The Effect of Risk Management Practices on Project Performance: A Case Study of the Libyan Construction Industry
DOI:
https://doi.org/10.26668/businessreview/2023.v8i6.1420Keywords:
Risk Management, Construction Industry, Project Management, Smart-PLSAbstract
Purpose: The general aim of the study was to investigate the implementation of risk management in the construction industry in Libya.
Theoretical framework: The role of risk management in project management in the construction industry in Libya is described in this paper. The study involved more than three hundred construction companies located in Tripoli and Benghazi as these are two main cities in Libya where construction was most active and involved big projects and large investment.
Design/methodology/approach: Questionnaires which were designed based on cluster sampling were sent to respondents i.e., basically the company managers and 250 replies were obtained. Structured equation modelling was used to analysis the information by Smart-PLS program. The risk management processes defined by identification, assessment and monitoring which contributed to the project success was also related to the financial risk.
Findings: The study found that risk management practices had substantial and favourable effects on the success of the project's execution. Further the awareness of quality management in terms of risks was most encouraging.
Research, Practical & Social implications: The current findings of this research have shown that most studies focus on the effect of risk management practices as strong tool to improve the project performance. A productivity survey might give a better overview of risk management at other sectors as it concerns the actual output of the construction companies.
Originality/value: The systematic literature review approach was hardly found in study of risk management and project performance. At the same time, the exploratory method was applied to synthesize previous studies on risk management and project performance in construction companies.
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