Project performance measurement for small-and-medium sized construction contractors in the Jordanian construction industry

Abstract

This article addresses a gap in construction project performance measurement research from the perspective of small-medium-sized construction contractors in developing countries. Focussing on small-medium-sized contractors in the Jordanian construction industry, a survey of 231 Jordanian construction professionals was undertaken to investigate how different project stakeholders, intra and extra-organisational relationships and financial and non-financial measures support or hinder the delivery of project outcomes. Using exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and Partial Least Squares Structural Equation Modelling (PLS-SEM) an integrated theoretical performance measurement model was developed and tested which contributes to the advancement of construction project performance measurement research in a number of ways. First, it shows that small-medium-sized contractor project performance is a multi-dimensional, dynamic and contested construct which is bounded by environmental and organisational constraints, and inseparable from mainstream business performance. Second, it shows that performance is measured by six project-related constructs (project cost, time, quality, health and safety, environmental sustainability, and socio-economic performance) and three business-related constructs (profitability, client satisfaction and consultant satisfaction). Third, it shows that four intra-organisational groups of variables (leadership, management capabilities, human resource management and technical capabilities, resources and processes) have a significant impact on the overall project and business performance. Fourth, it shows that four extra-organisational groups of variables (client performance, consultant performance, supplier performance and external attributes) have a significant direct impact on project performance, but no moderating impact was found.