Abstract
Oil and gas industry significantly contribute for economic development of countries enriched with petroleum resources. Mega projects of oil and gas sector usually face many challenges due to environmental issues, high level of risks, huge investments, tight schedules and interdependencies between project activities. Therefore keeping in view, the issues faced by oil and gas sector this study was made to analyze the impact of project complexity and environmental factors on success of oil and gas projects of Pakistan. Based upon hypothetical framework developed for this study, data collection was made from an oil and gas company of Pakistan. After which, data analysis was carried out by using a statistical technique known as structural equation modeling. Project complexity, environmental factors and project success were taken as constructs for model evaluation on AMOS. Analysis of data has concluded that project complexity has negative impact on project success whereas better control over environmental factors enhance the project success rate.
References
Salazar-Aramayo JL, et al. A conceptual model for project management of exploration and production in the oil and gas industry: The case of a Brazilian company. International Journal of Project Management 2013; 31(4): 589-601. https://doi.org/10.1016/j.ijproman.2012.09.016
Tanaka H. Toward project and program management paradigm in the space of complexity: a case study of mega and complex oil and gas development and infrastructure projects. Procedia-Social and Behavioral Sciences 2014; 119: 65-74. https://doi.org/10.1016/j.sbspro.2014.03.010
Jergeas GF, Ruwanpura J. Why cost and schedule overruns on mega oil sands projects? Practice Periodical on Structural Design and Construction 2009; 15(1): 40-43. https://doi.org/10.1061/(ASCE)SC.1943-5576.0000024
Olaniran OJ, et al. Cost overruns in hydrocarbon megaprojects: A critical review and implications for research. Project Management Journal 2015; 46(6): 126-138. https://doi.org/10.1002/pmj.21556
Williams TM. The need for new paradigms for complex projects. International Journal of Project Management 1999; 17(5): 269-273. https://doi.org/10.1016/S0263-7863(98)00047-7
Belassi W, Tukel OI. A new framework for determining critical success/failure factors in projects. International Journal of Project Management 1996; 14(3): 141-151. https://doi.org/10.1016/0263-7863(95)00064-X
Baccarini D. The concept of project complexity—a review. International Journal of Project Management 1996; 14(4): 201-204. https://doi.org/10.1016/0263-7863(95)00093-3
Qureshi SM, Kang C. Analysing the organizational factors of project complexity using structural equation modelling. International Journal of Project Management 2015; 33(1): 165-176. https://doi.org/10.1016/j.ijproman.2014.04.006
Luo L, et al. Investigating the Relationship between Project Complexity and Success in Complex Construction Projects. Journal of Management in Engineering 2016; 04016036.
Maylor H, Vidgen R, Carver S. Managerial complexity in project?based operations: A grounded model and its implications for practice. Project Management Journal 2008; 39(S1). https://doi.org/10.1002/pmj.20057
Vidal L-A, Marle F, Bocquet J-C. Measuring project complexity using the Analytic Hierarchy Process. International Journal of Project Management 2011; 29(6): 718-727. https://doi.org/10.1016/j.ijproman.2010.07.005
Akanni P, Oke A, Akpomiemie O. Impact of environmental factors on building project performance in Delta State, Nigeria. HBRC Journal 2015; 11(1): 91-97. https://doi.org/10.1016/j.hbrcj.2014.02.010
Chen YQ, et al. Interrelationships among critical success factors of construction projects based on the structural equation model. Journal of Management in Engineering 2011; 28(3): 243-251. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000104
Isik Z, et al. The role of exogenous factors in the strategic performance of construction companies. Engineering, Construction and Architectural Management 2010; 17(2): 119-134. https://doi.org/10.1108/09699981011024650
Youker R. Managing the international project environment. International Journal of Project Management 1992; 10(4): 219-226. https://doi.org/10.1016/0263-7863(92)90081-J
Westerveld E. The Project Excellence Model®: linking success criteria and critical success factors. International Journal of Project Management 2003; 21(6): 411-418. https://doi.org/10.1016/S0263-7863(02)00112-6
Drury-Grogan ML. Performance on agile teams: Relating iteration objectives and critical decisions to project management success factors. Information and Software Technology 2014; 56(5): 506-515. https://doi.org/10.1016/j.infsof.2013.11.003
Doloi H, Iyer K, Sawhney A. Structural equation model for assessing impacts of contractor's performance on project success. International Journal of Project Management 2011; 29(6): 687-695. https://doi.org/10.1016/j.ijproman.2010.05.007
Li H, Arditi D, Wang Z. Transaction-related issues and construction project performance. Construction Management and Economics 2012; 30(2): 151-164. https://doi.org/10.1080/01446193.2012.655254
Joslin R, Müller R. The relationship between project governance and project success. International Journal of Project Management 2016; 34(4): 613-626. https://doi.org/10.1016/j.ijproman.2016.01.008
Lei PW, Wu Q. Introduction to structural equation modeling: Issues and practical considerations. Educational Measurement: issues and practice 2007; 26(3): 33-43. https://doi.org/10.1111/j.1745-3992.2007.00099.x
Schumacker RE, Lomax RG. A beginner's guide to structural equation modeling. Psychology Press 2004.
Blismas NG, et al. Factors influencing project delivery within construction clients’ multi-project environments. Engineering, Construction and Architectural Management 2004; 11(2): 113-125. https://doi.org/10.1108/09699980410527858
He Q, et al. Measuring the complexity of mega construction projects in China—A fuzzy analytic network process analysis. International Journal of Project Management 2015; 33(3): 549-563. https://doi.org/10.1016/j.ijproman.2014.07.009
Barrett P. Structural equation modelling: Adjudging model fit. Personality and Individual Differences 2007; 42(5): 815-824. https://doi.org/10.1016/j.paid.2006.09.018
Xiong B, et al. Examining the influence of participant performance factors on contractor satisfaction: A structural equation model. International Journal of Project Management 2014; 32(3): 482-491. https://doi.org/10.1016/j.ijproman.2013.06.003
Matsueda RL. Structural Equations with Latent Variables. Kenneth A. Bollen 1991.
Amin M, Isa Z. An examination of the relationship between service quality perception and customer satisfaction: A SEM approach towards Malaysian Islamic banking. International Journal of Islamic and Middle Eastern Finance and Management 2008; 1(3): 191-209. https://doi.org/10.1108/17538390810901131
Chen Y-S, The drivers of green brand equity: Green brand image, green satisfaction, and green trust. Journal of Business Ethics 2010; 93(2): 307-319. https://doi.org/10.1007/s10551-009-0223-9
Beerli A, Meneses GD, Gil SM. Self-congruity and destination choice. Annals of Tourism Research 2007; 34(3): 571-587. https://doi.org/10.1016/j.annals.2007.01.005
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Copyright (c) 2017 Farhaj Ishtiaq , Mirza Jahanzaib