Managing stakeholder attributes for risk mitigation: evidence from construction project contractors

Abstract

PurposePrevious studies have proposed that correctly managing stakeholders with certain attributes can benefit project management; however, robust theoretical elaborations and empirical investigations of this topic have been lacking. The purpose of this study is to empirically test the effects of two stakeholder attributes – contractor-perceived contractor salience and contractor project position – on the criticality of five typical contractor-related risks: risk of (1) injuries and accidents, (2) quality defects, (3) work delays, (4) cost overruns and (5) breaches of contract.Design/methodology/approachQuestionnaire data were collected from 118 Chinese contractor managers. Regression models were run in Mplus 7.11 to test the hypotheses.FindingsThe data show that higher contractor-perceived contractor salience and a more supportive contractor project position were both related to lower criticality of contractor-related risks, including risk of (1) injuries and accidents, (2) quality defects, (3) work delays, (4) cost overruns and (5) breaches of contract. Contractor salience also mediated the negative relationship between a supportive contractor project position and the criticality of contractor-related risks.Research limitations/implicationsThe authors’ research design is cross-sectional and thus cannot establish causation in the relationships among the studied variables. The single item measure of contractor project position was used for the first time in the present study; thus, its reliability and validity still await more empirical examinations.Originality/valueThe findings advance the understanding of the value of stakeholder management in projects by specifying that prioritizing stakeholders' claims and securing their support for the project reduce the criticality of stakeholder-related risks. By providing empirical evidence from the construction context, the findings also add to knowledge on the instrumental power of stakeholder management in enhancing project risk management performance.