Title: Modelling the interactions between project payment systems, financial management strategies, and construction companies' performance

Authors: Emmanuel Dele Omopariola; Oluseye Olugboyega; Abimbola Olukemi Windapo; David John Edwards; Obuks A. Ejohwomu

Addresses: Department of Construction Economics and Management, Faculty of Engineering and the Built Environment, University of Cape Town, Cape Town, South Africa; Department of Building Technology, School of Environmental Technology, Kogi State Polytechnic, Lokoja, Nigeria ' Department of Building, Obafemi Awolowo University, Ile-Ife, Nigeria ' Department of Construction Economics and Management, Faculty of Engineering and the Built Environment, University of Cape Town, Cape Town, South Africa ' Department of the Built Environment, Birmingham City University, Birmingham, UK; Faculty of Engineering and the Built Environment, University of Johannesburg, Johannesburg, South Africa ' Department of Mechanical, Aerospace and Civil Engineering, University of Manchester, Pariser Building, Sackville Street, Manchester M13 9PL, UK

Abstract: This research examined the influence of the dependent variables of project payment systems and financial management strategies on construction organisation performance, with particular focus on the mediating effect of those strategies. This study adopted a positivist research methodology. It used a quantitative method of data collection in order to realise the development of a standard model, to help identify which project payment systems and financial management strategies could impact construction organisation performance. Findings from the data analysis revealed that financial management strategies played a significant role in ensuring a positive relationship between clients' payment systems and the construction company's financial performance. This study concludes that the financial management strategies in used by the construction organisations enhance their cash flow, monitor underspending or overspending against project cost targets, ensure accurate financial accounts. It is therefore recommended that new payment system should be formulated to integrate the needs of clients and contractors.

Keywords: project payment system; financial management strategies; financial performance; construction companies' performance.

DOI: 10.1504/IJBPM.2025.148236

International Journal of Business Performance Management, 2025 Vol.26 No.5, pp.634 - 659

Received: 24 Apr 2023
Accepted: 13 Sep 2023
Published online: 01 Sep 2025 *

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