Factors Determining the Performance of Construction Enterprises: Evidence from Nepal

Construction enterprises operate in a competitive and volatile business atmosphere. The earlier evidence exhibits inconsistent findings and investigations are rare in Nepal. Thus, this research aims to investigate the factors determining the performance of construction enterprises. The study used descriptive and explanatory research design to test the hypotheses. Moreover, the survey used predictor variables like economic, human resource, and supply chain conditions, and the outcome variable was the performance of construction enterprises. A purposive sampling strategy was used to gather the cross-sectional primary data. Additionally, 426 structured questionnaires were sent to the intended respondents; only 216 (50.70 percent) of these were relevant. The study's population included the construction enterprises in the Kathmandu Valley. This study used descriptive and inferential statistical approaches to examine the data, including frequency, percentage, correlation, and regression analysis with Cronbach's alpha. The findings of this study revealed a positive and significant influence of economic conditions on the performance of the construction business (β= 0.328, p < 0.05). Similarly, a positive and significant effect of human resource conditions was found on the performance of construction enterprises (β = 0.412, p <0.05). Finally, the supply chain condition was found to be positive and significant with the performance of construction enterprises (β = 0.330, p <0.05). This shows that better economic conditions, human resources, and supply chain conditions foster the performance of construction enterprises in Kathmandu, Nepal. This study will be useful for regulatory institutions, policymakers, researchers, scholars, and construction business owners.