The effect of environmental factors and institutional pressures on construction firms’ performance: A proposed model.

Abstract

Purpose—As the construction industry evolves, a higher requirement is set on construction firms to improve their accountability to customers’ specifications by executing their projects based on specified criteria (time, cost, quality). However, several factors prevent effective and efficient performance management in construction firms. Efforts aimed towards understanding the impacts of these factors, such as environmental factors and institutional pressures on the performance outcomes of the construction firm, have led to empirical and theoretical controversy in mainstream construction management research. Design/methodology/approach—The study's objectives were to examine the reliability and the validity of the adapted instrument's construct measures in the ongoing study and develop a conceptual model comprising antecedent factors affecting Syrian construction firms’ performance. Primary data were collected from 197 respondents using a structured questionnaire, and data analysis was done using Smart-PLS 3.0 to assess the PLS-SEM measurement model. Findings—The findings show that the instrument is reliable and indicates strong rational validity proof. Originality/value—The research is of great significance because it explored the impact that vital environmental factors together with institutional pressures have on the performance outcomes of construction firms, and this is critical to improving effective performance management systems in construction firms. Moreover, the validation of the instrument will aid subsequent explorations of the subject matter.