Empowerment and project performance success: the role of leadership and power distance

Abstract

Purpose

The construction of infrastructure projects for extracting natural resources is vital to the economies of countries and the strategies of mining companies. Project performance success (PJPF) means achieving the planned scope, cost, schedule and quality. This study aims to analyze if PJPF is influenced by the team’s psychological empowerment (PEMP) and structural empowerment (SEMP), the project manager’s transformational leadership (TLD) and shared leadership (SLD) styles and the cultural power distance (CPDT). The study also examined the mediating roles of TLD and CPDT.

Design/methodology/approach

This paper tested its hypotheses through confirmatory factor analysis and structural equation modeling in AMOS. Data were collected using the online survey platform SurveyMonkey. Owners, contractors and consultants from 24 countries across the Americas, Africa, Europe, Asia and Australia contributed a total of 222 responses. All participants were involved in construction projects owned by a mining company listed in the S&P 500.

Findings

PEMP has a positive impact on PJPF, SEMP and CPDT. PEMP fosters engaged and autonomous employees with agility and problem-solving skills. TLD mediates the relationship between PEMP and SLD. The results indicated that SEMP, TLD and SLD, on their own, do not directly contribute to project success. In contrast to prior studies, CPDT does not mediate the effects of PEMP on PJPF.

Originality/value

Although construction projects remain labor-intensive, research on measuring PEMP, SEMP, TLD, SLD and CPDT in this field is limited. This document is notable for incorporating the perspectives of owners, EPC contractors and consultants.

Citation

Caruajulca, P. and Khalilzadeh, M. (2024), "Empowerment and project performance success: the role of leadership and power distance", Journal of Engineering, Design and Technology, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEDT-08-2023-0374