Transformations  in
Business & Economics

ENHANCING THE PERFORMANCE OF RESIDENTIAL CONSTRUCTION PROJECT THROUGH STAKEHOLDER SATISFACTION: THE APPLICATION OF STRUCTURAL EQUATION MODELLING (SEM)
Maryam Abolghasemi, Syuhaida Ismail, Normawati Binti Mohd Sharif, Alireza Rezanezhad Kookhdan, Abbas Mardani

ABSTRACT. Project-based companies require a proactive approach so that the needs and interests of stakeholders can be satisfied. In line with the stakeholder theory, Project Management Body of Knowledge (PMBOK) is a guideline, which has been developed to enhance residential construction project performance by fulfilling stakeholder needs and interests. In accordance to the literature review, studies which highlight the effects of guidelines on project performance are few and far in between. In investigating the association between this study's variables, a quantitative methodology, where cross-sectional survey method is involved, was applied. The collected data, which consisted of a random sample of 384 buyers and developers from the residential sectors of construction project in Iran, was categorized. Subsequently, the response rate generally amounted to 44.1%. Structural Equation Modelling (SEM) technique was used through SmartPLS software to investigate the relationship of variables. Based on the results, the positive relation between project performance, stakeholder satisfaction, and project stakeholder management are prominent. It is also revealed by the results that positive project performance, buyers' satisfaction, and project stakeholder management is also prominent. Moreover, the results show that the implementation of PMBOK standard through the mediating variables of buyers' satisfaction provides a positive impact on project performance. Additionally, resource-based theory, along with resource dependence and stakeholder theories were incorporated in this study in order to create a new theoretical framework, where the significance of social capital in enhancing project performance is evident.

KEYWORDS:  key project stakeholder management, buyer satisfaction, project performance, PMBOK, construction industry.

JEL classification:  L7, L74, O2, O22, J2, J28.