ASSESSMENT OF KNOWLEDGE SPILLOVERS FROM FOREIGN MULTINATIONAL CONSTRUCTION CORPORATIONS TO INDIGENOUS CONSTRUCTION CONTRACTORS IN ABUJA, NIGERIA

Abstract

This study assessed knowledge spillovers from foreign multinational construction corporations to indigenous construction contractors in Abuja, Nigeria. Primary data were collected through observation on some selected sites owned by both foreign and local firms and the administration of questionnaires to their construction professionals and other professionals working with other firms. A total of one hundred and fifteen questionnaires were administered; eighty-four were duly filled, returned and found suitable for analysis, representing a response rate of seventy-three percent. The data collected were analyzed using Percentiles, Mean Item Score, Factor Analysis, Mann Whitney U test and report writing. The results showed that the level of knowledge spillovers from foreign construction firms to local construction firms in Abuja is high. The study further revealed that the channels of spillovers frequently used in the construction industry include engaging local suppliers to supply most or all the needed materials and labour, local firms imitating foreign firms by acquiring more and advanced machineries and labour mobility by deliberation while the channels that are easy to use are engaging local suppliers to supply most or all the needed materials and labours for a particular project, engaging local subcontractors by the foreign firms to work on a particular section of the project and imitation of foreign firm's managerial practices. Competition in the area of technical competence, local firms imitating foreign firms by acquiring more and advanced machineries, and competition in the area of managerial competence were seen to be costly channels of spillover. In addition, the study identified ICT, access to finance, skill of local workers and employee‟s motivation as the key factors that facilitate effective knowledge spillovers. The study further revealed that corruption, economic instability, lack of good political leadership and lack of government confidence to consistently engage Nigerian contractors as the top barriers to knowledge spillovers in the construction industry. Based on the findings, the study recommended that the government, private sectors and construction regulators should come up with policies to enhance knowledge spillovers. Also, local contractors should seize the opportunity to use the easiest, cheapest and most effective channels of spillovers. Although, this study was restricted to the building projects; it can also be replicated in construction projects for further study.