Complexity and Dynamics in Construction Project Organizations

Abstract

Despite the significant influence of organizational elements on the performance of construction projects, these elements are regarded as fixed, or reflected in an implicit manner, in current project management techniques. This study investigated how the organizational dynamics formed within a project organization based on complexity theory are described, and how organizational factors affect project performance during a construction project. It also presented agent-based simulation (ABS) as a means to understand organizational dynamics in construction project organizations. The author found that manager optimism bias toward organizational factors leads to unrealistic project planning and execution, ultimately having negative effects on project performance, and that developing ABS could enhance the understanding of the organizational aspect in the construction management process. This study is significant, as it enhances the understanding of the organizational aspect of a construction project, and presents a new direction for reflecting the organizational aspect in the project management process.