Measuring PMP
Measuring PMP
[email protected]
2
Associate Professor, Department of Civil Engineering, Bogazici University, Istanbul,
Turkey, [email protected]
management performance based on the fourteen knowledge areas of the project management
body of knowledge (PMBoK) Guide. Interrelations among the knowledge areas and influence
of these factors on performance are investigated. Data collected from 121 construction projects
are analysed using structural equation modeling. Research findings suggest that project
integration, communications, safety, risk, human resources, financial, and cost management
have a direct impact; whereas scope and time management have indirect effect on performance.
The findings reported in this study are expected to help construction project managers devise
and implement strategies and develop actions to improve project success. An engineering
manager might use the framework developed in this research to conceive the underlying factors
construction.
Introduction
Project management continues to be challenging for many industries. Hence, project managers
seek more efficient project management tools and techniques. A need exists for developing
principles, and technologies into projects, products, and processes. To scrutinize the need for
more efficient engineering management tools, strategies, and methods, a considerable portion
of studies focus on management models and different approaches for measuring performance
Varma, & Sutton, 2014; Nassar & AbouRizk, 2014; Mizell & Malone, 2007; Zanoni & Audy,
2004).
crucial for higher performance levels in construction. Performance measurement has been
reported to be critical in several research studies (Jin, Deng, & Skitmore, 2013; Kagioglou,
Cooper, & Aouad, 2001; Robinson, Carrillo, Anumba, & A-Ghassani, 2005).
indicators (Lin, Shen, Sun, & Kelly, 2011; Ngacho & Das, 2014; Skibniewski & Ghosh, 2009);
balanced scorecard (Halman & Voordijk, 2012; Wang, Lin, & Huang, 2010); maturity models
(Goh & Rowlinson, 2013; Meng, Sun, & Jones, 2011), and critical success factors (Kog & Loh,
A portion of the studies focused on project success for the assessment of performance.
For example, measuring success in construction was investigated by Hughes, Tippett, and
Thomas (2004); this study involved a survey to evaluate construction project success.
However, there has not been an agreed way of assessing performance in construction.
Institute (PMI, 2013) and its Construction Extension (PMI, 2005) are adopted as the main
management; (5) project quality management; (6) project human resources management; (7)
project communications management; (8) project risk management; (9) project procurement
management; (10) project stakeholder management; (11) project safety management; (12)
project environmental management; (13) project financial management; and (14) project claim
literature review was conducted to identify the components relevant to determinants and
indicators of performance.
The study develops hypotheses regarding the interrelations among determinants and
their influence on performance. To test the hypotheses, data was collected through a
questionnaire survey. Structural Equation Modeling was used for the data analysis.
The main contribution of this study is that it enables engineering managers to develop
practices, acquire solid project management strategies, and benefit from the tools proposed in
the context of this research. Additionally, engineering managers may benefit from the
framework developed in this research to relate their projects to project management knowledge
areas and the components associated. The research extends the project management body of
knowledge by encouraging project managers to utilize the concepts and areas of the Project
management solutions through the use of a project management framework. Within this
perspective, the model developed contributes to the body of knowledge by bringing up new
components to evaluate when managing practices in knowledge areas. It also introduces the
several relationships encompassing all knowledge areas, which have not been investigated in
previous studies.
performance. Then, it presents indicators and determinants of performance, and indicates the
hypotheses constructed accordingly. It then follows the research methodology and presents
data analysis. Finally, it presents the findings of the study along with discussion and concludes
Various studies have been conducted on measuring and managing performance in construction
(Berssaneti & Carvalho, 2015; Chou, Irawan, & Pham, 2013; Doloi, Iyer, & Sawhney, 2011;
Egan, 1998; Jin et al., 2013; Kagioglou et al., 2001; Nudurupati, Arshad, & Turner, 2007).
Performance measurement in the construction industry has been investigated through the
adoption of key performance indicators, balanced scorecard, critical success factors, and
maturity models (Alzahrani & Emsley, 2013; Beatham, Anumba, Thorpe, & Hedges, 2004;
To best manage projects, the PMBoK Guide (PMI, 2013) proposed ten knowledge areas
for project management and its Construction Extension (PMI, 2005) proposed four additional
ones. Most of the studies focused on individual knowledge areas such as safety management
(Cheng, Ryan, & Kelly, 2012), risk management (Zhao, Hwang, & Low, 2013), and
communications management (Albert, Hallowell, & Kleiner 2014). The effects of project
scope, time, quality, human resources, communication, risk, and procurement management on
project success using structural equation modeling was investigated in a recent study. The study
concluded that communication management is critical for promoting project success (Chou et
al., 2013).
were evaluated on a structural model. The results of the study indicated that project cost, risk,
and quality management skills are the most important factors affecting project success
assessed by a structural equation model. The results of the study prove that overall success
mostly relies on contractors’ technical ability in planning and controlling the project (Doloi et
al., 2011). A portion of the studies concentrated on the role of the project manager and top
management support in achieving higher project success (Ahmed & Mohamad, 2016;
Anantatmula, 2010).
Nine knowledge areas of PMBoK Guide were adopted to predict project performance
in the construction industry. The proposed model was proven to estimate project outcomes
with a level of accuracy (Ling, Low, Wang, & Egbelakin, 2008). The effects of project
structural equation model. The results of the study prove that project characteristics positively
influence cost management practices, where cost is a strong indicator of performance (Cho,
However, these studies lack a complete analysis of the fourteen knowledge areas
available for construction. Therefore, this study attempts to fill this gap by first identifying
proper metrics for construction then investigating relationships between these, and quantifying
previously in other studies (Lim & Mohamed, 1999; Mir & Pinnington, 2014; Wang & Huang,
2006). In terms of project success, a majority of the research studies focus on timely completion
(Chan, Scott, & Lam, 2002; Cooke-Davies, 2002; Egan, 1998; Lim & Mohamed, 1999; Rad,
2003), under budget completion (Berssaneti & Carvalho, 2015; Nudurupati et al. 2007; Papke-
Shields, Beise & Quan, 2010), meeting quality criteria (Chou et al., 2013; Rad, 2003; Tam,
Shen, & Kong, 2011), safely completed work (Almahmoud, Doloi, & Panuwatwanich, 2012;
Lim & Mohamed, 1999), and client satisfaction (Gayatri & Saurabh, 2013; Lim & Mohamed,
1999; Nassar & Abourizk, 2014). In the light of previous studies, this study also utilizes those
The framework proposed in this study involves fourteen knowledge areas of the PMBoK
Guide. In the initial step, a total of 76 components are derived regarding the knowledge areas.
After conducting pilot studies with three university professors and two industry practitioners,
some of the components were either combined or removed to best reflect their corresponding
knowledge areas. In the final step, a total of 58 components under 14 knowledge areas are
obtained. The underlying components of each knowledge area are identified (Exhibit 1).
Exhibit 1. Components of Project Management Knowledge Areas
Aibinu and Pasco (2008); Doloi (2011); PMI (2013); Yildiz, Dikmen, Birgonul, Ercoskun and Alten
Cost Estimation
Project Cost (2014).
Management
(F4)
Determination of Budget Ahsan and Gunawan (2010); Atkinson (1999); Doloi (2011); Kim, Kang and Hwang (2012); PMI (2013).
Atkinson, (1999); Jung and Gibson (1999); Jung and Woo (2004); Doloi (2011); Kim et al. (2012); PMI
Cost Control
(2013).
Qureshi, Warraich and Hijazi (2009); Marques, Gourc and Lauras (2011); Wanberg, Harper, Hallowell and
Project Quality Quality Definition
Rajendran (2013).
Management
Quality Standardization Qureshi et al. (2009); Marques et al. (2011).
(F5)
Quality Assurance and Control Aliverdi, Naeni and Salehipour (2013); Flyvbjerg (2014); PMI (2013); Wanberg et al. (2013).
Belout and Gauvreau (2004); Buller and McEvoy (2012); Jiang, Klein and Discenza (2002); Khan and
Project Team Composition
Rasheed (2015); Tabassi and Bakar (2009).
Project Human Belout and Gauvreau (2004); Buller and McEvoy (2012); Jiang et al. (2002); Khan and Rasheed (2015);
Workforce Planning
Resource Tabassi and Bakar (2009).
Management Staff Training Belout and Gauvreau (2004); Huselid, Jackson and Schuler (1997); Jiang et al. (2002);
(F6) Performance Development Birasnav (2014); Buller and McEvoy (2012); Tabassi and Bakar, (2009).
Performance Evaluation Huselid et al. (1997); Youndt, Snell, Dean and Lepak (1996).
Badir, Büchel and Tucci (2012); Ochieng and Price (2010); Meng (2012); Senescu, Aranda-Mena and
Communication Strategies
Haymaker (2013); PMI (2013).
Project Communication Technology Arriagada and Alarcon (2014); Meng (2012); Zhang and Ng (2013).
Communications Arriagada and Alarcon (2014); Badir et al. (2012); Ochieng and Price (2010); Senescu et al. (2013); Zhang
Coordination and Collaboration
Management and Ng (2013).
(F7) Arriagada and Alarcon (2014); Badir et al. (2012); Meng (2012); Senescu et al. (2013); Zhang and Ng
Knowledge Sharing
(2013).
Multi-Cultural Communication Ochieng and Price (2010); Pheng and Leong (2000).
Liu, Zhang, Keil and Chen (2009); Sousa et al. (2014); Zou, Chen and Chan (2010); Zhao et al. (2013);
Risk Identification
Hwang, Zhao and Toh (2014).
Project Risk
Bakker, Boonstra and Wortmann (2010); Eybpoosh, Dikmen and Birgonul (2011); Liu et al. (2009); Zhi
Management Risk Analysis
(1995); Zou et al. (2010).
(F8)
Risk Allocation Hwang et al. (2014); Sousa et al. (2014); Zhao et al. (2013); Zou et al. (2010).
Risk Control Hwang et al. (2014); Liu et al. (2009); Sousa et al. (2014); Zhao et al. (2013); Zou et al. (2010).
Chen, Li and Hong (2004); Eriksson and Westerberg (2011); Ruparathna and Hewage (2014); Meng et al.
Supplier Selection
(2011).
Project Procurement Eriksson and Westerberg (2011); Meng et al. (2011); Ruparathna and Hewage (2014); Wardani et al.
Type of Contract
Management (2006);
(F9) Supply of Resources Chen et al. (2004); Eriksson and Westerberg (2011); Meng et al. (2011); Ruparathna and Hewage (2014).
Risk Management in the Supply
Chopra and Sodhi (2004); Zsidisin, Panelli and Upton (2000).
Process
Achterkamp and Vos (2008); Elias, Cavana and Jackson (2002); Jepsen and Eskerod (2009); Yang, Huang
Identification of Stakeholders
and Wu (2011); PMI (2013); Walker, Bourne and Shelley (2008).
Stakeholder Needs, Interests, and Jepsen and Eskerod (2009); Missonier and Loufrani-Fedida (2014); Mok, Shen and Yang (2015); Yang et
Influences al. (2011).
Jepsen and Eskerod (2009); PMI (2013); Missonier and Loufrani-Fedida (2014); Mok et al. (2015); Yang et
Project Stakeholder Stakeholder Engagement
al. (2011);
Management
Stakeholder Conflicts Missonier and Loufrani-Fedida (2014); Yang et al. (2011).
(F10)
Cheng et al. (2012); Choudhry (2014); Hinze (1997); Mitropoulos, Cupido and Namboodiri, (2009);
Safety Awareness and Culture Molenaar, Park and Washington (2009); Sousa et al. (2014); Tappura, Sievänen, Heikkilä, Jussila and
Nenonen (2015).
Cheng et al. (2012); Choudhry (2014); Hinze (1997); PMI (2005); Mitropoulos et al. (2009); Molenaar et
Project Safety Safety Planning
al. (2009); Tappura et al. (2015).
Management
Cheng et al. (2012); Choudhry (2014); Sousa et al. (2014); Demirkesen and Arditi (2015); Mitropoulos et
(F11) Safety Training
al. (2009); Molenaar et al. (2009); Tappura et al. (2015).
Safety Implementation Cheng et al. (2012); Choudhry (2014); Mitropoulos et al. (2009); Sousa et al. (2014); Tappura et al. (2015).
Cheng et al. (2012); Choudhry (2014); Mitropoulos et al. (2009); Molenaar et al. (2009); Tappura et al.
Safety Inspection and Monitoring
(2015).
Environmental Implementation and
Project Chen et al. (2004); Fuertes et al. (2013); Shen, Wu and Zhang, (2011); Testa, Iraldo and Frey (2011).
Control Measures
Environmental
Environmental Impact Fuertes et al. (2013); Goh and Rowlinson (2013); Shen et al. (2011); Testa et al. (2011).
Management
Environmental Policies and Chen et al. (2004); Fuertes et al. (2013); Goh and Rowlinson (2013); PMI (2005); Shen et al. (2011); Testa
(F12)
Regulations et al. (2011).
Cash Flow Planning Boussabaine and Kaka (1998); Kaka and Price (1993); Pate-Cornell et al. (1990).
Project Financial
Cash Flow Analysis PMI, (2005); Maravas and Pantouvakis (2012).
Management
Foreign Exchange Risk He and Ng (1998); Kapila and Handrickson (2001).
(F13)
Cash Flow Monitoring and Control Bradley and Tomasides (1991); Gardiner and Stewart (2000); Kao, Pan and Lin (2009).
Abdul-Malak, El-Saadi and Abou-Zeid, (2002); PMI (2005); Vidogah and Ndekugri (1997); Zaneldin
Claim Identification
Project Claim (2006).
Management Claim Notification Kartam (1999); Kululanga, Kuotcha, Mccaffer and Edum-Fotwe (2001); PMI (2005).
(F14) Claim Resolution Abdul-Malak et al. (2002); PMI (2005); Vidogah and Ndekugri (1997).
Claim Prevention Kartam (1999); Kululanga et al. (2001); PMI (2005).
Considering the relations between knowledge areas and project management performance, and
interrelations among knowledge areas, a total of 30 hypotheses are developed. Among these,
14 hypotheses represent the relations between knowledge areas and project management
performance; whereas 16 of them represent the interrelations among the knowledge areas. To
best represent the model developed, a visual diagram for the initial model is provided along
with the hypotheses numbered (Exhibit 2). Following sections provide evidence from previous
Hypotheses for the Relationship between the Determinants and Performance Construct
PMBoK Guide lists project integration, scope, cost, time, quality, human resource,
effective project management (PMI, 2013). The engineering management body of knowledge
(EMBoK) also defines competency areas that professionals should possess. EMBoK Guide
management, operations and supply chain management, marketing and sales management in
engineering, legal issues in engineering management, and professional codes of conduct and
One might relate EMBoK Guide to PMBoK Guide in that most of the areas mentioned
in PMBoK coincide with the areas in EMBoK Guide. EMBoK Guide also highlights that the
areas mentioned are crucial for better project management. Apart from those, previous research
For example, the critical role of integration in terms of project portfolio management was
highlighted (Heising, 2012). In addition, it was stated that degree of project integration affects
H1: Effectiveness of “project integration management” has a direct and positive effect on
It was reported that effective scope management has a direct impact on the project outcome
H2: Effectiveness of “project scope management” has a direct and positive effect on “project
management performance.”
As previously conducted studies prove, effective time management provides enhanced project
management performance (Gayatri & Saurabh, 2013; Ngacho & Das, 2014).
H3: Effectiveness of “project time management” has a direct and positive effect on “project
management performance.”
Cost was also indicated among the most important attributes of a project management model
H4: Effectiveness of “project cost management” has a direct and positive effect on “project
management performance.”
It was emphasized that quality of work done is among the most important attributes of project
H5: Effectiveness of “project quality management” has a direct and positive effect on “project
management performance.”
Project performance and knowledge absorptive capacity of project teams are highly affected
H6: Effectiveness of “project human resource management" has a direct and positive effect on
Communication is one of the key components of improved performance (Badir, Buchel, &
Tucci, 2012).
H7: Effectiveness of “project communications management” has a direct and positive effect
It was demonstrated that effective risk management leads to enhanced project performance
H8: Effectiveness of “project risk management" has a direct and positive effect on “project
management performance.”
It was shown that collaborative procurement practices have a positive influence on construction
H9: Effectiveness of “project procurement management” has a direct and positive effect on
construction (Kagioglu et al., 2001). Stakeholder attributes are among the success factors for
measuring performance (Takim & Akintoye, 2002, Rad, 2003, Bassioni, Price, & Hassan
2004). Project stakeholder management has a direct influence on project success (Freeman
Harrison, Wicks, Parmar, & De Colle, 2010).
H10: Effectiveness of “project stakeholder management” has a direct and positive effect on
Construction Extension to A Guide to the PMBOK Guide of PMI (2005) indicates that safety,
environmental, financial, and claim management are among the most important attributes of
project management.
H11: Effectiveness of “project safety management” has a direct and positive effect on “project
management performance.”
The strong link between the effectiveness of project environmental management and business
H12: Effectiveness of “project environmental management” has a direct and positive effect on
Financial attributes are highly effective on project performance (Akanni, Oke, & Akpomiemie,
2015).
H13: Effectiveness of “project financial management” has a direct and positive effect on
which in turn leads to enhanced project performance (Vidogah & Ndekugri, 1997). It was
indicated that successful handling of claims is one of the most important components of
H14: Effectiveness of “project claim management" has a direct and positive effect on project
management performance.
Hypotheses for the Interrelations among the Determinants of Project Management
Performance
Early studies show that integration management has a direct influence on scope management.
For instance, program or project directors, who use high levels of integration and scope
practices are more likely to be top performers (Crawford, 2005). Scope was listed as one of the
H15: Effectiveness of “integration management” has a direct and positive effect on “scope
management”.
It was indicated that scope management has a direct impact on the time, procurement,
risk, and quality management (Chou et al., 2013). Strong correlation was found between scope
and time management (Chou & Yang, 2012). The essential function of broadly defined scope
on procurement for achieving better procurement practices was emphasized (Schapper, Veiga,
Malta, & Gilbert, 2006). The critical importance of scope in risk management activities was
implied (Haimes, 2004). The clarity of scope is one of the most important elements of total
H16: Effectiveness of “scope management” has a direct and positive effect on “time
management”.
H17: Effectiveness of “scope management” has a direct and positive effect on “procurement
management”.
H18: Effectiveness of “scope management” has a direct and positive effect on “risk
management”.
H19: Effectiveness of “scope management” has a direct and positive effect on “quality
management”.
The impact of time management on cost management was implied in different studies.
Time-cost trade off problems become a challenge for successful project management since
crashing an activity ensures time saving but increases the cost (Babu & Suresh, 1996). Early
completion of projects might be achieved through cost activities (Hu, Cui, Demeulemeester,
&Bie, 2016; Kerzner, 2009). Studies also emphasized the link between time and claim
management as well. It was provided that untimely notification of claims leads to difficulty
H20: Effectiveness of “time management” has a direct and positive effect on “cost
management”.
H21: Effectiveness of “time management” has a direct and positive effect on “claim
management”.
demonstrated in different studies (Alshawi & Ingirige, 2003; Bowen, Cattel, Hall, Edwards &
Pearl, 2012), which reported that clients demand high quality and low cost at the same time.
H22: Effectiveness of “cost management” has a direct and positive effect on “quality
management”.
several studies. It was indicated that quality management is strongly associated with
procurement management (Chou et al., 2013). Systems and processes for quality control are
listed as the key elements of a procurement management model to relate quality with
H23: Effectiveness of “quality management” has a direct and positive effect on “procurement
management”.
The link between human resource management and safety management practices was
implied in several studies. Human resource management department plays a critical role in
providing construction workers with feedback about unsafe behaviour and being sensitive
towards contract employment relationships for workplace safety (Kochan et al., 2003; Lai, Liu,
& Ling, 2011). The strong association between human resource management and cost
management was also indicated in several studies (Dess & Shaw, 2001; Singh, 2003) since
recruiting costs, cost of human capital, and training costs of employees are strongly linked to
H24: Effectiveness of “human resource management” has a direct and positive effect on
“safety management”.
H25: Effectiveness of “human resource management” has a direct and positive effect on “cost
management”.
management (Baccarini, Salm, & Love, 2004). Stakeholder information, response and
involvement are very important for corporate social responsibility communication (Morsing &
Schultz, 2006). Communication is the key point for managing crises arising among
stakeholders and for achieving success (Ulmer, 2001). Improved communication leads to
higher project performance (Chang & Shen, 2009). There is a positive relationship between
communication among top management and project success (Ahmed & Mohamad, 2016).
“stakeholder management”.
Previous studies emphasized that risk management has a direct association with the
successful execution of projects (Zhi, 1995). Environmental risks are among the most
important risk categories for construction projects (Al-Bahar & Crandall, 1990). The impact of
risk management on financial management was demonstrated in Odeyinka, Lowe and Kaka’s
(2008) study, which determined that risk factors have direct impact on cash flow forecasts.
H27: Effectiveness of “risk management” has a direct and positive impact on “environmental
management”.
H28: Effectiveness of “risk management” has a direct and positive impact on “financial
management”.
was reported in previous studies. For example, it was indicated that stakeholder participation
for the solution to technical and environmental problems (Reed, 2008). It was implied that
stakeholders have a strong influence on conservation projects, where environmental factors are
“stakeholder management”.
The link between financial management and cost management was also sought. For
example, it was mentioned that disclosure costs are important in the choice of financial
resources (Yosha, 1995). Financial objectives were defined in terms of total life cycle cost
(Jaafari, 2001).
H30: Effectiveness of “financial management” has a direct and positive effect on “cost
management”.
Research Methodology
Based on the proposed model, an online questionnaire was designed and administered to
project management professionals in Turkish construction firms. The questionnaires were sent
to key large-scale engineering, construction, and architecture firms. The firms are selected
based on their age, annual turnover and number of employees, which are the indicators of a
large firm. Exhibit 3 reflects the characteristic of responding firms. The targeted respondents
Architectural Archive of Turkey. A total of 99 online questionnaires were returned out of 508
sent out. To increase the response rate, face-to-face interviews were conducted with 22
professionals, where the same questionnaire items are verbally provided. Face-to-face
interviews are selected among the respondents who did not return the questionnaire in the first
hand and the return rate for face-to-face invitations was 100%. The total responses collected
resulted in 121 responses with a response rate of 24%. The respondents were asked to fill in
the questionnaires based on the project management performance of their completed projects.
The collected data represent 121 different construction projects that were undertaken by
82 different firms, where some of the firms provided multiple data. The survey includes two
main parts: (i) general information about the company, respondent and the project; and (ii)
variables for project management performance. The respondents were asked to evaluate their
project management performance based on the effectiveness of the listed variables using a 1-5
point Likert scale (1: very low, 2: low, 3: medium, 4: high, 5: very high). Additionally, they
evaluated the level of project management performance based on the specified project success
summarizes project characteristics. According to Exhibit 4, most of the projects are building
projects, and contractors are the most numerous respondents in the survey. The average project
duration, based on the information provided, is 2.9 years. The average contracted duration is
2.4 years, indicating delays were common. The most common type of contract is unit price
contract. Finally, most of the projects’ budget lies between 400-600 million US dollars.
Exhibit 4. Characteristics of the Projects
Project Completion
Project Type Role in the Project Contract Duration Contract Type Contractual Budget
Time
(Numbers) (Numbers) (Average Years) (Numbers) (Million dollars)
(Average Years)
Building (55) Contractor (57) Contractor (3.5) Contractor (2.6) Unit Price (70) 0-200 (13)
Structural Designer Structural Designer Structural Designer
Transportation (21) Turnkey (27) 200-400 (24)
(8) (2.7) (2.2)
Architectural Designer Architectural Designer Architectural Designer
Industrial (17) Lump Sum (16) 400-600 (37)
(6) (2.5) (1.8)
Infrastructure (12) Subcontractor (4) Subcontractor (3.3) Subcontractor (3.2) Cost Plus Fee (6) 600-800 (25)
Build-Operate-
Water Structures (11) Client (4) Client (2.6) Client (2.2) 800-1000 (15)
Transfer (2)
Other (5) Other (3) Other (2.8) Other (2.5) - +1000 (7)
Data Analysis
The data were analyzed using a software package called Analysis of Moment Structures, a
methodology that is used to analyze structural relationships, and it takes confirmatory approach
into account and tests hypothesis among observed and latent variables (Bollen & Long, 1993;
A typical structural equation model consists of two parts: the measurement model and
the structural model (Kline, 1998). The measurement model defines how the hypothetical
constructs are measured by means of the observed variables where the structural model
specifies the causal relationships among the latent variables (Byrne, 2012). In structural
equation modeling, the validity of the hypothesized constructs also needs to be tested. There
are two types of validity, namely the content and construct validity, which must be achieved in
In this study, research judgment and insight is applied for content validity since there
is no formal statistical test (Garver & Mentzer, 1999). The indicators of each proposed
construct were selected after an in-depth literature review and they were revised with the
contribution of two industry practitioners (one board member, one project manager) and three
university professors, who took part in the pilot studies for establishing the content validity of
the constructs.
Convergent validity, discriminant validity, and reliability are the main elements of the
construct validity. Examination of factor loadings and goodness of fit indices is a method of
construct is a way of assessing discriminant validity (Byrne, 2012). Factor loadings are
important in confirmatory factor analysis since indicators which are not statistically significant
are deleted from the model. This operation helps improve the internal reliability and fit indices
as well.
Exhibit 5 represents the factor loadings corresponding to the latent and constituent
variables of the model. “F” label in Exhibit 5 represents factor and “V” label represents
variable. It is observed that all factor loadings are statistically significant at α=0.05. Hence,
The reliability of the all constructs is satisfied when Cronbach’s ‘α’ coefficient is over 0.7 for
all the constructs (Nunnally, 1978). For testing goodness of fit, Chi-square (χ2) test was
assessed. The smaller the Chi-square value, the better fit is observed. In analysis of moment
structures, a ratio of Chi-square over degree of freedom is proposed as a fit measure. Although
there is no agreed consensus on Chi-square over degree of freedom value, a ratio lower than
5.0 is an acceptable range (Marsh & Hocevar, 1985). Relative fit index (Bollen, 1986),
Comparative fit index (Bentler, 1990), and Tucker-Lewis index (Tucker and Lewis, 1973) are
measures for comparing the proposed model to the null or independence model. The values of
those indices lie between 0 and 1.0 where values approaching 1.0 indicate good fit.
The root mean square error of approximation (Steiger & Lind, 1980) is a parsimony-
adjusted index, which includes a built-in correction for model complexity. A threshold value
of root mean square error of approximation was previously proposed indicating that values less
than 0.1 shows acceptable fit (Kline, 1998). Exhibit 6 shows that the reliability of all constructs
and fit indices are in the acceptable ranges with a few exceptions in some of the indices.
However, the values of fit indices and root mean square error of approximation values are close
to the cut-off value of 0.9 for the fit indices and 0.1 for the recommended root mean square
Nonetheless, research studies have previously implied that these cut-off points are
(Browne & Cudeck, 1993; Steiger, 1989). Moreover, a group of studies demonstrated that the
use of precise numerical cut-off values for root mean square error of approximation should not
! 24!
Exhibit 6. Reliability and Fit Indices for the Constructs of the Model
Recommended
Index F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F11 F12 F13 F14 F15
Value
Cronbach’s Alpha > 0.7 0.896 0.864 0.898 0.898 0.917 0.875 0.898 0.945 0.892 0.935 0.954 0.953 0.916 0.875 0.822
Chi Square/Degree of freedom < 5.0 1.834 1.345 1.472 1.778 1.158 1.482 1.746 1.557 1.782 3.662 2.016 1.989 1.543 1.391 4.607
Relative Fit Index > 0.9 0.932 0.978 0.964 0.980 0.988 0.959 0.956 0.981 0.970 0.954 0.972 0.985 0.977 0.971 0.841
Comparative Fit Index > 0.9 0.987 0.998 0.995 0.997 0.999 0.996 0.994 0.999 0.998 0.989 0.996 0.998 0.999 0.997 0.949
Tucker-Lewis Index > 0.9 0.968 0.994 0.988 0.991 0.998 0.986 0.981 0.993 0.987 0.966 0.986 0.993 0.992 0.992 0.871
Root Mean Square Error of Approximation < 0.1 0.084 0.054 0.063 0.081 0.036 0.064 0.079 0.068 0.081 0.150 0.092 0.091 0.068 0.057 0.174
! 25!
Structural equation modeling tests the hypotheses between the validated constructs. In
the first step, the relationships among the determinants of project management performance
are assessed. Exhibit 7 presents the hypothesized relationships for project management
performance. The arrows represent the direction of influences between the parameters of the
model where the numbers on the arrows show the path coefficients. Path coefficients are the
equivalents of regression weights except that there is no intercept term in structural equation
modeling. An interpretation guideline adopted from Murari (2015) is used for evaluating the
strength of association between variables, where the path coefficient ranging from 0.1 to 0.3
shows weak; 0.3 to 0.5 moderate, and 0.5 to 1.0 strong association.
performance are assessed. A significant and moderate effect of “integration management” with
management” (0.352) and “safety management” (0.323) are found to have a positive and
management” (0.235), “risk management” (0. 234), and “financial management” (0.222) were
all found to have a positive and weak effect on “performance”. Unlike the above knowledge
The paths that are not statistically significant, represented by the dashed lines, are
eliminated from the initial model. The final path coefficients are shown in Exhibit 7.
! 26!
Exhibit 7. Project Management Model
In some cases, both direct and indirect or only indirect effects are observed. For
example, scope management has an indirect effect on performance through risk management;
time management through cost management; risk management through financial management
in addition to its direct effect on performance; human resource management through cost
management in addition to its direct effect; and financial management through cost
Exhibit 8 presents the reliability values and fit indices for the initial and modified
model. Cronbach’s Alpha values were found higher than 0.7 as recommended by Nunnally
(1978). Relative fit index, Confirmatory fit index and Tucker-Lewis index values were also
found around 0.9, which indicates good fit of the model to the data. Furthermore, root mean
square error of approximation values were found to be below the threshold value as
recommended by (Kline, 1998). Finally, the correlation matrices were calculated for all
constructs and the intercorrelations were all found below 0.90, which indicated that there is no
multicollinearity (Hair, Anderson, Tatham & Black, 1998). Exhibit 8 shows that the fit indices
are slightly better in the final model. According to Exhibit 8, it is clear that model fit is ensured.
! 27!
Exhibit 8. Reliability and Fit Indices
Discussion of Findings
Among the 16 hypotheses developed in this study regarding the interrelations among the
knowledge areas, 15 were validated as suggested in the literature. However, the hypothesis
regarding the influence of cost management on quality management was rejected despite
several studies that found the link between cost and quality management (Alshawi & Ingirige,
2003; Bowen et al., 2012). This may be because contractors in Turkey are much more sensitive
about achieving under budget completion rather than ensuring the specified quality
requirements.
Among the 14 hypotheses related with project performance, seven were validated
whereas seven were rejected. This is mainly because the model involves a high number of
determinants and the magnitudes of influence of those determinants on performance are found
to be low compared to a model that involves a fewer number of constructs. The expected
positive effect of integration, cost, human resource, communications, safety, risk, and financial
management on performance was validated by the analysis as also provided in the literature. It
is also essential to note that the positive effects of these areas on performance are supported
with well-set practices such as incentive and reward mechanisms that intend to increase
employee performance on the project. These reward mechanisms might have a considerable
! 28!
impact on project success in that employees get motivated or work towards improving their
skills.
was not validated despite the previous studies supporting the direct association between project
scope management and performance (Koskela & Howell, 2002). On the other hand, it is found
that scope management has indirect effects through risk and environmental management,
which proves its relative importance. The reason behind the low direct impact of scope
management on performance might be that firms do not indicate clear specifications, roles and
responsibilities of the project parties in defining the project scope, which in turn leads to poor
scope management.
Although researchers have previously indicated that effective project time management
contributes to enhanced project performance (Gayatri & Saurabh, 2013; Ngacho & Das, 2014),
positive effect of time management on performance was not validated by the analysis.
management was observed. This may be because construction firms in Turkey are more
sensitive to under budget completion rather than on time completion. Since owner expectations
mostly focus on the use of monetary resources, it is not surprising that many of the firms put
more focus on cost management. Moreover, it is worth noting the impact of ease of
measurement of cost on performance than time. Schedule is less clear in terms of considering
the exact project start and completion due to the subjectivity in deciding when the tasks are
100% done.
several studies indicating the relationship between quality and performance (Atkinson, 1999;
Chua, Kog, & Loh, 1999; Westerveld, 2003). As indicated by Koskela & Howell (2002), the
! 29!
reason might be that the firms evaluate cost minimization as one of the priorities whereas
quality is regarded as one of the secondary objectives that must be achieved in the project.
performance (Eriksson & Westerberg, 2011; Ling, Low, Wang, & Lim, 2009). This may be
because some firms manage supply chain relations through subcontractors, and they do not set
the studies supporting evidence of the relationship between stakeholder management and
performance (Atkinson, Crawford, &Ward, 2006; Rowlinson & Cheung, 2008). This may be
as attributed to the fact that stakeholder management is not as important as the other project
management areas such as cost and time management as mentioned in past studies (Rayner &
research (Chan & Chan, 2004; Montabon, Sroufe, & Narasimhan, 2007; Yang, Chen, & Wang,
2012). This may be because firms are more focused on short term profiting due to the fact that
was rejected even though several research studies indicated that claim management has a
considerable impact on performance (Nitithamyong & Skibniewski, 2006). The reason behind
this finding might be the higher influence levels of the other knowledge areas such as
The impact of project characteristics on project success was also sought. The findings
indicate that water structures are completed with higher success rates compared to the other
project types such as infrastructure, building, and transportation. Small size projects are found
! 30!
to be more successful; longer durations lead to lower success rates; projects involving
consortiums are more likely to succeed; and cost-plus fee contracts are more advantageous over
practices. Hence, they need to work in close coordination with all members of the project. To
better manage projects, engineering managers are expected to be familiar with the concepts of
performance management. This study proposes a unique set of variables for project
conceptual model. Moreover, the relations among the aspects of project management are
quantified. With the adoption of the model developed, engineering managers might better
coordinate projects by analyzing the metrics developed for aspects of project management and
integrate these into the projects so as to better coordinate and collaborate throughout the
project. This will also help engineering managers experience improved project performance,
which in turn results in trust for future projects. This study enables engineering managers to
benefit from increased awareness of the low performing areas, enabling them to adopt
appropriate strategies for improved performance. Based on the dominant impacts of project
integration, human resources, financial, and risk management, engineering managers can
become aware that innovative and integrative solutions are required to better perform in project
management. The model proposed in the study is also expected to encourage engineering
managers for successful project evaluation in the light of upper level executives’ perceptions
Conclusions
! 31!
This study has proposed a project management performance model for construction firms. In
this respect, project management knowledge areas have been adopted as the key determinants
performance, where 58 belong to knowledge areas and 5 belong to performance construct. Data
was collected from 121 projects through a questionnaire survey. Structural equation modeling
Findings of the study reveal that project integration, human resource, financial, and risk
communications, safety, and cost management are found to have direct impact on performance.
Project scope and time management are observed to affect performance indirectly over risk and
cost management. However, the effects of project claim, procurement, quality, stakeholder,
and environmental management on performance were not found to be significant. Apart from
the association between the determinants and performance, strong links were observed among
•! Based on the high influence of integration, human resource, financial, and risk
management on performance, firms are expected to focus on these areas. For more
effective integration management, they should prioritize key integration initiatives, develop
sound feasibility reports and tracking mechanisms, consider issue and change management,
and make accurate status reporting. In this respect, Integrated Project Delivery Systems,
! 32!
and performance development and evaluation. It is advised that firms evaluate their
financial viability and resources at the beginning of the projects, and establish financial
Firms are encouraged to prioritize project risks, set up risk management procedures where
performance, it is suggested that firms try to improve their capabilities in these areas. In
mechanisms for safety personnel, enhance awareness for safety, set work safe procedures,
and adopt zero accident policies. They are also advised to enhance cost performance
progress monitoring curves, conducting earned value analysis, and adopting lean
•! Based on the indirect impacts of scope and time management on performance, these areas
should not be ignored. Firms should pay attention to the existence of clear objectives,
Contractors are encouraged to use the proposed model and its components to measure their
project management performance and benefit from its findings to improve low performing
areas. Findings show the importance of technology and therefore, firms should invest more on
learning advanced tools and concepts to enhance their performance. Although the model is
! 33!
based on completed project information, the study provides strategies that could be used both
One of the limitations of this study is that the data was collected from Turkish contractors
and therefore it reflects their experiences and opinions. Data from different projects undertaken
by different companies might result in varying findings. However, the main contribution of the
study to the literature is that it provides construction specific measures for project management
performance. The proposed model could easily be used in other studies and the findings may
be used for comparison. This model may serve as the basis for developing an entirely
a new set of knowledge areas might be composed along with tools and strategies to support
those areas.
Acknowledgement
This study This paper is produced based on a research project funded by Bogazici University
degree in Civil Engineering from Bogazici University. Her current research focuses on lean
Dr. Beliz Ozorhon has been working as a faculty member of Construction Management in
international construction joint ventures in her PhD study. She worked as a researcher in
Middle East Technical University (Ankara, Turkey), Illinois Institute of Technology (Chicago,
IL), and the University of Salford (Manchester, UK). Her research focuses on process and
! 34!
performance management, construction innovation, building information modeling, and
international construction.
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