Extent of stakeholder management practices in building projects procured by private corporate organisations in Nigeria

Abstract

PurposeStudies on stakeholder management (SM) in developing countries have largely focused on public projects. However, projects of private organisations also need much improvement. The purpose of the study was to examine the extent of SM practices in building projects procured by private corporate organisations.Design/methodology/approachPurposive sampling technique was used to select project managers (PMs) and client representatives (CRs) who have been involved in projects procured by private corporate organisations between 2008 and 2017 in Southwestern Nigeria. The PMs are comprised of executive and non-executive PMs as well as contract administrators. Both the PMs and CRs were requested to provide information on one building project in which they were involved within the period under consideration. The data collected were analysed using mean score (MS) analysis, t-test, and analysis of variance.FindingsThe results showed that structured SM processes were followed in only 30.65% of building projects procured by private corporate organisations in the study area. Results further showed on a five-point scale 5-max scale that SM practice was highest with an MS of 3.92 on projects where executive PMs were appointed and lowest (MS = 2.85) on projects where PMs were appointed as contract administrators. Furthermore, it was found that respondents placed the highest premium (MS = 3.73) on stakeholder identification while they placed the lowest premium (MS = 3.45) on developing implementation strategies and stakeholder classification.Practical implicationsThe study examines the status quo regarding SM practice in the study area in order to devise a means of refinement.Originality/valueThe study is an attempt to evaluate the premium placed on different components of SM practices by differing categories of project managers.

Stakeholder identification methods used in private organisations’ projects in Nigeria

“…The majority of the various proponents of different models for structured SM on construction projects have asserted that SI is the first step in the SM process (Aaltonen et al, 2008;Olatunde, 2019). For instance, Lock (2007) opined that stakeholder management should consist of methodical identification of stakeholders, analysis, planning actions, communication and negotiation targeted at influencing project stakeholders.…”

“…Karlsen (2002) suggested a six-step model for SM including initial planning, identification, analysis, communication, action and follow-up. Olatunde (2019) adapted the six-step model suggested by Karlsen (2002) as the most comprehensive SM process and proposed a model that entails stakeholder identification, classification, analysis, engagement, developing an implementation strategy, and follow-up action on strategy. This stage focuses on the identification of stakeholders.…”

“…The study mentioned the various processes of SM, but did not empirically examine each of the processes highlighted. Olatunde's (2019) research focused on assessment of stakeholder management in construction projects procured by private corporate organisations in Southwestern Nigeria. The study just like Karsel's (2002), though highlighted the various SM processes in its framework, did not focus on SI methods.…”

“…Aaltonen et al (2008) posited that stakeholder analysis and the identification aims to facilitate the understanding of how to manage stakeholders in invariably changing and unpredictable environments. Previous studies on stakeholder management on construction projects have mentioned the various methods of SI (Chevalier and Buckles, 2008; Jepsen and Eskerod, 2009; Karlsen, 2002); however, none of the studies have empirically tested the methods used by project managers to identify stakeholders in their projects; neither do they differentiate the opinions of project managers on SI methods when different procurement methods are used (Von and Achterkamp, 2006; Olatunde, 2019; Olatunde and Odeyinka, 2021a), hence the gap this study intended to fill. Although Olatunde and Odeyinka (2021a) while assessing the extent of stakeholder management practices in building projects procured by private corporate organisations in Nigeria mentioned SI as an important step in the structured SM process, the study found that respondents placed the highest premium on SI and the lowest premium on developing implementation strategies and stakeholder classification.…”

“…Previous studies on stakeholder management on construction projects have mentioned the various methods of SI (Chevalier and Buckles, 2008; Jepsen and Eskerod, 2009; Karlsen, 2002); however, none of the studies have empirically tested the methods used by project managers to identify stakeholders in their projects; neither do they differentiate the opinions of project managers on SI methods when different procurement methods are used (Von and Achterkamp, 2006; Olatunde, 2019; Olatunde and Odeyinka, 2021a), hence the gap this study intended to fill. Although Olatunde and Odeyinka (2021a) while assessing the extent of stakeholder management practices in building projects procured by private corporate organisations in Nigeria mentioned SI as an important step in the structured SM process, the study found that respondents placed the highest premium on SI and the lowest premium on developing implementation strategies and stakeholder classification. In another study, Olatunde and Odeyinka (2021b) appraised factors influencing stakeholder management in building projects procured by private corporate organisations and found that the most important factors influencing SM comprise maintaining good relationships with stakeholders, addressing stakeholders' concerns, and needs and avenue for communicating project impacts.…”