INFLUENCE OF ORGANISATIONAL STRUCTURE ON THE PERFORMANCE OF BUILDING CONSTRUCTION FIRMS IN LAGOS, NIGERIA

Abstract

This study assesses the influence of organisational structure on the performance of building construction firms in Lagos, Nigeria. The study adopted a quantitative research method in a cross-sectional design and used a survey questionnaire to collect primary data from 125 building construction firms and which was selected using a simple random sampling technique. The collected data was analysed using a statistical package for social sciences (SPSS) version 25. The result of the relative importance index (RII) shows that decision making at higher level is the highest ranked (mean value = 4.13) type of organisational structure among the building construction firms in Lagos. The result further shows that the business developmental stage (mean value = 4.13) is the major factor influencing organisational structure, followed by size of the organisation (mean value = 3.66) and the type of business strategy (mean value = 3.50). The result of regression analysis found a significant effect (p = 0.00) of organisational structure on performance of building construction firms. Hence, the study concludes that organisational structure is a determinant of performance of building construction firms. It therefore, recommends that understanding the business developmental stage, business strategy and size of organisation are factors that determine organisational structure. Also, organisational structure is a strategic factor to be considered in achieving better performance of building construction firms.