The Impact of Project Organizational Culture on Cost Performance of Construction Projects

The culture within project organizations has been acknowledged as a determinant of successful organizations. Previous works in this domain has emphasized  the development of organizational culture models.However, little attention has been paid to determining the relationships between culture and cost performance within construction project organizations. This study aimed to address this gap. Project organizational culture artifacts were employed in a developed model and validated using a data survey conducted on 199 completed construction projects. Through a principal component factor analysis and the structural equation model (SEM) technique, the cultural behaviors were organized into a framework of four-factor culture dimensions. The findings reveal that commitment orientation and shared understanding contribute to improved cost performance. In addition, commitment orientation plays the role of mediator of the potential effects of the leadership orientation and supportive orientation culture on cost performance. The findings of this study reinforce the cultural effects and provide a useful project management tool that can contribute to the successful management of construction project organizations.