Effect of project characteristics on project performance in construction projects based on structural equation model

Most past studies that analyze project performance and the characteristics that affect such performance consist of a simple form, in which they present the brief relationship between project performance and a few characteristics that affect it. Furthermore, due to the limitations of the research methodologies used in these studies, important characteristics were often not considered in developing the relationship between project performance and project characteristics. This study aims to analyze the overall relationship between project performance and a project’s characteristics. This study deduced (i) the overall causal relationship and (ii) the degree of influence between 17 project characteristics and five project performance indices. In order to achieve this goal, this study employed the factor analysis method and a structural equation model (SEM). In addition, this study established a SEM based on quantitative data from actual case studies as opposed to previous SEM studies that mainly use qualitative data. The SEM developed in this study can identify the project characteristics that affect the level of project performance required by owner in the planning stage, and is thus expected to help facilitate the decisionmaking process in the early planning stage of a project. 2009 Elsevier Ltd. All rights reserved.