Title: Risk management and project performance: an examination of the construction industry during the COVID-19 pandemic and future prospects

Authors: Xuhui Han

Addresses: Shanxi Vocational University of Engineering Science and Technology, Shanxi, 030619, China

Abstract: The scope of risk management relating to firms' performance has been widely experimented with over the past decades by researchers. Nevertheless, how risk management practices (RMP) may optimise project performance such as construction projects during disastrous times like COVID-19 got far less consideration from developing nations. This study investigates the relationships of risk management practices within three streams, i.e., operational risk (OR), financial risk (FR), and political risk on project performance within the Chinese construction industry through an empirical approach. Using structural equation modelling along with confirmatory factor analysis, the study affirmed a positive connection between risk management and project performance based on 328 sample size (n = 328) obtained from project managers. In addition, the study found a positive nexus between each dimension of risk management and project performance, i.e., OR, FR and PR. This research provides project managers with a wealth of recommendations and strategies for future challenges. Besides, future research possibilities are recommended to scholars of the world with consideration of the current limitations.

Keywords: risk management; operational risk; financial risk; political risk; project performance; COVID-19; construction industry.

DOI: 10.1504/IJADS.2024.139409

International Journal of Applied Decision Sciences, 2024 Vol.17 No.4, pp.497 - 512

Received: 03 Feb 2023
Accepted: 08 Mar 2023
Published online: 02 Jul 2024 *

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