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Critical success factors in project management: implication fromVietnam
Cao Hao Thia and Fredric William Swierczekb*
aSchool of Industrial Management, HoChiMinh City University of Technology, Vietnam; bSchool ofManagement, Asian Institute of Technology, Thailand
This study will assess successful project performance based on key project factors.The indicators of project success are cost, time, technical performance and customersatisfaction as used in previous studies. The sample consisted of 239 project membersand managers currently involved in infrastructure projects in Vietnam. Regressionanalysis was used to test five hypotheses developed from theories on project success.Three groups of factors including manager competencies, member competenciesand external stability have significant positive relationships to the success criteria.The completion and implementation stages in the project life cycle are also positivelyrelated to success. The implementation stage of a project moderates both the effects ofexternal stability and organization support on success. The implication for projectmanagers is that implementation is the key stage in determining the success of projects.
Keywords: implementation; project management; success factors; Vietnam
Introduction
The professionalization of project management, for example, through the Project
Management Institute (PMI), has developed uniform standards that for the most part
ignore specific contexts. A recent search for success factors in the PMI database indicated
only two sources for Asia. Both were the Global Conferences 2005 and 2004. While there
were presentations specific to Asia, most were concentrated on best practices. An
interesting example was in the Keynote address of the 2006 conference held in Bangkok
on Leadership, where the speaker C. N. Chu adapted Sun Tsu to the leadership of projects.
She focused on tao (path), kim (timing), ti (direction) and tsao (balanced leadership). The
socialcultural, political and economic context of a project is critical in understanding
what is successful, particularly in developed countries, but it is largely ignored.
Project managers frequently raise the issues of measuring and managing success and the
factors which affect performance. Although it is widely agreed that the determination of
critical success factors and their impacts on project results is important, the evidence from
developing countries is limited. One major controversial issue is the definition of project
success. Pinto and Slevin (1988) recognized that there are few topics in the field of project
management that are so frequently discussed and yet so rarely agreed upon as project success.
Some researchers consider success factors as ubiquitous, something which affects
all projects. Other scholars have tried to classify critical success factors in groups
(Schultz et al. 1987, Belassi and Tukel 1996). In a counter position, Dvir et al. (1998)
ISSN 1360-2381 print/ISSN 1743-792X online
q 2010 Taylor & Francis
DOI: 10.1080/13602380903322957
http://www.informaworld.com
*Corresponding author. Email: [email protected]
Asia Pacific Business Review
Vol. 16, No. 4, October 2010, 567589
argued that success factors should not be universal to all projects. To define success
factors, a different approach is necessary to develop an improved framework that can
include these widely diverging views.
Context
Vietnam is attractive to Official Development Assistance (ODA) and project assistance,
with 25 bilateral donors and 15 international agencies. Approximately US$ 3 billion is
available each year. Since 1996, the largest share of projects has been in major
infrastructure. As of 2006, 6764 projects have been implemented worth US$ 28.7 billion.
However this is only half of what was counted (US and Foreign Commercial Service
2007). The disbursement of ODA is painfully slow and aid effectiveness is limited
(Jacquemin and Bainbridge 2005).
Problems in completing projects on time and in budget come from vested interests who
fear losing power to related project management units (PMUs) which have more benefits
and opportunities. Project performance is affected by the lack of transparency in bidding,
too many regulations and limited enforcement of anticorruption measures. According to
Transparency International (2006), Vietnam ranks 111 in perceived corruption.
Currently, Vietnams economic situation has improved significantly. As a result, there
have been numerous capital investment projects implemented in Vietnam, especially in
the field of infrastructure development, such as the Asian Highway and Airport Upgrading
in Hanoi and Ho Chi Minh City. Unfortunately, according to outside evaluations, the
number of successful projects is limited (Jacquemin and Bainbridge 2005). How to
enhance the success of projects has become an important task for many international
agencies as well as professionals in Vietnam and throughout Asia.
This study will consider key project factors as they relate to performance criteria.
It assesses infrastructure projects in Vietnam to examine the relationship between these
factors and the success of projects in a developing country. It will also consider the
potential generalization of these findings throughout the AsiaPacific region.
Literature review
Project performance criteria
Lim and Mohamed (1999) proposed a classification of project success. In the broad sense,
a project is successful if it has achieved its objectives. Unfortunately, it is only possible to
know whether the original project objectives were achieved during the operational phase
of the project. This achievement depends on the users or stakeholders. As long as the users
are satisfied, the project is considered successful. The more limited definition of project
success considers specific project results. It usually refers to the conclusion of the project
construction phase and the parties involved in the completion. Both definitions should be
considered (Lim and Mohamed 1999). Two criteria are sufficient to determine project
success: completion and stakeholder satisfaction; whereas, to determine the operational
project success, the completion criterion alone is enough.
Tukel and Rom (2001) reported the performance measures project managers
commonly use to evaluate the success of their projects. Specifically, they identified the
project managers orientation toward using internal and customer-driven measures of
performance. They also investigated the priority given to these measures at four different
stages of a project (conceptual, development, implementation and completion stages) by
568 C.H. Thi and F.W. Swierczek
identifying the primary objective at each of those stages. In general, they found that project
managers primary success measure is quality and their most important objective is
meeting customer needs. The priority given to this objective does not change during
various stages of a project, regardless of the project type and industry classification.
The choice of performance measures, however, is influenced by project type and industry
classification.
The literature concentrates on the implementation stage of a project in which
performance measures are primary and the customers requirements are secondary (Baker
et al. 1988, Pinto and Covin 1989). The important factors in the early stages of a project
are internal: meeting budgets; schedules; and technical performance. Yet, in more
advanced phases of the project, external factors such as customer needs and satisfaction
become more important (Pinto and Slevin 1988). Tukel and Rom (2001) recognized that
although project managers claim that they are customer-focused, they commonly employ
internal performance measures to monitor the progress of the project because internal
measures are quantifiable.
Theory
Project success
Project success has often been measured with a simplistic formula, perceived as
unequivocal and easy to assess. Such measures have often defined success as meeting the
objectives of the project budget and schedule and achieving an acceptable level of
performance.
The assessment of project success may also differ according to the evaluator.
Comprehensive success criteria will reflect different interests and views which lead to the
necessity for a multi-dimensional, multi-criteria approach (Cooper and Kleinschmidt
1987, Pinto and Mantel 1990, Freeman and Beale 1992). From another perspective, Pinto
andMantel (1990) identified three aspects of project performance to use as benchmarks for
measuring the success or failure of a project. These were the implementation process, the
perceived value of the project and client satisfaction with the final product. Paolini and
Glaser (1977) and Pinto and Slevin (1988) added client satisfaction and customer welfare.
Freeman and Beale (1992) identified seven specific criteria used to measure project
success. Five of these are frequently used: technical performance; efficiency of execution;
customer satisfaction; personal growth; organizational ability; and business performance.
A project can be considered to be successful by meeting the internal performance
measures of cost, time and technical performance, but also insuring that the project is
accepted by the customer (Kerzner 1998).
According to Kerzner (2001), project success was defined as the completion of an
activity within the constraints of cost, time and performance. This definition of project
success has been modified to include completion:
. within the allocated time period;
. within budgeted cost;
. at the proper performance or specification level;
. with acceptance by the customer/user;
. when you can use the customers name as reference;
. with minimum or mutually agreed upon changes in scope;
. without disturbing the main work flow of the organization;
. without changing the corporate culture.
Asia Pacific Business Review 569
Project performance in this paper will concentrate on four criteria: cost; time; technical
performance; and customer satisfaction. Success will be determined by the level of
performance achieved.
Success factors usually described in the literature of project management are usually
not based on actual performance. To determine whether these factors are actually
successful depends on their effect on project performance. In this review, the term critical
success factor is based on the definition of performance in the literature. PMBOK (Project
Management Institute 2004) defined project performance baseline as an approved plan
against which deviations are compared for management control. PMBOK also defined
cost performance index as the cost efficiency ratio of earned value to actual costs, and
schedule performance index as the schedule efficiency ratio of earned value
accomplished against the planned value.
Key project management factors
The search for critical project factors has been continuing for more than three decades.
Most early studies in this area focused on the reasons for project failure rather than project
success. Rubin and Seeling (1967) investigated the relationship of the project managers
experience on the projects success or failure. The findings indicate that a project
managers previous experience had a minimal impact on the projects performance
(Abdul-Rahman et al. 2006). The size of the previously managed projects did not influence
the managers performance. Avots (1969) identified the reasons for project failure and
concluded that the wrong choice of project manager, the unplanned projects termination
and unsupportive top management were the main reasons for failure. Hughes (1986)
conducted a survey to identify the factors that affect project performance. He concluded
that projects fail because of the improper focus of the management system, by rewarding
the wrong actions and the limited communication of goals. However, to understand failure
does not guarantee success in the future. Replicating the critical success factors in new
projects has been suggested as the more effective approach to improve project
performance (Hawk 2006).
Dvir et al. (1998) suggested that project success factors are not universal for all
projects. Different types of projects are affected by different sets of success factors. Thus,
a project-specific approach is appropriate for subsequent research into the practice and
theory of project management (Hyvari 2005).
Belassi and Tukel (1996) grouped critical success factors into four areas: external
environment; project manager and team members; organization; and the project.
The identification of critical factors would lead to the better evaluation of projects. Critical
factors are linked to their effects which lead to project success or failure. The identification
of this causeeffect relationship would improve project performance (Karlsen et al. 2006).
Schultz et al. (1987) classified critical success factors as strategic or tactical. Strategic
factors consist of factors such as project mission, top management support and
project scheduling, whereas tactical factors relate to client consultation and personnel
selection and training. These two groups of factors affect project performance at different
phases of implementation (Belout and Gauvreau 2004).
Pinto and Slevin (1987) discovered ten critical success factors, including project
mission, top management support, project schedule/plan, client consultation, personnel,
technical tasks, client acceptance, monitoring and feedback, communication and trouble
shooting. This research only identified the critical success factors, but did not measure the
strength of their relationship with project performance. Morris and Hough (1987) and
570 C.H. Thi and F.W. Swierczek
Cooke-Davies (2002) suggested a range of critical success factors relevant to performance,
including project team and management competencies relevant to large, complex projects,
but also to projects in general.
Belout and Gauvreau (2004) constructed a model in which the relationship between
the independent variables and project performance will be affected by the project life
cycle, project structure and project sectors (intervening effect). The project life cycle
consists of conceptualization, planning, execution and completion (Dvir et al. 2003). The
types of project structure include functional, functional matrix, balanced matrix, project
matrix and project team. The project sector is business or industrial. This framework is
presented in Figure 1.
In the model, the ten factors developed by Pinto and Slevin (1987) are defined as
independent variables in order to assess the impact of these factors, especially the
personnel factor. Project success is measured from three viewpoints: sponsors view;
project managers view; and client or customers view. Success is defined as the level of
satisfaction expressed by at least one of these three viewpoints (Freeman and Beale 1992).
This would include specific evaluation criteria: technical performance; efficiency of
project execution; managerial and organizational implications; personal growth; project
termination; technical innovativeness; business performance; and users satisfaction.
Project Life Cycles
Project SuccessDependent Variable
Project Mission
Project schedule
Client consultation
Technical tasks
Client acceptance
Monitoring
Communication
Troubleshooting
Management support
Personnel
Independent Variables
ProjectStructures
ProjectSectors
Figure 1. Hierarchical regression analysis of success criteria.Source: Belout and Gauvreau (2004).
Asia Pacific Business Review 571
Yasin et al. (2000) recognized that significant gaps exist between the existing body of
knowledge and the practice of international project management in relation to variables
that are relevant to construction project management success.
Most previous studies consider that project success criteria should include cost, time,
technical performance and customer satisfaction. This means the success of a project was
defined as the completion of an activity within budgeted cost, within the allocated time
period, at the proper technical performance and with acceptance of the customer
(Hawk 2006).
Many studies of project management have presented lists of critical success factors.
The success factors were usually discussed as either general or specific factors that
affected a particular project. Rather, it is the characteristics of a project which would
determine the critical factors, and success is defined as a result.
There is limited research on the strength of the relationship between the critical
factors and success criteria. There is even less analysis of the causal effects between
these factors and the performance of projects in Asia. Key project factors need to be
determined as successful based on the level of performance accomplished in a variety of
real projects.
Hypotheses
Based on the theories of success factors in the literature, five specific hypotheses will be
developed. The dependent variables are the four widely agreed project performance
criteria: cost; time; technical performance; and customer satisfaction. These are used for
evaluating the success of projects in this study.
The four independent variables as developed by Belassi and Tukel (1996) are key
project factors which might have an influence on the project success. These are the
external environment: the competencies of the project manager and the project team
members. Factors related to the project will be treated as intervening variables because of
how they influence the process of project management.
External environment
This first group consists of factors, external to the organization but which have an
impact on project performance, either positively or negatively. A number of external
environmental factors, such as political, economic, social, legal and those related to
advances in technology or even factors related to nature, may affect project performance
(Jin and Ling 2006). In their empirical study, Pinto and Slevin (1989) found that most
of the environmental factors affect projects during the planning stage of a projects life
cycle. However, some of the factors affect a project at all phrases of the life cycle, such
as weather conditions or the social environment. Sometimes these factors are so
influential that they cause a project to be terminated at the implementation stage.
Belassi and Tukel (1996) recognized that a client of a project can be from outside or
inside the organization to which the project belongs. If a client is from outside the
organization, the client should also be considered as an external factor influencing the
project performance. For functional projects, clients are usually part of the organization,
such as top management. In such cases, a client is from inside the organization and factors
related to the client can be grouped under the factors related to the organization.
Additional external factors affecting project performance include competitors in the
market and subcontractors. They should also be considered as factors related to the
572 C.H. Thi and F.W. Swierczek
external environment. External factors influence the availability of resources and project
performance. The variability in the external environment factors will influence the project
planning and thus project performance (Soja 2006). For these reasons, stability is the
main attribute of these factors that affects the project success criteria (Legris and
Collerette 2006).
Based on these considerations, the following hypothesis is proposed:
Hypothesis 1: In a project, the more stable the external environment, the better the
project performance.
Competencies of the project manager and team members
In the literature, many factors related to the competencies of project managers and team
members have been proposed for the successful completion of projects. These factors not
only affect project performance but they also have an impact on client satisfaction and
project acceptance (Procaccino and Verner 2006). Pinto and Slevin (1989) demonstrated
the importance of selecting project managers who possess the necessary technical
and administrative skills for successful project completion. The project managers
competence becomes most critical during the planning and termination stages (Zwikael
and Globerson 2006). The competence of the team members is also found to be a critical
factor throughout the project cycle (Puthamont and Chareonngam 2007). Similarly, well-
established communication channels between the project manager, the organization and
the client are necessary for the acceptance of the project outcome by the client.
Thamhain (2004) conducted a field study to examine the influences of the project
environment on team performance and resulting project performance. He found a
positive relationship between team involvement and performance especially in complex
project environments.
This discussion leads to specific hypotheses about the relationships between the
project manager, team members competencies and project performance:
Hypothesis 2: In a project, the higher the competencies of the project manager, the better
the project performance.
Hypothesis 3: In a project, the higher the competencies of the project team members, the
better the project performance.
Organizational factors
From the literature, the factors related to the organization include top management
support, project organization structure, functional managers support and project
champion. Tukel and Rom (1995) found that one of the most critical factors for the
successful completion of projects is top management support. Support is usually strongest
if there is a project champion and if this champion is from top management. Top
management helps project managers understand and achieve the projects objectives,
which are specified by the client and/or top management. Top management usually
controls a project managers access to resources, which are supervised by functional
managers. The level of support from top management usually determines the level of
support provided the functional manager. Performance depends on the project
organizational structure. For projects with a functional form, the availability of resources
is not usually an obstacle, because the functional manager is usually also the project
Asia Pacific Business Review 573
manager. But for projects with a pure project form, or with a matrix organizational form,
adequate resources can be a difficult issue. It requires skilled negotiation and positional
power within the organization. In that case, full support from the organization for the
project helps to facilitate and implement strategies for the successful completion of
projects (Zwikael and Globerson 2006).
The following hypothesis is proposed:
Hypothesis 4: In a project, the more support from the organization, the better the project
performance.
Project characteristics
In the literature, project characteristics have long been overlooked as being critical
success factors. In one of the few studies available, Morris and Hough (1987) identified
schedule duration and urgency as critical factors. However, many projects fail due to
problems within projects. Belassi and Tukel (1996) specified the size and the value of a
project, the uniqueness of project activities, the density of a project network, project life
cycle and the urgency of the project outcome. Tukel and Rom (1995) found that many
large projects (more than 100 activities) exceed their deadlines. There are usually
penalties imposed on projects when deadlines are exceeded. The most common penalties
are monetary and credibility loss. The project managers performance on the job can be
heavily influenced by the uniqueness of the activities. It is easier for project managers to
plan, schedule and monitor their projects if a project has more standard tasks. Project
density also influences performance. Tukel and Rom (1995) defined project density as the
ratio of total number of preceding actions to the total number of activities. The density will
affect the allocation of resources, especially man hours. Because of resource constraints,
project managers are often forced to use overtime, which exceeds the estimated budget,
or they are forced to delay activities competing for the same resources, which results in
delays in project completion.
The urgency of a project relates to success. Pinto and Slevin (1989) defined urgency as
the need to implement the project as soon as possible. In many cases, project performance
criteria are not met because of the urgency of a project (Puthamont and Chareonngam
2007). Projects with political purposes are typical examples. In these situations, not
enough time is allocated for planning and scheduling projects, and as a result they are more
likely to exceed budgets and fail.
Finally, two more characteristics of the project will be considered in the conceptual
framework. These are the stages in project life cycle (concept, development,
implementation and completion) and the type of project (Soja 2006). The priority given
to the internal and customer-driven measures of performance at different stages of a
project depends on the primary objective at each stage (Pinto and Slevin 1988, Tukel and
Rom 2001). Tukel and Rom (2001) also identified that the choice of performance
measures is influenced by the project type and industry classification. This issue was also
identified as very important in IT projects (Legris and Collerette 2006).
From these considerations, the following hypothesis is proposed:
Hypothesis 5: In a project, the strength of relationship between project factors and project
performance will be significantly influenced by the characteristics of the
project.
The hypotheses are summarized in the conceptual framework shown in Figure 2.
574 C.H. Thi and F.W. Swierczek
Research methodology
Operationalization and measurement
This study examined the relationship between project factors and the successful
performance of projects. The indicators of project success and its antecedent factors are
measured by the perception of managers and professionals in infrastructure projects in
Vietnam.
The indicators of project performance are cost, time, technical performance and
customer satisfaction as used in previous studies. The measurement of these concepts
captures the extent to which a project has been successful.
The indicators of project factors are mainly based on the four sets of factors developed
by Belassi and Tukel (1996). These indicators are: the external environment; the project
manager and team; the organization; and project characteristics. Additionally, the factors
related to the project manager and team members were divided into two dimensions to
capture the level of competencies of project manager and team members.
The measurement of the external environment focuses on the level of stability, in terms
of political, economical, social, legal and technological aspects, ecological (climate or
weather) factors, client consultation, competitors and sub-contractors involvement.
The competencies of a project manager are measured by the ability to delegate
authority, to negotiate, to coordinate, to make decisions and to understand their role and
responsibilities.
ProjectPerformance
Organization Support
Team Member Competencies
Manager Competencies
External Stability
H4 +
H3 +
H2 +
H1 +
H5
Project Characteristics Project target Project size Project value Financial control Budget authority Uniqueness of project activities Density of project Urgency Stage of project Type of project
Figure 2. Conceptual framework.
Asia Pacific Business Review 575
The competencies of project team members are measured by technical background,
communication skills, troubleshooting, commitment, problem-solving and teamwork.
The measurement of the organization factors includes top management support, project
organizational structure, functional manager support and project champion support.
The factors related to the project measure the level of influence of project
characteristics. Project characteristics are divided into two groups of variables. The first is
the project situation. This consists of project goal, size and value, financial control, budget
authority of the project manager, uniqueness of project activities, density of project
network and the urgency of the project outcome. Each of the items in the group was
measured using a seven-point Likert scale ranging from 1 to 7. The second group, project
background characteristics, includes ownership, number of activities, total budget, project
form and stages of project. In the regression analysis, the situational characteristics are
treated as independent variables and the background characteristics are treated as dummy
variables.
Research design and data collection
There are four main phases of the study. The first phase was conducted via literature
review and interviews. The purpose of this phase was to assess the content and
applicability of each measure based on the literature. Also, the interviews helped identify
key indicators for the research. The second phase was a pilot survey to pre-test
the measures developed for this study. The purpose of this pre-test was to provide a
preliminary evaluation and refinement of the measurement scales. It was
conducted with 40 potential respondents, in charge of infrastructure projects in Ho Chi
Minh City. Third, a survey was conducted with a sample of 239 project professionals in
infrastructure projects in Vietnam. This was the main phase in the research design.
Finally, a focus group was also conducted with project professionals in infrastructure
projects in Ho Chi Minh City to discuss the results and implications. There were 21
participants in the focus group. This also served as a check on the results of the interview
and the survey.
The data received from each respondent in the survey consisted of the description
of the project in terms of background information, perceptions about the projects
performance and the project factors that influenced the performance. The questionnaire
required respondents to think of a project in which they were currently involved
or had recently completed. This project was to be their frame of reference for
completing the questionnaire. The questionnaire included 46 multiple-choice and
open-ended questions. Each of the items about project performance criteria and
project factors were measured on a scale ranging from 1 (strongly disagree) to 7
(strongly agree).
In this research, the population is infrastructure projects in Vietnam. Based on the
list of professionals who are in charge of infrastructure projects in Vietnam, 1000
questionnaires were sent to potential respondents through a nationwide mail survey. 239
usable questionnaires were returned, a response rate of approximately 24%. Bollen (1989)
proposed an empirical ratio of at least five observations per estimated parameter.
In addition, it is generally agreed that the minimum sample for appropriate use of
maximum likelihood is 100 (Hair et al. 1995). Based on the questionnaire, the estimated
parameters are 46. The sample size required is about 230 (46 x 5). The sample size of 239
is adequate for this study. Missing data was minimal and related to background in
formation of the project.
576 C.H. Thi and F.W. Swierczek
The inability to secure responses from all elements of the population selected for a
sample can produce a non-response bias (Churchill 1991). Specific analysis of the sample
is required to determine whether the responses are representative. One method of doing
this is the comparison of responses across and within the sample (Amstrong and Overton
1977). For this sample, non-response bias was estimated by comparing respondents from
the survey and the pilot survey. A T-test was conducted to test differences between the
means for each of the research variables in the survey and pilot survey. All p-values in the
test statistics were greater than 5% except for the variable ability to coordinate
(p 4.41%). The T-test results presented in Table 1 confirmed that the responses from thesurvey were not significantly different from the pilot survey. This reduces the possibility of
non-response bias in this study.
Data analysis
A frequency analysis is conducted for indicators related to the background information
about the project. This information includes the position of respondents in the project, the
type of project, ownership of the project, the number of project activities, total budget of
the project, organizational structure of the project, stage of the project and work duration
of project members. These background characteristics are presented in Table 2.
Sixty-nine per cent of the projects were related to state-owned enterprises. Nearly half
had budgets in the range of 500,000 to 5 million US dollars per project. Forty-four per cent
were in the implementation stage and 22% were in completion. Most of the projects were
in industrial plants or infrastructure (roads, etc.). The majority of projects had specific
activities that ranged from 50 to 150 in number, which indicates they were of a medium to
large scale. The dominant project structure was functional. The majority of projects also
tended to be between 2 and 10 years in duration. These background criteria are
representative of this type of project throughout Vietnam. They are predominantly public,
medium-sized and in implementation or already completed.
The means and standard deviations of the dependent variables (4 performance criteria)
and independent variables (32 project characteristics) and the correlation coefficients
between dependent variables and independent variables are presented in Table 3.
The means range from 5.42 for technical performance to 4.04 for time. This represents
satisfactory performance.
The findings from the descriptive analysis present some interesting patterns. The most
important manager competencies are understanding the role and responsibilities of a
project manager. Clearly, simply being in the position is not sufficient. The project
manager through experience, training and development or from appropriate delegation,
has to understand what is required in their role and the actions expected of them in their
performance. The ability to make decisions and understanding trade-offs are related
competencies which can affect the project managers performance.
Members of project teams primarily need an appropriate and sufficient technical
background, but they need to be able to apply this expertise flexibly through problem-
solving and troubleshooting.
Specific characteristics of organizational support that were identified include the need
for a project champion, top management support and an appropriate organizational form
which tends to be functional. This level of support would improve the performance of the
project.
In terms of project environment, the political, economic and social environment has
the most relevance for project success. For the project itself, the highest-rated factor is
Asia Pacific Business Review 577
Table
1.
Non-response
biasassessment.
Survey
Response
PilotSurvey
Response
TestingStatistics
No
Variables
Size
Mean
St.dev.
Size
Mean
St.dev.
T-stat
p-value
1Cost
233
4.89
1.26
40
5.05
1.22
20.594
55.29%
2Tim
e234
4.04
1.63
40
4.33
1.65
20.636
52.55%
3Technical
perform
ance
235
5.42
1.04
40
5.68
1.00
21.421
15.65%
4Customer
satisfaction
231
5.32
1.12
40
5.67
1.20
21.595
11.19%
5Politicalenvironment
239
5.99
1.23
40
6.15
0.98
20.653
51.45%
6Economic
environment
239
5.24
1.18
40
5.65
1.03
21.783
7.56%
7Social
environment
238
5.24
1.21
40
5.30
1.14
20.244
80.77%
8Legal
environment*
198
4.98
1.47
40
9Technological
environment
237
4.86
1.32
40
5.13
1.38
20.895
37.17%
10
Nature
237
4.88
1.36
40
5.13
1.17
20.821
41.24%
11
Clientconsultation
224
4.88
1.32
40
4.69
1.14
0.660
50.97%
12
Competitors
221
4.69
1.53
40
4.66
1.78
0.071
94.36%
13
Subcontractors
222
4.59
1.44
40
4.76
1.50
20.471
63.78%
14
Abilityto
delegateauthority
234
4.94
1.39
40
5.28
1.38
21.031
30.36%
15
Abilityto
negotiate
231
5.18
1.26
40
5.53
1.01
21.358
17.57%
16
Abilityto
coordinate
235
5.11
1.34
40
5.69
0.98
22.023
4.41%
17
Abilityto
makedecisions
237
5.38
1.37
40
5.70
1.24
21.024
30.69%
18
Perceptionofresponsibility
238
5.42
1.31
40
5.65
0.92
20.845
39.90%
19
Technical
background
237
5.28
1.11
40
5.50
1.15
21.034
30.21%
20
Communicationskills
238
4.96
1.06
40
5.15
1.12
20.974
33.11%
21
Troubleshooting
239
5.03
1.21
40
5.33
1.31
21.171
24.26%
22
Commitment
239
5.15
1.25
40
5.38
1.05
20.899
36.95%
23
Problem
solving
239
5.25
1.14
40
5.50
0.93
21.182
23.83%
24
Teamwork
239
51.32
40
5.33
1.05
21.169
24.34%
25
Topmanagem
entsupport
236
5.15
1.51
40
5.53
1.09
21.046
29.65%
26
Org.structure
support
233
5.09
1.34
40
5.31
1.10
20.751
45.32%
27
Functional
managers
support
234
4.94
1.48
40
5.25
1.06
20.889
37.46%
28
Project
cham
pion
235
5.7
1.26
40
5.98
1.12
21.063
28.87%
29
Target
ofproject
isclear
238
6.37
0.95
40
6.53
0.78
21.088
27.78%
30
Thesize
ofproject
islarge
236
5.33
1.51
40
5.18
1.41
0.392
69.54%
578 C.H. Thi and F.W. Swierczek
31
Thevalueofproject
ishigh
235
5.03
1.53
40
5.18
1.43
20.382
70.31%
32
Financial
controlisstrict*
198
5.54
1.39
40
33
PM
has
budget
authority*
196
4.63
1.78
40
34
Project
isunique
233
4.35
2.00
40
4.85
1.95
20.736
46.26%
35
Network
ofproject
isdense
221
4.6
1.40
40
4.67
1.46
20.205
83.76%
36
Urgency
ofoutcomeishigh
233
5.46
1.35
40
5.73
1.04
20.919
35.87%
Note:*Thesevariableswereadded
inthesurvey.
Asia Pacific Business Review 579
a clear target or goal. This is supported by the urgency of the outcome or result of the
project and the project manager having sufficient budget authority to make decisions.
These results are supportive of the findings developed from the literature. They suggest
the key role of the project manager, the capability and flexibility of project members and the
critical requirement of a clear goal with the involvement of a project champion. As shown
in Table 3, these variables are all significantly correlated with performance criteria.
Table 2. Background characteristics.
PositionPresident/Director 25.0%Division/Department 32.0%Supervisor/Staff 26.0%Professional consultant 14.0%
Ownership of projectState owner 69.0%Private 10.9%Joint venture/Foreign 19.0%Others 0.8%
Total budget of projectLess than 500,000 USD 20.9%500,000 to 1,000,000 USD 23.4%1,000,000 to 5,000,000 USD 23.0%5,000,000 to more than 10,000,000 USD 32.0%
Stage of projectConception/Development 19.0%Implementation 44.4%Termination 13.0%Completed 21.8%
Type of ProjectBuilding 15.0%Industrial plants 28.0%Road 20.5%Infrastructure 30.0%
Number of activitiesLess than 50 activities 37.7%50100 activities 28.5%100150 activities 11.7%150more than 200 activities 14.0%
Organizational structureProject form 11.7%Functional project 55.2%Matrix project 27.6%
Work durationLess than 2 years 17.2%2 to 5 years 33.9%6 to 10 years 28.0%11 to 20 years 14.0%
580 C.H. Thi and F.W. Swierczek
Table
3.
Descriptivestatistics:factors
andperform
ance.
Correlation
Mean
SD
Cost
Tim
eTechnical
perform
ance
Customer
satisfaction
Dependentvariables
1Cost
4.89
1.26
1.000
2Tim
e4.04
1.63
0.383**
1.000
3Technical
perform
ance
5.42
1.04
0.468**
0.377**
1.000
4Customer
satisfaction
5.32
1.12
0.374**
0.341**
0.635**
1.000
Independentvariables
5Politicalenvironment
5.99
1.23
0.253**
0.156**
0.241**
0.200**
6Economical
environment
5.24
1.18
0.343**
0.203**
0.364**
0.300**
7Social
environment
5.24
1.21
0.264**
0.213**
0.328**
0.305**
8Legal
environment
4.98
1.47
0.208**
0.192**
0.213**
0.218**
9Technological
environment
4.86
1.32
0.329**
0.224**
0.324**
0.208**
10
Nature
4.88
1.36
0.163*
0.220**
0.265**
0.239**
11
Clientconsultation
4.88
1.32
0.197**
0.255**
0.195**
0.417**
12
Competitors
4.69
1.53
0.171*
0.071
0.116
0.163*
13
Sub-contractors
4.59
1.44
0.188**
0.195**
0.288**
0.221**
14
Abilityto
delegateauthority
4.94
1.39
0.248**
0.359**
0.382**
0.348**
15
Abilityto
tradeoff
5.18
1.26
0.326**
0.271**
0.262**
0.301**
16
Abilityto
coordinate
5.11
1.34
0.277**
0.408**
0.323**
0.338**
17
Abilityto
makedecisions
5.38
1.37
0.260**
0.397**
0.370**
0.332**
18
Perceptionofhisrole
andresponsibility
5.42
1.31
0.255**
0.333**
0.306**
0.329**
19
Technical
background
5.28
1.11
0.197**
0.236**
0.324**
0.245**
20
Communicationskills
4.96
1.06
0.244**
0.248**
0.279**
0.301**
21
Troubleshooting
5.03
1.21
0.312**
0.317**
0.322**
0.275**
22
Commitment
5.15
1.25
0.258**
0.330**
0.385**
0.328**
23
Problem
solving
5.25
1.14
0.297**
0.381**
0.358**
0.330**
24
Teamwork
5.00
1.32
0.289**
0.351**
0.288**
0.360**
25
Topmanagem
entsupport
5.15
1.51
0.151*
0.213**
0.253**
0.202**
26
Project
organizational
structure
5.09
1.34
0.184**
0.251**
0.370**
0.304**
27
Functional
managers
support
4.94
1.48
0.219**
0.256**
0.330**
0.278**
Asia Pacific Business Review 581
Table
3continued
Correlation
Mean
SD
Cost
Tim
eTechnical
perform
ance
Customer
satisfaction
28
Project
cham
pion
5.70
1.26
0.246**
0.193**
0.321**
0.294**
29
Thetarget
ofproject
isclear
6.37
0.95
0.299**
0.139*
0.287**
0.234**
30
Thesize
ofproject
islarge
2.67
1.51
20.174**
0.036
20.146*
20.053
31
Thevalueofproject
ishigh
2.97
1.53
20.091
0.018
20.040
0.054
32
Thefinancial
controlisstrict
2.46
1.39
20.336**
20.237**
20.269**
20.306**
33
ThePM
has
fullbudget
authority
4.63
1.78
0.143*
0.384**
0.213**
0.203**
34
Project
isunique
3.65
2.00
20.118
20.176**
20.243**
20.264**
35
Network
ofproject
isdense
3.40
1.40
20.099
20.160*
20.187**
20.243**
36
Theurgency
ofproject
outcomeishigh
5.46
1.35
0.269**
0.197**
0.274**
0.258**
Notes:**Correlationissignificantat
the0.01level(2
tailed);*Correlationissignificantat
the0.05level(2
tailed).
582 C.H. Thi and F.W. Swierczek
Factor analysis of key project factors
Factor analysis was used to reduce the 32 project characteristics into meaningful factors.
Table 4 shows the results in which a five-factors solution emerged. These are member
competencies, manager competencies, organization support, external stability and project
situation.
The five factors in Table 4, with the variables grouped under the relevant factor, confirm
that these are appropriate scales. Overall, the measures of different constructs are clearly
distinguishable fromeach other. This provides evidence for satisfactory discriminant validity.
The second purpose of this factor analysis was to assess the multi-dimensional nature
of perceived project performance. The project performance criteria were operationalized
as cost, time, technical performance and customer satisfaction. A factor analysis was
conducted to determine if performance could be considered a uni-dimensional construct.
Table 4. Factor analysis of the key project factors.
Factor 1:Member
Competencies
Factor 2:Manager
Competencies
Factor 3:Organization
Support
Factor 4:ExternalStability
Factor 5:ProjectSituation
Problem solving .827Troubleshooting .798Commitment .758Technical background .727Teamwork .722Communication skills .667
Ability to coordinate .765Ability to make decisions .752Ability to negotiate .742Ability to delegate authority .715Ability to perceive role andresponsibility
.439 .595
Functional managers support .753Project organizationalstructure support
.744
Top management support .734Project champion .625
Social environment .815Political environment .768Economical environment .746Technological environment .563Nature .440
The value of project is high .839The size of project is large .756Network of project is dense .551Project is unique .502
Eigenvalues 9.264 2.648 1.577 1.414 1.164Variance explained (%) 38.60 11.03 6.57 5.89 4.85Cumulative varianceexplained (%)
38.60 49.63 56.20 62.09 66.94
Cronbachs alpha 0.9006 0.9092 0.8951 0.7628 0.6806KMO 0.906Notes: Rotation method Varimax with Kaiser normalization. Factor loadings less than 0.40 have been omitted.
Asia Pacific Business Review 583
This analysis shows that only one factor was extracted. This is specified as success
criteria. The results of this analysis are presented in Table 5.
The analysis identified five groups of key project factors with an eigenvalue greater
than 1, accounting for 66.94% of the cumulative variance, and one group of success
criteria with an eigenvalue greater than 1, accounting 57.51% of the variance.
The common accepted decision criteria in research were applied: an eigenvalue more than
1, at least 50% variance being explained, and the simplicity of the factor structure (Hair
et al. 1995).
Cronbachs alpha scores were used to assess the reliabilities for the five groups
of key project factors and the success criteria. The member competencies, manager
competencies, organization support, external stability and project situation had
reliabilities ranging from 0.90 to 0.68. Project situation has marginal reliability. Project
success had a reliability of 0.72. All principal components had a Cronbachs alpha value
more than 0.60, a threshold acceptable in exploratory research (Nunnally 1978, Yoon
et al. 1995).
Hierarchical regression analysis
To examine the direct relationships between the project factors (member competencies,
manager competencies, organization support, external stability and project situation) and
project success, regression analysis was used. The moderating influences of project
characteristics (ownership, number of activities, total budget, project form, implemen-
tation stage and completed stage) were also included. Three hierarchical models were
developed. The first introduced the five groups of project factors in Model 1; six
background characteristics are included in Model 2 as dummy variables. The third model
added eight interactive terms to the significant groups of factors and two statistically
significant dummy variables in Model 3. The results of this analysis are presented
in Table 6.
Model 1 in Table 6 indicates that four groups of factors including manager
competencies, member competencies, external stability and organization support have a
significant positive relationship with success criteria. Only the project situation has a
negative effect on success criteria, but is not statistically significant.
When the six background characteristics treated as dummy variables are entered
in Model 2, manager competencies, member competencies, external stability and
Table 5. Results of factor analysis for success criteria.
Factor 1: Project success criteria
Technical performance .839Customer satisfaction .789Cost .727Time .667
Eigenvalues 2.300Variance explained (%) 57.51Cumulative variance explained (%) 57.51Cronbachs alpha 0.7259KMO 0.718Notes: Rotation method Varimax with Kaiser normalization. Factor loadings less than 0.40 have been omitted.
584 C.H. Thi and F.W. Swierczek
organization support continue to be significant, along with the addition of the completed
stage and the implementation stage.
Adding the eight interactive relationships between the four significant groups of
factors and the two significant dummy variables in Model 3, the three factors of manager
competencies, member competencies and external stability and two project characteristics
of completion stage and implementation stage still have statistical significance. There are
only two interactive variable terms which are significant. The implementation stage of
the project moderates both the effects of external stability and organization support on
success.
The overall model explains the data reasonably well, with 40.2% of the total variance
in the data being explained by Model 3. At each stage in transition from one model to the
next, the increment in adjusted R2 is also significant (Table 6). Manager competence
(.358) has the strongest relationship to performance, followed by member competencies
(.309). In the project environment context, external stability (.284) is the most important.
Organizational support (.119) is also positively related.
It is interesting that the stage of the project (completed or implementation) relates
significantly to success. This suggests that project managers do not recognize the
importance of results until the later stages of a project. This issue indicates that better and
continuous performance monitoring in projects is necessary.
Table 6. Hierarchical regression analysis of success criteria.
Variables Model 1 Model 2 Model 3
Antecedent variables (project factors)Manager competencies 0.358** 0.325** 0.305**Member competencies 0.309** 0.315** 0.308**External stability 0.284** 0.286** 0.146*Organization support 0.119* 0.116* 0.001Project situation 20.400 20.051 20.036
Moderators (project background characteristics)Completed 0.290** 0.294**Implementation 0.149* 0.157*Ownership 20.119 20.115No. activities 0.081 0.049Budget 0.027 0.032Project form 0.028 0.015
Interaction with moderatorsManager competencies* Implementation 0.005Member competencies * Implementation 20.008External stability * Implementation 0.209**Organization support * Implementation 0.154**Manager competencies * Completed 20.004Member competencies * Completed 0.029External stability * Completed 20.118Organization support * Completed 20.007
Constant/Intercept term 20.01145 20.301** 20.309**F-value 22.453** 19.622** 19.831**R2-value 0.319 0.383 0.423Adjusted R2-value 0.305 0.363 0.402
Notes: *p , 0.05; ** p , 0.01.
Asia Pacific Business Review 585
The implementation stage is influenced very much by the project environment as it
influences performance. Both external stability and organization support are significantly
related.
Other background characteristics such as ownership, number of activities, budget and
organizational form do not have any influence on performance.
Discussion
A total of five hypotheses were developed to examine the relationships in the conceptual
framework. The hierarchical regression results provided statistical evidence to support
three hypotheses related to the factors of external stability, manager competencies and
member competencies and rejected the hypothesis related to the factor of organizational
support. The results confirmed that the factors of external stability, manager competencies
and member competencies had a positive and significant impact on project performance.
These also provide confirmatory support to the success factors developed by Belassi and
Tukel (1996) and Pinto and Slevin (1987). For the moderating influences of project
characteristics, the hypothesis concerning the project characteristics significantly
influencing the relationship between project factors and project performance was
supported. This provides support confirming the intervening effect of the project stage on
project results as proposed by Belout and Gauvreau (2004).
However, the hypothesis on the impact of organizational support on performance was
rejected by the analysis. This indicates that the organizational support factor does not have
a significant impact on project performance. In the focus group, 52.4% of participants
agreed with this result; 38.1% disagreed and 9.5% gave other comments. Almost all
participants agreed that the influence of organization support on project performance
depends on the project stage and project scale. Organizational support is less important
than other factors in the implementation stage and in small- and medium-scale projects.
But in the beginning stage (project conception and planning) or completion of large-scale
projects, organization support is very important. The research results are supported by
these comments because 44.0% of the projects of the sample were in the implementation
stage and nearly half of projects were of small scale (the number of activities less than 100
with a total project budget less than 1 million US dollars). In addition, enterprises
implementing infrastructure projects in Vietnam were not directly responsible for the
administration of projects. Projects are normally organized as an independent project
management unit (PMU). The cooperation, collaboration and communication between the
PMU and the enterprise are in many cases ineffective. Consequently, the support of the
organization is often less important related to project performance.
Implications
In summary, there are significant implications from the results obtained. First, from the
literature review of project management, key project factors were identified. The criteria
for success determined for projects in Vietnam were assessed to examine the relationship
between these factors and the performance of projects in a developing country. The results
supported and confirmed the project factors and criteria developed in past research
conducted in advanced economies. This supports the inclusiveness of the project
management approach. Second, this study demonstrated that factors related to manager
competencies and member competencies affect success criteria. It suggests that more
emphasis on developing these competencies through more appropriate training for
586 C.H. Thi and F.W. Swierczek
managers and professionals in skills and certifications may be very important for the future
success of projects (White and Fortune 2002). Appropriate training has an important part
to play in enhancing professional development and adaptability (Hansson et al. 2003).
Cheng et al. (2007) found implementing new project management solutions required
training and monitoring of the performance of projects on a continuous basis to enhance
the success of projects. Third, the manager and team competencies are more important
to the success of a project in the implementation and completion stages. This is where
projects managers have a major role in effective performance.
Limitations
The research has identified the causal effects between some critical factors and the success
of a project, but did not examine the specific inter-relationships between these factors. This
could be done in the future using structural equation modelling. Another limitation
concerns the use of an altitudinal survey. The focus of this study was designed to assess
how managers in infrastructure projects in Vietnam perceived project success and its
related factors. There is certainly the possibility of bias in their responses. Observations of
project managers and team members in actual projects would provide an interesting
perspective on these findings. The study only included a sample from Vietnam. A wider
survey of project professionals in AsiaPacific would guarantee greater external validity.
Conclusions
This study developed and tested a comprehensive model of key project factors relevant to
developing countries like Vietnam and identified the project characteristics that affect
project success. Hierarchical regression analysis indicates that the model explains 40% of
the total variance in project success.
From a theoretical perspective, the results of the factor analysis in this study provide
some confirmation of the success factors developed by Belassi and Tukel (1996) and Pinto
and Slevin (1987) relevant to advanced economies. These are the external environment,
project manager, team members, organization and project characteristics. The results also
confirmed that success is defined uni-dimensionally, including cost, time, technical
performance and customer satisfaction. These criteria are widely used in previous
research, but only as separate indicators.
A new contribution from the analysis of the overall model is that three factors
manager competencies, member competencies, and external stability have significant
positive relationships to success.
For the moderating influences of project characteristics, the stages of completion
and implementation in the project life cycle are also positively related. It means the
relationships between the project management factors and success is stronger in the
completion and implementation stages of project. Only two interactive relationships
emerge as significant. The implementation stage of a project moderates both the effects of
external stability and organization support on success. The relationships between these
factors and success are stronger in the implementation stage. This provides some
confirmation for the intervening effect of the project stage proposed by Belout and
Gauvreau (2004). Infrastructure projects throughout East Asia have similar project
environmental factors like public investment, significant bureaucracy, limited
transparency and lack of sufficiently trained project managers. The findings of this
study can be generalized for projects throughout the region, if applied with caution.
Asia Pacific Business Review 587
Notes on contributors
Cao Hao Thi is currently a Faculty member at the School of Industrial Management, HoChiMinhCity University of Technology, Vietnam. He holds a PhD in International Business Administrationfrom the Asian Institute of Technology (AIT) (Thailand), an ME in Water Resource Developmentfrom AIT, and a BSc in Civil Engineering from HCMC University of Technology.
Fredric William Swierczek is an Associate Professor of Management at the School of Managementof the Asian Institute of Technology, Thailand. He is the coordinator of International BusinessProgram and coordinator of the Executive MBA, AIT Vietnam.
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