Influence of Internal Organizational Factors and Institutional Pressures on Construction Firms' Performance

Abstract

A significant number of empirical studies have reported contrasting results regarding the effects of certain internal organizational factors (Leadership Style Team competency and Skills Effective Communication) on construction performance. As a result, generalizations remain sketchy, and a better understanding is needed. This study lends a voice to the literature’s debate by introducing the part played by institutional pressures. The aim is to evaluate the impact of internal organizational factors and institutional pressures on a Syrian construction firm’s performance outcomes, with institutional pressures playing a mediator’s role. Data were collected using a questionnaire instrument from a sample of 197 building experts working in large public construction companies in Syria and analysed using the partial least squares structural equation modelling (PLS-SEM). The results reveal that leadership style and effective communication have a significant and positive effect on construction firm performance outcomes. However, the effect of team competency and skill was not supported; nonetheless, providing institutional pressures as a mediator into the relationship made it significant, thus, providing a vital theoretical contribution worth considering in future research. Practically, this study is the first attempt at evaluating organizational factors and institutional pressures as a critical determinant of organizational performance that should interest management at organizational levels. 81 DECLARATION OF CONFLICTING INTEREST The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article. FUNDING The author(s) received no financial support for the research, authorship, and/or publication of this article.