Evaluating Internal Factors Affecting Labour Productivity in Medium-Sized Construction Firms in Nigeria: PLS-SEM Approach

Abstract

Productivity has an important role to help construction firms to be competitive, achieve set goals, and meet stakeholders and value propositions. The objectives of this research are to assess the internal factors affecting labour productivity in the medium size construction firms, to analyzed the level of impact of those internal factors on labour output and suggest ways for improving labour output in the construction industry. The study used structural equation modeling (PLS-SEM) techniques with the application of SPSS and Smart PLS-SEM software to analyze the relationship of factors in the conceptual framework. The outcome of the study shows that labour output in medium sized construction firms are been affected due to factors such as; project finance, project characteristics, technology/ process, workforce, materials and tools (β= 0.388, 0.436, 0.245, 0.315 and 0.525; p<0.05). Therefore, hypothesis H1- H5 was strongly accepted. Moreover, the result indicated that the five internal factors has significantly positive impact on labour productivity of medium sized construction firms compared with other factors (R= 0.297, P= 0.000) and a substantial GOF (GOF= 0.502). The study recommends that construction firms have to conduct productivity study at the activity or operation level. Firms should implement a financial incentive in the form of best employees of the year in order to encourage output of workers. Construction firms should employ experienced project managers at all level of operation, and all the various external and internal factors of risk should be considered at the budgetary stage to minimize delays. This findings might map out critical areas to pay attention for a new contracting firms and public organization on productivity related problems that might occur in their operation on site.