Abstract
A significant number of empirical studies have reported contrasting results regarding the effects of certain internal organizational factors (Leadership Style - Team competency and Skills - Effective Communication) on construction performance. As a result, generalizations remain sketchy, and a better understanding is needed. This study lends a voice to the literature's debate by introducing the part played by institutional pressures. The aim is to evaluate the impact of internal organizational factors and institutional pressures on a Syrian construction firm's performance outcomes, with institutional pressures playing a mediator's role. Data were collected using a questionnaire instrument from a sample of 197 building experts working in large public construction companies in Syria and analysed using the partial least squares structural equation modelling (PLS-SEM). The results reveal that leadership style and effective communication have a significant and positive effect on construction firm performance outcomes. However, the effect of team competency and skill was not supported; nonetheless, providing institutional pressures as a mediator into the relationship made it significant, thus, providing a vital theoretical contribution worth considering in future research. Practically, this study is the first attempt at evaluating organizational factors and institutional pressures as a critical determinant of organizational performance that should interest management at organizational levels.
Highlights
The construction industry is a significant player in any nation’s economic growth and occupies a central role in the region’s development plan and its ties to other sectors of the economy
The results reveal that leadership style and effective communication have a significant and positive effect on construction firm performance outcomes
We looked at the influence of certain internal organizational factors and institutional pressures on the construction firm’s performance outcomes
Summary
The construction industry is a significant player in any nation’s economic growth and occupies a central role in the region’s development plan and its ties to other sectors of the economy. For the past few years, both professionals and scholars have stressed the challenges facing the construction industry as it has been characterized as a complex and dynamic industry in which organizations that work meet relentless challenges and enormous demands (Balatbat, Lin and Carmichael, 2011). Many of these challenges force construction firms to be highly flexible, efficient, and customer-oriented to compete with increasingly strong emerging-market players effectively and achieve high performance in future construction markets (Accenture, 2012). As construction firms have faced several challenges when seeking a suitable mechanism to deliver construction projects, it is believed that advancement could only be evaluated by measurement (Marr, 2007)
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