The effect of corporate culture and total quality management on construction project performance in Taiwan

Abstract

The new market expansion in the real estate market has resulted in the flourishing development of construction companies in Taiwan. Thus, the question of how construction companies may establish external alliances, gain tangible and intangible support and deliver satisfactory project outcomes needs to be answered, and is consequently worth exploring. This study aims to examine the relationship between corporate culture (CC), total quality management (TQM) and project performance (PP) in construction firms where project-based assignments and high-priced contracts are involved. Data collected from 30 construction firms located in northern and central Taiwan (N = 371) were analysed using structural equation modelling. The results confirm that both CC and TQM generate positive and direct influence on PP. In particular, the effect of CC is amplified on PP through the implementation of TQM. Managerial implications are proposed and research limitations are discussed.