CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
All Around the world, construction industry clients have continued to grapple with project results with increasing dissatisfaction. The growing rates of dissatisfaction have continued in spite of different interventions (Ika, Lavagnon, 2012). Effective stakeholder relationship management (SRM) continues to be crucial to the achievement of effective project outcomes. This is especially the situation in the construction industry, an industry often described as substantially fragmented and project-based, with a multiplicity of stakeholders with vested interests (Nawi, 2014). Increasing incidences of project failure have been credited to poor stakeholders’ relationship management. Several studies examining stakeholder management practices exist (Clarkson, 1995). Nevertheless, a paucity of studies exploring stakeholders’ relationship management continues. According to Chinyio (2010), stakeholders are crucial to project performance. As a result, it is of significance that commensurate energy is expended to managing relationships between the customer organization, project stakeholders and various other recognized stakeholder blocs. Likewise, Gibson (2002) postulated that stakeholders have the power to affect project or organizational outcomes either negatively or positively.
Mohan and Paila (2013) observe that there are fundamental weaknesses connected with the management of these relationships in spite of the prevalence of studies on stakeholder management. These weaknesses consist of restricted devices for the identification of stakeholders' interests and affects, a paucity of studies covering the changes in stakeholders' influence and the effect of such changes on existing relationships; and limited studies evaluating the influence of stakeholder relationships within the project environment (Mohan and Paila, 2013).
Recently, there has been increasing research proof for relationship management in construction projects. For instance, Walker and Hampson (2003) designed relationship-based procurement techniques for construction projects. Pryke and Smyth (2006) offered a relationship method for managing complex construction projects. Davis and Walker (2009) highlighted how a construction project can be delivered with developing social relationship capital. Yeung et al. (2009) created a performance index for relationship-based construction project management. Davis and Love (2011) provided an organized method of relationship development to add value for construction projects. Meng (2012) shown the considerable impact of relationship management on project performance in building and construction. Jelodar et al. (2016) suggested a framework of relationship quality in construction project management. All these studies make a joint initiative to explain project relationship management as a brand-new research direction.
Construction is typically considered a conventional industry market (Miozzo and Dewick, 2004; Bennett, 2011). Typically, relationship management is a business issue at the corporate level and on the other hand project management concentrates on preparation and control, leading to the occurrence of ‘hard' management methods in construction. Traditional methods often lead to different issues in building jobs, such as adversarial culture and poor performance (Meng, 2012). Unlike project planning and control, relationship management highlights the significance of individuals in project management procedures. Because of this, it is typically referred to as a ‘soft' management method. It can be further split into intra-organizational relationship management and inter-organizational relationship management (Pinto et al., 2009; Pemsel and Müller, 2012). According to Mazur and Pisarski (2015), intra-organizational relationships, namely internal relationships, consist of the relationship between a project manager and his/her group, the relationship between various members in the project team, and the relationship between the project manager and his/her firm. On the other hand, inter-organizational relationships, specifically external relationships, describe those between the job team led by its manager and external project stakeholders. Relationship-based methods attempt to deal with conventional issues in construction projects with boosting good collaborative working within and between project organizations (Smyth, 2015). Therefore, this study will examine the effects of stakeholders’ relationship management in construction project delivery in Nigeria.
1.2 Statement of the Problem
The Botswana Institute for Development Professionals (BIDP, 2015) specified that: delays are common to construction projects in Botswana and contractors have frequently been unfairly pointed at as the primary culprits also when the delay was of a far more complex issue including a variety of stakeholders. The primary reasons for such delays, according to the BIDP, are the lack of information and effective communication channels, poorly coordinated supply chain, irregular cash flow, and widespread incompetence (BIDP, 2015). Although the report prescribes possible services, it is clear that poor stakeholder relationship management continues to be an underlying factor. Likewise, the BIDP mentions that the contractor bears the blame for project failures arising from poor stakeholder relationship management practices. Yet, extant literature suggests that the obligation for the stakeholder relationship management is frequently borne by the customer or the customer representative on construction projects. Although a number of models have been designed for the management of stakeholders in the construction sector, the failure of projects due to poor stakeholder relationship management continues throughout various nation contexts. The Nigeria construction industry is no exemption. It was observed that in spite of the main role ascribed to the contractor in stakeholder relationship management (BIDP, 2015), none of the extant stakeholder relationship management designs have been developed to fit the contractor as the pivot for stakeholder relationship management in construction project delivery environments. The contractor organisation is a business that looks for to make profit and achieve sustainability for both growth and continuity of the organisation. This study as a result looks for to develop and validate a structure that might be used by contractors to manage relationships with their stakeholders bring about the achievement of possible competitive advantage and sustainability in the industry. Consequently, this study draws on this gap to develop a contractor-driven stakeholder relationship management framework based on the success attributes of unique stakeholder (relationship) management frameworks and customer relationship management designs/approaches.
1.3 Objectives of the Study
The main objective of this study is to understand the effects of stakeholders’ relationship management in construction project delivery in Nigeria. However, the specific objectives are:
I. To examine how the contractors in the Nigeria construction sector effectively manage the relationships with stakeholders during the delivery of construction projects for successful project delivery
II. To identify the existing project stakeholder relationship management frameworks in the Nigeria construction sector
- To determine the effective current stakeholder relationship management practices and strategies being used by contractors in the construction industry
1.4 Research Questions
The following statements are considered to be the research questions for this study:
i) How are the contractors in the Nigeria construction sector effectively manage the relationships with stakeholders during the delivery of construction projects for successful project delivery?
ii) What are the existing project stakeholder relationship management frameworks in the Nigeria construction sector?
iii) How effective are the current stakeholder relationship management practices and strategies being used by contractors in the construction industry in Nigeria?
1.5 Significance of the Study
This study is significant because it will help to bridge the gap in researches previously conducted in this area in addition to contributing to a broader understanding in the Nigerian construction sector. This study will assist the Nigerian construction sector by providing helpful information and creating awareness on the need for effective stakeholder relationship management strategy. The findings would also help future researchers interested in the subject matter and serve as a basis for further references. In the light of this observation, it is envisaged that the results of this study will fill some gaps and at the same time make modest contributions to knowledge.
1.6 Scope of the Study
The contextual extent of this study was nevertheless narrowed to Lagos State chapter of construction engineering and its. In a broader sense, the scope of the study covered the construction engineering sector of Nigeria. The choice of location was due to larger population of professionals
found in Lagos State thus the principal variables can be found within this location. Additionally, this location was selected owing to proximity to data thus making it easier for the researcher to retrieve information.
1.7 Limitations of the Study
It is imminent that the availability of finance is quite scanty given that this study is an academic one without sponsorship and support in terms of funds. Also, the issue of time confronts the study as deadlines are based on schedules with stipulated time. The retrieval and soliciting of data are one of the most challenging endeavors the research unearths upon research since not every individual and/or organization from whom data was sought, provide adequate information and data readily. Despite these limitations, the researcher put in enough efforts to ensure the reliability and validity of measurement and data to be collected. Research participants were encouraged to respond to the questionnaire and subsequently present true responses.
