The Impact of Industry Variables on Company`s Performance

Abstract

Everywhere, in the business world and not only, we speak about the competitiveness. And while talking about this concept, it seems appropriate to explain what the competitiveness is and how it influences the organizational performance. Nowadays, there has been a growing intensity of competition in all business areas and this has resulted in a greater attention to analyze the competitive behavior under environmental dynamics and complexity. The industry is the "arena" where starts and applies every company`s activity. Usually, facing the high level of competition, it is necessary to study all the variables which influence the organization in order to achieve goals such as: the profitability and ensuring organization`s longevity. The purpose of this paper is to examine the relationship between industry forces and organizational performance to test the applicability of Porter`s model explaining the differences in the performance of construction companies. The methodology used is in the function of links between variables that characterize the industry and the realized performance, expressed through overall performance. The primary data collection was conducted through a questionnaire. Besides the demographic characteristics of the sample, the questionnaire as well aims to collect information on a high number of variables. Geographically, the companies participated by completed the questionnaire, were performing their business activity in Vlora region (such as Vlora city, Orikum and Himara), covering areas where construction sectors had the major development, including urban and coastline areas. The processing data collected via questionnaire shows that the construction industry is characterized by a high level of competitiveness and market fragmentation.Through the empirical analysis of competitive forces, the study contributes to the specific orientation that investors and managers should have when they face a high rivalry among companies

DOI: 10.5901/mjss.2017.v8n1p202