Moderation Role of government policies, laws and Acts between cultural factors and risk management among Saudi Arabian contractors

Abstract

Projects are delayed due to lack of construction risk management practice. One of the important factor for project success is organisation culture. Organisation culture is the combination of system of shared norms and values that defines characteristics and behavior. This study is grounded on organisation control theory and based on Kingdom of Saudi Arabia (KSA) 303 largest contractor (> 250 number of employees). This study quantitatively focused on impact of cultural factors on management of risks in construction sector of Kingdom of Saudi Arabia (KSA) moderated by government policies, laws and Acts using PLS-SEM approach. Parameter calculations in SmartPLS (PLS-SEM technique) is efficient having higher statistical power making it appropriate approach for analysing composite model for this study. Cultural factors and government policies, laws and Acts positively affect the management of risks in construction sector of Kingdom of Saudi Arabia (KSA) with addition to moderating role of government policies, laws and Acts. Current research helps project team for project success to develop good culture withi client, consultant and contractor, which makes project team members, construction and project manager towards project commitment. It is essential for every organisation to practice strong culture for project accomplishment which greatly influence the project team behavior compared with weak culture affecting project team effectiveness.