Evaluating the Interrelationships Among Key Stakeholders’ Performance in Achieving Project Success

Abstract

Poor performance of key stakeholders contributes to project problems such as delays, cost overruns, inferior quality, work accidents, etc. Many studies have evaluated the correlation between stakeholders and project success; however, no research has been conducted to evaluate the interrelationships among their performances, i.e how one stakeholder's performance affects the other(s) and ultimately determines the project's success. This study aims to fill this gap. A conceptual model was developed using the technique of Structural Equation Modeling (SEM) and then was tested upon empirical data from a field survey of 273 experienced practitioners on construction projects in Indonesia representing the owners (27%), the designers (15%), the supervisors (17%), and the contractors (41%). The results show that all key stakeholders have important roles in the project's success, although their contributions vary. The owner has a positive effect on all other stakeholders' performance, the designer only has a significant influence on the supervisor's performance, the supervision consultant only has a significant effect on the contractor's performance and the contractor has the greatest direct influence on the success of the project. This finding enriches the literature on stakeholder management of construction projects, especially in developing countries which is currently still sparse.

Stakeholder Communication and Its Impact on Participatory Development Planning in Rural Areas

“…Several studies have shown that stakeholder characteristics determine the decision-making process and development process. The community has much discussion but only involves citizens who are most motivated and voluntarily to participate, involving people who are better off in terms of income, education, and status [50][51][52][53][54][55][56].…”