PreprintArticleVersion 1Preserved in Portico This version is not peer-reviewed
Structural Equation Model for Investigating the Causal Relationships Between Project Complexities and Project Cost: An Empirical Study from New Zealand
Version 1
: Received: 12 June 2019 / Approved: 13 June 2019 / Online: 13 June 2019 (08:16:40 CEST)
How to cite:
Zhao, L.; Zhang, H. Structural Equation Model for Investigating the Causal Relationships Between Project Complexities and Project Cost: An Empirical Study from New Zealand. Preprints2019, 2019060115. https://doi.org/10.20944/preprints201906.0115.v1
Zhao, L.; Zhang, H. Structural Equation Model for Investigating the Causal Relationships Between Project Complexities and Project Cost: An Empirical Study from New Zealand. Preprints 2019, 2019060115. https://doi.org/10.20944/preprints201906.0115.v1
Zhao, L.; Zhang, H. Structural Equation Model for Investigating the Causal Relationships Between Project Complexities and Project Cost: An Empirical Study from New Zealand. Preprints2019, 2019060115. https://doi.org/10.20944/preprints201906.0115.v1
APA Style
Zhao, L., & Zhang, H. (2019). Structural Equation Model for Investigating the Causal Relationships Between Project Complexities and Project Cost: An Empirical Study from New Zealand. Preprints. https://doi.org/10.20944/preprints201906.0115.v1
Chicago/Turabian Style
Zhao, L. and Huirong Zhang. 2019 "Structural Equation Model for Investigating the Causal Relationships Between Project Complexities and Project Cost: An Empirical Study from New Zealand" Preprints. https://doi.org/10.20944/preprints201906.0115.v1
Abstract
Project complexity is usually considered as one of main causes of cost overruns, resulting in poor performance and thus project failure. However, empirical studies focused on evaluating its effects on project cost remain lacking. Given this circumstance, this study attempts to develop the relationships between project cost and the multidimensional project complexity elements. We establish complexity as a multidimensional factor including the task, organization, market, legal, and environment complexities. This study uses an empirical evidence-based structural model to account for the relationships between project cost and project complexity. By doing so, a quantitative assessment of multi-dimensional project complexity has been developed. The findings suggest that task and organization complexities have direct effects on project cost, while market, legal and external environment complexities have indirect effects on project cost. The practical contribution is that the findings can improve the understanding of which dimension of complexity significantly influence project cost, and the need to focus efforts on strategically addressing that complexities.
Keywords
project cost; project complexity; structural equation modeling; New Zealand
Subject
Engineering, Civil Engineering
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.