An Investigation on the Relationships between Organizational Culture and Performance of Construction Organizations

Project: Research

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The construction industry has been criticized for being inefficient. There are many causes attributing to this;inter alia, confrontational contracting behavior, a lack of innovation, and indifference to research and development efforts are some notable causes. To be more progressive, some form of cultural change is needed. In fact, organizational culture has been identified as one of the essential factors that affect efficiency and productivity. This project aims to investigate and test this proposition. Contracting firms have been chosen as the type of organization to be studied because they are primarily responsible for delivering the physical work and have been identified as a major source of inefficiency.The project has four main objectives:development of a construction-based organizational culture inventory;development of an organizational culture-performance relationship model;development of recommendations for corporate development strategies through the transformation of culture; andsharing with the construction community the findings and recommendations harvested from the study.There is no shortage of studies of organizational culture, particularly in the organizational behavior domain. However, this project is intended to be construction specific. In this respect, the first objective is to develop a validated organizational culture inventory that can be used to evaluate the 'culture state' of a construction organization. This will involve firstly the identification of cultural dimensions from a literature review. The dimensions shall then be operationalized into measure statements describing the phenomenon and behaviors manifesting the respective cultural dimensions. These will form the structure of the inventory. With data collected from industry participants, the inventory shall then be validated by the well-established test-retest methodology.It is proposed to examine performance in terms of efficiency and effectiveness. As such, relevant performance indicators shall be collected. With these, together with the culture dimensions, a theoretical model of the organizational culture-performance relationship can be built. The technique of structural equation modeling (SEM) shall be used to develop this complex relationship model, which will then be empirically tested with field data. Recommendations for corporate development through the transformation of culture shall be devised through interpretation of the final SEM model. Input from industry experts shall also be sought in this stage of the work in order to augment the applicability of the recommendations that are to be shared with the construction community.


Project number9041336
Grant typeGRF
Effective start/end date1/01/0916/02/12