EXAMINING THE RELATIONSHIP BETWEEN MANAGEMENT STRATEGIES AND PRODUCTIVITY IMPROVEMENT IN THE SINGAPORE CONSTRUCTION INDUSTRY USING PLS-SEM

Abstract

Singapore’s construction industry is often perceived as a low productivity sector compared to other industries and countries. To enhance construction productivity, the government has been implementing various schemes and roadmaps. However, the efforts from the government solely may be insufficient. Poor management practices were recognized to be the root cause of weak productivity, and improvement on construction productivity should also be directed to construction firms’ management system. This dissertation aims to examine the relationship between management strategies and construction productivity improvement by developing a structural equation modeling. A total of 33 productivity indicators and 26 management strategies were identified from literature reviews. Survey questionnaires were disseminated to the targeted respondents, and responses were analysed to investigate the diverse productivity indicators, productivity performance assessment and the relationship between management strategies and construction productivity improvement. Top five indicators in terms of the level of frequency and importance revealed were: (1) Constructability score, (2) Buildable design score, (3) Square metre of built-up floor area per man-day, (4) Square metre per dollar, and (5) Output per worker at company level. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the hypothesized model indicated that management strategies have a positive correlation with construction productivity improvement. Management strategies’ categories that have an influence on construction productivity growth in descending orders were: (1) Planning and Communication, (2) Logistics, (3) Nature of Construction Projects, (4) Human Resource, and (5) On-site Management. A discussion of each management strategy was presented, and recommendations were provided accordingly. The findings gave a comprehensive understanding on the kinds of productivity metrics the local construction industry adopts and the effectiveness of management strategies on construction productivity growth. The construction firms may delve into their management system and adapt to strategies that can potentially improve construction productivity.