A conceptual performance measurement framework for construction industry

Thesis Type: Doctorate

Institution Of The Thesis: Middle East Technical University, Faculty of Engineering, Department of Civil Engineering, Turkey

Approval Date: 2009

Thesis Language: English

Student: Zeynep IŞIK

Principal Supervisor (For Co-Supervisor Theses): Mustafa Talat Birgönül

Co-Supervisor: Irem Dikmen


The performance assessment done by objective measures have now been replaced with subjective measures. Within the context of this research; interdependencies between a construction company’s “resources and capabilities”, “project management capabilities”, “strategic decisions”, “strength of relationships with other parties” and “external factors” with “project performance” and “company performance” were investigated from a resource based perspective which put forward intangible assets of the company. To achieve the objectives, a questionnaire survey was administered to 73 Turkish contractors and the data obtained from 354 projects that were held during the last five years were analyzed using structural equation modeling (SEM). It was hypothesized in this study that construction company performance is influenced by the resources and capabilities within the company, the long-term and short-term strategies adopted by the company, the strength of the relationships of the company with other parties involved in construction projects, external factors and project management competencies. A structural equation model was set up to measure the seven latent variables through their constituent variables and to see if the hypothesized relationships exist. Based on the findings of this study, it can be concluded that, this research has introduced a method to measure performance both in subjective (qualitative) and the objective (quantitative) terms. The strong path coefficients between the constructs of the model are an indication that, after decades in pursuit of finding ways to improve the performance of construction companies, subjective dimensions of performance have proven to be as effective as the traditional objective dimensions.