Title: Towards an organisational culture - performance relationship framework in construction

Authors: Hoi-Yan Pang; Sai-On Cheung; Hoi-Yan Chan; Li-Pei Dong

Addresses: Construction Dispute Resolution Research Unit, Department of Civil and Architectural Engineering, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon Tong, Hong Kong ' Construction Dispute Resolution Research Unit, Department of Civil and Architectural Engineering, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon Tong, Hong Kong ' Construction Dispute Resolution Research Unit, Department of Civil and Architectural Engineering, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon Tong, Hong Kong ' Construction Dispute Resolution Research Unit, Department of Civil and Architectural Engineering, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon Tong, Hong Kong

Abstract: Organisational culture (OC) has been linked with performance (OP) for its intrinsic influence on decisions of organisations. The OC-OP relationship in construction has been discussed in a number of settings such as total quality management. Moreover, little has been reported on the operationalisation of OC as well as testing the OC-OP relationship empirically in construction. This study aims to contribute to this research gap. Based on an extensive literature review, an OC framework in construction is proposed. As for performance indicators, the attributes used in the balanced scorecard (BSC) framework with additional construction-related measures are used. With these, an OC-OP relationship framework is then proposed. With data collected from construction professionals, the framework was analysed by structural equation modelling technique. Whilst a conservative working environment cultivates red tape and impedes organisational growth, innovative working atmosphere is found to be the principal performance driver from an OC perspective.

Keywords: organisational culture; organisational performance; innovation; construction industry; literature review; balanced scorecard; BSC; structural equation modelling; SEM; conservative working environment; red tape; organisational growth; innovative working atmosphere; innovation.

DOI: 10.1504/IJPOM.2013.058379

International Journal of Project Organisation and Management, 2013 Vol.5 No.4, pp.293 - 311

Received: 04 Jun 2011
Accepted: 14 Jul 2011
Published online: 31 Jan 2014 *

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