Unveiling the Path to the Cost of Quality Implementation in the Construction Industry: Multivariate Analysis

Abstract

The construction industry faces a significant challenge due to the absence of a well-established financial classification system for quality, leading to quality issues. Among the various quality management (QM) techniques available, the cost of quality (COQ) method is utilized to address these concerns. However, traditional COQ assumptions are static and do not reflect the adaptability required in modern QM for the construction industry, particularly due to hidden factors (HFs). These HFs play diverse roles in shaping the COQ system. The lack of a quantifiable COQ for monitoring quality costs impedes the adoption of the COQ framework within the construction industry. This study addresses these gaps by refining the traditional COQ categories and predicting the relationship between visible factors (VFs) and HFs through the lens of complexity theory. To fill this gap, a questionnaire survey was conducted with 142 experts specializing in QM within the Indian construction industry. Using SmartPLS 4.0, a hypothetical model was constructed to uncover the relationship between COQ categories. The results underscore the significant influence of profession on COQ, the influence of VFs and HFs on COQ, and the influence of COQ categories on achieving optimal quality. This study makes a substantial contribution to existing knowledge by forecasting COQ behavior and proposing future research directions. The practical implications of this study on the body of knowledge are significant, as the study aims to bridge a prominent gap in the current literature by delving into the quantitative exploration of the relationship between VFs and HFs affecting COQ within the construction industry. This research introduces a fresh perspective by investigating 22 VFs and HFs, a relatively new endeavor in the construction field. Meanwhile, the findings hold significant value for construction practitioners and firms investing in optimizing COQ as this knowledge base could facilitate the construction experts to refine their strategies, policies, and plans, integrating measures designed to proactively address VF- and HF-related challenges. This proactive approach not only fosters improved QM practices but also cultivates a culture of continuous improvement within construction projects. Moving forward, it is imperative for construction and consultancy organizations to integrate these findings into their QM strategies, leveraging insights to optimize resource allocation and enhance overall quality performance.