An Empirical Analysis of Organizational Performance of Construction Companies in Pakistan through Mediating Role of Conflict Management Effectiveness
Keywords:Conflict Management, Organizational Performance, Construction, Relationship Conflict, Workforce Productivity
This paper aims to examine the impact of organizational factors and verify mediating role of conflict management effectiveness on perceived performance of registered construction companies in Pakistan. The study adopts a survey research design using a well-structured questionnaire of 450 employees from construction companies located in Lahore and Karachi. The construction industry is characterized by performance setbacks for decades. Descriptive statistics and mediation analysis were employed to analyze the conceptual model. The research paper concludes that distortions in reduced workforce productivity and relationship conflicts should be overcome by capable professional & administrative services. The analysis depicts that socio-economic and political factors play a significant role to maintain the quality in local construction industry. The findings reveal that performance of construction companies is significantly related to internal factors i.e. workforce productivity, decentralization, perceived organizational politics and relationship conflict. The study provides guidelines to organizational decision-makers and government policy-makers for public reforms in infrastructure to improve their output. The present study was undertaken to provide new horizons and advance understanding on organizational performance (OP) of construction companies in Pakistan. The most significant part of this study is the comprehensive five-factor organizational performance model designed to test mediation among variables using partial least square structural equation modelling (SEM).
Amayah, A. T. (2013). Determinants of knowledge sharing in a public sector organization. Journal of Knowledge Management, 17(3), 454 – 471.
Angogo, F. A. (2016). The Influence of Organizational Politics on Career Development Among Administrative Staff in Public Universities: A Case of the University of Eldoret, Kenya (Doctoral dissertation, COHRED, JKUAT).
Arogundade, O. T. (2016). A Psychological Appraisal of Perceived Organizational Politics in Selected Profit and Non-Profit Organizations in Lagos Metropolis, Nigeria. Ife PsychologIA, 24(1).
Bobekova, E. (2015). Third party conflict management of trans boundary river disputes", International Journal of Conflict Management, 26 (4), 402 – 426.
Bournakis, I., & Tsoukis, C. (2016). Government size, institutions, and export performance among OECD economies. Economic Modelling, 53, 37-47.
Bryman, A. (2012). ‘Social Research Methods’ (4th Ed.). Oxford University Press.
Buschor, E. (2013). Performance Management in the public sector: Past, current and future trends. Review of Applied Management Studies, 11, 4-9.
Chen, T. (2015). Institutions, board structure, and corporate performance: Evidence from Chinese firms. Journal of Corporate Finance, 32, 217-237. Doi: 10.1016/j.jcorpfin.2014.10.009.
Das , A., & Kapil , S. (2015). Inorganic growth of technology sector firms in emerging markets: Influence of firm-specific factors in Indian firms’ M&A activities. International Journal of Emerging Markets, 10 (1), 52 – 72.
Haas, E. J., & Yorio, P. (2016). Exploring the state of health and safety management system performance measurement in mining organizations. Safety Science, 83, 48-58. Doi: 10.1016/j.ssci.2015.11.009.
Hair, J. F., Hult, G. T. M., Ringle, C. M., and Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), 2nd Ed., Thousand Oaks, CA: Sage.
Harty, C. & Leiringer, R. (2017). The futures of construction management research, Construction Management and Economics, 35(7), 392 403, DOI: 10.1080/01446193.2017.1306089.
Hawke, L. (2012). Australian public sector performance management: success or stagnation? International Journal of Productivity and Performance Management, 61(3), 310 – 328.
Henseler, J., Ringle, C. M., and Sarstedt, M. (2012). Using Partial Least Squares Path Modeling in International Advertising Research: Basic Concepts and Recent Issues, in Handbook of Research in International Advertising.
Jung, C. S., & Kim, S. E. (2014). Structure and Perceived Performance in Public Organizations. Public Management Review, 16 (5), 620-642.
Kossova, T., & Sheluntcova, M. (2016). Evaluating performance of public sector projects in Russia: The choice of a social discount rate. International Journal of Project Management, 34, 403-411.
Lomore, M. & Lim, B. T. (2017). Linking corporate social responsibility and organizational performance in the construction industry, Construction Management and Economics, 35(3), 90-105, DOI: 10.1080/01446193.2016.1242762.
Maiti, S. & Choi, J. (2018) Investigation and implementation of conflict management strategies to minimize conflicts in the construction industry, International Journal of Construction Management, DOI: 10.1080/15623599.2018.1536964.
Maling, M. A. (2017). The Study of High-Cost Oncology Patients to Improve Care & Curb Costs,Oncology Issues, 32:3, 46-53, DOI: 10.1080/10463356.2017.11884180
Martocchio, J. J. (2006). Strategic Compensation – A Human Resource Management Approach. New Jersey: Pearson Education, Inc.
Mehrad, A. (2015). Conflict Management Styles and Staff Job Satisfaction at Organization. Journal of Educational, Health and Community Psychology, 4(2), 98-104.
Mensah, G. T. (2013). Relationship Between Perceived Organizational Politics, Organizational Commitment and Organizational Citizenship Behavior Among Some Selected Public Sector Organizations in Accra (Doctoral dissertation, University of Ghana).
Millar, P., & Doherty, A. (2016). Capacity building in nonprofit sport organizations: Development of a process model. Sport Management Review, xxx, xxx-xxx. Doi: 10.1016/j.smr.2016.01.002.
Ofori, E. (2014). The Relationships between Perceived Organisational Politics, Employee Political Skill and Job Stress among Employees in the Ghanaian Private Sector (Doctoral dissertation, University of Ghana).
Ogbeidi, M.M. (2012). Political Leadership and Corruption in Nigeria Since 1960: A Socio-economic Analysis. Journal of Nigeria Studies,1(2), 1-25.
Opute, A. P. (2014). Cross-functional bridge in dyadic relationship: Conflict management and performance implications, Team Performance Management, 20(3/4), 121 – 147.
Otmazgin, N. K. (2013). Regionalizing Culture. University of Hawai'i Press.
Pang, M. (2014). IT governance and business value in the public sector organizations _ The role of elected representatives in IT governance and its impact on IT value in U.S. state governments. Decision Support Systems, 59, 274-285.
Perrenoud, A. J. (2018). Delphi Approach to Identifying Best Practices for Succession Planning within Construction Firms, International Journal of Construction Education and Research, DOI: 10.1080/15578771.2018.1544950
Piening, E. P. (2013). Dynamic Capabilities in Public Organizations, Public Management Review, 15(2), 209-245.
Rahim, M. A. (2002). Toward a Theory of Managing Organizational conflicts. The International Journal of Conflict Management,13(3), 206-235.
Sardana G. D. (2008). Measuring business performance: a conceptual framework with focus on improvement. Performance Improvement, 47(7). DOI: 10.1002/pfi.20014.
Schwartz, R., & Deber, R. (2016). The performance measurement-management divides in public health. Health Policy. Doi: 10.1016/j.healthpol.2016.02.003.
Sole, F. (2009). A management model and factors driving performance in public organizations. Measuring Business Excellence, 13(4), 3 – 11.
Spano, A. (2014). How do we measure public value? From Theory to Practice. Public Value Management, Measurement and Reporting, 3, 353-373.
Spekle, R. F., & Verbeteen, F. H.M. (2014). The use of performance measurement systems in the public sector: Effects on performance. Management Accounting Research, 25, 131-146. Doi: 10.1016/j.mar.2013.07.004.
Sulle, A. (2014). The Use of Performance Measurement Information in the Tanzanian Public sector: The case of National Housing Corporation. International Journal of Management Sciences and Business Research, 3(7), 1-10.
Sweet, R. (2018). Canary in the coal mine: What Carillion’s collapse reveals about construction’s productivity conundrum, Construction Research and Innovation, 9:1, 3-8, DOI: 10.1080/20450249.2018.1447062.
Szentes, H (2018). Reinforcing cycles involving inter- and intraorganizational paradoxical tensions when managing large construction projects, Construction Management and Economics, 36(3), 125-140, DOI: 10.1080/01446193.2017.1315826.
Villmer, A. (2015). Conflicts in innovation and how to approach the “last mile” of conflict management research – A literature review, International Journal of Conflict Management, 26(2), 192 – 213.
Yang, F. (2017). Better understanding the perceptions of organizational politics: its impact under different types of work unit structure, European Journal of Work and Organizational Psychology, 26(2), 250-262, DOI: 10.1080/1359432X.2016.1251417
Yesil, S., & Kaya, A. (2013). The effect of organizational culture on firm financial performance: Evidence from a developing country. Procedia-Social and Behavioral Sciences, 81, 428-437.