Does size of construction firms matter? Impact of project-factors and organization-factors on project performance

Abstract

PurposeThe purpose of this study is to analyze and compare the impact of project-factors and organization-factors on five indicators of project performance for small and medium enterprise (SME) and large construction contracting firms that are fully responsible for the successful completion of the projects. The five performance indicators are time, cost, safety, quality and financial.Design/methodology/approachA questionnaire survey was conducted to solicit responses from project managers/directors from 342 construction firms in Malaysia. The construction firms included in this study came from various sectors: civil, building and infrastructure; oil and gas; marine and multidiscipline. Hierarchical multiple-regression was used to analyze the data.FindingsThe salient findings are as follows: (1) impacts of project-factors and organization-factors on performance indicators are different for SMEs and large construction firms and (2) relative impact of organization-factors on performance is much higher than the project-factors.Originality/valueAnalyzing the relative impact of project- and organization-factors on the performance of SMEs and large construction firms can significantly enhance the body of knowledge about performance levels and boost best practices in this respect related to construction industry.