Thesis Docc
Thesis Docc
BY:
EMEBET GASHAW
JIMMA UNIVERSITY
SCHOOL OF GRADUATE STUDIES
COLLAGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ACCOUNTING
AUGUST 9, 2022
JIMMA, ETHIOPIA.
CERTIFICATE
This is to certify that the thesis entitles “The Influence of Project Management Software on
Project Success: A study of Construction Company, Addis Ababa, Ethiopia”, submitted to Jimma
University for the award of the Degree of Master of Art (MA) and the research work is carried
out by Ms. Emebet Gashaw, under our guidance and supervision.
Therefore, we hereby declare that no part of this thesis has been submitted to any other
university or institutions for the award of any degree or diploma.
Emebet Gashaw
Date: ______________
Signature: _______________.
Abstract
Construction projects are commonly admitted as successful when they are completed on time,
within budget, and in line with quality. While large amounts of time and resources are devoted to
selecting and designing projects, it remains of vital importance that projects be effectively
managed to achieve their objectives. Nowadays it is almost unable to meet project constraints
without the application of technologies. Information and communication technology offers
adequate tools to support project tasks, where PMS is one of those tools. The purpose of the
study was to establish the influence of PMS on the construction project Success: a study of
construction company Addis Ababa, Ethiopia. The target population data was obtained from
construction firms in Addis Ababa registered in the Ministry of Urban Development and
Construction under categories of grade one contractors; purposive sampling was adopted to
select the sample from the target population. Descriptive analysis, Correlations and econometric
analysis (using ordered logistic regression model) were performed to analyze the collected data
and establish the relationship between the dependent and independent variables using the SPSS
software. The results of all descriptive, correlation, ordered logistic analysis were consistent and
showed that all four explanatory variables have a significant positive effect and determinant of
construction projects success. Accordingly, the application of PMS is advantageous for the
success of construction projects with respect to time, budget and quality constraints of the
project. The study recommends that construction companies should expand the use of PMS in
planning and managing the upcoming projects by assigning well trained users/project managers.
Key Words: - Information and communication technology, ordered logistic regression, Project
management software, Project success.
I
ACKNOWLEDGMENTS
I would like to express my gratitude to my advisors Mr. Mohammed G. (Ass. Professor) and Mr.
Temam A. f or their guidance, constructive criticism and thorough review of my work during
this research project. I am also grateful to the construction firms who made the study possible by
providing the research data. Finally, I wish to express my appreciation to my dearest mother and
to my beloved husband for their valued love, support and encouragement throughout the period
of my study.
II
Table Of Contents
ABSTRACT ............................................................................................................... I
LIST OF TABLE .................................................................................................. IV
LIST OF FIGURE .................................................................................................. V
ABBREVIATIONS/ACRONYMS ...................................................................... VI
CHAPTER ONE ......................................................................................................1
1. INTRODUTION ................................................................................................1
1.1. BACKGROUND OF STUDY .............................................................................................................. 1
1.2. PROBLEM STATEMENT ................................................................................................................. 5
1.3. OBJECTIVES OF STUDY ................................................................................................................ 6
1.3.1. Main objective of the study .................................................................................................. 6
1.3.2. Specific objectives the study ................................................................................................. 6
1.4. RESEARCH QUESTIONS ................................................................................................................. 6
1.5. SIGNIFICANCE OF STUDY ............................................................................................................. 7
1.6. SCOPE OF STUDY .......................................................................................................................... 7
III
3.4. METHOD OF DATA ANALYSIS & PRESENTATION ....................................................................... 25
3.4.1. Descriptive Analysis ........................................................................................................... 25
3.4.2. ECONOMETRICS ANALYSIS ......................................................................................................... 25
3.4.2.1. Model Specification............................................................................................................ 25
3.4.3. Presentation ........................................................................................................................ 26
3.5. MEASUREMENT & VARIABLE DEFINITION ................................................................................ 27
3.5.1. Independent Variables ....................................................................................................... 27
3.5.2. Dependent Variable............................................................................................................ 28
3.6. ETHICAL CONSIDERATIONS ........................................................................................................ 29
CHAPTER FIVE....................................................................................................43
SUMMARY OF FINDINGS, DISCUSSIONS, CONCLUSIONS AND
RECOMMENDATIONS .......................................................................................43
INTRODUCTION ....................................................................................................................................... 43
5.1. FINDINGS SUMMARY................................................................................................................... 43
5.1.1. Quality of PMS ................................................................................................................... 43
5.1.2. Quality of Generated Information ..................................................................................... 44
5.1.3. PMS Use ............................................................................................................................. 44
5.1.4. PMS User............................................................................................................................ 45
5.2. CONCLUSION ............................................................................................................................... 45
5.3. SUGGESTIONS ............................................................................................................................. 46
REFERENCE .........................................................................................................47
IV
APPENDICES: .......................................................................................................51
APPENDIX 1፡ SURVEY QUESTIONNAIRE ...................................................................................... 51
APPENDIX 2: SURVEY QUESTIONS ................................................................................................ 52
SECTION 1: BACKGROUND INFORMATION: ........................................................................... 52
SECTION 2: ....................................................................................................................................... 53
APPENDIX 3: KREJICE AND MORGAN TABLE ...................................................................................... 56
APPENDIX 4: SPSS OUTPUT SHEET................................................................................................ 57
4.1. Descriptive Statistics Output .............................................................................................. 57
4.2. Data Screening ................................................................................................................... 59
4.3. Reliability Analysis ............................................................................................................. 59
4.4. Correlation Analysis........................................................................................................... 60
4.5. Ordinal Logistic Analysis Output ...................................................................................... 61
V
List of Table
TABLE 3-1. OPERATIONAL DEFINITION OF INDEPENDENT VARIABLES..............................................................................28
TABLE 3-2. OPERATIONAL DEFINITION OF DEPENDENT VARIABLES ...................................................................................28
TABLE 4-1. GENDER DISTRIBUTION ................................................................................................................................30
TABLE 4-2. AGE DISTRIBUTION OF THE RESPONDENTS.....................................................................................................31
TABLE 4-3. DISTRIBUTION OF RESPONDENT EDUCATION LEVEL .......................................................................................31
TABLE 4-4. RESPONDENTS EXPERIENCE DISTRIBUTION ....................................................................................................31
TABLE 4-5. MISSING VALUES..........................................................................................................................................32
TABLE 4-6. CRONBACH’S ALPHA TEST.............................................................................................................................32
TABLE 4-7. PMS QUALITY ..............................................................................................................................................33
TABLE 4-8. THE QUALITY OF GENERATED INFORMATION FROM PMS ...............................................................................34
TABLE 4-9. PLANNING FUNCTION TOOL ..........................................................................................................................35
TABLE 4-10. CONTROLLING FUNCTION TOOL ..................................................................................................................35
TABLE 4-11 MONITORING FUNCTION TOOL .....................................................................................................................36
TABLE 4-12. EVALUATING FUNCTION TOOL ....................................................................................................................36
TABLE 4-13. REPORTING FUNCTION TOOL ......................................................................................................................37
TABLE 4-14. PMS USER ................................................................................................................................................37
TABLE 4-15. PROJECT SUCCESS INDICATORS ..................................................................................................................38
TABLE 4-16. CORRELATION RESULT ...............................................................................................................................39
TABLE 4-17. TEST OF PARALLEL LINES RESULT................................................................................................................40
TABLE 4-18. GOODNESS OF FIT RESULT..........................................................................................................................41
TABLE 4-19. ORDERED LOGISTIC REGRESSION OUTPUT ...................................................................................................41
IV
List of Figure
FIGURE 2.1. THE UPDATED INFORMATION SYSTEM SUCCESS MODEL (ISSM) (DELONE, MCLEAN 2003). ........................18
FIGURE 2.2. TECHNOLOGY ACCEPTANCE MODEL (TAM) (DAVIS, BAGOZZIS AND WARSHAW 1989). ..................................19
FIGURE 2.3. CONCEPTUAL FRAME WORK.......................................................................................................................21
V
ABBREVIATIONS/ACRONYMS
CPM: Critical Path Method
VI
CHAPTER ONE
1. INTRODUTION
This chapter grants the introductory background information, the research problem, the research
questions, objectives, scope, significance and limitations of the study. And also, the organization
of the paper is presented here in this chapter.
Globalization of markets has elevated competitive pressures on business enterprises. This has led
companies to interact in projects that are imperative to their performance, if not their survival.
The evolution of international competitive markets has led to a fact that projects in an ordinary
business such as engineering, information technology; construction etc need to be highly
managed, in terms of planning, scheduling, organizing, monitoring, and controlling (Liberator
and Johnson, 2003). In order to undertake this, organizations must manage projects within
selected time, budget, and in high performance while managing project risk.
Although project management systems assist an organization decrease product and service
development time to market, exploit restricted resources, and enlarge global market rivalry,
project managers still need to utilize tools that helps in overcoming various challenges such as:
uncontrollable time and budget restrictions; inconsistent project teams; unpredictable of firms
resources; lack of clarity in prioritizing projects; delays in project decisions making; and lack of
clarity in collaboration among project team members. Therefore, while projects managers
continue to struggle with these problems, they are obligated at the same time to make decisions
in such a way that risk is controlled, uncertainty minimized and where every decision made by
them will ideally be beneficial to the project. This can be accomplished when the enterprise
acquires a Project Management Information System as a mean to provide top managers with the
essential tools that aid the decision-making process with regards to selecting, planning,
organizing, and controlling projects and portfolios.
The project management software currently employed in the construction industry can be divided
into two types. The first one is off-the-shelf commercial software, where projects are managed
using Gantt Charts, the Program Evaluation and Review Technique (PERT) (Kerzner, 2005) and
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the Critical Path Method (CPM) (Woolf, 2007). These management techniques have quickly
spread into many private enterprises. Thus, a lot of the related commercial software packages
cater for the aforementioned techniques; examples include Microsoft Project, Primavera Project
Planner and SAP. The second type of project management system is custom in-house software,
when commercial software does not meet the particular requirements of an engineering project
or firm; some firms will develop custom in-house project management software to meet their
needs. Examples of this include Bechtel (Schmitz, 1991), Parsons Brinckerhoff (2004), Kajima
(Nagasaki, et.al. 2000).
According to Romeo & Camelia (2011), the Selection of the right software for project
management depends on the price of the tool, functionality of the tool, easy to use of the tool,
complexity of project and others criteria and this project management software can be
categorizedas:
Project management software market encloses a lot of products. From all these, the free/open-
source PMS are one of PMS which considered to be a special category, being perfect for small
businesses. A reason is the fact that such businesses actually do not need to buy huge project
management software, but to understand the value of a well-founded project management. This
free software / OS generally provide only basic functionality such as time lines rudimentary,
PERT charts, or Gantt charts. In terms of cost accounting line their offer is slight, particularly for
risk management and customer support.
General project management software also categorized under PMS. Some tools such as
Microsoft Project and Visio are examples of applications well rated among PM software. They
do everything fairly well, but nothing tremendously. That PM software is mere tool in the hands
of the project manager. Such types of software are relatively cheap and more advanced than
open-source software.
Thirdly, client-server project management software which is more specialized in niche areas.
They are more targeted to desktop software and offers rich features such as the Gantt and PERT
charts, risk management, Critical Path Analysis, EVA, accounting, and resource utilization.
This type of software tool is more targeted to desktop software which installs in server computer
and then accessed by clients found in the same network and offers rich features such as the Gantt
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and PERT charts, risk management, critical path analysis, EVA, accounting and resource
utilization.
Traditional project management systems mainly provide text, basic graphs, and complicated
network schedules for controlling projects and making decisions. Today’s projects are becoming
ever more complex and time driven, especially as the amount of project information and active
project participants increases. Thus, we require more effective project tools for integration,
management and communication. It therefore follows that effective project management
software should not only provide sufficient and comprehensive information to facilitate project
management, but also provide the various visualization tools to assist with information
distribution and communication.
Much new software has been developed and being implemented by construction firms in
different countries. Among various software, web-based project management software has been
highlighted due to their strong benefits such as low cost compared with traditional
communication method, location free access, speedy and reliable data transfer and storage, and
efficient information sharing among parties (Tam et.al., 1999).
In Korea and Japan web-based Project Management Software is one of the most widely used
tools that supports and enhances the collaboration and communication between construction
project participants. The reason for the swift adoption of web-based Project Management
Information Systems in the Korean and Japan construction industry closely relates not only to the
above-mentioned advantages, but also to the well-established internet infrastructure and users'
familiarity with web-based computing environment (Jung et al., 2004b).
In England, there are two types of Project Management Information Systems in the construction
field: One is that which is developed and used by individual construction companies. The other is
the ASP (Application Service Provider)-based Project Management Information System which is
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developed for general construction projects but can be customized for specific construction
projects. The former can be considered as one of the information systems (e.g. MIS and ERP
systems, etc.) used in a company exclusively, while the latter are generally used by various
project participants such as client, architect, constructor, sub-contractor and construction
manager, and their quality is considerably more dependent on the capability of service providers
(Stewart & Mohamed, 2004).
In South Africa, ERP systems are being used by construction companies to improve
responsiveness in relation to customers, strengthen supply chain partnerships, enhance
organizational flexibility, improve decision making capabilities and reduce project completion
time and lower costs.
Ethiopian construction firms also got project management software. However, the extent of
project management software usage and their influence on the success of construction projects in
Ethiopia is largely unknown including whether the construction firms are using the proper tools
to improve the performance of their construction project. This is despite the fact that the
performance of the construction industry is crucial to the Ethiopian economy. According to
national bank of Ethiopia, in 2020/21 fiscal year, the construction industry accounts for 6.6% of
Ethiopia’s GDP. This shows that any effort made to further increase the productivity of the
construction industry will lead to an increased growth of the national economy.
According to (Kaiser et al., 2010) the use of Project Management Information System is based
on the belief that their cost will be offset by the benefits that come along with it. They continue
to say that the broadening of Project Management Information System scope enables
organizations to not only manage individual projects but whole project portfolios. In general,
Project Management Information System support most of the project life cycle phases.
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1.2. Problem Statement
Construction projects are commonly acknowledged as successful when they are completed on
time, within budget & specified quality. Many of projects exceed the original cost; get cancelled
prior to completion, while others fail on terms of the delivered functionality. While large
amounts of time and resources are dedicated to selecting and designing projects, it remains of
paramount importance that projects be adequately managed in organizations if they are to
achieve their performance objectives.
In Ethiopia, according to different scholars such as Nega, (2008), Fetene, (2008)& Dagim,
(2017), contractors give poor service through poor documentation, poor decision making and
extension of time variation during project implementation leading to stalling of projects or total
failure. A project manager simply cannot make and execute meaningful decisions without
relevant and timely information.
The application of the modern and suitable project management software is essential to make the
job of the project manager and team easier. Even if powerful project management software is
expensive and requires skilled personnel, managing a project with help of appropriate tool has a
desirable effect on the successful completion of the project. Construction company in Ethiopia
adopt different project management software that is expected to assists the project manager and
team in project tasks. The companies envisioned this tool is helpful for effectively and efficiently
manage its projects by completing within budget, schedule and expected quality. But having the
tool by itself does not bring the result the company planned to make happen but the proper
application of the tool will add value to the success of the project.
Even though construction industry being an important industry that makes enormous
contribution to the Ethiopian economy, there appears to be no study that has addressed the link
between project management software and construction project success and therefore there are
some gaps in the literature that ought to be filled, these include what areas can project
management software be used in construction projects, what is the level of management software
utilization and its relationship with project success.
Therefore, worthwhile to investigate about the impactof PMS on Ethiopian construction industry
sector to find out the characteristics of this software that contribute to the construction industry
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in Ethiopia. Thus, the purpose of this study is to explore the influence of Project Management
software on project success in construction industry in Ethiopia, Addis Ababa with regard to the
Software, quality of information, the Software use and the Software user during the entire project
life cycle to increase project success rate.
The main objective of this study was to investigate the influence of project management software
on project success in the construction industry: A study of Addis Ababa, Ethiopia.
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1.5. Significance of Study
It is hoped this study will contribute to the existing body of knowledge to researchers and
academicians seeking secondary data about the influence of Project Management software on
construction project success. It is also hoped that its findings and recommendations will inform
current practice and the relevant authorities like the Ministry of Urban Development and
Construction, Ethiopian Construction Authority and Ministry of Public Works on actions that
need to be taken to in order to improve the performance rate of construction projects.
The study was delimited to the geographical boundaries of Addis Ababa city, because it requires
a greater resource to conduct study on all of construction firms found across Ethiopia that is
beyond the capacity of the researcher. It was also be delimited to the Project Managers and
Project Supervisors working on construction sites in Addis Ababa. Also, the studyfocused on the
variables under study, i.e., the Software quality, information quality, the software user and use.
The study is organized into five chapters. Chapter one presents the concept of project
management software. The chapter begins by describing the role of project management
software on success of projects in the construction industry globally and then the Ethiopian
context. Chapter two presents a review of literature in relation to the themes of the study while
chapter three presents the methodology that will be used in collecting and analyzing data.
Chapter four consists of presentation of the collected data, analyses of the data and interpretation
of the findings. Chapter five presents the discussion of key data findings, conclusion drawn from
the findings highlighted and recommendation made.
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CHAPTER TWO
In the 21st century, technology is in continuous enhancement; it has developed in every area and
has rendered people unable to live without it. Since the beginning of the modern project
management time, there has been a widespread acceptance of the need for developing project
management. “There has been a development of ideas beyond traditional tools and techniques
commonly used in project management, which has to lead up to what is been called the third-
generation of project management” (Maylor, 2010). This stage is greatly influenced by the
changes that have occurred in modern technology over the last decades. Maylor (2010) stated
that communication technology has led to the development of virtual team start running projects
these days. There has also been a significant advancement in project management tools and these
changes have the potential to the drastically change practices in projects. As Maylor indicated,
technology is being improved and is changing the trend of project management from time to time
in an uncontrolled way. The project is developed in a technologically advanced environment so
that it is difficult to succeed without the use of technological tools.
In accordance with Andy (2017) in the context of project management, there is ever-increasing
pressure to deliver the project quickly and more efficiently that leading to the adoption of new
technologies. This will likely drive significant change to the structure and nature of project
management, project teams and even projects themselves. Andy (2017) pointed out that the
future of project management willbe dependent on technology. Now is the time to prepare
project teams and technology in order to be competent in the future.
“Project management software is software used for project planning, scheduling, resource
allocation, and change management” (Techopedia, 2019). This tool is advantageous for project
managers, stakeholders, and users in order to control time, budget&quality and for
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documentation. “Project management software is design to make the job of a project manager
easier and more efficient, providing applications to aid in planning, to manage project costs, and
to track activities and monitor schedules” (Michael, et al., 2005).
Currently, most projects are planned and managed with the support of project management
software. “Managing a project involves considerable data and information analysis that cannot
be simply handled without the support of PMS. Even for simple projects developed at a single
location, making changes and updating the entire network is something difficult to do without
using a project management software” (Ferreira & Teresa, 2014). The researcher supports with
the idea of Ferreira & Teresa becausenow a days, it is un imaginable to plan, control, monitor a
project effectively and efficiently without utilization of project management software. Also, most
scholars of the project management field agree, the application of PMS growing at a high rate in
all types of project-oriented organizations.
2.1.2.1.Quality of PMS
Raymond & Bergeron (2008) pointed out that accessibility; response time, flexibility, ease of
use, querying ease, learning ease, systems integration, and multi-project capability are indicators
of quality of PMS. Other scholars also indicated the quality of PMS in terms of ease of learning,
ease of use, multi-project capacity, system integration and vender and consultant support (Lee
etal, 2011). The quality of software has a substantial influence on the acceptance of the software
and it has an effect on the efficiency and effectiveness of the project. That's where the software
tool is easy to use and easy to learn will produce relevant information. The quality of the
software tool and accuracy of the information are considered as a key factor affecting PMS
acceptance and also project success. Powerful project management software has become a
prerequisite to manage the projects more efficiently and effectively, and aid the project managers
in their decision-making (Havelka et.al, 2006).
As expounded by Techopedia (2019), PMS can be used in several ways, but its primary
functions are project planning, task management, document sharing, collaboration, calendar, and
contact sharing and time tracking. Kayser (2016) was also listed that project planning, project
tracking, schedule and time management, resource allocation, budget management,
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communication, collaboration, and documentation are the essential functions of project
management software. The function of project management software is vast and it also depends
on the nature and size of the project and company who run the project. Most scholars agree that
PMS helps the project manager and project team in planning, monitoring, controlling, evaluation
and reporting. It is very advantageous to utilize a specialized PMS that provides the project team
and manager to get better quality information (Caldwell, 2004). Caldwell indicated the use of
function tools i.e. planning, monitoring, controlling, evaluation, and reporting tools had led to
improving the likelihood of project performance due to the quality of information generated by
the PMS. Project managers who use PMS are more productive in their work as the software tools
enhance their capacity to perform various tasks.
2.1.2.3.Quality Of Information
The quality of information that has been used to make a decision among other things in a project
can greatly affect the success of the project. If wrong or inadequate information is generated, it
will lead to wrong decisions being made and consequently negatively affect the success of the
project. Project Management software should provide project team members with useful
information that can be used in decision making by storing, keeping, processing and managing
the information resources (Lee et al. 2011). They indicated that important factors that determine
the quality of information include accuracy, relevance, and reliability. Use of PMS is valuable
since it provides relevant and correct information that may be required in the day to day running
of a project.
As said by Alma Mary et al (2008), information quality is an important factor to select project
management software for managing project. They stated that the quality of information is
directly and strongly related to PMS used by the project manager. Information quality is not an
end by itself however, it leads to project success. It is only through the actual use of the PMS by
the project manager that the quality of information can influence project success. Cleland agrees
that the best information loses its value if it is not accurate, reliable and relevant to people who
use it to make decisions and direct actions (Cleland, 2004). As such, the quality of information
output by the PMS leverages the project manager’s work as a professional. Several scholars also
stated that information quality has the greatest total effect on the use of PMS.
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2.1.2.4.PMS User
“User satisfaction is the result of the individual taking outcomes that have been received and evaluating
them on a pleasant-unpleasant continuum” (Seddon & Kiew, 1994). Ali & Money (2005) established that
the information quality has the paramount total effect on the use of project management software. This
suggests that project managers are more eager to accept Project Management Software on the basis of the
quality of the information output and that they are more likely to use software that provides them with an
appropriate level of details that fits their work needs, is free of complexity, and is easy to understand and
communicate with the project team. The user satisfaction, perceived usefulness, and user competency are
In line with Flynn (2012), operating a construction business can be extremely complex since
each project has so many moving parts. Complete project management software solutions
therefore provide one way to handle the complexities of the entire project lifecycle. This
software can help contractors minimize risks and hold all appropriate parties accountable. With
more end-to-end control and seamless workflows, contractors can achieve operational
efficiencies and cost reductions to guarantee profitability.
Flynn (2012) stated some of the benefits of using construction project management software as
follows:
The more accurate the estimate, the greater the potential for profit, unless a project will face
overbudgeting, which make it essential to begin each job with an accurate estimate. A
construction software solution offers features to perform fast, accurate takeoffs.
Better estimates also result in better negotiating power. General contractors who have confidence
in their numbers can challenge subcontractor and vendor quantities on high bids and confirm
low-bid quantities this reduces risks associated with bidding too high or too low.
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Estimators can also use assemblies available in software solutions to easily swap materials for
revised estimates or value-engineer a project. With these capabilities, estimators not only save
time but can use the same assemblies repeatedly to prevent future errors and develop tighter bids.
The efficiency of a complete solution makes it easier to accumulate bid details and produce
proposals quickly. Sending out more proposals can result in winning more work. And with more
accurate proposals, the probability of winning more jobs and the profit potential on each project
increases.
Accurate estimates also play a critical role when scheduling labor, materials and equipment for a
job. For example, accurately estimating materials will result in less waste and reduced over
orders, under-orders and re-supply delays. With a complete solution, the project manager can
automatically create job budget and billing schedules and automate purchasing processes of the
estimate details already in the system.
A more accurate estimate also provides better site management. Project managers will have the
necessary labor, materials and equipment at the site, and material deliveries will be timely
leading to less site storage and handling.
With an all-in-one solution that takes a project from takeoff and estimating through job costing
and project management, contractors can also better manage project documents, RFIs,
transmittals, submittals, submittal packages, daily field reports, checklists and project plans.
With workflow and audit trail capabilities in a complete solution, contractors can create
assignable action item lists with due dates that backtrack to their critical path schedule. The
system then sends reminders throughout the process allowing contractors to stay ahead, prevent
delays and avoid potentially devastating situations.
Human resources also possess a huge risk to contractors. And certified payroll and prevailing
wage projects require significant coordination. If you work on a publicly-funded project and do
not properly complete the required forms, payment requisitions can be rejected.
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A construction management solution can help contractors efficiently manage workforce
reporting and construction payroll, including government, union, workers’ compensation and
benefit tracking. With automated functionalities to meet the ever-changing government and
construction regulations, construction business owners can reduce risks to their business.
PMS provides the framework for collecting information needed to manage the project,
organizing project background information and interface with larger organizational information
systems to permit smooth, efficient interchange of information in support of organizational and
project objectives and goals, storing and processing project information (Thomsen 2011).
An important purpose also served by a Project Management software is that it can track at the
work package level early identification of schedule slippage or significant cost overruns on
detailed work areas. Early identification of small problems permits the attention to detail before
there are major impacts on higher-order work. This is especially important on large projects
(Thomsen 2011). An effective system enables the project manager to track the progress of:
Tasks, Durations, Costs, committed or spend, and Resources.
Project Management software in construction can be largely categorized into three: 1) self-
developed and used in construction firms; 2) systems based on a widely distributed application
service provider (ASP); and 3) specialized systems used in specific capital projects (Moon,
2003). Powerful project management software has become a prerequisite to manage the projects
more efficiently and effectively, and aid the project managers in their decision-making (Havelka
et.al, 2006). The advantage of an information system is that it helps to promote productivity by
effectively processing and providing necessary information to an organization and supporting
their efficient work performance.
According to Romeo & Camelia (2011), the Selection of the right software for project
management depends on the price of the tool, functionality of the tool, easy to use of the tool,
complexity of project and others criteria and this project management software can be
categorized as:
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1. Open-source project management software
2. General project management software
3. Client-server project management software
4. Web-based project management software
Joy deep, et al. (2015), also classifies PMS into four categories. They are:
a. Desktop application: is installed as a program that runs on the desktop of each user, which
typically gives the most responsive and graphically intense style of interface. Desktop
applications store their data in a file (preferably text file), although some have the ability to
collaborate with other users or to store their data in a central database. A file-based project plan
can be shared between users if it is on a networked shared drive and only one-user accesses it at
a time.
b. Web-based application: PMS can be implemented as a Web application access through the
internet. It can be accessed from any type of computer without installing software on the user's
computer because original software is installed on the application server. It works in client server
mode and Project information is available when the user is online.
c. Personal application: A personal PMS application is one used at home, typically to manage
lifestyle or small home projects. There is considerable overlap with the desktop application and
personal PMS because both involve simpler interfaces than the web-based interface.
In addition, Russell and John (2018) stated that the choice of PMS is a function of the
complexity of the project. According to them, there are three groups of PMS, the first one is
simple word processing software like Microsoft office (excel, word …), which is appropriate for
simple projects (low level of complexity). Simple projects are manageable by general-purpose
software available in most offices. The second one is open-source software that is special-
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purpose software like Microsoft Project and graphics software for managing a moderately
complex project. The third one is more sophisticated PMS like from Primavera which is
appropriate for very complex projects.
As Mladen and Mariela (2014) point out “there are two key success concepts when talking about
the project: project success and project management success”. According to Mladen and Mariela,
project success and project management success have similarities and differences. The main
difference is project success link with the result of the evaluation of overall project goal
achievement, while project management success link with time, cost and quality (iron triangle)
measure.
As the name indicates project management success give emphasis on project management
process and especially on the successful accomplishment of the project with respect to time, cost,
and quality whereas project success is an overall accomplishment and it has no agreeable
standard measure among different stakeholders. Besides, project management success is
measured by tangible technical criteria but project success is difficult to measure that have
subjective criteria’s and require stakeholders perceived satisfaction. In general view, project
management success is about meeting short-term objectives but project success is about long-
term objectives. Due to the existence of many different models of both project and project
management success, it is hard to make a strong differentiation between them.
According to PMBOK (2017) “traditionally, time, cost, scope, and quality have been the most
important factors in defining the success of a project. More recently, practitioners and scholars
have determined that project success should also be measured with consideration toward the
achievement of the project objectives”. Project success is ambiguous that it has a different
meaning and criteria for different stakeholders and sectors.
15
degree to which objectives of the project are achieved. More specifically, it refers to the extent to
which the project management to achieve quality in terms of key indicators set from the outset.
Efficiency: Refers to the completion of the project within schedule and approved budget.
Schedule Performance Index (SPI) and Cost Performance Index (CPI) are measures of schedule
and cost performance of a project (PMI, 2017).
An empirical study showed by Kristina and Igor (2007) find out that small IT companies execute
smaller projects, do not necessarily require to use most sophisticated PMS. The result showed
small companies do not require implementing a specialized PMS so that, the difference between
the average degree of project success with or without specialized PMS is insignificant. However,
using specialized software tools in comparison with nonspecialized software tools have a more
significant effect on project success of large companies. Kristina and Igor's conclude that
projects were more successful after employing a specialized software tool.
Raymond & Bergeron (2008) indicated that a project management information system makes a
significant contribution to project success in the case of Canada. Analysis of questionnaire data
taken from project managers confirms the significant contribution of the PMIS to project
success. Analysis of data was done by Likert scale where they established the significant
contribution of the PMIS to successful project management. The benefit of PMIS is in both
individual performance and overall project performance. The study found that the PMIS has
direct impacts on project success since they had a role in improving budget control, meeting
project deadlines and fulfilling technical specifications. The researchers conclude that the project
management information system makes a major impact to project success.
Karim (2011) used regression analysis to examine PMIS factors: an empirical study of their
Impact on project management decision making in United Kingdom and found that PMIS plays a
part to project success events in each phase of the project life cycle. Thus, to facilitate manage
decision making effectively; project managers should consider using the PMIS that
corresponding the characteristics of phases and with qualified and highly professional decision
makers in each phase of the project life cycle.
16
Also, Ngari (2017) determined that the use of PMIS has significant contribution to the success of
youth polytechnics development project in Kenyathus, organizations should adopt a PMIS for
managing projects successfully. It assures better management of project since it produces
relevant information needed for the management of the project. Reduction of time to complete
the task, amendments in productivity and better planning of activities also observed in terms of
timelier decision-making and proper budgeting. Advantages obtained from PMIS users are not
limited to individual performance but also include project performance.
Christopher (2015) deliberated the impact of PMIS on project success in the case of world vision
in Tanzania. The result showed that the use of PMS has a direct impact on project success. PMIS
assures better management of project because it produces qualityinformation required for project
management. Christopher concluded that PMIS is a tool that enhances project success.
In Ethiopia, Bethelehem (2019) studied the role of PMS on project success in the case of radio
access network project of Ethio-telecom in Addis Ababa. The result showed that PMS has no
direct influence upon project success; it is only through the powerfulness of the tool, quality of
information generated, extensive use of the software and individual effects as the user have
effects on project success.
The current researcher is seeking out for relevant literature in the study area in Ethiopian cases.
As much as the researcher effort, it couldn’t be possible to get published study in Ethiopian
construction sector perspective.
17
McLean reviewed 100 papers containing empirical IS success measures published in seven
publications during 1981-1987. They refined the resulting huge range of Information system
success measures into an integrated view of IS success, characterized by the following the
sevenaspects: System Quality, Information Quality, service quality, Information Use, User
Satisfaction, Individual Impact and Organizational Impact.
System Quality
Use
Information Quality Net Benefits
User Satisfaction
Service Quality
Figure 2.1. The Updated Information System Success Model (ISSM) (DeLone, McLean 2003).
18
(2007) analyzed factors related to end-users' attitudes toward Electronic Document Management
(EDM) systems that are used for large-scale construction projects. The study conducted a survey
to draw factors that affect acceptance of an EDM system to a construction project. Schematics of
TAM is presented in figure 2.2 below.
Perceived
Usefulness
Perceived Ease of
use
Figure 2.2. Technology Acceptance Model (TAM) (Davis, Bagozzis and Warshaw 1989).
This study was thus founded on the recurrent constructs of antecedents and consequences of IS
use developed in DeLone and McLean’s IS success model (ISSM) (1992), later updated (2003),
and in Davis et al.’s (1989) technology acceptance model (TAM). The ISSM incorporates
information quality and system quality as antecedents of IS use, leading to individual IS impacts,
that is, on users and their work (e.g., in regard to their effectiveness), and in turn to
organizational impacts (e.g., in regard to business strategy and performance) (Raymond,
Bergeron 2007). While the TAM explains IS use in a similar manner by the system’s perceived
usefulness and perceived ease of use. Both the ISSM and the TAM offer widely accepted and
validated representations and explanations of the IS use phenomenon. This is supported by
studies done by Larsen, Lee and Rai (Larsen 2003, Lee, Kozar & Larsen 2003, Rai, Lang &
Welker 2002).
19
Conceptual Framework
The Conceptual Framework shows how the independent and dependent variables interrelated one
to another. After reviewing numerous theoretical concepts and empirical findings, the researcher
develops the following conceptual framework for this study.
20
Independent Variables
Quality of information
generate
o Accuracy
o Relevance Dependent Variable
o Reliability
User of project
management software
o Tool user satisfaction
o Perceived usefulness
o User competency
21
Research Gaps
From the empirical literature review, two gaps are identified. 1) Almost all studies conducted on
project management information system as a whole whereas the current studies specifically
focused on project management software and 2) Based on the researcher effort no study is found
which is conducted on the construction sector in a specified area. Therefore, the above gaps are
the reasons why the researcher has decided to go for this thesis work.
22
CHAPTER THREE
This chapter outlines the method used to conduct this research. The chapter starts by defining the
research approach and research design used for this research. Following that the target
population for the study, the sample size, sampling techniques are discussed. Furthermore, the
data source, data collection methods, instruments, and methods of data analysis are covered.
A research design is a framework for collecting and analyzing data which provides the direction
for the collection, measurement, and analysis of data. Descriptive research design allows for in-
depth analyzing and understanding of a particular phenomenon as it exists in the present
condition (Cooper and Schindler, 2008). Descriptive survey design comprisesobtaining
information about a certain segment of the population and getting information on their
characteristics, opinions or attitudes (Orodho, 2003).The explanatory research design is
explained what is going on and determine the cause-effect relationship. Based on the purpose of
the study, both explanatory and descriptive research designs were adopted for this study. The
researcher was also applied both quantitative and qualitative research design for answering
research questions.
The target population in the study was limited to construction firms registered and operating in
Addis Ababa, Ethiopia. This is because most large construction firms in the country are based
there. Addis Ababa is also a favorable area of study due to resource constraints while conducting
23
the survey, especially on finances. The study population included project managers, construction
managers and project supervisors working on construction firms based in Addis Ababa, Ethiopia.
The target population data was obtained from construction firms in Addis Ababa registered in the
Ministry of Urban Development and Construction under categories of grade onebecause
construction firms under this category are large in size and more likely to utilize different project
management software since the value and volume of a project they undertake is much higher,
such that they can better afford to purchase these software compared to much smaller firms.
3.2.2. Sampling
Cooper & Schindler (2003) define sampling as selecting a given number of subjects from a
defined population as representative of that population.The sampling frame is closely related to
the population and is the list of elements from which the sample is actually drawn (Cooper &
Schindler, 2003). The sampling frame used was obtained from the list of registered contractors
published by the Ministry of Public Works in Categories of grade one construction firms as at
May 2022. This was because it was the most currently available data on registered construction
firms as at the time of conducting the research survey.
The study used purposive sampling procedure to select the sample from target the population.
Expert judgment and knowledge of roles in the organization was used to select participants that
are a representative of the population. The sample size for this study was 97 respondents. The
sample size was derived from the Krejcie and Morgan Table attached in appendix II which
shows that a target population of 132 should have a sample size of 97 respondents.
The studyutilized both primary and secondary data source in order to address the research
objectives. The primary sources of data were the first information directly collected from the
respondent via questionnaires. The questionnaires were close-ended type of questions. The
questionnaire was divided into two sections: Section one collected the demographic
characteristics of the target population i.e., the age, gender, level of education etc., while section
two was divided into five parts based on the themes of study. In the advantages of less time and
financial requirement for getting information and data needed, the wide range of secondary data
24
has beenreviewed and used to grasp knowledge and information that support the current study.
The source of secondary data will be project completion reports, books, journals, published
research, online articles, company’s website, and related company published, unpublished
reports.
According to Mugenda & Mugenda (2003), questionnaires are commonly used to obtain
important information about the population. For the purposes of this study, the use of
questionnaires was chosen as the most appropriate instrument with which to collect the necessary
information because they are easier to administer and are economical to use in terms of time and
money. The data was collected from the sampled construction firms using questionnaires which
contained structured or closed-ended questions. These are a type of questions which are
accompanied by a list of all possible alternatives from which respondents select the answer that
best describes their situation (Mugenda & Mugenda, 2003).
Data collected through questionnaires were analyzed by employing descriptive statistics. IBM
SPSS statistics version 26was used to compute frequency, mean, percentages and other
descriptive statistics.The data wasanalyzed in the most logical and meaningful way and relevant
commentsmade appropriately.
3.4.2. Econometrics Analysis
3.4.2.1.Model Specification
Regression methods such as linear, logistic, and ordinal regression are useful tools to analyze the
relationship between multiple explanatory variables. These methods also permit researchers to
estimate the magnitude of the effect of the explanatory variables on the outcome variable. If the
researcher wants to study the effect of explanatory variables on all levels of the ordered
categorical outcome, an ordinal regression method must be suitable to obtain the valid results
(Chen and Hughes, 2004).Thus, the study utilized ordinal regression method of analysis to meet
the objectives set since the response variable in the study has four ordered categories and the
value of each category has a meaningful sequential order.
25
There are several ordinal logistic regression models such as proportional odds model (POM) or
ordered logistic regression, two versions of the partial proportional odds model-without
restrictions (PPOM-UR) and with restrictions (PPOM-R), continuous ratio model (CRM), and
stereotype model (SM). Among those different models, proportional odds model (POM) or
ordered logistic regression is applied for this study.
The POM has some appealing features. Firstly, it is invariant under several categories, as only
the signs of the regression coefficient change. Secondly, it is invariant under collapsibility of the
ordered categories, as the regression coefficients do not change when response categories are
collapsed or the category definitions are changed. Thirdly, it produces the most easily
interpretable regression coefficients, as exp (b) is homogeneous odds ratio overall cut-off points
summarizing the effects of the explanatory factor X on the response Y in one single frequently
used measure. Due to these reasons, the POM is by far the most used regression model for the
ordinal data.
In the current study, quality of project management software, quality of information generated by
project management software, project management software use and user of project management
software are the independent variables. The project success is the dependent variable which has
an ordinary outcome. The relationship between an ordered dependent variable and independent
variables can be computed using ordered logistic model (POM). The proportional odds model
assumes that the cumulative logits can be represented as parallel linear functions of independent
variables. That is, for each cumulative logit the parameters of the models are the same, except for
the intercept. Consequently, according to the proportional odds assumption, the odds ratio is the
same for all categories of the response variable (Agresti, 2002).
3.4.3. Presentation
There has to be data presentation or data summarized or condensed to facilitate analysis and
discussion of the result or finding. The tools will be adopted for data presentation are tables,
graph, and frequency tables. Tables will be used to summarize data using a layout of rows and
columns. The choice of when to use them for data presentation depending on the advantages of
such a table over the use of text. The graph, on the other hand, has advantages such as attracting
readers, having a visual appeal that bread monotony and ability to give an overall pattern of
results at glance.
26
3.5. Measurement & Variable Definition
This section presented the operational definition of variables to investigate the influence of
project management software on the success of construction projects in Addis Ababa, Ethiopia.
The following indicators or properties are identified which denoted by the main variables under
the study in order to make them measurable.
27
Project o Preparing the overall Nominal o Range
Management
project plan by use of the o Mean
software use o Std deviation
following planning tools o Correlation
WBS, Gantt charts, o Ordered logistic
regression
PERT, and CPM.
o Better Monitoring of
activities using
monitoring function tools.
o Making changes as the
project is on-going using
the controlling function
tools.
o Utilizing evaluating
function tools during
project auditing.
Table 3-1. Operational definition of independent variables
Source:Own source.
28
3.6. Ethical Considerations
The researcher ensured the respondents who participated in the research with the full knowledge
of what their participation involved. During fieldwork, the respondents were enlightened on the
purpose, duration and potential use of the research results would not be beyond academic
purposes; any other research related information as might be of interest to the respondents were
clarified before any data was collected. The respondents were also informed that no piece of
information gathered in the course of the study will be used to jeopardize their welfare.
Participants were informed about the confidentiality for the safekeeping of data on projects under
the study. They are also not be required to provide any identifying details such as their name and
assured that their responses are treated in strict confidentiality.
29
CHAPTER FOUR
4. RESULT AND DISCUSSION
Introduction
This chapter covers the presentation and interpretation of the findings. The purpose of this study
was to establish the influence of Project Management Software on projects success: a studyon
construction company, Addis Ababa, Ethiopia. Specifically, the study further sought to
determine the influence of Project Management software quality, quality of generated
information, Project Management software user and Project Management software use on
construction projects success.
As shown on table, majority (79.4%) of the respondents were male while females contributed to
20.6% of the respondents. This shows that female participation is rare. It indicates that there is
lack of gender equity. These findings also indicate that most project managers were male.
30
4.2.2. Age Distribution of the respondents
This shows that, most of the project managers were aged between 31 and 40 years which was
rated 52.92% according to the finding of the study.
4.2.3. Level of Education of the respondents
The level of education was important in order to determine the capability of the respondents to
utilize Project Management software.
From the findings, 39.7% of the respondents indicated that they had an experience of between 10
and 20 years in project management, 32.35% indicated that they had an experience of less than
31
10 years, 22.05% indicated that they had an experience of between 21 and 30 years while 5.9%
indicated that they had an experience of more than 30 years. These findings show that most the
project managers had an experience of between 10 up to20 years in project management.
Quality of
Generated
Quality of PMS Information PMS use PMS User Project Success
Valid 68 68 68 68 68
Missing 0 0 0 0 0
32
A co-efficient of 0.6 and above is a commonly accepted rule of thumb that indicates acceptable
reliability, (Churchill and Brown 2004), and this threshold of Alpha value 0.6 formed the study’s
benchmark.From the findings, Cronbach’s Alpha estimated to each independent variables with
their respective factors are in a good range and indicate high internal consistency of the
questionnaire items. The Cronbach’s Alpha result derived from SPSS software is presented in the
above table 4-6.
Descriptive Statistics
Std.
N Range Minimum Maximum Mean Deviation Variance
Easy of learning 68 2 3 5 4.26 .803 .645
Easy-of use 68 2 3 5 4.22 .789 .622
Multi-project capacity 68 2 3 5 4.19 .697 .485
System integration 68 2 3 5 4.16 .745 .556
Vendor and consultant 68 2 3 5 4.13 .751 .564
support
Valid N (listwise) 68
Table 4-7. PMS quality
Among QPMS indicators, ‘Ease of learning’ was rated by the highest mean of 4.26 and the
standard deviation is 0.803. The result also indicated that ‘vendor and consultant support’ was
rated lowest mean of 4.13 and standard deviation is 0.751. Further, the analysis points out that
‘Easy-of use’ was rated with mean 4.22 and standard deviation is 0.789. Additionally, ‘multi-
project capacity’ rated mean of 4.19 and standard deviation of0.697. Also, system integration
was rated with mean 4.16 and the standard deviation is 0.745.
33
4.5.2. Quality Of Information Generated By PMS
The other objectives of the study were to establish the influence of the quality of information
generated by PMS on the success of construction projects. The respondents were further asked to
rate the impact of three indicators of quality of information produced by Project management
software in project implementation in their organizations. The findings are shown in table below.
Descriptive Statistics
Std.
N Range Minimum Maximum Mean Deviation Variance
Valid N 68
(listwise)
Among the indicators, the accuracy of information was rated the highest mean of 4.38 and the
standard deviation is 0.692. Reliability of information was rated lowest mean of 3.96 and
standard deviation is 0.818. Also, the relevance of information was rated with mean of 4.16 and
the standard deviation is 0.725.
34
4.5.3.1.Planning Function
Std.
N Range Minimum Maximum Mean Deviation Variance
Work Break Down 68 1 4 5 4.59 .496 .246
Structure
Resource Allocation 68 1 4 5 4.46 .502 .252
Overall Schedule 68 1 4 5 4.51 .503 .254
Gantt Chart 68 1 4 5 4.50 .504 .254
PERT 68 1 4 5 4.49 .503 .254
CPM 68 1 4 5 4.49 .503 .254
Table 4-9. Planning function tool
According to the findings, overall schedule, work break down structure, resource allocation, Gantt chart,
PERT, and CPM were utilized often for project implementation in their organizations with mean values
of 4.59, 4.46, 4.51, 4.50, 4.49 & 4.49 respectively.
4.5.3.2.Controlling
Std.
N Range Minimum Maximum Mean Deviation Variance
Fine-Tune Forecast 68 3 2 5 4.12 1.058 1.120
Modify Tasks 68 3 2 5 4.07 1.012 1.024
Re-allocate resources 68 3 2 5 4.00 1.051 1.104
to low cost
Cancel Tasks 68 3 2 5 3.69 1.040 1.082
Modify cost of 68 3 2 5 4.16 1.045 1.093
Resources
Table 4-10. Controlling function tool
According to the findings, the respondents indicated that modify cost of resource, fine-tune
forecast, modify task & re-allocate resource to low cost are utilized more often in project
implementation in their organizations ranked with mean values of 4.16, 4.12, 4.07 & 4.00
respectively. Further, the respondents indicated ‘cancel tasks’ are occasionally utilized in project
implementation in their organizations with mean value of 3.69.
35
4.5.3.3.Monitoring
Std.
N Range Minimum Maximum Mean Deviation Variance
Project Reports 68 2 3 5 4.44 .678 .459
Completed tasks 68 2 3 5 4.06 .731 .534
Percent Project 68 2 3 5 4.34 .704 .496
Completed
Effective Schedule 68 2 3 5 4.18 .690 .476
Remaining Tasks 68 3 2 5 3.56 1.084 1.176
Remaining days to 68 3 2 5 3.54 1.071 1.147
complete
Table 4-11 Monitoring function tool
According to the findings, the respondents indicated that Project Reports, completed tasks,
Percent Project Completed&Effective Schedule were often utilized in project implementation in
their organization ranked with mean values of 4.44,4.06, 4.34 & 4.18 respectively.
4.5.3.4.Evaluating
Std.
N Range Minimum Maximum Mean Deviation Variance
Identification of cost 68 1 4 5 4.26 .444 .198
Identification of 68 1 4 5 4.26 .444 .198
Schedule variation
Tracking the use of 68 3 2 5 3.57 .816 .666
Resources
Table 4-12. Evaluating function tool
According to the findings, the respondents indicated that identification of cost, identification of
schedule variation&tracking the use of resources were often utilized in project implementation in
their organizations which were ranked with the mean values of 4.26, 4.26& 3.57 respectively.
4.5.3.5.Reporting
Std.
N Range Minimum Maximum Mean Deviation Variance
An Overview of project 68 2 3 5 4.00 .846 .716
Overview on work-in- 68 2 3 5 4.13 .751 .564
progress
36
Budget overruns 68 2 3 5 4.16 .745 .556
Task and schedule 68 2 3 5 3.90 .831 .691
slippage
Table 4-13. Reporting function tool
From the findings, the respondents indicated that an overview of project, overview on work-in-
progress, budget overruns & task and schedule slippage were often utilized for project
implementation in their organizations which ranked with mean values of 4.00, 4.13, 4.16 & 3.90
respectively.
Descriptive Statistics
Std.
N Range Minimum Maximum Mean Deviation Variance
user satisfaction 68 2 3 5 4.40 .775 .601
Perceived 68 1 4 5 4.66 .477 .227
usefulness
User competency 68 2 3 5 4.29 .774 .599
Valid N (listwise) 68
Table 4-14. PMS User
According to the finding, Perceived usefulness was rated the highest mean of 4.66 and the
standard deviation is 0.477. The respondents have rated the user satisfaction on PMS with mean
4.40 and standard deviation is 0.775. User competency was also rated mean of 4.29 and the
standard deviation of0.774.
37
Descriptive Statistics
Std.
N Range Minimum Maximum Mean Deviation Variance
Meeting Deadlines 68 3 2 5 3.65 .806 .650
Meeting Budgets 68 3 2 5 3.97 .828 .686
Meeting quality 68 1 4 5 4.43 .360 .130
specifications
Valid N (listwise) 68
Table 4-15. Project success indicators
According to the findings, the respondents indicated that meeting quality specification which
ranked 4.43 mean value had high contribution to construction project success rather than meeting
Correlations
QUALITY OF
GENERATE
D
QUALITY OF INFORMATI PMS PMS PROJECT
PMS ON USE USER SUCCESS
Pearson 1 .969** .972** .926** .908**
Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 68 68 68 68 68
38
QUALITY OF Pearson .969** 1 .988** .933** .933**
GENERATED Correlation
INFORMATION Sig. (2-tailed) .000 .000 .000 .000
N 68 68 68 68 68
Pearson .972** .988** 1 .948** .942**
Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 68 68 68 68 68
Pearson .926** .933** .948** 1 .910**
Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 68 68 68 68 68
Pearson .908** .933** .942** .910** 1
Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 68 68 68 68 68
**. Correlation is significant at the 0.01 level (2-tailed).
Table 4-16. Correlation Result
From the correlation analysis, the study found out there is a positive relationship between project
management software and project success. The quality of PMS and project success correlate
positively with correlation coefficients 0.908 and probability of 0.000. The study further
established that there is a positive relationship between the qualities of information generated by
PMS and project success with a correlation coefficient of 0.933 and a probability of 0.000. The
study also found that there is a positive relationship between PMS use and project success with a
correlation coefficient of 0.942 and probability of 0.000. And lastly, the study found that there is
a positive relationship between the user of PMS and project success with a correlation coefficient
0.910 and probability of 0.000.
These findings clearly show that all the four independent variables had a significant influence on
the dependent variable (project success). This is because the p-value in all the relationships was
0.000 which is less than the alpha value (level of significance) 0.05 thus, PMS USE and Quality
of generated informationhad the most significant influence on project success followed by PMS
user and Quality of PMS.
39
4.7. Econometric Analysis
4.7.1. Diagnostic Tests
4.7.1.1.Ordinal Logistic Regression Assumption
The key assumption in ordinal logistic regression is that the effects of any explanatory variables
are consistent or proportional across the different thresholds, hence this is usually termed the
assumption of proportional odds (SPSS calls this the assumption of parallel lines but it’s the
same thing). This assumes that the explanatory variables have the same effect on the odds
regardless of the threshold. If the relationship between all pairs of groups is the same, there is
only one set of coefficients (only one model). So, it is a necessity to test the proportional odds
assumption before accepting the model.
‘Test of parallel lines’ result was used to check proportional odd ratio assumptions. The result
obtained using SPSS is presented below.
The result obtains from this test displayed that the Chi-square statistic is 0.00 with 32 degrees of
freedom and statistically insignificant with a probability of 1.00. The chi-square of proportional
odds is insignificant that showed the proportional odds assumptions hold for this model.
Therefore, the model meets proportional odd ratio assumptions.
40
According to the SPSS output result of this study, the p value is 1.00 which is greater than 0.05
which shows non-significant test results therefore the model fits the data well.Theresult derived
from the SPSS is presented in the table below.
Goodness-of-Fit
Chi-Square Df Sig.
Pearson 24.457 302 1.000
Deviance 30.935 302 1.000
Link function: Logit.
Table 4-18. Goodness of fit result
Parameter Estimates
95% Confidence Interval
Lower Upper
Bound Bound
41
The above table 4-19 shows the output obtained from the ordered logistic regression. As we can
see on the table, this parameterization allows the sign of the regression coefficient to be
interpreted as in standard linear regression. Positive coefficients are associated with an increased
likelihood of a case falling in a higher category and negative coefficients are associated with a
decreased likelihood of falling in a lower category. (Heck et al., 2012; Osborne, 2017).
Using 68 respondents, the estimation of the project success is explained by the factor quality of
PMS, quality of information generated by PMS, PMS Use and user of PMS. They satisfied the
estimation coefficient statistic and probability criterion at the 95 percent confidence interval.
Their implications are discussed in interpretable manner.
The most interesting aspect is the locations. The result shows that all independent variables have
a statistically significant impacts on the dependent variable of project success.Quality of PMS (p-
value = 0.017), Generated information quality (p-value=0.042), PMS use (p-value=0.000), and
PMS user (p-value=0.022).Also,the value of estimated coefficient values of all independent
variables had all positive and this shows positive influences of explanatory variables on the
dependent variable.
Quality of PMS was significant positive predictor of project success. The result tells that for
every oneunit increase in quality of PMS index (in the range of 1 to 5), there is a predicted
increases of 5.831in the Log odds of project to be successful. For quality of information, the
result was statistically significant positive predictor of project success. A unit increase in quality
of information generated by PMS index (in the range of 1 to 5), there is a predicted increases of
0.382in the Log odds of project to be successful. Also, PMS use was significant positive
predictor of project success. The result tells that for every one unit increase in PMS use index (in
the range of 1 to 5), there is a predicted increase of 29.267in the Log odds of project to be
successful.In addition, each additional unit increase in PMS user index (in the range of 1 to 5)
there is a predicted increase of 3.452 in the Log odds of project to be successful.
42
CHAPTER FIVE
SUMMARY OF FINDINGS, DISCUSSIONS, CONCLUSIONS
AND RECOMMENDATIONS
Introduction
This chapter is the final chapter which is divided into three sections. The first section contains a
summary of the major findings of the study, the next section presents conclusions from the
findings and in the last section recommendations are forwarded based on the established finding
and conclusions that could be useful and viable for the construction industry. The conclusions
and recommendations drawn were focused on addressing the objectives of the study.
43
5.1.2. Quality of Generated Information
The quality of generated information by PMS has a significant effect on the success of
construction projects. The ordinal logistic regression analysis result shows that quality of
generated information and project success had a positive and statistically significant relationship
(p= 0.042<0.05). Results of the descriptive analysis were also shows the same with the results of
the econometrics analysis.
According to the findings, the accuracy and relevance of the information generated by the
software were the characteristics that were rated highly. This meant that the information was
readily also appropriate for the project tasks. The mean composite score for quality of generated
information by PMS shows that 4.17 out of 5 which confirm that it has a significant influence on
the success of construction projects and also, the correlation analysis was also shows that there is
a positive and statistically significant relationship between them. This finding clearly shows the
quality of generated information by PMS had a significant influence on the success of
construction projects. This is because the correlation coefficient is 0.933 with the probability the
relationships of 0.000 which is less than the alpha value 0.01 (level of significance).
According to the findings, the use of various function tools such as; planning, controlling,
monitoring, evaluation and reporting tools within the PMS had helped the managers improve on
the success of their construction projects. The mean composite score for PMS use shows that
4.13 out of 5 which confirm that it has a significant influence on the success of construction
projects and also, the correlation analysis was also shows that there is a positive and statistically
significant relationship between them. This finding clearly shows that PMS use had a significant
influence on the success of construction projects. This is because the correlation coefficient is
44
0.942 with the probability the relationships of 0.000 which is less than the alpha value 0.01 (level
of significance).
Also, the results of the descriptive analysis were the same with the findings of ordered logistic
regression analysis. The mean composite score for the independent variable user of PMS was
4.45 out of 5 and the correlation analysis also confirms that there is a positive and statistically
significant relationship between them with a correlation coefficient of 0.910with the probability
of 0.000 which is less than the alpha value 0.01 (level of significance).
5.2. Conclusion
In order to get a better understanding of the contribution of PMS to the success of construction
projects, the study aimed to address specific objectives such as: determining the influence of the
PMSquality on the success of construction projects; establishing the influence of quality of
generated information on the success of construction projects; assessing the influence of the
PMS use on success of construction projects and determining the influence of the PMS user on
construction projects success. Based on the data analysis, results and discussion, the following
conclusions are made.
According to the econometric analysis result, all independent variables (quality of PMS, quality
of generated information, PMS use and user of PMS) were significant determinants of the
success of construction projects. In addition, the result of the descriptive statistics indicates the
research established a positive and statistically significant relationship between independent
variables and dependent variable which is project success.
A PMS with greater quality helps the project manager and team to perform their project task in
effective and efficient way, thus, projects planned and managed by powerful PMS tool are more
45
likely to be successful.The information generated by PMS helps the users to perform their tasks
in a much professional manner. When tasks are best performed, project success is achieved.
Also, well trained PMS users have the capacity to adopt a higher quality PMS effectively, which
leads to generating higher quality of information that in turn help to perform project management
functions (planning, controlling, monitoring, evaluating and reporting functions)efficiently and
effectively and that lead to the successful completion of projects.
To conclude, the PMS has no direct influence upon project success; it is only through the quality
of the tool, quality of information generated, extensive use of the software and individual effects
as the user have impacts on construction project success. Therefore, the use of project
management software is in fact advantageous to construction project managers and ithas a
significant contribution to project success.
5.3. Suggestions
It is recommended that:
1. Special attention should be paid to the PMS and use of PMS, because these factors
contribute to the construction projects success from their perspective. They can also
increase their customers trust towards the project success by increasing the level of
system and information quality.
2. Considering the impact of the use of PMS on project success, the Ethiopian construction
company should adopt PMS and can take some positive steps to increase their project
success such as the following:
o Strengthening the commitment of the users and its staff to the use of PMIS
o Strengthening the PMS quality by improving the information quality and system
quality. This can be done by investing on PMS applying, supporting the experts as
people who can contribute to increase the quality of PMS.
3. Upcoming construction projects should be planned and managed by a PMS in order to
generate higher quality information that leads to the successful completion of the project.
4. The user of PMS who is responsible for planning and managing construction projects
should be well qualified to adopt PMS in order to ensure the success of projects.
46
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APPENDICES:
APPENDIX 1፡SURVEY QUESTIONNAIRE
Dear respondent
I am a Postgraduate student at the University of Jimma, pursuing a Master’s degree in project
Management& Finance. As partial fulfillment for the degree, I am conducting research work on
“Influence of Project Management Software on Project success in the construction industry: A
Case of Construction Projects in Addis Ababa, Ethiopia.”Therefore, it’s the researcher pleasure
if you could give a few minutes of your time to answer the following questions in regard to how
Project Management software (PMS) influences project success in your organization. All the
information provided will be purely used for academic purposes. Your assistance will be highly
appreciated and thank you in advance.
Yours faithfully,
Emebet Gashaw
Telephone: 0902877776
E-mail: [email protected]
51
APPENDIX 2: SURVEY QUESTIONS
NOTE:
Information provided through the questionnaire will be treated with confidentiality and will be
exclusively for academic purpose. All answers will be considered right.
INSTRUCTION:
I. Do not write your name on the questionnaire.
II. Please read each question carefully.
III. Kindly answer all the questions by ticking or filling in the spaces provided.
III. 41 – 50years
52
SECTION 2:
1. Quality of project management software
To what extent would you rate the general quality of Project Management software in
your organization?
Accuracy
Relevance
Reliability
53
Software Use Never Rarely Occasional Often Very
Often
Planning Functions 1 2 3 4 5
Work Breakdown Structure
(WBS)
Resource Allocation
Overall Schedule
Gantt Chart
PERT
CPM
Controlling Function 1 2 3 4 5
Fine-Tune Forecast
Modify Tasks
Re-allocate resources to low
cost
Cancel Tasks
Modify cost of Resources
Monitoring Function 1 2 3 4 5
Project Reports
Completed tasks
Percent Project Completed
Effective Schedule
Remaining Tasks
Remaining days to complete
Evaluating Function 1 2 3 4 5
Identification of cost
Identification of Schedule
variation
Tracking the use of
Resources
Reporting Function 1 2 3 4 5
54
An Overview of project
Overview on work-in-
progress
Budget overruns
Task and schedule slippage
55
APPENDIX 3:Krejice and Morgan Table
N S N S N S
10 10 220 140 1200 291
15 14 230 144 1300 297
20 19 240 148 1400 302
25 24 250 152 1500 306
30 28 260 155 1600 310
35 32 270 159 1700 313
40 36 280 162 1800 317
45 40 290 165 1900 320
50 44 300 169 2000 322
55 48 320 175 2200 327
60 52 340 181 2400 331
65 56 360 186 2600 335
70 59 380 191 2800 338
75 63 400 196 3000 341
80 66 420 201 3500 346
85 70 440 205 4000 351
90 73 460 210 4500 354
95 76 480 214 5000 357
100 80 500 217 6000 361
110 86 550 226 7000 364
120 92 600 234 8000 367
130 97 650 242 9000 368
140 103 700 248 10000 370
150 108 750 254 15,000 375
160 113 800 260 20,000 377
170 118 850 265 30,000 379
180 123 900 269 40,000 380
190 127 950 274 50,000 381
200 132 1000 278 75,000 382
210 136 1100 285 1000,000 384
56
APPENDIX 4: SPSS OUTPUT SHEET
4.1. Descriptive Statistics Output
Descriptive Statistics
Std.
N Range Minimum Maximum Mean Deviation Variance
Easy of learning 68 2 3 5 4.26 .803 .645
Easy of use 68 2 3 5 4.22 .789 .622
Multi-project capacity 68 2 3 5 4.19 .697 .485
System integration 68 2 3 5 4.16 .745 .556
Vendor and cosultant 68 2 3 5 4.13 .751 .564
support
Valid N (listwise) 68
Descriptive Statistics
Std.
N Range Minimum Maximum Mean Deviation Variance
Valid N 68
(listwise)
Descriptive Statistics
Std.
N Range Minimum Maximum Mean Deviation Variance
Work Break Down 68 1 4 5 4.59 .496 .246
Structure
Resource Allocation 68 1 4 5 4.46 .502 .252
Overall Schedule 68 1 4 5 4.51 .503 .254
Gantt Chart 68 1 4 5 4.50 .504 .254
PERT 68 1 4 5 4.49 .503 .254
CPM 68 1 4 5 4.49 .503 .254
Fine-Tune Forecast 68 3 2 5 4.12 1.058 1.120
57
Modify Tasks 68 3 2 5 4.07 1.012 1.024
Re-allocate resources 68 3 2 5 4.00 1.051 1.104
to low cost
Cancel Tasks 68 3 2 5 3.69 1.040 1.082
Modify cost of 68 3 2 5 4.16 1.045 1.093
Resources
Project Reports 68 2 3 5 4.44 .678 .459
Completed tasks 68 2 3 5 4.06 .731 .534
Percent Project 68 2 3 5 4.34 .704 .496
Completed
Effective Schedule 68 2 3 5 4.18 .690 .476
Remaining Tasks 68 3 2 5 3.56 1.084 1.176
Remaining days to 68 3 2 5 3.54 1.071 1.147
complete
Identification of cost 68 1 4 5 4.26 .444 .198
Identification of 68 1 4 5 4.26 .444 .198
Schedule variation
Tracking the use of 68 3 2 5 3.57 .816 .666
Resources
An Overview of project 68 2 3 5 4.00 .846 .716
Overview on work-in- 68 2 3 5 4.13 .751 .564
progress
Budget overruns 68 2 3 5 4.16 .745 .556
Task and schedule 68 2 3 5 3.90 .831 .691
slippage
Valid N (listwise) 68
Descriptive Statistics
Std.
N Range Minimum Maximum Mean Deviation Variance
user satisfaction 68 2 3 5 4.40 .775 .601
Perceived 68 1 4 5 4.66 .477 .227
usefulness
User competency 68 2 3 5 4.29 .774 .599
Valid N (listwise) 68
58
Descriptive Statistics
Std.
N Range Minimum Maximum Mean Deviation Variance
Meeting Deadlines 68 3 2 5 3.65 .806 .650
Meeting Budgets 68 3 2 5 3.97 .828 .686
Meeting quality 68 1 4 5 4.43 .360 .130
specifications
Valid N (listwise) 68
Univariate Statistics
Missing No. of Extremesa
Count Percent Low High
Pmsquality 68 4.1941 .73299 0 .0 0 0
informationquality 68 4.1667 .70181 0 .0 0 0
pmsuse 68 4.1452 .69220 0 .0 0 0
pmsuser 68 4.4510 .64586 0 .0 0 0
projectsuccess 68 4.0163 .62715 0 .0 0 0
a. Number of cases outside the range (Q1 - 1.5*IQR, Q3 + 1.5*IQR).
59
4.4. Correlation Analysis
Correlations
QUALITY OF
GENERATE
D
QUALITY OF INFORMATI PMS PMS PROJECT
PMS ON USE USER SUCCESS
Pearson 1 .969** .972** .926** .908**
Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 68 68 68 68 68
Pearson .969** 1 .988** .933** .933**
Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 68 68 68 68 68
Pearson .972** .988** 1 .948** .942**
Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 68 68 68 68 68
Pearson .926** .933** .948** 1 .910**
Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 68 68 68 68 68
Pearson .908** .933** .942** .910** 1
Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 68 68 68 68 68
**. Correlation is significant at the 0.01 level (2-tailed).
60
4.5. Ordinal Logistic Analysis Output
Goodness-of-Fit
Chi-Square df Sig.
61
Pseudo R-Square
Cox and Snell .981
Nagelkerke .997
McFadden .953
Link function: Logit.
Parameter Estimates
95% Confidence Interval
Lower Upper
Bound Bound
62