SWOT analysis of indigenous and foreign contractors in a developing economy

Purpose The call for more engagement of local contractors has been gaining support by construction stakeholders especially as a result of the recent economy recession in Nigeria. However, due to the increasing complexity of the construction industry and technological advancement, the influx and engagement of foreign contractors has been on the increase and their contribution is also germane to the economy development of the country. In view of this, the purpose of this paper is to examine the strengths, weaknesses, opportunities and threats of indigenous and foreign contractors in the country with a view to understanding their differences in the quest of improving their service delivery. Design/methodology/approach A case study research was carried out through the use of interview and questionnaire administered on management staff and professionals in selected construction firms, respectively. In order to obtain a balance view of the subject, professionals from construction consultancy firms selected through Delphi method were also included in the study and sampled accordingly. Appropriate statistical tools were employed in analysing the data gathered and result was presented with the aid of a SWOT template. Findings Findings of the research show that foreign contractors have better strengths than their indigenous counterparts, and this has made them gain better expertise. Also, they enjoyed more opportunities than the threats they are faced with, but the reverse is the case for indigenous contractors. Originality/value There is a need for the two categories of contractors to identify their SWOT as indicated in this study and leverage their strengths, correct their weaknesses, capitalise on golden opportunities and avoid potentially devastating threats to enhance their effectiveness and success in the industry.