IMPACT OF PROJECT MANAGEMENT PRACTICES OF INTERNATIONAL FIRMS ON PROJECT PERFORMANCE IN CHINA

Abstract

International project management practices depict the style and techniques adopted for the successful management of a multinational project. This research aimed to examine the impact of project management practices of international firms on project performance when undertaking international construction. The focus of the study is on how international AEC firms manage projects in China. The objectives are: (1) to investigate the success levels of projects handled by foreign firms in China, (2) to examine the key project management practices adopted by of foreign firms in China, (3) to develop and test models to predict the likely level of project performance in China, based on the project management practices adopted by foreign firms, (4) to recommend good project management practices, strategies and competencies that a firm should adopt at the project level when managing construction projects in China. The study collected 33 sets of data from China-based projects that had the involvement of foreign firms. Data were collected using structured questionnaires through the post and emails. Using Statistical Package for Social Sciences (SPSS) software, analyses were carried out. T-test and confirmatory factor analysis were employed to identify project management practices that led to project success. The most important practice is the ability to give high quality responses to perceived variation. Other important practices are early acceptance of project schedule, high ability to control language barrier risk and ability to use consistent and coherent method to control project execution. Regression analysis was also performed. Two sets of multiple linear regression (MLR) analysis were carried. The first set produced six models predicting each of the six project performance measures using the exploratory independent variables. The second sets of six regression models made use of factor scores as independent variables also predicting each of the six project performance measures. Another 13 sets of data were used to validate the models developed. The six models developed using exploratory variables are proposed for industry use because they have minimum mean percentage error. The models developed in this study may be used to predict the likely success level of a project in China which has the involvement of international firms. The findings of this research should help foreign clients, consultants and contractors predict the likely success level of their China-based projects. It is recommended that project managers adopt some of the more effective practices when managing construction projects in China to obtain the desired outcomes.