Impact of Institutional Environmental Factors on Project Performance-An Analysis on the Construction Projects in Lahore, Pakistan
DOI:
https://doi.org/10.31384/jisrmsse/2021.19.2.2Keywords:
neo-institutionalism, construction projects, institutional theory, project performance, institutional environmental factorsAbstract
The construction industry has experienced a dramatic boom in theeconomy over the last two years, due to the significance of CPEC in Pakistan. In the project’s performance, the role and concept of Institutional Environment have been extensively studied in previous literature. However, the analysis of these strategic constructs in construction firms has been minimal. Still, a gap exists in institutional factors concerning project performance. This paper aims to address this gap posits that Institutional Environmental Factors (IEFs) may impact the performance of the construction projects; also, there may be some factors that can impede or promote the performance of these projects. Data were collected from a sample of some construction firms’ management teams through semi-structured interviews. Study results suggested that coercive & normative factors of the institutional environment have a significant impact on the project performance concerning time delays and cost escalation. However, mimetic factors have less impact. This study also tries to assimilate the importance of institutional factors with the policy-making aspects of construction firms which can affect the performance of the projects. Future implications and limitations of the study are also discussed.
Downloads
References
Adnan, Imran (2017). URL: https://tribune.com.pk/story/1553388/orange-line-metro-train- govt-likely-miss-deadline-due-stay-orders.
Akanni, P., A. Oke, and O. Akpomiemie (2015). “Impact of environmental factors on building project performance in Delta State, Nigeria”. HBRC Journal 11(1), pp. 91–97. http://doi.org/10.1016/j.hbrcj.2014.02.010. DOI: https://doi.org/10.1016/j.hbrcj.2014.02.010
Ali, I., A. U. Musawir, and M. Ali (2018). “Impact of knowledge sharing and absorptive capacity on project performance: the moderating role of social processes”. Journal of Knowledge Management 22(2), pp. 453–477. http://doi.org/10.1108/jkm-10-2016-0449. DOI: https://doi.org/10.1108/JKM-10-2016-0449
Alvesson, M. and A. Spicer (2018). “Neo-Institutional Theory and Organization Studies: A Mid-Life Crisis?” Organization Studies 40(2), pp. 199–218. http://doi.org/10.1177/0170840618772610. DOI: https://doi.org/10.1177/0170840618772610
Badawy, M. et al. (2016). “A survey on exploring key performance indicators”. Future Computing and Informatics Journal 1(1-2), pp. 47–52. http://doi.org/10.1016/j.fcij.2016.04.001. DOI: https://doi.org/10.1016/j.fcij.2016.04.001
Betts, T. K., J. F. Super, and J. North (2018). “Exploring the influence of institutional pressures and production capability on the environmental practices - Environmental performance relationship in advanced and developing economies”. Journal of Cleaner Production 187, pp. 1082–1093. http://doi.org/10.1016/j.jclepro.2018.03.186. DOI: https://doi.org/10.1016/j.jclepro.2018.03.186
Brock, D. M. and M. Saks (2016). “Professions and organizations: A European perspective”.European Management Journal 34(1), pp. 1–6. http://doi.org/10.1016/j.emj.2015.11.003. DOI: https://doi.org/10.1016/j.emj.2015.11.003
Caravella, K. D. (2011). Mimetic, coercive, and normative influences in institutionalisation of organisational practices: The case of distance learning in higher education (Order No.3462569). Available from ProQuest Dissertations & Theses Global. (877967842). URL: https://www.proquest.com/dissertations-theses/mimetic-coercive-normative- influences/docview/877967842/se-2?accountid=135034.
Carvalho, A. D. P. et al. (2017). “The role and contributions of sociological institutional theory to the socio-technical approach to innovation theory”. RAI Revista de Administração e Inovação 14(3), pp. 250–259. http://doi.org/10.1016/j.rai.2017.02.001. DOI: https://doi.org/10.1016/j.rai.2017.02.001
Castillo, T., L. F. Alarcón, and E. Pellicer (2018). “Influence of Organizational Characteristics on Construction Project Performance Using Corporate Social Networks”. Journal of Management in Engineering 34(4), p. 04018013. http://doi.org/10.1061/(asce)me.1943-5479.0000612. DOI: https://doi.org/10.1061/(ASCE)ME.1943-5479.0000612
Cha, H. S. and K. H. Kim (2018). “Measuring Project Performance in Consideration of Optimal Best Management Practices for Building Construction in South Korea”. KSCE Journal of Civil Engineering 22(5), pp. 1614–1625. http://doi.org/10.1007/s12205-017-0156-2. DOI: https://doi.org/10.1007/s12205-017-0156-2
Chaney, D., K. Ben Slimane, and A. Humphreys (2015). “Megamarketing expanded by neo-institutional theory”. Journal of Strategic Marketing 24(6), pp. 470–483. http://doi.org/10.1080/0965254x.2015.1052539. DOI: https://doi.org/10.1080/0965254X.2015.1052539
Chapano, M, C G Iwu, and M Twum-Darko (2018). “The Impact of High Performance Work Practices on Project Performance. A Case Study of Construction Companies in South Africa”. ActaUniversitatis Danubius.
Chen, H. L. and Y. L. Lin (2018). “Goal orientations, leader-leader exchange, trust, and the outcomes of project performance”. International Journal of Project Management 36(5), pp. 716–729. http://doi.org/10.1016/j.ijproman.2018.03.009. DOI: https://doi.org/10.1016/j.ijproman.2018.03.009
Comyns, B. (2018). “Climate change reporting and multinational companies: Insights from institutional theory and international business”. Accounting Forum 42(1), pp. 65–77. http://doi.org/10.1016/j.accfor.2017.07.003. DOI: https://doi.org/10.1016/j.accfor.2017.07.003
Ende, L. van den and A. van Marrewijk (2019). “Teargas, taboo and transformation: A neo-institutional study of community resistance and the struggle to legitimize subway projects in Amsterdam 1960–2018”. International Journal of Project Management 37(2), pp. 331–346. http://doi.org/10.1016/j.ijproman.2018.07.003. DOI: https://doi.org/10.1016/j.ijproman.2018.07.003
Eriksson, O., P. Johannesson, and M. Bergholtz (2018). “Institutional ontology for Conceptual Modeling”. Journal of Information Technology 33(2), pp. 105–123. http://doi.org/10.1057/s41265-018-0053-2. DOI: https://doi.org/10.1057/s41265-018-0053-2
Fong, V. H. I., I. A. Wong, and J. F. L. Hong (2018). “Developing institutional logics in the tourism industry through coopetition”. Tourism Management 66, pp. 244–262.http://doi.org/10.1016/j.tourman.2017.12.005. DOI: https://doi.org/10.1016/j.tourman.2017.12.005
Gabol, W .A. and A. Ahmed (2011). “Identification of future environmental challenges in Pakistan by 2025 through environment foresight”. African Journal of Environmental Science and Technology 5(10), pp. 807–814.
Goodell, J. W. (2019). “Comparing normative institutionalism with intended rationality in cultural-finance research”. International Review of Financial Analysis 62, pp. 124–134. http://doi.org/10.1016/j.irfa.2018.11.018. DOI: https://doi.org/10.1016/j.irfa.2018.11.018
Gruden, N. and A. Stare (2018). “The Influence of Behavioral Competencies on Project Performance”. Project Management Journal 49(3), pp. 98–109. http://doi.org/10.1177/8756972818770841. DOI: https://doi.org/10.1177/8756972818770841
Hadler, M. (2015). “Institutionalism and Neo-institutionalism: History of the Concepts”.International Encyclopedia of the Social & Behavioral Sciences, pp. 186–189. http://doi.org/10.1016/b978-0-08-097086-8.03187-1. DOI: https://doi.org/10.1016/B978-0-08-097086-8.03187-1
Harris, P. E. (2019). Planning and Control Using Microsoft Project 2013, 2016 or 2019 & PMBOK Guide Sixth Edition. Eastwood Harris Pty Ltd.
Howlett, M (2002). “Understanding National Administrative Styles and Their Impact Upon Administrative Reform: A Neo-Institutional Model and Analysis”. Policy and Society 21(1), pp. 1–24. DOI: https://doi.org/10.1016/S1449-4035(02)70001-5
Hu, Q., P. Hart, and D. Cooke (2007). “The role of external and internal influences on information systems security – a neo-institutional perspective”. The Journal of Strategic Information Systems 16(2), pp. 153–172. http://doi.org/10.1016/j.jsis.2007.05.004. DOI: https://doi.org/10.1016/j.jsis.2007.05.004
Lau, C. M., D. K. Tse, and N. Zhou (2002). “Institutional Forces and Organizational Culture in China: Effects on Change Schemas, Firm Commitment and Job Satisfaction”. Journal of International Business Studies 33(3), pp. 533–550. http://doi.org/10.1057/palgrave.jibs.8491030. DOI: https://doi.org/10.1057/palgrave.jibs.8491030
Li, R. Y. M. et al. (2018). “Construction safety knowledge sharing by Internet of Things, Web 2.0 and mobile apps: psychological and new institutional economics conceptual analysis”. IOP Conference Series: Materials Science and Engineering 365(6), p. 062042. http://doi.org/10.1088/1757-899x/365/6/062042. DOI: https://doi.org/10.1088/1757-899X/365/6/062042
Lieftink, B., A. Smits, and K. Lauche (2019). “Dual dynamics: Project-based institutional work and subfield differences in the Dutch construction industry”. International Journal of Project Management 37(2), pp. 269–282. http://doi.org/10.1016/j.ijproman.2018.03.005. DOI: https://doi.org/10.1016/j.ijproman.2018.03.005
Martínez, J. Barrena, M. López Fernández, and P. M. Romero Fernández (2016). “Corporate social responsibility: Evolution through institutional and stakeholder perspectives”.European Journal of Management and Business Economics 25(1), pp. 8–14. http://doi.org/10.1016/j.redee.2015.11.002. DOI: https://doi.org/10.1016/j.redee.2015.11.002
Martínez-Ferrero, J. and I. M. García-Sánchez (2017). “Coercive, normative and mimetic isomorphism as determinants of the voluntary assurance of sustainability reports”.International Business Review 26(1), pp. 102–118. http://doi.org/10.1016/j.ibusrev.2016.05.009. DOI: https://doi.org/10.1016/j.ibusrev.2016.05.009
Ngacho, C. and D. Das (2014). “A performance evaluation framework of development projects: An empirical study of Constituency Development Fund (CDF) construction projects in Kenya”. International Journal of Project Management 32(3), pp. 492–507. http://doi.org/10.1016/j.ijproman.2013.07.005. DOI: https://doi.org/10.1016/j.ijproman.2013.07.005
Pakistan Economic Survey (2019). Pakistan Economic Survey. Government of Pakistan Finance Division. Retrieved June 10, 2019, URL:http://www.finance.gov.pk/survey/chapters_19/Economic_Survey_2018_19.pdf. http://www.environment.gov.pk/.
Radujkovi´c, M., M. Vukomanovi´c, and I. B. Dunovi´c (2010). “Application of key performance indicators in south-eastern european construction”. Journal of civil engineering and management 16(4), pp. 521–530. http://doi.org/10.3846/jcem.2010.58. DOI: https://doi.org/10.3846/jcem.2010.58
Rizwan, M (2015). Health, safety and Environmental conditions at Housing construction sites in Lahore city, Pakistan (Master’s thesis, Norwegian University of Life Sciences, Ås).
Roxas, B. and A. Coetzer (2012). “Institutional Environment, Managerial Attitudes and Environmental Sustainability Orientation of Small Firms”. Journal of Business Ethics 111(4), pp. 461–476. http://doi.org/10.1007/s10551-012-1211-z. DOI: https://doi.org/10.1007/s10551-012-1211-z
Santos, J. M. D. (2021). What Is Construction Project Management? Project-Management. URL: https://project-management.com/what-is-construction-project-management/.
Scott, W. R. (1987). “The Adolescence of Institutional Theory”. Administrative Science Quarterly 32(4), p. 493. http://doi.org/10.2307/2392880. DOI: https://doi.org/10.2307/2392880
— (2008). “Approaching adulthood: the maturing of institutional theory”. Theory and Society 37(5), pp. 427–442. DOI: https://doi.org/10.1007/s11186-008-9067-z
— (2012). “The institutional environment of global project organizations”. Engineering Project Organization Journal 2(1-2), pp. 27–35. http://doi.org/10.1080/21573727.2011.634546. DOI: https://doi.org/10.1080/21573727.2011.634546
Scott, W. R0 (1995). “Institutions and Organizations. Ideas, Interests and Identities”.Management 17(2), p. 136. http://doi.org/10.3917/mana.172.0136. DOI: https://doi.org/10.3917/mana.172.0136
Smith, K. G. (2006). “Great Minds in Management: The Process of Theory Development20061Hervé Mesure SBR Books Editor, Rouen School of Management. Great Minds in Management: The Process of Theory Development. New York: Oxford University Press 2005. 600 p. 619 mots”. Society and Business Review 1(3), pp. 280–281. http://doi.org/10.1108/17465680610706346. DOI: https://doi.org/10.1108/17465680610706346
Söderlund, J., S. Sankaran, and C. Biesenthal (2017). “The past and Present of Megaprojects”.Project Management Journal 48(6), pp. 5–16. http://doi.org/10.1177/875697281704800602. DOI: https://doi.org/10.1177/875697281704800602
Suddaby, R. R. et al. (2010). “Organizations and Their Institutional Environments - Bringing Meaning, Values, and Culture Back In: Introduction to the Special Research Forum”. SSRN Electronic Journal. http://doi.org/10.2139/ssrn.2266086. DOI: https://doi.org/10.2139/ssrn.2266086
Toinpre, O., J. Mackee, and T. Gajendran (2018). “A Framework for Understanding the Influence of Isomorphic Pressures on Governance of Disaster Risks”. Procedia Engineering 212, pp. 173–180. http://doi.org/10.1016/j.proeng.2018.01.023. DOI: https://doi.org/10.1016/j.proeng.2018.01.023
Tolbert, P. S. and L. G. Zucker (1983). “Institutional Sources of Change in the Formal Structure of Organizations: The Diffusion of Civil Service Reform, 1880-1935”. Administrative Science Quarterly 28(1), pp. 22–22.http://doi.org/10.2307/2392383. DOI: https://doi.org/10.2307/2392383
— (1999). “The institutionalization of institutional theory”. In: Studying Organization. Theory & Method. London, Thousand Oaks, New Delhi, 1, pp. 169–184.
Tzeng, C. H. (2018). “How foreign knowledge spillovers by returnee managers occur at domestic firms: An institutional theory perspective”. International Business Review 27(3), pp. 625–641. http://doi.org/10.1016/j.ibusrev.2017.10.011. DOI: https://doi.org/10.1016/j.ibusrev.2017.10.011
Um, K. H. and S. M. Kim (2018). “Collaboration and opportunism as mediators of the relationship between NPD project uncertainty and NPD project performance”. International Journal of Project Management 36(4), pp. 659–672. http://doi.org/10.1016/j.ijproman.2018.01.006. DOI: https://doi.org/10.1016/j.ijproman.2018.01.006
Walgenbach, P, G S Drori, and M A Höllerer (2017). “Between Local Mooring and Global Orientation: A Neo-Institutional Theory Perspective on the Contemporary Multinational Corporation A”. In: Multinational Corporations and Organization Theory: Post Millennium Perspectives. Vol. 49. Emerald Publishing Limited, pp. 99–125. DOI: https://doi.org/10.1108/S0733-558X20160000049004
Wei, Z. and R. L. H. Chiu (2018). “Livability of subsidized housing estates in marketized socialist China: An institutional interpretation”. Cities 83, pp. 108–117. http://doi.org/10.1016/j.cities.2018.06.013. DOI: https://doi.org/10.1016/j.cities.2018.06.013
Weik, E. (2019). “Understanding Institutional Endurance: The Role of Dynamic Form, Harmony, and Rhythm in Institutions”. Academy of Management Review 44(2), pp. 321–335. http://doi.org/10.5465/amr.2015.0050. DOI: https://doi.org/10.5465/amr.2015.0050
Weisenfeld, U. and A. Hauerwaas (2018). “Adopters build bridges: Changing the institutional logic for more sustainable cities. From action to workset to practice”. Research Policy 47(5), pp. 911–923. http://doi.org/10.1016/j.respol.2018.02.015. DOI: https://doi.org/10.1016/j.respol.2018.02.015
Wibowo, M. A., I. N. Y. Astana, and H. Rusdi (2017). “Dynamic Modelling of the Relation between Bidding Strategy and Construction Project Performance”. Procedia Engineering 171, pp. 341–347. http://doi.org/10.1016/j.proeng.2017.01.342. DOI: https://doi.org/10.1016/j.proeng.2017.01.342
Yeung, J. F. Y. et al. (2013). “Developing a Benchmarking Model for Construction Projects in Hong Kong”. Journal of Construction Engineering and Management 139(6), pp. 705–716. http://doi.org/10.1061/(asce)co.1943-7862.0000622. DOI: https://doi.org/10.1061/(ASCE)CO.1943-7862.0000622
Yusof, N., H. Awang, and M. Iranmanesh (2017). “Determinants and outcomes of environmental practices in Malaysian construction projects”. Journal of Cleaner Production 156, pp. 345–354. http://doi.org/10.1016/j.jclepro.2017.04.064. DOI: https://doi.org/10.1016/j.jclepro.2017.04.064
Zheng, X. et al. (2018). “Influence of Relational Norms on User Interests in PPP Projects: Mediating Effect of Project Performance”. Sustainability 10(6), p. 2027. http://doi.org/10.3390/su10062027. DOI: https://doi.org/10.3390/su10062027
Zucker, L. G. (1987). “Institutional Theories of Organization”. Annual Review of Sociology
(1), pp. 443–464. http://doi.org/10.1146/annurev.so.13.080187.002303. DOI: https://doi.org/10.1146/annurev.so.13.080187.002303
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Author
![Creative Commons License](http://i.creativecommons.org/l/by/4.0/88x31.png)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright: The Authors