Using structural equation modelling (SEM) to understand the relationships among critical success factors (CSFs) for stakeholder management in construction

Abstract

Purpose

Stakeholder management plays a significant role in successfully delivering construction projects. However, being able to carry out effective stakeholder management in construction is contingent upon understanding the interrelationships among critical success factors (CSFs) for stakeholder management in construction and how they are related to project success (PS). This would enable the persons responsible for stakeholder management to know the logical process for addressing the CSFs in order to get stakeholder management right. The understanding of this relationship has not been addressed. The purpose of this paper is to investigate the interrelationships between the CSFs for stakeholder management and PS in construction.

Design/methodology/approach

From an extensive literature review, 23 CSFs for stakeholder management in construction were identified. A conceptual structural equation model (SEM) of the relationships between CSFs was developed (including measurement and structural models) using the groupings of the CSFs for stakeholder management in construction. A questionnaire survey was used to collect data from construction industry practitioners. The data so collected were analysed using SEM in analysis of moment structures (AMOS).

Findings

The SEM analysis of data collected resulted in the best fitting measurement model comprising 16 CSFs as indicators of four latent variables, namely, stakeholder characteristics and project characteristics (SCPC); stakeholder analysis (SA); stakeholder dynamics (SD); and stakeholder engagement/empowerment (SE). Furthermore, it was found that only SE has a direct positive impact on PS. The other three constructs SCPC, SA and understanding SD collectively impact on PS through the construct, SE.

Research limitations/implications

The research reported in this paper was carried out in the UK; hence, the findings may have portrayed the UK construction professionals’ opinion. However, the theoretical principles on which the research was based are general and similar research could be replicated in different countries whose construction procurement processes and industries are structured like those of the UK or otherwise.

Practical implications

The main contribution of this study to existing knowledge is an empirical evidence of the interrelationships among the CSFs for stakeholder management in construction through their latent variables which is portrayed in the best fitting structural model showing the relationships between the constructs of CSFs for stakeholder management and PS. This should serve as a guide to construction project management team or responsible professionals for undertaking stakeholder management in construction projects.

Originality/value

The paper contributes to theory by empirically identifying the interrelationships among the CSFs for stakeholder management linking to PS which will serve as a guide to construction professionals.

Citation

Molwus, J.J., Erdogan, B. and Ogunlana, S. (2017), "Using structural equation modelling (SEM) to understand the relationships among critical success factors (CSFs) for stakeholder management in construction", Engineering, Construction and Architectural Management, Vol. 24 No. 3, pp. 426-450. https://doi.org/10.1108/ECAM-10-2015-0161