Project performance framework for stakeholder of residential construction project

Abstract

Residential construction projects are obnoxious with high-profile problems of poor performance due to non-engagement of key stakeholder and lack of consideration on stakeholder’s needs and interest, although the effects of fulfilling the needs and the interest of stakeholders on organisational performance have been well established in other industries. In this study, an attempt is made empirically to achieve the aim of analysing the moderating effects of project size on the relationships between variables and mediator. This aim is achievable via the main objective of developing a framework on improving residential construction project performance through stakeholder satisfaction in Malaysia. This study is undertaken via a survey on purposive sample of 156 developers and 468 buyers of residential construction projects in Malaysia, and the analysis is done through structural equation modelling (SEM). This study finds that the framework on improving residential construction project performance through stakeholder satisfaction in Malaysia consists of 2 variables, 1 mediator, 1 moderator and 13 constructs which are divided into 85 items. This framework is validated by 5 experts via expert focus group interview, who confirmed that the framework could be used for improving project performance in residential construction project and providing suitable feedback to Project Management Institute (PMI) practitioners to develop appropriate standard for different sectors on project size basis. Overall, this study which combined resource-based theory (RBT), resource dependence theory (RDT) and stakeholder theory (ST) has successfully developed a new theoretical framework to demonstrate the importance of social capital as a part of resource based on the variables of improving residential construction project performance in Malaysia.