Leveraging procurement capabilities and planning for project success in the construction industry in Ghana

Abstract

PurposeThe paper examines the influence of procurement capabilities (skills) and procurement planning on project success in Ghana. The paper further examines the mediating role of procurement planning.Design/methodology/approachDrawing insights from human capital theory, a model of four hypotheses was developed and validated. The proposed model was validated using survey data from 200 procurement and construction professionals at construction firms in Ghana. The data gathered was analysed using structural equation modelling. Confirmatory factor analysis using Amos software was conducted to establish reliability and validity of the constructs. Hayes process was employed to test the structural model.FindingsOur study revealed that procurement capabilities and procurement planning directly improve project success in the construction sector in Ghana. We found procurement planning acts as a pathway for achieving greater success in construction projects.Originality/valueThis study is among the very few attempts to demonstrate how project success could be enhanced through developing procurement capabilities for effective procurement planning. Theoretically, this study is among the first attempts to theorise the effect of procurement capabilities and planning on project success from the human capital perspective. Our findings also offer practical insight to practitioners in the construction setting by emphasising the need to pay crucial attention to capabilities and planning in the quest to enhance project success in the construction setting. The findings indicate that building capabilities alone is not enough; rather, the ability to deploy such capabilities for effective procurement planning is necessary for driving project success.