Critical success factors for Ghanaian contractors Joseph Kwame Ofori-Kuragu, Bernard Baiden and Edward Badu Department of Building Technology, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana Abstract Purpose – The purpose of this paper is to explore the development of a set of critical success factors (CSFs) for Ghanaian contractors. The factors collectively define a set of best practices which Ghanaian contractors should focus on improving if they are to attain internationally competitive performance. Design/methodology/approach – A systematic review of previous research, literature on existing programmes, models and frameworks commonly used for improving performance was undertaken to identify the most important success factors. The identified factors were scored and ranked with 16 of the most frequently occurring success factors selected. A questionnaire-based survey of Ghanaian contractors explored their perceptions of the most important success factors. Using factor analysis, the most important success factors were extracted. Findings – Eight CSFs were identified for Ghanaian contractors. These were: quality and zero defects culture, organisational design, work culture and work environment, client satisfaction, strategy, leadership, measurement, analysis of information and knowledge management and implementation of lean principles. Practical implications – The CSFs developed provides a ready set of criteria which can be used by contractors with little or no experience of benchmarking to compare their performance in best practices or to implement improvement programmes. Originality/value – The first formal set of CSFs for Ghanaian contractors is presented. Not much research work has been done on organisational CSFs that are focused by this research. Keywords Performance, Critical success factors, Benchmarking, Ghana, Contractors Paper type Research paper 1. Introduction The performance of Ghanaian contractors is a major cause of concern amongst client groups and other stakeholders in the Ghanaian construction industry. Many Ghanaian contractors fail to meet performance targets (Ahadzie, 2007) and are generally blamed when projects go wrong. They are also criticised for having limited knowledge in the application of requisite management techniques. In many Ghanaian contractors, the management of the firms’ resources – labour, finances, materials, plant and equipment in Ghanaian construction firms is carried out haphazardly and therefore does not promote growth (Vulink, 2004). The industry in Ghana generally has serious image problems owing to widespread perceptions of corruption in the award of construction projects. Financing for construction is difficult to arrange and where available, interest rates tend to be very high. Financing difficulties lead to a high frequency of abandoned projects and others discontinued due to non-performance of contractors. The costs of re-engaging new contractor rework and making good defects is high and the additional time required for these can be substantial. Project delays lead to escalating costs owing to high inflationary trends. The effects of these and many other problems which affect Ghanaian contractors is that it is difficult to attract investment into Ghanaian construction firms (Ghana Stock Exchange, 2012). There are currently no listed construction companies in the Ghana stock exchange and there are no Ghanaian Benchmarking: An International Journal Vol. 23 No. 4, 2016 pp. 843-865 © Emerald Group Publishing Limited 1463-5771 DOI 10.1108/BIJ-03-2014-0018 Received 7 March 2014 Revised 12 June 2014 Accepted 23 June 2014 The current issue and full text archive of this journal is available on Emerald Insight at: www.emeraldinsight.com/1463-5771.htm 843 CSFs for Ghanaian contractors Downloaded by KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY At 01:33 18 May 2016 (PT)