Impact of business diversification on South African construction companies' corporate performance

Purpose – The purpose of this paper is to investigate and examine whether there is any significant relationship between the extent of business diversification and the performance of construction firms in South Africa. The rationale for the examination stems from the view that the relationship between diversification and the performance of construction firms raises important issues in strategic management and cross‐border business. In contractors' growth however, there is a dearth of empirical research and theoretical arguments regarding the effects of business diversification on construction company performance in South Africa.Design/methodology/approach – The study employed the use of a case study and archival approaches using semi‐structured interviews to elicit primary qualitative and quantitative data over a period of five years for large construction companies listed in Grade 7‐9 on the Construction Industry Development Board (cidb) contractor register. The scope of services and geographic diversific...

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