Project cost control system and enabling-factors model: PLS-SEM approach and importance-performance map analysis

Abstract

PurposeThis paper reports the developments of a project cost control system (PCCS) for construction projects to (1) measure its current level of cost control maturity, (2) examine the relationships between elements within PCCS processes and (3) identify improvement areas.Design/methodology/approachThis study adopts a mixed approach of descriptive analysis and partial least squares structural equation modelling (PLS-SEM) to measure the current maturity level of PCCS and evaluate the relationships between elements within PCSS to identify improvement areas. Further importance-performance matrix analysis (IPMA) of priority constructs was conducted to improve a target construct and identify the most important areas of specific actions at indicator levels. The results of IPMA revealed the contrast that has the greatest importance on the performance of others so that the recommendations can be made accordingly. Data collected in New Zealand were used to develop the research model.FindingsThis study develops structural and measurement models with the constructs including pre-control, in-control and post-control processes, enablers and their proposed interrelationships. Then, data from survey of 184 experienced project cost control team members reveal that post-control has the lowest maturity or weakest areas in the PCCS. Data analysis facilitated by PLS-SEM confirmed that all the constructs in the structural model have positive and significant relationships with each other and suggested that systematic cost analysis reports, communication, skills and experience, defining roles and responsibilities, and top management's support should be the highest priority for improving the PCCS in a more effective manner.Originality/valueThis study presents one of the earliest attempts to develop and test an integrated model that links sub-processes in PCCS and their enablers. Secondly, this research adds to the construction project management literature by empirically verifying the roles of enablers in enhancing maturity level of PCCS.