Examining the influence of participant performance factors on contractor satisfaction: A structural equation modelInternational Journal of Project Management

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Authors
Bo Xiong, Martin Skitmore, Bo Xia, Md Asrul Masrom, Kunhui Ye, Adrian Bridge
Year
2014
DOI
10.1016/j.ijproman.2013.06.003
Subject
Management, Monitoring, Policy and Law / Business and International Management / Management of Technology and Innovation

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A addition, the model tests the indirect effects of these performance variables on ES and PS. In particular, OC indirectly affects ES and PS through

Mustaffa, 2012). However, the industry has a poor record for project success in terms of cost, time, quality, etc. Participant el of “happiness” of de by clients, poor ance to change, for example, contribute to both reduced satisfaction and unsuccessful projects (Doloi et al., 2012). Enhanced satisfaction,

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International Journal of Project Managemetherefore, not only helps to improve motivation and cooperation among participants but also increases the likelihood of successful project completion, making its evaluation important ⁎ Corresponding author. Tel.: +61 424406866.The construction industry plays an important role in providing employment opportunities and enhancing economic development, especially in developing countries such as China, India, and Malaysia (Doloi et al., 2012; Ye and Xiong, 2011; Yong and completion.

Participant satisfaction describes the lev project participants and slow decisions ma labour productivity, and architects' reluctmediation of RM and DC respectively. The results also provide opportunities for improving contractor satisfaction and supplementing the contractor selection criteria for clients. © 2013 Elsevier Ltd. APM and IPMA. All rights reserved.

Keywords: Contractor satisfaction; Structural equation model; Project success; Satisfaction dimensions; Participant performance factors 1. Introduction satisfaction is a crucial aspect of this, as noted by Al-Tmeemy et al. (2011) and Leung et al. (2004), in addition to qualified projecta School of Civil Engineering and Built Environment, Queensland University of Technology, Gardens Point, Brisbane, QLD 4001, Australia b Department of Construction Management, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia (UTHM), 86400 Parit Raja,

Batu Pahat, Johore, Malaysia c Faculty of Construction Management and Real Estate, Chongqing University, Chongqing 400045, China

Received 27 January 2013; received in revised form 28 May 2013; accepted 4 June 2013

Abstract

Participant performance is critical to the success of projects. At the same time, enhancing the satisfaction of participants not only helps in problem solving but also improves their motivation and cooperation. However, previous research related to participant satisfaction is primarily concerned with clients and customers and relatively little attention has been paid to contractors.

This paper investigates how the performance of project participants affects contractor project satisfaction in terms of the client's clarity of objectives (OC) and promptness of payments (PP), designer carefulness (DC), construction risk management (RM), the effectiveness of their contribution (EW) and mutual respect and trust (RT). With 125 valid responses from contractors in Malaysia, a contractor satisfaction model is developed based on structural equation modelling.

The results demonstrate the necessity for dividing abstract satisfaction into two dimensions, comprising economic-related satisfaction (ES) and production-related satisfaction (PS), with DC, OC, PP and RM having significant effects on ES, while DC, OC, EW and RM influence PS. InExamining the influence of participa contractor satisfaction: A struct

Bo Xiong a,⁎, Martin Skitmore a, Bo Xia a, MdE-mail addresses: peterxiongbo@gmail.com (B. Xiong), rm.skitmore@qut.edu.au (M. Skitmore), paul.xia@qut.edu.au (B. Xia), asruln@uthm.edu.my (M.A. Masrom), kunhui.ye@gmail.com (K. Ye), a.bridge@qut.edu.au (A. Bridge). 0263-7863/$36.00 © 2013 Elsevier Ltd. APM and IPMA. All rights reserved. http://dx.doi.org/10.1016/j.ijproman.2013.06.003performance factors on al equation model srul Masrom b, Kunhui Ye c, Adrian Bridge a www.elsevier.com/locate/ijproman ct nt 32 (2014) 482–491in judging the success or otherwise of a project.

Construction contractors are responsible for the actual production work involved (cost management, schedule management, causal relationships involved in terms of satisfaction dimensions and associated participant performance factors. f Pr2. Literature review

The concept of customer satisfaction emerged in the early 1980s in the USA and subsequently widely used in the fields of psychology, business, marketing and economics (Liu and Leung, 2002). Defined as the response to the difference between ‘How much is there?’ and ‘How much should there be?’ (Wanous and

Lawler, 1972), satisfaction is particularly useful in the measurement of performance outcomes (Nerkar et al., 1996).

In the construction industry, the term ‘satisfaction’ has become progressively used over the past decade, its increased attention being taken to indicate a positive change from a pure focus on business performance to a greater emphasis on stakeholder performance (Love and Holt, 2000). Therefore, in addition to the traditional objective outcome measures of time, cost and quality, measuring satisfaction has become another effective way of helping to improve project performance, especially for large and complex projects (Cheng et al., 2006; Ling et al., 2008; Toor and

Ogunlana, 2010). Furthermore, satisfaction can boost repeat business and increase long-term profitability (Wirtz, 2001).

There exist a variety of applications of satisfaction measurement in the construction context. These comprise studies of client satisfaction levels associated with contractor and consultant performance (Cheng et al., 2006; Mbachu and Nkado, 2006); customer satisfaction with the products and services of thequality management, etc.) in projects and so their performance is critical to the success of projects. Furthermore, replacing a contractor with another during project execution is very costly.

It is therefore important to understand the factors influencing contractor performance, and measuring the degree of contractor satisfaction offers a means of achieving this as well as providing an opportunity to enhance the effectiveness of cooperation between contractors and other participants. That is to say, contactor satisfaction is central to maintaining the cohesiveness and level of teamwork needed for a project (Chan et al., 2002).