RISK MITIGATION AS A MEDIATING FACTOR IN THE RELATIONSHIP BETWEEN TOP MANAGEMENT SUPPORT AND CONSTRUCTION PROJECT PERFORMANCE
-
Abstract
Construction projects are complex and high-risk activities. Project risks can come from various factors, such as technical, environmental, social, and economic factors. Top management support and project risk mitigation are critical factors influencing construction project performance. This research analyzes the influence of top management support and project risk mitigation on construction project performance. This research method uses a quantitative statistical approach based on primary data collected through questionnaires distributed to 50 construction companies in Bali Province, randomly selected from the population of construction companies that comprise large, medium, and small qualifications. Secondary data was obtained through a relevant literature review, which includes three variables, i.e., top management support, project risk mitigation, and construction project performance. The research shows that top management support and project risk mitigation significantly influence construction project performance. Top management support increases worker motivation and productivity, efficiency, work effectiveness, and work quality and safety in construction projects. Meanwhile, risk mitigation improves projects through control, time estimation, information presentation, worker motivation, technology, and resources. In addition, project risk mitigation is a mediating variable in the relationship between top management support and construction project performance.
References
Mordor Intelligence Report, “INDONESIA CONSTRUCTION MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2023 - 2028),” 2023.
Y. Yurianto and T. Kadri, “Identifikasi Faktor-Faktor Yang Mempengaruhi Keterlambatan Proyek Infrastruktur Kereta Cepat Jakarta-Bandung,” Indones. J. Constr. Eng. Sustain. Dev., vol. 3, p. 35, Oct. 2020.
Ratih Soleha and Agus Ismail, “Analisa Efektivitas Waktu dan Biaya Proyek Ditinjau Dari Unsur – Unsur Manajemen Proyek (Studi Kasus Overlay Runway Bandara Innternasional Soekarno - Hatta),” J. Konstr., vol. 16, no. 2, 2018.
A. S. Bu Qammaz and R. Y. AlMaian, “A critical success factors model for effective implementation of risk management process in the construction projects,” J. Eng. Res., vol. 8, no. 3, pp. 50–70, Aug. 2020.
M. Gunduz and M. Almuajebh, “Critical success factors for sustainable construction project management,” Sustain., vol. 12, no. 5, Mar. 2020.
A. P. Matheny, T. D. Wachs, J. L. Ludwig, and K. Phillips, “Bringing order out of chaos: Psychometric characteristics of the confusion, hubbub, and order scale,” J. Appl. Dev. Psychol., vol. 16, no. 3, 1995.
O. Zwikael and S. Globerson, “From Critical Success Factors to Critical Success Processes,” Int. J. Prod. Res., vol. 44, no. 17, 2006.
M. Z. Fareed and Q. Su, “Project Governance and Project Performance: The Moderating Role of Top Management Support,” Sustain., vol. 14, no. 5, pp. 1–13, 2022.
A. Hassan, A. Bakar, A. A. Razak, S. Abdullah, A. Awang, and V. Perumal, “Critical success factors for sustainable housing: A framework from the project ASIAN JOURNAL OF MANAGEMENT RESEARCH Critical success factors for sustainable housing: a framework from the project management view,” 2010.
O. Jayeola et al., “The Mediating and Moderating Effects of Top Management Support on the Cloud ERP Implementation–Financial Performance Relationship,” Sustain., vol. 14, no. 9, May 2022.
E. T. Banobi and W. Jung, “Causes and mitigation strategies of delay in power construction projects: Gaps between owners and contractors in successful and unsuccessful projects,” Sustain., vol. 11, no. 21, 2019.
A. Shafqat, J. Oehmen, T. Welo, and G. Ringen, “The role of risk mitigation actions in engineering projects: An empirical investigation,” Syst. Eng., vol. 25, no. 6, pp. 584–608, 2022.
S. K. Viswanathan, K. K. Tripathi, and K. N. Jha, “Influence of risk mitigation measures on international construction project success criteria–a survey of Indian experiences,” Constr. Manag. Econ., vol. 38, no. 3, pp. 207–222, 2020.
A. Brown and J. Adams, “Measuring the effect of project management on construction outputs: A new approach,” Int. J. Proj. Manag., vol. 18, no. 5, 2000.
R. Navon, “Automated project performance control of construction projects,” in Automation in Construction, 2005, vol. 14, no. 4.
H. C. O. Unegbu, D. S. Yawas, and B. Dan-asabe, “An investigation of the relationship between project performance measures and project management practices of construction projects for the construction industry in Nigeria,” Journal of King Saud University - Engineering Sciences, vol. 34, no. 4. King Saud University, pp. 240–249, May-2022.
Q. Li, C. Y. Lee, H. Jin, and H. Y. Chong, “Effects between Information Sharing and Knowledge Formation and Their Impact on Complex Infrastructure Projects’ Performance,” Buildings, vol. 12, no. 8, Aug. 2022.
X. Zheng, J. Yuan, J. Guo, M. J. Skibniewski, and S. Zhao, “Influence of relational norms on user interests in PPP projects: Mediating effect of project performance,” Sustain., vol. 10, no. 6, Jun. 2018.
T. Mei, Z. Guo, P. Li, K. Fang, and S. Zhong, “Influence of Integrated Project Delivery Principles on Project Performance in China: An SEM-Based Approach,” Sustain., vol. 14, no. 8, Apr. 2022.
H. L. Chen, “Impact of communication on capital project performance: a mediated moderation model,” Sustain., vol. 13, no. 20, Oct. 2021.
J. H. L. Chan, D. W. M. Chan, A. P. C. Chan, and P. T. I. Lam, “Risk mitigation strategies for guaranteed maximum price and target cost contracts in construction: A factor analysis approach,” J. Facil. Manag., vol. 10, no. 1, pp. 6–25, 2012.
S. Muhammad, J. Iqbal, C. S. Long, S. Mohammed, L. Abdul, and S. Bukhari, “Moderating Effect of Top Management Support on Relationship between Transformational Leadership and Project Success Moderating Effect of Top Management Support on Relationship between Transformational Leadership and Project Success,” no. January, 2015.
R. Ahmed, “Top management support and project performance: An empirical study of public sector projects,” 2016 Int. Annu. Conf. Am. Soc. Eng. Manag. ASEM 2016, no. November 2016, 2016.
A. F. Serpella, X. Ferrada, R. Howard, and L. Rubio, “Risk Management in Construction Projects: A Knowledge-based Approach,” Procedia - Soc. Behav. Sci., vol. 119, pp. 653–662, 2014.
J. F. Hair, G. T. M. Hult, C. M. Ringle, M. Sarstedt, N. P. Danks, and S. Ray, Review of Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook, vol. 30, no. 1. 2021.
M. Gunduz and M. Almuajebh, “3.paper Murat Gunduz and Mohammed Almuajebh (2020).pdf,” 2020.
F. A. R. S. Alubaid, R. H. F. Alhadeethi, and A. J. Mohamed, “Assessment the safety policy management for building construction companies in Jordan,” J. Appl. Eng. Sci., vol. 18, no. 1, pp. 120–131, 2020.
M. Mukattash and E. Hyarat, “Major Project Management Factors Affecting the Delivery of Green Building Projects: the Case of Jordan,” J. Appl. Eng. Sci., vol. 21, no. 1, pp. 313–325, 2023.
Z. Ariany, T. Pitana, and I. Vanany, “Risk Assessment of New Ferry Ship Construction in Indonesia Using the Failure Mode Effect and Analysis (Fmea) Method,” J. Appl. Eng. Sci., vol. 21, no. 3, pp. 872–883, 2023.
T. Brenda Chandrawati, A. A. P. Ratna, and R. F. Sari, “Priority Search Simulation for Flood Evacuation Routes Using Fuzzy Ahp Approach,” J. Appl. Eng. Sci., vol. 20, no. 1, pp. 19–28, 2022.
A.-H. Khameneh, A. Taheri, and M. Ershadi, “Offering a Framework for Evaluating the Performance of Project Risk Management System,” Procedia - Soc. Behav. Sci., vol. 226, no. October 2015, pp. 82–90, 2016.
M. Ali Rezvani Befrouei, “Identification and Management of Risks in Construction Projects,” Am. J. Civ. Eng., vol. 3, no. 5, p. 170, 2015.
I. Ghozali, Partial Least Squares, Konsep, Teknik dan Aplikasi menggunakan Program SmartPLS 3.2.9 Untuk Penelitian Empiris. Badan Penerbit Universitas Diponegoro, 2021.