Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)

Abstract

Evaluating the Impact of Construction Risk Factors on Project Performance in India: Structural Equation Modeling

Author(s): Manpreet Kaur and Rajwinder Singh

Construction projects are extremely multifaceted and dynamic. Though, its dynamicity subjects to numerous risks that can affect project performance. Therefore, study aimed to identify the risk factors affecting project performance, and also develop the research model representing risk factors affecting project performance. Data was collected from residential, institutional and retail building construction projects between July 21, 2019, and November 17, 2019. 237 valid responses were collected via questionnaire survey from the construction professionals. Exploratory factor analysis (EFA) was employed to extract the factors of construction projects where five independent factors (risk factors) and one dependent factor (project performance) were extracted. Analysis of a Moment Structures (AMOS) software was used to analyse the relationship among five risk factors and their impact on project performance. The results of the Structural Equation Modeling (SEM) observes the significance of risk factors impacting project performance. In addition, managerial risk found to be the most dominant risk factor impacting project performance followed by design, financial, resource and construction risk factor. Despite the limitations of the study, study has contributed knowledge by providing new visions, such as how do risks differentially influence project performance in construction projects? Moreover, study provides a clear and well understanding of “which are the most critical risks in construction projects’’, and ‘’how are they impacting on performance of construction projects’’. Further, it is anticipated that the results of study would be a guidebook for all the stakeholders to prevent any possible impact of risk on their construction project performance.

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