An Empirical Analysis of Organizational Performance of Construction Companies in Pakistan through Mediating Role of Conflict Management Effectiveness

Abstract

This paper aims to examine the impact of organizational factors and verify mediating role of conflict management effectiveness on perceived performance of registered construction companies in Pakistan. The study adopts a survey research design using a well-structured questionnaire of 450 employees from construction companies located in Lahore and Karachi. The construction industry is characterized by performance setbacks for decades. Descriptive statistics and mediation analysis were employed to analyze the conceptual model. The research paper concludes that distortions in reduced workforce productivity and relationship conflicts should be overcome by capable professional & administrative services. The analysis depicts that socio-economic and political factors play a significant role to maintain the quality in local construction industry. The findings reveal that performance of construction companies is significantly related to internal factors i.e. workforce productivity, decentralization, perceived organizational politics and relationship conflict. The study provides guidelines to organizational decision-makers and government policy-makers for public reforms in infrastructure to improve their output. The present study was undertaken to provide new horizons and advance understanding on organizational performance (OP) of construction companies in Pakistan. The most significant part of this study is the comprehensive five-factor organizational performance model designed to test mediation among variables using partial least square structural equation modelling (SEM).