Examination of interrelationships of key construction performance factors utilizing structural equation modeling

Abstract

Thai construction industry faces several problems while trying to improve its performance. This study utilizes structural equation modelling to examine inter-relationships among 10 key performance factors, namely 1) time, 2) cost, 3) quality, 4) safety and health, 5) client satisfaction, 6) environment, 7) financial performance, 8) internal stakeholder, 9) external stakeholder, and 10) information, technology, and innovation. The final model confirms strong relationships among the traditional performance indicators: time, cost, and quality. Apart from that, also emerging concepts of performance measurement are assessed, especially in the areas of stakeholders and environmental management. Additional support is needed to improve the environmental standards, so that Thai construction companies can enhance their competitiveness in the global market. New technologies and innovative ideas should be encouraged in the real practices. It is expected that the final model of construction performance assists construction companies to better understand key performance factors, as well as their relationships, and effectively plan for their performance improvement.

Keywords

• construction performance
• relationships
• structural equation modelling
• thai construction industry