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Conflict was recognized as a major cause of inefficiency and limited performance of construction projects. Factors pertaining to conflict in construction are vast; however, there have been less recognition of these factors in international construction projects. The purpose of this paper is to provide in-depth understanding of conflict in this context and analyze how it influences project performance.

A questionnaire survey was used to collect data from 161 professionals working in Malaysian companies, which are undertaking construction projects overseas.

Analyzing the data using factor analysis revealed six new factors of conflict: external, internal, control-related, knowledge-related, mismanagement, and social conflicts. Further analysis of the data using partial least squares-path modeling (PLS-PM) affirmed a significant relationship between project performance and two factors of conflict only: internal and social. The results also showed that conflict contributes to about 27 percent of the variance in project performance.

This paper provided a clear picture for project managers and team members about specific aspects of conflict and how to mitigate them to attain better performance of international construction projects.