Perceived Product Benefits and the Project Management Performance: The Role of the Perceived Supplier Ranking

Abstract

The aim of this article is to understand customers’ perceptions regarding the project management performance and the perceived benefits if the customers perceived the supplier to be the best or the second-best systems delivery project supplier. This research investigates 2,191 system delivery projects in the facilities management industry. Exploratory factor analysis was employed on the project management variables. The testing of the hypotheses was done with partial least squares (PLS) structural equation modeling (SEM) with SmartPLS. The findings show a significant relationship between the commissioning and the perceived benefits, independent of whether the company was perceived to be best or second best in the industry. The proposal stage was perceived to be significantly related to perceived benefits provided by the outcome of the project (the product) when the company was the second-best supplier. Inherent structure in systems delivery projects included three phases, consisting of the proposal, installation, and commissioning. Also, the perceived project management performance in the commissioning stage was significantly related to the perceived benefits provided by the outcome of the project (the product) when the supplier was perceived to be the best and the second best in the industry. Contrary to expectations, this was not the case with all project management phases.