Factors promoting stakeholder management of building projects

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The purpose of the study is to assess the factors promoting stakeholders’ management of building projects in Nigeria with a view to managing the various interests of stakeholders on building projects.

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International Journal of Mechanical Engineering and Technology (IJMET) Volume 10, Issue 03, March 2019, pp. 944-951. Article ID: IJMET_10_03_095 Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=3 ISSN Print: 0976-6340 and ISSN Online: 0976-6359 © IAEME Publication Scopus Indexed FACTORS PROMOTING STAKEHOLDER MANAGEMENT OF BUILDING PROJECTS Opeyemi Oyeyipo* Covenant University, Ota, Ogun state, Nigeria Henry Odeyinka Obafemi Awolowo University, Ile-Ife, Osun state, Nigeria James Owolabi and Rapheal Ojelabi Covenant University, Ota, Ogun state, Nigeria ABSTRACT. The purpose of the study is to assess the factors promoting stakeholders’ management of building projects in Nigeria with a view to managing the various interests of stakeholders on building projects. The research is a project-based study where fifty nine building projects were sampled. The study adopted cross-sectional research design, while research questionnaire was used to elicit information from the project leaders of the selected building projects. Purposive sampling technique was used to draw up the target respondents. Findings reveal stakeholders’ potential for cooperation, the control level of engagement of stakeholders, positive stakeholder’s interest towards the project and effective communication among stakeholders are the most significant factors promoting stakeholders’ management in building project delivery within the study area. The study also revealed that there is no significant difference among project leaders on the factors promoting stakeholder’s management of building projects in Nigeria. Keywords: Building project,Project delivery, Stakeholders, Stakeholder management, Cite this Article Opeyemi Oyeyipo, Henry Odeyinka, James Owolabi and Rapheal Ojelabi, Factors Promoting Stakeholder Management of Building Projects, International Journal of Mechanical Engineering and Technology, 10(3), 2019, pp. 944-951. http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=10&IType=3 1. INTRODUCTION Construction project delivery involves a cycle of interrelationships between stakeholders and strings of complex activities leading to achievement of client’s objectives. The quality of interrelationships between the project team and other construction stakeholders depends on organization’s culture, source of funding and stakeholders involved on construction projects (Sauer, 1993). There exist different levels of interests for every group and individuals involved http://www.iaeme.com/IJMET/index.asp 944 editor@iaeme.com
Opeyemi Oyeyipo, Henry Odeyinka, James Owolabi and Rapheal Ojelabi in construction project delivery. Cleland (1999) and Karlsen (2002) reiterated that the tendency to manage stakeholders as well as ensuring there is a balance between their interest and contributions in construction projects are essential for successful project outcome. This ultimately makes it important for project leaders to manage different interests and stakes of project stakeholders in order to have positive outcomes in terms of client’s satisfaction. The number of stakeholders involved in construction projects increases the interests as well as the uncertainties in the project. This is confirmed by Karlsen (2008) who argued that each stakeholder have different interest which places them in conflict with the project objectives. Stakeholder’s interest can either be in support or opposition with the project objectives. Some stakeholders’ interest have more basis and footing than some others. The stakes of different stakeholders in building project delivery could include but not limited to professional fees, involvement in special type of projects, relevance in the industry and any other reasons which might not be known at the inception of building projects. Notwithstanding, the project leaders in the construction industry are expected to be able to manage stakeholders and their respective interests in the execution of such building projects. While El-Gohary, Osman and Ei-Diraby (2006) maintained that stakeholder management has been seldom embraced in the construction sector, the construction industry has persistently recorded poor stakeholder’s management in the last two decades (Chinyio&Olomolaiye, 2010). The poor record of SM in the built environment could be linked to different interests and uncertainty arising from various construction projects. Bourne (2005) argued that construction project outcome is reliant on the expectation and perceptions of project participants coupled with the capacity of the project leader (PL) to manage the project politics among stakeholders. The outcome of construction projects is dependent on stakeholders’ disposition to the project and the willingness of the project manager to manage the interests of the project stakeholders. The study is set out to examine the factors promoting stakeholder management in building project delivery as well as assessing the opinions of different stakeholder management. The study will provide valuable insight to project leaders of building projects about the significant factors promoting stakeholder’s management in the construction process. There have been several studies on critical success factors of stakeholders’ management in construction projects. These factors include activities or considerations that ensure successful stakeholder management. Yang, Shen, Ho, Drew and Chan (2009) confirmed fifteen (15) critical success factors for SM in developing countries, while El-Sawalhi and Hammad (2015) identified twenty three (23) critical success factors for SM under six dimensions or groups in Gaza strip construction industry. Olander and Landin (2008)embarked on a research to examine comparative study of factors affecting external stakeholder management process and highlighted five factors for the variances in the outcomes of the stakeholders’ management process in project delivery. The major constraint with the studies reported is the inability to examine the holistic factors influencing stakeholder management as against the critical success factors which has flooded literature. In addition, most of the factors identified in the studies reported did not capture those peculiar to the Nigerian construction industry. 2. REVIEW OF LITERATURE There have been several definitions from different scholars on stakeholder management. The concept according to Li et al. (2011) is the efficient management of relationships among project stakeholders. Karlsen (2002) and Bourne and Walker (2006) defined stakeholder management with different statements but both reckoned that the concept involves the management of activities related to project stakeholders. The latter however hinted that the management process encourages the use of proactive project manager to reduce the negative effect of stakeholder activities and ensure stakeholder support to achieve project goals. This infers that project leader http://www.iaeme.com/IJMET/index.asp 945 editor@iaeme.com
Factors Promoting Stakeholder Management of Building Projects will make use of strategies to reduce project stakeholder activities that affect project negatively and support activities that influence the project positively. Project Management Institute (2014) described project stakeholder management as the systematic identification, analysis, and planning of actions to communicate with and impact stakeholders. The identification of stakeholders, the tendency to analyse the influence of stakeholders, communication among stakeholders are few of the activities to be managed by the project leader. Aaltonenet al. (2008) indicated that stakeholder identification and analysis is aimed at facilitating the understanding of how to manage stakeholders in constantly changing and unpredictable environments. Persson and Olander (2004) further defined successful management of stakeholders to involve actively giving and getting stakeholder’s support and working together to devise, plan and develop or bring new project on board. Stakeholder management is focused on harmonizing the contributions of participants to enhance the project outcome. The effective stakeholders’ management in construction project delivery has a great contribution to the successful outcome of project (El-Naway, Mahdi, Badwy and Al-Deen, 2015). The success of building projects is dependent on the ability to manage diverse individuals with stakes in the project. [24] stress that stakeholders in a construction project have considerable interest and needs in the project which should be understood during the construction process. Bal, Bryde, Fearons and Hanif (2017)maintained that an effectively managed stakeholder engagement process improves quality performance of such projects while increasing the economic sustainability of the project. Such engagement process breeds a positive relationship among stakeholders. There are however benefits which accrue as a result of stakeholder management and engagement; stakeholders possess increased wealth of information, better understanding of the construction market condition, promotion of stakeholder reputation, cordial relationships, understanding of stakeholders’ priorities and needs, understanding and mitigation of threats as well as uncertainties. While some of the factors have organizational inclination, others are related to project environment, communication, contractual, and regulatory issues (Ekung, Okonkwo and Odesola, 2014).In the same light, Ihugba and Osuji (2011) reflected that barriers on the part external stakeholders’ community arise from lack of awareness,Olander and Landin (2008) upheld that paying attention to the long term objectives of projects at the detriment of the short term objectives of community stakeholders can also breed public resistance. The authors further stated that insufficient allocation of time and resources can also steer up sub-optimal outcome, and strong resistance. 3. RESEARCH METHOD This section outlines the procedure for conducting the study. It discusses the research design, population of the study, sampling techniques, method for data collection and statistical tools for analysing the collected data. A survey research design was adopted in the study because information/opinions were sought from a cross section of project leaders on selected building projects in the study area. Specifically, a cross-sectional research design was used where samples were drawn from the population of study at one point in time. The study was conducted in Lagos state which is economically an important city in Nigeria. The study was a project based research similarly to researches carried out by (Ogunde, Olaolu, Afolabi, Owolabi & Ojelabi, 2017; Amusan, Tunji-Olayeni, Afolabi, Omuh, Ojelabi & Oluwatobi, 2016; Ojelabi, Oyeyipo, Afolabi & Amusan, 2018, Oyeyipo, Odusami, Ojelabi and Afolabi, 2016). Hence, the research instrument was prepared and administered to project managers/leaders of selected building projects in such a way that the study can get in depth information related to the factors promoting stakeholders’ management of building projects. Purposive sampling, which is a non- http://www.iaeme.com/IJMET/index.asp 946 editor@iaeme.com
Opeyemi Oyeyipo, Henry Odeyinka, James Owolabi and Rapheal Ojelabi probabilistic sampling technique was adopted for the study due to the study’s inability to obtain a current and comprehensive list of all the building projects currently ongoing in Lagos as at the time of carrying the study. The study selected 91 (ninety one) building projects with its project leaders within the study area. However, it must be said that some of the building projects did not have statutory project managerswhile the others did. Out of the seventy (72) copies of research questionnaire administered to the respondents via an online questionnaire survey, 61 were completed and returned. Table 1: Respondents response rate N % Total administered 91 100 Total returned 61 67 Total used for the analysis 53 58 The returned questionnaires were then assessed and only fifty three (53) were discovered adequate for the study, representing a 58% response rate. Some of the returned questionnaires were assessed and those not filled properly were discarded so as not to alter the outcome of the research. 4. RESULTS AND DISCUSSION 4.1. Characteristics of the respondents The analysis of the data revealed that majority (94%) of the respondents that participated in the questionnaire survey has formal education which makes them important for the study. Thirty percent of the project leaders are architects, 20% are quantity surveyors, 11% and 17.3% are builders and civil engineers respectively while the remaining are service engineers and other allied professionals. It is imperative that majority of project leaders have professional background in architecture and quantity surveying. The working experience of the respondents has spanned over the years in the construction industry. 47.2% of the respondents have worked for 1-10 years, 30.2% have between 11-20 years of experience, 20.8% between 21-30 years of experience whereas the rest (1.9%) have worked for 31-40 years. This therefore implies that the project leaders of the selected building projects have been involved in building project delivery and hence knowledgeable about stakeholders’ related matters in the construction industry. 4.2. Factors promoting stakeholders’ management of building project To achieve the objective, there are seventeen (17) factors promoting stakeholders’ management of building projects obtained from literature. This was done by requesting the respondents to rate the level of significance of probable factors identified from literature. The mean scores of the significance of the factors are presented in Table 2. Table 2: Factors promoting stakeholders’ management of building projects Factors Mean Rank Control level of engagement of stakeholders 3.47 1 Stakeholders potential for cooperation 3.31 2 Positive stakeholder interests towards the project 3.29 3 Communication among stakeholders 3.28 4 http://www.iaeme.com/IJMET/index.asp 947 editor@iaeme.com
Factors Promoting Stakeholder Management of Building Projects Pre-existing cordial relationship between stakeholders 3.28 4 Co-operative stakeholders behaviour on the project 3.26 6 Stakeholders identification and role definition 3.23 7 Classification of stakeholders into supporters, neutral and resistant group to the 3.22 8 project Areas of stakeholders interest/need in the project 3.18 9 Change of stakeholders relationship during the project 3.17 10 Relationship btw project management team and stakeholders 3.16 11 Stakeholders potential for threat on the project 3.15 12 Stakeholders known attributes on projects 3.13 13 Stakeholder coalition among themselves 3.09 14 Strategies for managing stakeholders 2.98 15 Project task assigned to stakeholders at different stages 2.77 16 The power and influence of stakeholders on the project 2.75 17 Table 2 shows that control level of engagement of stakeholders (mean score - 3.47), stakeholders potential for cooperation (mean score – 3.31), positive stakeholder’s interests towards the project and communication among stakeholders are the most significant factor promoting stakeholders management of building projects. The control level associated with the engagement process of stakeholders is an essential factor promoting stakeholders’ management. The level of control and power given to stakeholders engaged ultimately will affect the management of stakeholders in the building project delivery. In the same vein, the positive stakeholder’s interests towards the actualization of the building project are essential for achieving effective and efficient stakeholder management. Similarly, the tendency of stakeholders to corporate with the project leader is a good indication that stakeholders will be managed properly. Factors like change of stakeholders interest on the project, classification of stakeholders into supporters and resistant group to the project, pre-existing cordial between stakeholders, stakeholders behaviour on the project, stakeholders identification and classification of stakeholders are also significant but not as the earlier significant factors. On the other hand, areas of stakeholders interest in the project, change of stakeholders relationship during the project, relationship between project management team and stakeholders, stakeholders potential for threat on the project, stakeholders known attributes on projects and stakeholders coalition among themselves are the fairly significant factors. Notwithstanding, factors such as strategies for managing stakeholders, project task assigned to stakeholders at different stages and the influence of stakeholders on the project are the least significant factors. It is however surprising to note that task assigned to each of the stakeholders at different stages is said to have least influence of stakeholders’ management. The study revealed that control level of engagement of stakeholders and stakeholders potential for cooperation are the most significant factor influencing stakeholders’ management of building projects. This is consistent with previous studies, for instance, [23] related the importance of stakeholders’ engagement control to observing overall stakeholder relationships and associated management strategies. The advantage derivable from the stakeholders’ management process is tied to maintaining and increasing the efficacy of stakeholders’ engagement as the proposed project evolves over time and its environment changes. Factors like change of stakeholders interest on the project, classification of stakeholders into supporters and resistant group to the project, pre-existing conflicts between stakeholders, stakeholders behaviour on the project, amongst others also have significant impact but not as the former. http://www.iaeme.com/IJMET/index.asp 948 editor@iaeme.com
Opeyemi Oyeyipo, Henry Odeyinka, James Owolabi and Rapheal Ojelabi 4.3. Significant difference of professional background of project leaders on factors promoting stakeholders’ management This section examined the significant difference of professional background of the project leaders of the building projects on factors promoting stakeholders’ management. Kruskalwallis was used to analyse the collected data. However, the decision rule states that if p value < 0.05, the null hypothesis is rejected while the alternative hypothesis is accepted and vice versa. Table 4: Kruskalwallis of significant difference of professional background on factors promoting stakeholders’ management Factors Promoting Chi-Square 3.438 df 5 Asymp. Sig. .633 a Kruskal Wallis Test b Grouping Variable: professional background As indicated in Table 4, p value > 0.05 (p value = 0.633), the null hypothesis is accepted. Hence there is no significant difference among professional background of project leaders (architect, builder, quantity surveyor, mechanical engineer, electrical engineer and structural engineer) on the factors promoting stakeholders’ management in building project delivery. This infers thast irrespective of the project leader’s professional background, the factors promoting stakeholder’s management are the same and hence does not change. 5. CONCLUSION AND RECOMMENDATION The study assessed the factors promoting stakeholders’ management and factors inhibiting stakeholders’ management of building project delivery in Nigeria.Although different stakeholders have their respective interest in projects, which may result in various conflicts and misplaced priorities, increasing the complexity of the project situation, an effective stakeholder management will ensure the project stakeholders work together to improve quality performance, in the process reducing negative social impacts of the project. Stakeholders’ management creates a positive relationship among stakeholders, leading to project success. In order words, it has a pivotal role in ensuring successful project outcome of construction projects. The control tendencies of each stakeholder have significant effect in stakeholder management of building project delivery as their potential for co-operation is another important basis for ensuring stakeholders’ management. The project leader requires the co-operation of stakeholders regardless of their stakes and interest in the building project process. It is surprising to note that project task assigned to stakeholders at different stages as well as the power/influence of stakeholders have little or nothing to do with stakeholders’ management of building project. The study recommends that the project leader should ensure that consultants are given control and power as their duties require so as not to affect the stakeholders’ management in construction project. Similarly, the study reckons that effective communication, trust, knowledge and information dissemination should be advocated in construction project delivery as it will enhance stakeholders’ management and lead to project objectives been achieved. Finally, during selection of project stakeholders, assessment of prospective stakeholders’ power, influence, social responsibility and likely co-operation should be evaluated as part of prequalification criterion. http://www.iaeme.com/IJMET/index.asp 949 editor@iaeme.com
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