Influences of Project Management Capabilities on the Organizational Performance of the Saudi Construction Industry

H. A. Sulieman, F. A. Alfaraidy

Abstract


This paper aims to study the relations between construction enterprises’ project management capabilities and organizational performance. A questionnaire survey was administered to 89 Saudi construction contracting organization administrative members. Data were obtained from 32 projects that were held during the last two years and were analyzed using structural equation modeling (SEM). It was hypothesized in this study that a construction organizational performance is influenced by project management capabilities within the enterprise. A structural equation model was set up to measure the above two latent variables through their constituent variables. This study introduced a method to measure performance both in qualitative and quantitative terms. The strong path coefficients between the constructs of the model are an indication that after decades in pursuit of finding ways to improve the performance of construction organizations, subjective dimensions of performance have proven to be as effective as the traditional objective dimensions.


Keywords


balanced scorecard; performance; SEM

Full Text:

PDF

References


N. M. A. Abbas, “The Impact of construction contractsmodels on construction claims in the Saudi Arabia”, 14th. Annual ARCOM Conference, Reading, UK, September 9-11, 1998

A. Neely, B. Marr, G. Roos, S. Pike, O. Gupta, “Towards the Third Generation of Performance Measurement”, Controlling, Vol, 15, No. 3-4, pp. 129-136, 2003

H. Yang, J. F. Yeung, A. P. Chan, Y. Chiang, D. W. Chan, “A critical review of performance measurement in construction”, Journal of Facilities Management, Vol. 8, No. 4, pp. 269-284, 2010

Z. Jin, F. Deng, H. Li, M. Skitmore, “Practical Framework for Measuring Performance of International Construction Firms”, Journal of Construction Engineering and Management, Vol. 139, No. 9, pp. 1154-1167, 2013.

H. S. Robinson, P. M. Carrillo, C. J. Anumba, A. M. A-Ghassani, “Review and implementation of performance management models in construction engineering organizations”, Construction Innovation, Vol. 5, No. 4, pp. 203-217, 2005

A. Jugmohun, “Factors that influence the effectiveness of performance management system adoption in organization”, Global Journal of Human Resources Management, Vol. 6, No.1, pp. 51-66, 2018

J. Brathwaite, “A contemporary twist on capability enhancement: how strategic project management influences capabilities requirements relationship with strategic outcomes”, The Business and Management Review, Vol. 9, No. 4, pp. 574-591, 2018

C. Hendrickson, T. Au, Project Management for Construction, Prentice Hall, 1989

Project Management Institute, A Guide of Project Management Body of Knowledge (PMBOK), Project Management Institute, 2017

G. K. Kanji, A. Wong, “Quality culture in construction industry”, Total Quality Management, Vol. 9, No. 4, pp.133-140, 1998

J. M. Kamara, G. Augenbroe, C. J. Anumba, P. M. Carrillo, “Knowledge management in the architecture, engineering and construction industry”, Construction Innovation, Vol. 2, No. 1, pp. 53-67, 2002

A. Warszawski, “Strategic planning in construction companies”, Journal of Construction Engineering and Management, Vol. 122, No. 2, pp. 133-140, 1996

K. Ringen, J. Seegal, A. Englund, “Safety and health in the construction industry”, Annual Review of Public Health, Vol. 16, pp. 165-188, 1995

J. Liebowitz, C. Y. Suen, “Developing knowledge management metrics for measuring intellectual capital”, Journal of Intellectual Capital, Vol. 1, No. 4, pp. 54-66, 2000

A. M. Schneiderman, “Why balanced scorecards fail?”, Journal of Strategic Performance Measurement, Special Edition, pp. 6-11, 1999

R. S. Kaplan, D. P. Norton, The Balanced Scorecard: Translating Strategy into Action, Harvard Business Review Press, 1996

D. Amaratunga, D. Baldry, M. Sarshar, “Assessment of facilities management performance - what next?”, Facilities, Vol. 18, No. 1-2, pp. 66-75, 2000

A. Robson, V. B. Prabhu, “What can we learn from leading service practitioners about business excellence?”, Managing Service Quality, Vol. 11, No. 4, pp. 249-261, 2001

S. McCabe, Benchmarking in Construction, Blackwell Science, 2001

S. C. Dunn, R. F. Seaker, M. A. Waller, “Latent variables in business logistics research: scale development and validation”, Journal of Business Logistics, Vol. 15, No. 2, pp. 145-172, 1994

J. Nunnally, Psychometric Theory, McGraw-Hill, 2010




eISSN: 1792-8036     pISSN: 2241-4487