1. Critical Success Factors for Stakeholder Management
in Construction Projects of Pakistan
Project Advisor: Prof Dr Asif Hameed
Civil Engineering Department University of Engineering and Technology, Lahore
Abdul Rafeh 2018-CIV-16
Mughanim Rehman 2018-CIV-18
M. Umar Arshad 2018-CIV-26
M. Burhan Mirza 2018-CIV-22
2. 4
CONTENTS 1/35
Introduction
Literature Review
Objective
Problem Statement
Research Methodology
Results and Discussion
Factor Analysis
Conclusion & Recommendation
References
3. 4
INTRODUCTION 2/35
• Stakeholder
An individual, group or an organization who is directly or
indirectly affected by the project.
• Stakeholder Management
The process of maintaining good relationship among the
stakeholders.
• Critical Success Factors
Aspects of the project considered most essential to its
success or failure.
6. 4
OBJECTIVES 5/35
1. To investigate the importance of different stakeholders in the
construction projects of Pakistan
2. To identify and rank the different success factors for
stakeholder management.
3. To evaluate the perceptions of different stakeholders regarding
the critical success factors.
4. To determine the relationship and grouping of different
success factors by factor analysis.
7. 7
PROBLEM STATEMENT 6/35
Stakeholder management in construction projects has been getting
attention in the past and found to have a lot of problems (gaps).
These problems include a lack of consistency in the stakeholder
management process, a lack of connection between stakeholders
and a lack of clear definition etc. It's very important to look into the
existing practices of stakeholder management in the construction
industry of Pakistan for the evaluation of critical success factors.
8. 8
RESEARCH METHODLOGY 7/35
Types of Research
Qualitative Research
Quantitative Research
Qualitative
Research
Quantitative
Research
9. 9
RESEARCH METHODLOGY 8/35
Develop a
research plan
Define the
Problem
Establish
Objectives
Topic Selection
Thesis Proposal
Literature Review
Questionnaire
Design
Survey & Data
Collection
Results &
Discussion
Conclusions &
Recommendations
10. 10
RESEARCH METHODLOGY 9/35
Questionnaire Design
SECTION A
• General information of different
stakeholders
SECTION B
• Organizational culture and support of
Stakeholders
SECTION C • Identification of the stakeholders
SECTION D • Identification of the critical success factors
12. 12
RESEARCH METHODLOGY 11/35
Relative Importance Index:
• The relative importance index indicates the relative significance of the
elements analyzed.
It is determined by the following formula
𝑅𝐼𝐼 =
𝑊
𝐴 × 𝑁
Where
N = the total number of respondents,
A = the greatest weight;
• The Relative Importance Index was employed to determine the relative
importance of critical success factors of stakeholder management.
13. 13
RESEARCH METHODLOGY 12/35
• Hypothesis testing is the process of figuring out how likely
the hypothesis is to be accepted or rejected, based on the
sample data from the questionnaire.
• According to our hypothesis, the responses were classified
into three stakeholder-based groups:
Contractor
Client
Consultant
Hypothesis Testing:
14. 14
RESEARCH METHODLOGY 13/35
Alternative and Null Hypothesis:
• Hypothesis 1 (Perception towards Identification of Stakeholders)
o H0 : There is no significant variation between the perceptions of the three
groups regarding Identification of Stakeholders.
• Hypothesis 2 (Perception towards Identification of Critical Success Factors)
o H0 : There is no significant difference between the perceptions of the three
groups for the Identification of Critical Success Factors.
• Hypothesis 3 (Perception towards Client related Critical Success Factors)
o H0 : In terms of impression of Client-Related Critical Success Factors, there
is no substantial variation between the three groups.
• Hypothesis 4 (Perception towards Design Team related- Critical Success
Factors)
o H0 : In terms of impression of Design Team related- Critical Success Factors,
there is no significant variation between the three groups.
15. 15
RESEARCH METHODLOGY 14/35
• Hypothesis 5: (Perception towards Contractor related- Critical Success
Factors)
o H0 : There is no substantial variation between the perceptions of the three
groups for contractor-related Critical Success Factors.
• Hypothesis 6: (Perception towards Project Manager Related- Critical
Success Factors)
o H0 : Perceptions of Project Manager-Related-Critical Success Factors don't
differ significantly among the three categories.
• Hypothesis 7 (Perception towards Supplier Related- Critical Success Factors)
o H0 : Supplier-related-critical success factors are perceived similarly by all
three groups, with no discernible differences.
• Hypothesis 8 (Perception towards Sub-Contractor Related- Critical Success
Factors)
o H0 : When it comes to the view of Sub-Contractor-Related Critical Success
Factors, there is no substantial variation across the three groups
16. 16
RESEARCH METHODLOGY 15/35
One-Way ANOVA Test:
A one-way ANOVA (“analysis of variance”) compares the means
of three or more independent groups to determine if there is a
statistically significant difference between the corresponding
population means.
A one-way ANOVA uses the following null and alternative
hypotheses:
• H0 (null hypothesis): μ1 = μ2 = μ3 = … = μk (all the
population means are equal)
• H1 (alternative hypothesis): at least one population mean is
different from the rest
17. 17
RESEARCH METHODLOGY 16/35
Factor Analysis:
• Factor analysis is a method of data reduction. A statistical
approach that can be used to analyze interrelationship
among a large number of factors.
• Factor analysis has three stages: Based on the correlation
coefficients of each variable, a correlation matrix is created;
next, factors are identified and rotated to optimize the
correlation between a certain variable and a particular factor
18. 18
RESULTS AND DISCUSSION 17/35
Relative Importance Charts
Identification of Stakeholders
Code Factor RI Mean Standard Deviation Rank
C1 Client 0.961797753 4.81 0.52 1st
C4 Contractor 0.940229885 4.6 0.616 2nd
C3 Consultant and designing team 0.905747126 4.43 0.672 3rd
C7 Employees 0.891954023 4.36 0.727 4th
C2 Project management team 0.874157303 4.37 0.646 5th
C6 Supplier 0.871264368 4.26 0.747 6th
C5 Sub-Contractor 0.868965517 4.25 0.758 7th
C8 Government Authorities 0.855172414 4.18 0.791 8th
0.96
0.87
0.91
0.94
0.87 0.87
0.89
0.86
0.8
0.85
0.9
0.95
1
C1 C2 C3 C4 C5 C6 C7 C8
Relative
Importance
Index
Factor code
19. 19
RESULTS AND DISCUSSION 18/35
Factors Influencing Stakeholders Management
Code Factor RI Mean
Standard
Deviation
Rank
D1#1 Formulating the project mission 0.965517241 4.72 0.5 1st
D1#6 Communicating with stakeholders properly and frequently 0.908045977 4.44 0.656 2nd
D1#3 Carefully identifying and listing the project stakeholders 0.905747126 4.43 0.705 3rd
D1#8 Resolving conflicts among stakeholders effectively 0.896551724 4.38 0.666 4th
D1#13 Predicting and mapping stakeholders’ behaviors 0.885057471 4.33 0.687 5th
D1#4
Identifying and understanding stakeholders’ areas of interest in the
project
0.88045977 4.3 0.714 6th
D1#14 Exploring stakeholder needs and constraints to projects 0.88045977 4.3 0.681 7th
D1#9 Predicting stakeholders’ potential influence on the project 0.87816092 4.29 0.801 8th
D1#17 Managing the change of stakeholders’ interests 0.87816092 4.29 0.757 9th
D1#7
Identifying and analyzing possible conflicts and coalitions among
stakeholders
0.873563218 4.27 0.67 10th
D1#5 Involving relevant stakeholders to redefine (refine) project mission. 0.866666667 4.24 0.769 11th
D1#10 Keeping and promoting positive relationships among the stakeholders 0.866666667 4.24 0.658 12th
D1#16 Ensuring the use of a favorable procurement method 0.866666667 4.24 0.769 13th
D1#18 Managing change of stakeholders’ attributes 0.866666667 4.24 0.739 14th
D1#11 Formulating appropriate strategies to engage different stakeholders 0.864367816 4.22 0.67 15th
D1#15 Predicting stakeholders’ reactions for implementing project decisions 0.859770115 4.2 0.694 16th
D1#2 Considering corporate social responsibilities 0.855172414 4.18 0.614 17th
D1#12 Managing the change of stakeholders’ influence 0.848275862 4.15 0.762 18th
0.75
0.8
0.85
0.9
0.95
1
D1#1
D1#2
D1#3
D1#4
D1#5
D1#6
D1#7
D1#8
D1#9
D1#10
D1#11
D1#12
D1#13
D1#14
D1#15
D1#16
D1#17
D1#18
Relative
Importance
Index
Factor code
20. 20
RESULTS AND DISCUSSION 19/35
Client Related-Critical Success Factors
Code Factor RI Mean
Standard
Deviation
Rank
D2#1 Regular monitory by visits and reports 0.935632184 4.57 0.582 1st
D2#3 In time decisions made by client 0.896551724 4.38 0.683 2nd
D2#4
Clients’ emphasis on high-Quality
Construction
0.889655172 4.35 0.77 3rd
D2#6 Client Emphasis on Quick Construction 0.873563218 4.27 0.765 4th
D2#7 Risk attitude/willing to take the risks 0.864367816 4.22 0.78 5th
D2#8 Clients’ ability to brief 0.859770115 4.2 0.71 6th
D2#5
Clients’ emphasis on low-cost
construction
0.836781609 4.09 0.861 7th
D2#2 Client’ knowledge about the project 0.834482759 4.08 0.742 8th
0.75
0.8
0.85
0.9
0.95
Relative
Importance
Index
Factor Code
21. 21
RESULTS AND DISCUSSION 20/35
Design Team Related-Critical Success Factors
Code Factor RI Mean
Standard
Deviation
Rank
D3#1 Previous experience of similar projects 0.947126437 4.63 0.53 1st
D3#3 Delay in sorting out Design Error 0.896551724 4.38 0.666 2nd
D3#6
Contribution in construction (Reviews,
Visits)
0.887356322 4.34 0.639 3rd
D3#4 Complexities of design 0.885057471 4.33 0.703 4th
D3#5
Following the specified codes and
standards
0.852873563 4.17 0.727 5th
D3#2 Error in Design 0.816091954 3.99 0.731 6th
0.75
0.8
0.85
0.9
0.95
1
D3#1 D3#3 D3#6 D3#4 D3#5 D3#2
Relative
Importance
Index
Factor Code
22. 22
RESULTS AND DISCUSSION 21/35
Contractor Related -Critical Success Factors
Code Factor RI Mean
Standard
Deviation
Rank
D4#1 Experience of related projects 0.937931034 4.58 0.618 1st
D4#4 Supervision 0.910344828 4.45 0.691 2nd
D4#3 Check and balance by timely inspections 0.891954023 4.36 0.644 3rd
D4#5 Site management 0.88045977 4.3 0.729 4th
D4#6
The extent of subcontracting/ links with
small contractors
0.871264368 4.26 0.631 5th
D4#2 Effective use of economy 0.820689655 4.01 0.699 6th
D4#7 Links with Suppliers 0.754022989 4.22 0.75 7th
0
0.2
0.4
0.6
0.8
1
D4#1 D4#4 D4#3 D4#5 D4#6 D4#2 D4#7
Relative
Index
Importance
Factor Code
23. 23
RESULTS AND DISCUSSION 22/35
Project Manager Related-Critical Success Factors
Code Factor RI Mean
Standard
Deviation
Rank
D5#1 Experience of similar projects 0.92183908 4.51 0.605 1st
D5#4 Ability to take timely decisions 0.917241379 4.48 0.676 2nd
D5#3 Leadership abilities of the manager 0.905747126 4.43 0.638 3rd
D5#10 Risk identification and allocation 0.882758621 4.31 0.763 4th
D5#9 Planning / proactive approach 0.88045977 4.3 0.803 5th
D5#12 Feedback capabilities and methods 0.87816092 4.29 0.742 6th
D5#11 Project monitoring 0.871264368 4.26 0.762 7th
D5#6
Selection of the key members/ assigning roles
according to respective skills
0.868965517 4.25 0.816 8th
D5#8
Ability to deal with the subcontractors and
suppliers
0.866666667 4.24 0.784 9th
D5#7 Managing cost without compromising the quality 0.859770115 4.2 0.771 10th
D5#5 Ability to motivate the team 0.850574713 4.16 0.767 11th
D5#2 Technical qualification 0.827586207 4.04 0.737 12th
0.78
0.8
0.82
0.84
0.86
0.88
0.9
0.92
0.94
Relative
Index
Importance
Factor Code
24. 24
RESULTS AND DISCUSSION 22/35
Supplier Related-Critical Success Factors
Code Factor RI Mean
Standard
Deviation
Rank
D6#1 Previous records of quality 0.917241379 4.48 0.676 1st
D6#3 Material according to the specifications 0.905747126 4.43 0.672 2nd
D6#4 Rate of the materials 0.898850575 4.39 0.748 3rd
D6#6
Transportation charges/distance from the
site
0.88045977 4.3 0.714 4th
D6#5 Availability of stock 0.866666667 4.24 0.723 5th
D6#7 Nature of suppliers 0.864367816 4.22 0.794 6th
D6#2 In time delivery of the materials 0.829885057 4.06 0.759 7th
0.78
0.8
0.82
0.84
0.86
0.88
0.9
0.92
0.94
D6#1 D6#3 D6#4 D6#6 D6#5 D6#7 D6#2
Relative
Index
Importance
Factor Code
25. 25
RESULTS AND DISCUSSION 24/35
Sub-Contractor Related-Critical Success Factors
0.76
0.78
0.8
0.82
0.84
0.86
0.88
0.9
0.92
0.94
D7#1 D7#4 D7#3 D7#2
Relative
Index
Importance
Factor Code
Code Factor RI Mean
Standard
Deviation
Rank
D7#1 Experience of related Projects 0.926436782 4.53 0.605 1st
D7#4 Timely completion of the project 0.917241379 4.48 0.642 2nd
D7#3 Response to alteration of design 0.882758621 4.31 0.667 3rd
D7#2 Competency of the sub-contractor 0.825287356 4.03 0.775 4th
26. 26
RESULTS AND DISCUSSION 25/35
Factors N df1 df2 F P value Sig. Decision
Client 89 2 86 0.596 0.553 NS Accept H0
Project Management Team 89 2 86 2.053 0.135 NS Accept H0
Consultant and designing team 89 2 86 3.070 0.052 NS Accept H0
Contractor 89 2 86 0.233 0.792 NS Accept H0
Sub-Contractor 89 2 86 1.910 0.154 NS Accept H0
Supplier 89 2 86 0.688 0.505 NS Accept H0
Employees 89 2 86 0.868 0.423 NS Accept H0
Government Authorities 89 2 86 0.275 0.761 NS Accept H0
ONE WAY ANOVA TEST RESULTS
F(Tabulated) = 3.10 (for all the hypothesis testing)
Identification of Stakeholders
27. 27
RESULTS AND DISCUSSION 26/35
Factors N df1 df2 F P value Sig. Decision
Formulating the project mission 89 2 86 1.106 0.335 NS Accept H0
Considering corporate social responsibilities 89 2 86 1.542 0.220 NS Accept H0
Carefully identifying and listing the project stakeholders 89 2 86 7.161 0.001 S Reject H0
Identifying and understanding stakeholders’ areas of interest in the
project
89 2 86 0.942 0.394 NS Accept H0
Involving relevant stakeholders to redefine (refine) project mission. 89 2 86 4.875 0.010 S Reject H0
Communicating with stakeholders properly and frequently 89 2 86 3.493 0.035 S Reject H0
Identifying and analyzing possible conflicts and coalitions among
stakeholders
89 2 86 3.142 0.048 S Reject H0
Resolving conflicts among stakeholders effectively 89 2 86 2.318 0.105 NS Accept H0
Predicting stakeholders’ potential influence on the project 89 2 86 7.713 0.001 S Reject H0
Keeping and promoting positive relationships among the stakeholders 89 2 86 0.633 0.533 NS Accept H0
Formulating appropriate strategies to engage different stakeholders 89 2 86 2.812 0.066 NS Accept H0
Managing the change of stakeholders’ influence 89 2 86 5.313 0.007 S Reject H0
Predicting and mapping stakeholders’ behaviors 89 2 86 3.088 0.051 NS Accept H0
Exploring stakeholder needs and constraints to projects 89 2 86 1.621 0.204 NS Accept H0
Predicting stakeholders’ reactions for implementing project decisions 89 2 86 3.900 0.024 S Reject H0
Ensuring the use of a favorable procurement method 89 2 86 3.120 0.049 S Reject H0
Managing the change of stakeholders’ interests 89 2 86 0.556 0.576 NS Accept H0
Managing change of stakeholders’ attributes 89 2 86 2.788 0.067 NS Accept H0
Identification of Critical Success Factors
28. 28
RESULTS AND DISCUSSION 27/35
Factors N df1 df2 F P value Sig. Decision
Regular Monitory by visits and reports 89 2 86 2.730 0.071 NS Accept H0
Client’ knowledge about the project 89 2 86 5.236 0.007 S Reject H0
In time decisions made by Client 89 2 86 6.248 0.003 S Reject H0
Clients Emphasis on high-Quality Construction 89 2 86 4.563 0.013 S Reject H0
Clients Emphasis on Low-Cost Construction 89 2 86 0.943 0.393 NS Accept H0
Client Emphasis on Quick Construction 89 2 86 3.670 0.030 S Reject H0
Risk Attitude / Willing to take the risks 89 2 86 2.963 0.057 NS Accept H0
Clients Ability to brief 89 2 86 4.625 0.012 S Reject H0
Factors N df1 df2 F P value Sig. Decision
Previous experience of similar projects 89 2 86 19.629 0.000 S Reject H0
Error in Design 89 2 86 7.291 0.001 S Reject H0
Delay in sorting out Design Error 89 2 86 6.030 0.004 S Reject H0
Complexities of design 89 2 86 1.549 0.218 NS Accept H0
Following the specified codes and standards 89 2 86 5.412 0.006 S Reject H0
Contribution in construction (Reviews, Visits) 89 2 86 4.764 0.011 S Reject H0
Client Related-Critical Success Factors
Design Team Related-Critical Success Factors
29. 29
RESULTS AND DISCUSSION 28/35
Factors N df1 df2 F P value Sig. Decision
Experience of related Projects 89 2 86 12.158 0.000 S Reject H0
Effective use of economy 89 2 86 3.977 0.022 S Reject H0
Check and Balance by timely inspections 89 2 86 1.677 0.193 NS Accept H0
Supervision 89 2 86 3.482 0.035 S Reject H0
Site Management 89 2 86 12.091 0.000 S Reject H0
The extent of subcontracting / Links with small
contractors
89 2 86 1.171 0.315 NS Accept H0
Links with Suppliers 89 2 86 6.153 0.003 S Reject H0
Contractor Related -Critical Success Factors
30. 30
RESULTS AND DISCUSSION 29/35
Factors N df1 df2 F P value Sig. Decision
Experience of similar projects 89 2 86 14.002 0.000 S Reject H0
Technical Qualification 89 2 86 6.809 0.002 S Reject H0
Leadership abilities of the Manager 89 2 86 9.275 0.000 S Reject H0
Ability to take timely decisions 89 2 86 8.134 0.001 S Reject H0
Ability to motivate the team 89 2 86 11.578 0.000 S Reject H0
Selection of the key members 89 2 86 5.642 0.005 S Reject H0
Managing cost without compromising the quality 89 2 86 4.073 0.020 S Reject H0
Ability to deal with the subcontractors and suppliers 89 2 86 6.462 0.002 S Reject H0
Planning / Proactive Approach 89 2 86 6.703 0.002 S Reject H0
Risk Identification and allocation 89 2 86 6.636 0.002 S Reject H0
Project Monitoring 89 2 86 7.022 0.001 S Reject H0
Feedback Capabilities and Methods 89 2 86 6.151 0.003 S Reject H0
Project Manager Related-Critical Success Factors
31. 31
RESULTS AND DISCUSSION 30/35
Factors N df1 df2 F P value Sig. Decision
Previous Records of quality 89 2 86 11.311 0.000 S Reject H0
In time Delivery of the materials 89 2 86 8.357 0.000 S Reject H0
Material according to the specifications 89 2 86 14.599 0.000 S Reject H0
Rate of the materials 89 2 86 4.053 0.021 S Reject H0
Availability of Stock 89 2 86 8.379 0.000 S Reject H0
Transportation Charges/ Distance from the Site 89 2 86 10.961 0.000 S Reject H0
Nature of Suppliers 89 2 86 13.103 0.000 S Reject H0
Factors N df1 df2 F P value Sig. Decision
Experience of related Projects 89 2 86 13.243 0.000 S Reject H0
Competency of the sub-contractor 89 2 86 11.609 0.000 S Reject H0
Response to alteration of design 89 2 86 9.504 0.000 S Reject H0
Timely completion of the project 89 2 86 15.693 0.000 S Reject H0
Supplier Related -Critical Success Factors
Sub-contractor Related-Critical Success Factors
33. 33
RESULTS AND DISCUSSION 32/35
Component
Extraction Sums of
Squared Loadings
Rotation Sums of Squared
Loadings
Total
% Of
Variance
Cumulat
ive %
Total
% Of
Variance
Cumulati
ve %
1: Stakeholder’s Interests and Relationships `7.591 42.174 42.174 3.630 20.166 20.166
2: Refining goals and Managing
Stakeholder’s Needs
1.266 7.032 49.206 3.487 19.370 39.536
3: Identifying and Engaging Stakeholders 1.200 6.669 55.876 2.601 14.449 53.985
4: Stakeholder’s Social Responsibilities 1.020 5.664 61.540 1.360 7.555 61.540
34. 34
RESULTS AND DISCUSSION 33/35
Rotated Component Matrix
Component
Factors 1 2 3 4
Predicting stakeholders’ likely reactions for implementing project decisions 0.746
Identifying and analyzing possible conflicts and coalitions among stakeholders 0.695
Predicting and mapping stakeholders’ behaviors 0.661
Managing change of stakeholders’ attributes 0.619
Keeping and promoting positive relationships among the stakeholders 0.579
Identifying and understanding stakeholders’ areas of interest in the project 0.508
Managing the change of stakeholders’ interests 0.758
Exploring stakeholder needs and constraints to projects 0.704
Managing the change of stakeholders’ influence 0.663
Resolving conflicts among stakeholders effectively 0.624
Involving relevant stakeholders to redefine (refine) project mission. 0.503
Formulating the project mission 0.773
Communicating with stakeholders properly and frequently 0.726
Formulating appropriate strategies to manage/engage different stakeholders 0.614
Carefully identifying and listing the project stakeholders 0.573
Considering corporate social responsibilities 0.915
35. 4
CONCLUSIONS 34/35
1. Based on the results of the Relative Importance Index, Clients,
Consultants, and Contractors are the most important stakeholders.
2. Seventy (70) critical success factors were identified for the
stakeholder management.
3. Seven (7) factors had RII values less than 0.85, while 63 factors had
RII values more than 0.85. This shows that they are all quite
important, but only 63 of them are very important..
4. For the majority of critical success factors, the null hypothesis was
rejected due to variations in stakeholder perceptions.
5. After reducing data through factor analysis and determining the
correlations between factors, four components were generated.
