Critical success factors influencing performance outcome of joint venture construction projects in South Africa: Comparison of first and second order models

Abstract

Joint ventures (JVs) have become increasingly common, because of the complexity and challenges associated with the delivery of construction projects globally and in South Africa. However, it has been established that JV projects have experienced unsatisfactory performance leading to clients’ dissatisfaction. The purpose of this paper is therefore to determine the critical success factors (CSFs) influencing the performance of JV construction projects in South Africa. A positivist philosophy position was adopted using a structured questionnaire survey administered to the construction professionals. Prior to the main study, a content validity of the questionnaire was achieved using a pilot study. The data was collected from 115 conveniently sampled respondents, and analysed using principal component analysis and multiple regression analysis. The exploratory factor analysis revealed two empirical models to be tested; namely the first and second order factor models. The result of the first order model revealed that, management control influenced achievement of project objective of JV, whereas, the second order model established that understanding of contractual agreement, which was explained by six components of CSFs influenced achievement of project objective. It is suggested that stakeholders who prefer to be involved in JV projects should acquire good understanding of the contractual agreement in managing JV projects in order to successfully achieve the project objectives. This study adds to the discourse and literature on CSFs of JVs. It provides new empirical evidence of the CSFs that influence project performance outcome of JV in the context of South Africa which can also be replicated in other countries globally. However, the study may not be generalised because of the geographical setting and respondents.

Factors influencing the performance of architects in construction projects

“…Therefore, a good working relationship with clients, contractors and subcontractors is equally important to good working relationship with superiors, co-workers and design team members. In a similar vein, Mba and Agumba (2018) also found that a long-term working relationship demonstrated via commitment from parties involved in the project fails to influence construction project outcome.…”

“…Good working relationship is also reflected through the commitment amongst project participants. Mba and Agumba (2018) proposed that commitment amongst project participants is important to ensure successful project performance. However, the working relationship amongst project participants is typically problematic and generates adverse effect to project performance (Kärnä and Junnonen, 2017).…”

Study on the state of the art of critical success factors and project management performance

“…In the literature on project management, CSFs have been investigated in a wide variety of contexts and applications and in different sectors, such as construction industry (Nursin & Latief, 2018;Tsiga et al, 2016;Yan et al, 2019), aviation industry (Adabavazaeh & Nikbakht, 2019), information technology (Adzmi & Hassan, 2018;Ghayyur et al, 2018), service industry (Yang & Yang, 2018), medical technology (García-Villarreal et al, 2019), renewable-energy industry (Maqbool et al, 2018), as well as in general projects (Liu et al, 2018;Mba & Agumba, 2018) and in the fields of management and entrepreneurship (Martens et al, 2018;Silva et al, 2018).…”

Factors Hindering Quality Performance in Construction Projects: An Empirical Study

“…Some studies investigated critical factors in Construction projects in general (Santoso and Gallage, 2019). Other body of literature studied critical factors in Joint venture construction projects (Mba and Agumba, 2018), or Home building construction (Zehro and Jkhsi, 2020), or road construction projects (Kisavi and Ngugi, 2019).…”