain a resilient and sustainable industry”, said Chief Executive of CIDB Malaysia Dato' Ir. Ahmad ‘Asri Abdul Hamid on Monday (CIDB, 2019). Among the challenges the sector is facing includes quality delivery, competition, productivity and environmental sustainability, he said (CIDB, 2019). The ambitious 5-year plan was introduced to transform the Malaysian construction industry into one that is highly productive, sustainable and world-class by 2020 (CIDB, 2019).
Today, the business environment has become highly dynamic, most entrepreneurs struggle to compete (Chan, Teoh, Yeow, & Pan, 2018), several factors could influence the achievement of sustainable performance such as the entrepreneurial and market orientation. Firms have to obtain the entrepreneurial orientation (EO) (Pratono, Darmasetiawan, Yudiarso, & Jeong, 2019).
EO is the manner by which decision are made, likely how firms could prevent the appropriate way in the future to reach higher profitability, explore new market and reduce their failure on performance (Wales, Monsen, & Mckelvie, 2011). Numerous studies evidently proved the significant relationship between EO and firm performance, but very limited research has confirmed the significant effect of EO on sustainable performance. This study is therefore reckoned the importance of
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embedding such nature of the entrepreneurial orientation into the understanding of sustainable performance.
Additionally, Lee et al., (2018), suggested that other factors such market orientation (MO) could improve the performance of the company. Pratono et al., (2019) explained that there were a complicated link between EO, MO and sustainable competitive advantage and the proven claim is still vague. Only much study proved the link between MO and sustainable performance (Green, Toms, & Clark, 2015).
Responding to this need, it is deemed necessary to bridge the gap on the entrepreneurial orientation and market orientation and their impact on sustainable performance.
1.3 Research Questions
The study aims to examine the relationship between entrepreneurial orientation, market orientation and Sustainable Performance. Therefore, the study attempts to answer the following questions:
1. Is there any relationship between entrepreneurial orientation (autonomy, competitive aggressiveness, proactiveness, risk taken, innovativeness) and sustainable performance?
2. Is there any relationship between market orientation and sustainable performance?
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1.4 Research Objectives
This research intends to accomplish the following objectives:
1. To examine the relationship between entrepreneurial orientation (autonomy, competitive aggressiveness, proactiveness, risk taken, innovativeness) and sustainable performance.
2. To determine the relationship between market orientation and sustainable performance.
1.5 Significance of the Study
In terms of theoretical, this research would help adding the theory and also support the future research, which can lead to generate good ideas and also provide better understanding on the management and entrepreneurial literatures. Besides, this study could support and help the management to identify the link between entrepreneurial orientations and market orientation on sustainable performance among construction firms.
The contractors can gain knowledge about how to achieve better performance through triple bottom line such as not only optimising the economic or financial profit, but also protecting the environment and planet, and continuously helping a welfare among society. To reach sustainable performance contractors have to understand the degree of influence of entrepreneurial orientation and market orientation on it for their company. At the same time, they also can gain better understanding about the factors that should be considered in making decisions.
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1.6 Scope of the Study
The purpose of the study is to examine the influence of entrepreneurial orientation (autonomy, competitive aggressiveness, proactiveness, innovativeness, risk taking) and market orientation on sustainable performance.
This study used the construction firms situated in Kedah, Perlis and Penang. The construction firms in northern region were used in this study because there is very limited time and resources. The contractor of the firm is the target respondent in this study.
1.7 Definition of the Key Terms Sustainable Performance
As defined by Elkington (2001, p.20), “the principle of ensuring that our actions today will not limit the range of economic, social and environmental options for the future generations”; where the term ‘Triple Bottom Line’ is used to explain the three dimensions of sustainable performance, economic, social and environment.
Entrepreneurial Orientation
Entrepreneurial orientation (EO) referred to the firm’s strategic orientation capturing the specific entrepreneurial aspects of decision-making styles, methods, and practices (Lumpkin & Dess, 1996), which were reflected through five dimensions, namely risk-taking, innovativeness, proactiveness, competitive-aggressiveness, and futurity.
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Market orientation
As a mode of corporate management, Morgan and Strong (1998) founded market orientation on: “an appreciation that understanding present and potential customer needs is fundamental to providing superior customer value; encouraging the systematic gathering and sharing of market information regarding present and potential customers, competitors as well as other related constituencies and instilled the sine qua non of an integrated organization-wide priority to respond to changing customer needs and competitor activities to exploit opportunities and circumvent threats”.
1.8 Organisation of the Thesis
In the current section all essential research activities leading the elaboration of this thesis are described and briefly explained the gist of each one of its five chapters.
First and foremost, Chapter One introduce the antecedent concerning the study and reviews the issue which conjures up the research topic, succeeding by the statement of research problem. This chapter also includes six other sections of great interest like research questions, research objectives, scope of the study, significance of the study, and definition of key terms.
Chapter Two, which reviews relevant empirical studies and evidence to provide understandings for the study in question. Particularly, this chapter outlines all variables as well as Entrepreneurial orientation through its five dimensions (Autonomy, Competitive aggressiveness, Proactiveness, Innovativeness, Risk
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taking), market orientation and sustainable performance takes place among Malaysian contractors during recessionary periods. Also resides in Chapter Two is the review of the relevant literature for the reason to develop Hypotheses which will be discussed thereafter.
Next, Chapter Three discusses all the methodologies followed and analysis techniques applied in our study. Therefore, the chapter explain the discussions of research paradigm, research design, population and sample, sampling techniques, data collection tool and method, validity, and reliability. The measurement and development of scales are also discussed herein. Chapter Four reports the statement of the findings for the data analysed using the techniques mentioned in Chapter Three. This includes results pertinent to the sample profile, data cleaning, outlier detection, multivariate assumptions assessment, exploratory factor analysis (EFA), measurement models, and the structural model.
Chapter Five is the ending chapter which resides discussion of findings, implications, and conclusion. This chapter summarizes and discusses the findings of the study. While it also highlights the theoretical and practical contributions, also limitations of the study. At the end, suggestions are proposed for potential future research.
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CHAPTER TWO LITERATURE REVIEW
2.1 Introduction
The main objective of this chapter is to provide a review on the literatures relevant to the key constructs of the study. It provides a critical review to prior studies related to construction firms, environmental issues, sustainable performance and its dimensions. Based on these past studies, the hypotheses are developed in the form of correlations between predictors variables with dependent variable to achieve the study’s objectives.
According to Construction Research Institute of Malaysia CREAM (2019), world is experiencing rapid change and due to globalization, population growth, rapid urbanization and limited resources, aggravate the competition on it and deep psychological changes. Sustainable development, previously recognized as an extremist thinking, and now is an upward trend, as people realize that they are increasingly benefiting individuals, businesses and the planet.
2.2 Sustainable Performance
Recently, the concern of protecting the environment has become highly discussed, this growing concern drive to sustainability development. Meaning to say, continuing to satisfy usually needs without compromising those of the next generations (Brundtland, 1987) . As one of the most important goals of sustainability
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development, the top-level hierarchy has taken consideration on it and was delegated to the operations management of enterprises. As a result, the surveyed industry had been in an extremely broad scope.
Abdulrazak and Ahmad (2014), resumed that the focus in Malaysia is on implementing corporate social responsibility (CSR) in sustainable development. In order to establish sustainable development in Malaysia, latter researchers find that CSR theories practices and program highly contribute to sustainable development Abdulrazak and Ahmad (2014).
Additionally, Liu et al. (2011) had conducted a study in offshore and coastal fisheries in Taiwan where several problems occurred during the assessment of sustainable fisheries development, such as over expenses of institutions, information were not correct and the number of employees.
On the other hand, protecting the environment, doing well to the society and keeping the shareholders’ investment growing, are the core aspects of firm’s sustainable.
According to Dunphy (2011), “sustainability consists of actions that extend socially useful life of the organization, enhance the ability to maintain and renew viability of the biosphere and protect all living species, enhance ability of society to maintain itself and to solve its major problem and to maintain a decent of welfare, participation and personal freedom for present and future generations of humanity”.
In other words, sustainability is a brilliant way of performing business, and transitions toward sustainable enterprises that can be made by developing innovative and constructive corporate culture. These healthy cultures would be able to create
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high performance and make optimum use of existing assets in ways that have good outcomes for the economic, environment, and society (Dunphy, 2011).
According to Shields and Shelleman (2015), the potential benefit of sustainability reporting is recognised by many companies, who shown their concern to the sustainability and increase efforts to attain it. One of the strategies implemented by the enterprises to compete in the market is sustainability development (Ciasullo &
Troisi, 2013; Conway, 2014). This is supported by Bhupendra and Sangle, (2016);
Luken, Van Berkel, Leuenberger, and Schwager, (2016); Severo, Guimarães, and Dorion, (2017) who mentioned that sustainable performance may give to the company that uniqueness to compete over competitors. The benefits of sustainable development efforts cannot be resumed to quantifiable financial performances and other economic indicators only (Conway, 2014), but also in many other managerial ways. Starting by improves company’s reputation (Lee & Saen, 2012); secondly, it obtains legality of management decisions (Hart & Milstein, 2003); and lastly, it gives a new labour relations climate, attracts resources, and reduces the pressure of stakeholders to the enterprise (Marrewijk, 2003). Even though, Lawrence, Collins, Pavlovich, and Arunachalam, (2006) asserted that many SMEs may be unaware of these advantages. SMEs are remarkably less interested in environmental effects due to their absence of monetary aid, awareness, and human assets. Thus, much of governments and organizations pays particular attention to the sustainable development of SMEs (Shields & Shelleman, 2015). In addition, Manufacturing small and medium-sized enterprises are then one of the sectors required to improve sustainability. Up to now, far too little attention has been paid to the research
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technique which could be used and define new factors that can be implemented to leverage SMEs' development as much as possible (Chang & Cheng, 2019).
As it is currently being used, the conception of sustainable performance emerged primarily during the conference of OECD in Stockholm 1972 (Revell & Blackburn, 2007). The concept of economic development and environmental protection is arguably interrelated during the discussion at this conference. However, the essential responses to the destruction they caused have already existed since the beginning of industrial societies (Severo et al., 2017). In economics viewpoint, a researcher holds the view that even though the notion of sustainability occurred during the 1970s, there was already some consideration, mostly regarding environmental issues (Loong Lee, Chong, & Ramayah, 2019). However, as observed by Loong Lee et al., (2019), issues in the 1980s related to sustainability have been integrated and highlighted more in the public sector and in recent years the awareness has been increased in pollution and environmental issues. The term "Triple Bottom Line" was used to define sustainability as “the principle of ensuring that our actions today will not limit the range of economic, social and environmental options for the future generations”
(Elkington, 2001, p. 20).
This definition is in accordance with the systemic view because it considers the potentiality of long-term livelihoods from actions that avoid compromising the ability of future livelihoods.
The complex system of the organisation involves the three pillars or dimensions alike financial or economic aspect, social and environmental aspect. Also, Loong
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Lee et al., (2019) argued that the progressive growing began from the 1990s, where companies understand their role in the process and leave their positions as they are the first responsible of the deterioration of the planet by joining pro-sustainability voluntarily. Or, as pointed out by Kuhl, Da Cunha, Maçaneiro, and Cunha, (2016)
“[...] being part of this movement has become a competitive factor, both as a source of differentiation and as a source of qualification to continue in the market.” The presence of sustainability is growing up in the business environment, said De Oliveira Claro, Claro, and Amâncio, (2008).
However, in the organisational environment, an organisation which is able to survive, and ensure the continuity of its activities and to continuously acquire the needed resources, is sustainable (Kuhl et al., 2016). This perception is closely linked to the maintain of ongoing circle of provisioning natural resources primarily, without ignoring economic resources which are essential for growth as well as social resources. Meanwhile, sustainable organisations are assigned with the prevention by using the sustainable natural systems features, and the promotion for the change to restore the balance between the economic, the social and the environmental dimensions.
On the basis of the sustainable development, an example has been taken from agriculture in India, Chand et al. (2015) used the three dimensions in his study (economy, society and ecology), for the reason to strength sustainable performance, and to identify inadequate indicators. In addition, detailed examination of sustainable performance by Omri et al. (2015) showed that are several issues related to mass
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production and fuel consumption. Another research was done in Tunisia, where solar energy was tested and the outcome shows a significant effects of sustainable development on the three dimensions of economy, society, and ecology (Chang &
Cheng, 2019).
Sustainability of economic development, social development, and environmental development are assigned to sustainable performance. In line with the conception of sustainable performance, and relating to construction projects the factors affecting it are examined in 3 main categories: economic sustainability factors (ESF), social sustainability factors (SSF), and environmental sustainability factors (EnSF) (Shen, Li Hao, Tam, & Yao, 2007). Therefore, in embracing the whole concept of sustainability, these three pillars of sustainability are crucial to run a successful business not just for now but for the future (Eweje, 2011).
Sustainability itself is a contested topic. Currently, literature is rife with efforts to define sustainability. There are alternative terms of environmental sustainability such as ecological sustainability (Iqbal, Q. and Hassan, 2018), social sustainability, human sustainability and sustainable development being used; nonetheless, corporate social responsibility and corporate citizenship have been used to explore the sustainability. The most cited definition of sustainability comes from the World Commission on Environment and Development (WCED, 1987). According to World Commission on Environment and Development WCED, (1987), sustainable development links to social, economic and environmental aspects such as the notion of resource limits (materials, energy, land and waste), intergenerational and
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intergenerational equity, equitable access to limited resources and a progressive transformation of society and economy. There is no consensus among researchers on this definition and varieties of views are available in the literature (Stubbs & Chris, 2008).
Companies with practices to achieve sustainable performance are able to improve economic performance in term of income, profit, tax, as well as taking care of employee’s welfare financially (Zhu, Sarkis, and Lai, 2012). The importance of economic sustainability performance has also been highlighted by Chien and Shih (2007) where they discovered that integrated GSCM is beneficial in reducing costs, promoting market shares, and increasing enterprises profits.
Economic sustainability is continuing to be one of major goals for business firms.
According to Green et al. (2012) and Liu et al., (2011), economic sustainable performance is “evaluation of organizational cost reduction, promotes market shares, return on assets, improve income, and profits regarding the economic goals of performance”.
Prior studies investigated the dependent variable of this study with different independent variables. Liu et al., (2011) studied the relationship between sustainable performance with supply chain management. The Authors found a positive relationship from economic aspect. Eltayeb, Zailani, and Ramayah (2011) investigated on green supply chain initiative among Malaysian certified companies and the result has confirmed the positive relationship between economic performance and green supply chain initiatives. Zhang, Lettice, Chan, and Nguyen,
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(2018), through their study on environmental and corporate performance have also proved significant relationship of GSCM on firms’ earning growth, market share, sales growth, and tax returns on investment.
2.3 Entrepreneurial Orientation
The concept of EO refers to firm-level processes, practices, decision-making styles, and it is a strategic orientations that help a firm to gain competitive advantage and exhibit superior performance (Lumpkin & Dess, 1996). EO is an expression of entrepreneurial firm’s mind-set as an organization which has an influence on strategic processes and performance (Rauch, Wiklund, Lumpkin, & Frese, 2009). EO mainly represents a response of firms to future, or potential, market needs.
Miller (1983) appeared to offer the earliest operationalization of the EO concept as he defined an entrepreneurship-oriented firm as one that “engages in product marketing innovation, undertakes somewhat risky ventures, and is first to come up with proactive innovations.” Numerous researchers have cited this definition in their study (Covin & Slevin, 1989). However, Lumpkin and Dess (1996) provided competitive aggressiveness and autonomy as additional dimensions of entrepreneurial orientation.
Notable highlights on this definition cited in follow include that firm-level characteristics reflects by EO, as proposed by Miller (1983): “An entrepreneurial firm is one that dwells in product innovation, is ‘proactive’ in coming up with innovations, take risks when going into a new business, and being ahead of its
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competitors.” Thus, it reflects the importance of EO in firm’s creation which likely help to lead to better performance. The innovation will get more space to be perform, because restrictions were minimised through risk tolerance which is related to EO.
On the other hand, when the exploitation is involved it is usually linked positively with innovativeness and proactiveness, which is not the case for risk taking (Fellnhofer, 2019). Opportunities should be well taking when it appears, and EO have the ability to create a firm-level oversight structure that can drive to finding new business opportunities and ensure organisation growth (Covin and Wales, 2012). Covin and Slevin (1989) stated that entrepreneurship can be viewed as having three dimensions relating to behavioural, i.e. innovativeness, risk taking and proactiveness. After that Lumpkin and Dess (1996) come up with two others to be added with autonomy and competitive aggressiveness. Thus, generally, EO contain five key dimensions if there are a need to explore the multi-aspect. These dimensions differ from each other and how they effect on firm performance, depending on the context where they were used. Lumpkin and Dess’s (1996) view of EO is quoted in often in the literature. However, EO was fairly tested but emerging as a critical research approach (Wales et al., 2011). EO refers to “the process, practices, and decision-making activities that lead to new entry” (Lumpkin and Dess, 1996). The implementation of EO is at the same a firm-wide phenomenon, also a set of measures and practices that help right decision making. Meaning to say, employees of firms have to be implicated through the implementation of entrepreneurial activities in order to be successful in the firm. However, the way how EO was implemented determine the degree of its effectiveness (Wales et al., 2011).
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Signalling that Low-level staffs in firms usually execute their tasks by following job process and would not be entrepreneurial during the work time (Monsen and Boss, 2009). Hence, it is important in a firm to have the high degree of absorptive capability have its importance inside the firm, for the reason to ensure a greatest carry out business processes throughout well skilled and knowledgeable staff members, also the requirement of entrepreneurship and identification of risk rationally. The staff should also pursue a good education and training in order to acquire new skills and knowledge, for the main reason to deal with uncertain market (Jansen et al., 2005).
In general, entrepreneurial firms usually are the first-mover and benefit with advantages relating to this choice. Even though there inconvenient to be first-mover, it also contains advantage where firm performance (FP) could be obtain through opportunities offered by the new marketplace. Usually, this will allow a high FP during the time before the competition come in the market (Lumpkin and Dess, 2001). Meanwhile, that firms have built their links with the market through EO practices, which allowed them to have instant information about the sensitivity of the market. Thus, this permits entrepreneurial firms the prolongation the first-mover advantage. Linking is created by using this method the sector can be an invaluable resource and know-how from other sectors in which new business processes can be implemented in the company's managed environment (Escribano et al., 2009). From another aspect, a masterly firm in communication and cooperation business help the building links within the industry which will be conducted by staff members (Zahra and Hayton, 2008). The continuity in launching new products is directly related to
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strong level of communication and business processes is important for a firm in a rapid change in the market compared to where there is miscommunication and problems within the firm (De Clercq et al., 2010).
Moving on now to consider other factors that can affect sustainability performance.
Learning from the context of economies, there is the element of “guanxi” where Chinese business is taken as example. This notion is considered as a networking channel leading led to company’s performance on explorative learning methodology and present valuable products, through a better interpretation of information collected from the market (Su et al., 2009).
From an empirical perspective, the EO sub-components may depend on the objectives of the company, deviate from the performance Lynton et kask (2017).
It was found that these risk taking, innovativeness and proactiveness, are not related between them and important for the performance of the company. Another study by Gabrielsson and Gabrilson (2013) shows that the key elements of EO are crucial during starting period of launching the company, and represent a significance with firm performance. However, the survey also showed that during the advancing phase of the company could threaten the continued existence of the company. Eshma and Anderson (2016), have demonstrated that the value creation capabilities of EO is not only for top management, but also for lower managers’ level. If the EO is used in a controlled manner, this is a good indication of the company's performance.
Input capacity and possibly a business opportunity Achtenhagen et al (2010) when it can be obtained from taking care of this activity is beneficial because it can be
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managed with a small, more organized management. The EO practices can also contribute to the performance of the company. Shan et al (2016), shows that the important factor for EO and performance is the degree of how innovation speeds.
This is also part of the active performance of digital signage and optimizes firm performance.
However, in accordance with the aim of our study that focused on the fundamental factor of entrepreneurship. A selection of the five dimensions of EO in our view seems to be effective for the research and build a strong level of entrepreneurship.
These five dimensions are as follows: innovativeness, risk taking, proactiveness, competitive aggressiveness and autonomy, as they were proposed by Lumpkin and Dess (1996), in order to define firms looking for a higher performance. Likewise, there no direct relation five dimensions are independent dimensions between them (Covin & Wales, 2012; Lumpkin & Dess, 1996), it is important for us to formulate our model based on that. We aim to explore the outcomes of EO five dimensions one by one (Hughes & Morgan, 2007; Wales et al., 2011).
2.3.1 Relationship between Autonomy and Sustainable Performance
Autonomy as the first dimension of entrepreneurial orientation is defined as the ability of task execution from the beginning stage till the end without interference of any other individual on it (Lumpkin & Dess, 1996). Therefore, autonomy can be part of the broader support category Regulatory policies, procedures and practices that promote entry into new markets and reflect the EO in terms of internationalization and access to foreign markets. Autonomy requires the company to be independent
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and free to make important decisions and implement plans. In this sense, autonomy can be considered synonymous with entrepreneurship. With this in mind, this also applies to the creation of an autonomous enterprise, in which decision-makers must create a safe environment for employees to become entrepreneurs and seek business development opportunities (Rauch et al., 2009). Previous studies have shown that autonomy is a key variable in trying to explain and explain EO.
Prior research likewise, the study of Gunarathne and Jayawardhana (2015) found positive significant relationships between four dimensions of EO such risk-taking, innovation, autonomy, and competitive-aggressiveness with firm performance and which have been tested. In addition, several studies confirm the positive significant with intense effect of EO on performance, in business environment challenged by greater volatility, hostility, dynamism, complexity, turbulence, competitive intensity, and less environmental munificence (Gunarathne & Jayawardhana, 2015; Shu, De Clercq, Zhou, & Liu, 2019; Wales et al., 2011). Such research findings were traceable in past studies which examined EO-Performance relationship with environmental contingencies. That relation could be tested with sustainable performance which is a variable judged the expansion of firm performance. Based on the literature reviews, this hypothesis has been proposed:
H1: Autonomy has a positive effect on sustainable performance.
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2.3.2 Relationship between Competitive Aggressiveness and Sustainable Performance
Competitive aggressiveness as the second dimension of this antecedent means a perceived behavior of a competitor when competing with other companies or performing better than a competitor. Advancing or being the first who provoke competition is the way how we answer. Whereby, companies usually choose bold competitors in the foreground to get final and tough results. This dimension affects the implementation of competitive strategies (Lee et al., 2018). This means that positive behaviour can lead to more aggressive strategies used in other aspects of EO where Innovation, proactive, risk taking are improved.
Likewise prior research, the study of Gunarathne and Jayawardhana (2015) found positive significant relationships between four dimensions of EO such risk-taking, innovation, autonomy, and competitive-aggressiveness with firm performance and which have been tested. In addition, several studies confirm the positive significant with intense effect of EO on performance, in business environment challenged by greater volatility, hostility, dynamism, complexity, turbulence, competitive intensity, and less environmental munificence (Gunarathne & Jayawardhana, 2015; Shu et al., 2019; Wales et al., 2011). Such research findings were traceable in past studies which examined EO-Performance relationship with environmental contingencies.
That relation could be tested with sustainable performance which is a variable judged the expansion of firm performance. Based on the literature reviews, this hypothesis has been proposed:
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H2: Competitive aggressiveness has a positive effect on sustainable performance.
2.3.3 Relationship between Proactiveness and Sustainable Performance
Proactiveness is the third dimension of EO, for instance, it means taking the initiative to undertake actual and future tasks effectively. This means that the response is done before it is needed. However, the ability to respond is to prepare and create flexibility by focusing on predicting potential problems and focusing on positioning the company to take advantage on it in the future. Responsiveness is an important part of EO, including opportunity exploration, future prospects, and the launch of new products or services to create potential demand and gain a competitive advantage in the market. This leads to high commercial performance. In addition, proactive employees are usually anticipating and overcoming tasks rather than waiting for training. In a business environment, the company is interested in being responsible for the situation and doing what it needs to do, rather than adjusting, waiting, and responding to the situation as referred by Teece's (2014). Dynamic capabilities enable organizations to understand and benefit from gaps in entrepreneurship efforts.
Proactivity can be achieved in any working position of the company and is not necessarily limited to perform with additional tasks for the job responsibility of employees. For example, employees with specific roles may be active and may not be limited to additional role plays. From another point of view, according to the literature on organizational behaviour and psychology, active behaviour refers to an
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initiate changes in workplace spontaneously. Being proactive is to adapt to the current situation or expect anything that will happen, but it does mean that you have to control the situation and shape it to be adapted to future situations.
Lee et al. (2018) stated that Proactivity can be performed in any role required by the firm. This performance is not necessarily associated to performing extra tasks to main responsibility duties of the employee. Furthermore, apart from the proposition that all dimensions of EO the following studies show positively related proactiveness to performance (De Clercq, Dimov, & Thongpapanl, 2010; Filser & Eggers, 2014) in diverse sectors (Sciascia, D’Oria, Bruni, & Larrañeta, 2014; Shu et al., 2019), this significance influence on firm performance is related via firm-level EO. That relation could be tested with sustainable performance which is a variable judged the expansion of firm performance. Based on the literature reviews, this hypothesis has been proposed:
H 3: Proactiveness has a positive effect on sustainable performance.
2.3.4 Relationship between Innovativeness and Sustainable Performance Innovativeness depicts the firm’s inclination to be part of new business, by developing practices for the reason to build original strategy different than the previous repetitive on even it was successful. Indeed, it was argued that Companies with limited experience and routine, are generally suitable for radical innovation.
While innovativeness have a perspective to move out firms from a comfortable
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pattern of repeating past strategies, to a stage of implementing new business process.
(Covin & Wales, 2012).
Previous studies have found a positive relationship between innovativeness and firm performance. Additionally, innovation has a positive impact on productivity, efficiency, quality, competitiveness and market share (Rauch et al., 2009).
Innovation plays a key role in business success and in maintaining a sustainable competitive advantage. However, the results describe organizational culture as a key element in leading companies that implement innovative business processes that dramatically improve performance. (Wales et al., 2011). In term of decision making, the firm needs to choose the optimal time to enter the selected market, by the way that is judged appropriate. Meanwhile, the better decision is a replication of a great strategy. Innovativeness is a part of a strategy if that one is well explained, clear and directional. This is the core of the creativity institution. As such, without the strategy of innovation, the interests of the company are very dispersed. The right strategy is that products, resources and systems can be created that companies apply to fight the unfair business environment in the operational market. In fact, a business strategy needs to decide that the target market can be focused on and how the company should focus on the market (Wales et al., 2011).
Knowledge and ideas as the main components of innovativeness are considered the primary contribution of the innovation process. Hence, smart organizations will use this knowledge and ideology to develop a strategy to reduce the uncertainties and dissatisfaction associated with innovation. In addition, allow businesses to make the
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right decisions by quickly identifying new business opportunities to explore weak or non-profit options. The business environment of the organization (Covin & Wales, 2012), therefore depends on promoting, communicating and working on the latest information in line with the modern environment.
Despite Lee, Chong, and Ramayah (2018) who found the negative relationship between innovativeness and firm performance, several authors found it positive (Kohtamäki, Heimonen, & Parida, 2019)(Wales, Gupta, Marino, & Shirokova, 2019)(Ali & Park, 2016; Zhao, Li, Lee, & Chen, 2011). From moderate to high levels of innovativeness, the improvement is shown in firm by creating new, innovative products and services and acquire the capacity for more radical innovations. In term of financial, explorative innovation drive to a diversification of products and services and permit the new market entry, which generate new revenue streams and that may not only expand existing revenue generation but also originate new revenue streams (Kohtamäki et al., 2019). Entrepreneurial orientation is focusing on product innovation, which positively influences sustainable competitive advantage (Pratono et al., 2019). That relation could be tested with sustainable performance which is a variable judged the expansion of firm performance. Based on the literature reviews, this hypothesis has been proposed:
H 4: innovativeness has a positive effect on sustainable performance.
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2.3.5 Relationship between Risk Taking and Sustainable Performance
Risk-taking tendencies - as another dimension of EO – is defined as a tendency to engage in business and investment processes that may yield unknown results but are generally associated with high outcomes (Lumpkin & Dess, 1996). In another way risks differ and depends on the problems encounter by firms. Also, risk involves many effects, depending on the context in which it is used. Entrepreneurial oriented firms have generally the tendency risky taking in an uncertain future, where companies are exposed to high risks. This trend may include obtaining high debt or making large but uncertain investments in the hope of achieving a targeted outcomes by exploiting all the opportunities in the operating environment (W. L. Lee et al., 2018).
Although risk is an important dimension of economic aging, it is generally accepted that in often time this dimension do not provide desired performance (Zahra and Hayton, 2008). From another angle, firms are willing take risks and pleased with their current outcomes. The new process or plan of action will affect the ability to generate profits (Wennberg et al., 2011) when the access to risky markets or industries is called risk. In other words, dealing with investment companies does not provide average performance above average.
Despite Lee, Chong, and Ramayah (2018) who found the negative relationship between risk taking and firm performance, several authors found it positive (Kohtamäki et al., 2019)(Wales et al., 2019)(Ali & Park, 2016; Zhao, Li, Lee, &
Chen, 2011). From studies which have presented uncertainty regarding the
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relationship, the correlation between risk taking and sales growth has been credibly demonstrated (Covin & Wales, 2012). With the uncertainty of the future and in the world of business the risk zero does not exist and finding new sources of profit enter new market, which generate new revenue streams and that may not only expand existing revenue generation but also originate new revenue streams (Kohtamäki et al., 2019). Thus, opportunities are likely linked to firms that enjoy higher risk taking capacity, whereas the tendency of business risk is followed by business opportunities (Kohtamäki et al., 2019). That relation could be tested with sustainable performance which is a variable judged the expansion of firm performance. Based on the literature reviews, this hypothesis has been proposed:
H 5: Risk taking has a positive effect on sustainable performance.
2.4 Market Orientation
Market orientation is defined as the tendency of the company to apply the marketing concept. Various market definitions have been proposed since the early 1990s. Kohli and Jaworski, (1990) defined MO as “… the organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it …” (p.
6). This market-oriented approach of the company relies not just on the consumer but also on understanding that it is connected with the corporate organizational culture and should fit well into the sustainability framework.
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MO can build on company dynamics and intangible assets, to promote behavior affecting the learning of the organization to achieve maximum results with minimum resources consumption (Crittenden, Crittenden, Ferrell and Pinney, 2011). In addition, Darnall (2008) argued that weak internal coordination is one of the major barriers companies face to undertaking sustainable initiatives. Therefore, it is obvious that a strong focus on the market supports sustainability efforts by sensing customer needs and sustainability concerns to managers and decision-makers (Rehman & Shrivastava, 2011); it also provides a resources benefits for an enhanced performance company (Crittenden et al, 2011). Market orientation is thus hypothesized as an ancestor of any sustainable strategy being adopted (Green, Toms,
& Clark, 2015).
Actually, MO has been connected to competitive advantage and higher performance as a dynamic capability of the company (Hult & Ketchen, 2001). To successfully implement MOs in an organization, the process of collecting, and disseminating market and society information within an organization is a complex one, requiring inter-functional and inter departmental coordination and a question that has been identified in itself as of major importance in any market oriented theory. Arshad, Mansor and Othman (2012) assumed the positive link between MO and company performance to be mediated by Corporate Social Responsibility (CSR). The finding has shown that market-oriented companies include sustainable activity in their business strategies but do not produce a synergistic effect that can enhance company performance.
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Likewise, in the global education industry, Shams (2016) established the consistent relationship between different sustainability indicators and market focus. Mitchell, Wooliscroft and Higham, (2010) propose a re-conception of MO and a new business model which focus on sustainable market orientation, for instance; social and environmental intelligence. Whereas, Hult, (2011) argues that an organization is achieving market-based sustainability if it aligns strategically with customers and multiple stakeholders concerned on economic, environmental and social aspects as they need market-oriented product needs.
MO's direct and positive impact on firm performance is generally established in all sectors and company sizes in the literature (Hau, Evangelista, & Ngoc, 2013).
Empirical results, however, are rather ambiguous about the type, magnitude of the impact of this relationship, and its direction (Langerak, 2003). Sittimalakorn & Hart, (2004) has criticized the linear relation between orientation towards market and business performance whereas Langerak (2003).
Only three previous studies of the shipping literature have examined the concept of market orientation to the best of authors ' knowledge without still developing a sector-specific rationale. Alternatively, a sample of logistics companies in the Asia Pacific region has been examined by Panayides, (2004), but it concludes that the market orientation is related to the improved operations. Bae (2012) has demonstrated that the dimensions of information dissemination and responsiveness, coordination, capacity and exchange in the market, positively impact the commitment to relationships by using data from port logistics companies.
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Finally, a more recent Pantouvakis, Vlachos and Zervopoulos study (2017) examines the relationship between MO, quality of service and performance through the use of evidence from a similar study of this sample. Based on the above evidence, one limitation seems obvious, which justifies further examination of the concept of market orientation and its impact on performance in the construction sector specifically towards the sustainable performance.
2.4.1 Relationship between Market Orientation and Sustainable Performance Previous studies (Green et al., 2015; Hult & Ketchen, 2001; Pantouvakis, Vlachos, &
Zervopoulos, 2017; Pratono et al., 2019) have proved that market orientation is positively related to organizational sustainable performance. Pantouvakis et al.
(2017) have found that superior performance achievement requires an integrated effort at the organisational level (by every department) to develop and maintain a strong market-oriented culture to enhance the purpose of consumer needs in favour of financial, social and eco-friendly services. The developing collaborative relationship through market orientation is also favourable for an effective adoption, development, and implementation of the strategy toward social contributions (Hult, 2011). Chen, Tang, Jin, Li, and Paillé (2014) emphasized the significance of MO and sustainable performance by stating that the lack of research treating this variable represent a handicap stand to generalise this positive linkage. Based on the literature reviews, this hypothesis has been proposed:
H 6: There is a positive significant relationship between market orientation and
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2.5 Literature Gap
The following part of this paper moves on to describe in greater detail the importance of the above literature on our study. One major drawback of this approach is that EO could be used as a variable in the study for testing either firms or individuals, which depend on the preferences, the knowledge and capabilities of the researcher (Covin and Miller, 2014; Kollmann and Christofor, 2014; Kollmann et al., 2017). However, this study focuses on organizational level. In addition, during the last 10 years the topic of EO become researchable, where more researcher are debating on it (Wales et al., 2013a; Michael Chattalas et al., 2016; Fellnhofer, 2016;
Lomberg et al., 2017), which is also the case of the current study. In addition, most scholars view that the phenomenon of EO is flexible to be test on all organisations from different sizes (Lumpkin and Dess, 1996; Antoncic and Hisrich, 2001, 2003;
Zhai et al., 2018). EO is usually tested on its three dimensions, although, usually, competitive aggressiveness and autonomy are not well supported in research (W. L.
Lee et al., 2018).
As recommended by Chang and Cheng, (2019) who indicated that more empirical researches should be implemented and should provide practical research on the method that can be implemented in order to identify key strategic factors and the result of great leverage of sustainable performance. However, he said that this decade was a period of awareness is increasing about pollution and environmental issues, and that in the 1980s, sustainability, and more specifically, environmental issues were at the forefront. public space Elkington (2001). Which can be considered
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in conducting our study in a different sector such construction sector, this one has its own specification.
Furthermore, market orientation has shown strong relation with firm performance, however, the previous results are quite uncertain in terms of the type of relationship, size and direction of the effect (Langerak, 2003). Sittimalakorn & Hart, (2004) discussed the findings of the relationship between MO and business performance and they criticised it from several aspects. Additionally, Langerak, (2003) reported a significance in the relationship with firm performance but negative effects. From theses results, we judged the importance of elaborating the current study.
2.6 Summary
This chapter present the literature on sustainable performance and the concepts of entrepreneurial orientation through its five dimensions, and market orientation.
Furthermore, the review of the literature indicates a positive relationship between market orientation and sustainable performance, otherwise entrepreneurial orientation registered a weak of research concerning its relationship with SP.
Hence, the next chapter describes the procedures and methods used for data collection, and analysis of the research. Theoretical framework, research hypothesis, research design, operational definition. In addition to that, it looks to research sample and population, instrument, measurement of variables, data collection method, reliability test, and data analysis technique will be explained in the chapter 3.
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CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
The aim of this chapter is to develop and discuss a theoretical framework of the relationship among two factors such as entrepreneurial orientation (autonomy, competitive aggressiveness, proactiveness, innovativeness, risk taking) and market orientation on sustainable performance. These have been identified as important in designing experiments to this study. This chapter also includes a description of research approach, target population and sampling on how many respondents were included and the way the respondents were selected, the design of administering questionnaires and also the data collection method to be adopted in which derived from primary and secondary sources.
The research approach is a descriptive study in order to ascertain and be able to describe the variables that influenced the sustainable performance as discussed in the literature review. The factors influenced decisions made are important to the contractors in order to recognize the best ways for making decisions for the organizations. The data analysis uses the SPSS software for the statistical analysis.
The level of measurement for the variables analyse
