Influence Mechanisms of Factors on Project Management Capability

Abstract

Project management capability (PMC) is the competence required to ensure an organization remains competitive when conducting construction projects. Although many factors that affect PMC have been studied, the key ingredients of success are yet to be determined. This research aims to identify the critical factors that determine PMC and the relationships between them. A literature review was conducted to identify potentially relevant factors, and a five-point Likert scale questionnaire was designed based on these factors and then distributed to project management practitioners. Subsequently, a multivariate structural equation model (SEM) was developed to explain the relationships between the factors and PMC statistically on the basis of the collected data. The results demonstrate that the talent system affects PMC positively and directly, and the business environment acts as a mediator between talent system and PMC. The process assets affect PMC indirectly by positively impacting the talent system. The findings lay a foundation for further improving organizational PMC theory and lead to recommendations about effective project management practices for organizations.