Deciphering Cultural Differences between Local and Foreign Contracting Firms Using Hofstede's National Culture Model in the Construction Industry

Most of the construction works in the Zambian construction industry are executed by foreign contractors who are only allowed to tender for large-scale construction projects. These works amount to 85% of the national contract value. Foreign contractors are seen as better performers in project deliverables of time, cost and schedule compared to local contractors. This research aimed to investigate the extent to which national culture affects contractor performance in the Zambian construction industry. A comparison of culture and performance was made between local and foreign companies in Grade 1 and 2, using Hofstede’s national culture framework to determine performance improvements of local contractors.. The findings revealed that foreign contractors manage uncertainty avoidance better than local contractors. The clients rated foreign contractors as better performers apart from health and safety. Local contractors need to improve performance if they are to compete favourably with the foreign contractors’ success record