Impact of Skilled and Unskilled Labor on Project Performance Using Structural Equation Modeling Approach

Abstract

Construction labors play critical roles in executing the project. Therefore, the purpose of this study is to provide and review using partial least square structural equation modeling (PLS-SEM) approach that the skilled and unskilled labor force impact on project performance which has been overlooked in the previous literature in the context of the public construction industry in developing countries, like Pakistan. To achieve the objective of this study, a hypothetical model was developed and empirically examined by using Structural Equation Modeling. Data were gathered through a questionnaire survey method. In total, 400 construction practitioners responded to the questionnaire on behalf of their organization. The results revealed that unskilled labor has a significant negative impact on project performance during the construction phase, whereas the results confirmed that skilled labors have a significant positive impact on project performance in enhancing the success rate of the project in the public construction industry. These results could be used by construction experts to elaborate a broader and rooted view of the labor skills affecting the project performance. The results provide adequate information to policy and decision makers concerning labor skills being a compulsory part of the operational strategy in accelerating the better execution and success of construction projects. The current study adds to the construction project management literature by examining the effect of labor skills on project performance positively or negatively, and the hypothesized model was developed that should be adopted by practitioners to ascertain labor skills for the successful execution of the project.