Effects of Cultural Factors on Cost Performance of Multinational Construction Organizations

Abstract

Purpose: This study examines the effects of cultural factors on cost performance of multinational construction project organisations with a view towards identifying the most effective cost performance variables affected by the influence of cultural practices. Purposive sampling technique was adopted in deterring the number of construction professionals identified in construction companies with international market experience involved in the delivery of building, civil, and heavy engineering construction projects within the south-east geopolitical zone of Nigeria. Outline: A well-structured questionnaire was used to sample respondent’s opinion. Data analysis was through frequencies, percentile, and Mean Item Score (MIS). Findings: Research findings proved that irrespective of the positive effects of educational culture which improves cost performance by ensuring that projects are executed at estimated cost and within client’s budget (Mean = 4.34) and the result of effective communication culture which ensures value for money and return of customer as project is designed to suite client’s budget while maintaining standard quality delivery (Mean = 4.16), political culture tends to have mixed effect on cost performance as project design cost, labour, material and equipment cost, profit and overhead cost, etc. (Mean = 4.30) is found to be responsible for cost overruns of construction projects. Research Implication: The study recommends among others that multinational construction organisations pay great attention to the political style practiced in the host community / country in which they operate.