MARATTO

article · International Journal of Advances in Engineering and Management

Upshot of Factors of Severe Effect Affecting Small and Medium Size Construction Firms’ Performance in Gombe State, Nigeria

2025Open accessGombe State University

In plain language

A quantitative investigation evaluated the severe challenges undermining the performance of small and medium-sized construction firms in Gombe State, Nigeria. Survey data gathered from local enterprises revealed that both small and medium construction firms face substantial constraints. Small contractors are predominantly hindered by inadequate management skills, an absence of research and development, insufficient professional training, limited access to finance, poor infrastructure management, low technical knowledge, and high transaction costs. Medium-sized firms encounter comparable difficulties, prominently driven by training deficits, missing research capabilities, low technical expertise, financing constraints, high interest rates, and managerial shortcomings. Statistical testing demonstrated a strong positive correlation between the severity of challenges experienced across both firm categories. Consequently, strengthening technical capacity, dedicating resources to research and training, and implementing inclusive operational structures are highlighted as essential measures for enterprise growth.

Key takeaways

  • Small construction firms are severely constrained by poor management skills, lack of research and development, insufficient training, limited finance, and high transaction costs.
  • Medium construction firms face similar severe hurdles, particularly regarding professional development deficits, lack of research, restricted financing, and high interest rates.
  • A strong, statistically significant positive correlation links the severity of performance-limiting factors found in small firms with those in medium firms.
  • Enhancing educational and technical competencies, funding internal research, and establishing participatory organisational structures are recommended to improve firm performance.

Why it matters

Small and medium enterprises execute critical infrastructure work, yet internal and structural barriers frequently impair their execution capacity. Identifying the specific operational, financial, and skills deficits shared across these businesses enables industry bodies, lenders, and training providers to target interventions that strengthen firm resilience and build capacity across the regional construction sector.

Commercialisation angle

This research is an applied diagnostic study rather than a technical product development effort, meaning direct commercialisation of an invention is not applicable. However, the operational insights can be applied immediately by construction firm managers and industry training bodies. Decision-makers can use the findings to design targeted professional development curricula, improve technical recruitment, and restructure internal management to enhance commercial competitiveness and access institutional credit.

AI-generated from the published abstract. Always read the original work before citing.

Abstract

This research thesis titled „Upshot of factors of severe effectaffecting Small and Medium Size Construction Firms‟ Performance in Gombe State, Nigeria‟. The aim of the study was achieved through two objectives such as determining the severe effect of the factors affecting the performance of small size construction firms (SSCFs), assessing the severe effect of the factors affecting the performance of medium size construction firms (MSCFs) in Gombe State, and examining the relationship of the severe effect of the factors affecting performance of the small size and medium size construction firms in Gombe State.The research utilised a quantitative research design with a questionnaire used as tool for collecting the primary data analyzed using descriptive statistical methods of data analyses on a total of 68% retrieved questionnaire in the study.That concluded that: inadequate management skill, absence of research and development (R & D), and inadequate training and continuous professional development, limited access to funds from finance institutions, inadequate management of infrastructure, low level of educational and technical knowledge, and high transaction cost are the most factors of severe effect affecting the performance of small size construction firms (SSCFs) in Gombe State; inadequate training and continuous professional development, absence of research and development (R & D), low level of educational and technical knowledge, limited access to funds from finance institutions, and high interest rate and inadequate management skill are the most factors of severe effect affecting the performance of medium size construction firms (MSCFs) in Gombe State;there is positive strong significant relationship between the factors of severe effects affecting performance in small and medium-sized construction firms (SMCFs) as the severity of factors affecting performance increases in small firms, it also tends to increase in mediumsized firms (r = 81.1%, N = 68, p = 0.0007 < 0.01).The study recommends that: management of SSCFs should attend to the necessary skills required for effective delivery of construction business through employing personnel with sound educational and technical know-how that can ensure more chances of accessing more funds for their construction businesses and to increase productivity and performance of the firm; the management of MSCFs should engage in proper training and continuous professional development by allocating more funds to research and development (R & D) to have more equipped personnel to compete with the ever-increasing challenges in the construction circle; SMCFs should adopt a functional structure that would encourage the involvement of personnel in decision making for rapid organisational growth.

Research topics

  • Construction Project Management and Performance

Read the original research

This page summarises published work. The authoritative version sits with the publisher.

DOI: 10.35629/5252-070811071123

Is something wrong with this record? Report it or request removal.

Discussion

Discuss this research

Have you built on this work, tried to replicate it, or seen it applied in practice? Share what you know. Verified researchers and MARATTO™ domain experts can open a discussion, and any member can reply. Contributions are reviewed before they appear.

No discussion yet. Open the first thread.