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OPERATIONAL FLEXIBILITY: A MODEL FOR EFFECTIVE PROJECT MANAGEMENT Thesis Submitted to Cochin University of Science and Technology For the award of the degree of Doctor of Philosophy Under Faculty of Social Sciences By George Joseph (Reg. No. 3915) Under the Supervision of Dr. Zakkariya K.A. SCHOOL OF MANAGEMENT STUDIES COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY Kochi – 682022 May 2015 Operational Flexibility: A Model for Effective Project Management Ph. D Thesis under the Faculty of Social Sciences Author George Joseph Research Scholar School of Management Studies Cochin University of Science and Technology Kochi – 682 022, India email: [email protected] Supervising Guide Dr. Zakkariya K.A. Associate Professor, School of Management Studies Cochin University of Science and Technology Cochin - 682 022, Kerala, India email: [email protected] SCHOOL OF MANAGEMENT STUDIES COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY COCHIN-682022, KERALA, INDIA Ph: 0484-2575310, Fax: 0484-2575492 Email: [email protected] Dr. Zakkariya K.A. Associate Professor This is to certify that the thesis entitled “Operational Flexibility: A Model for Effective Project Management” is the record of bonafide research work done by Mr. George Joseph under my supervision and guidance at the School of Management Studies, in partial fulfillment of the requirements for the Degree of Doctor of Philosophy under the Faculty of Social Sciences, Cochin University of Science and Technology. It is also certified that all the relevant corrections and modifications suggested by the audience during the pre-synopsis seminar and recommended by the Doctoral Committee of the candidate have been incorporated in the thesis. Kochi Dr. Zakkariya K.A. 19/10/2015 Supervising Guide Declaration I, George Joseph, hereby declare that the thesis titled “Operational Flexibility: A Model For Effective Project Management”, submitted to Cochin University of Science and Technology under Faculty of Social Sciences is the record of the original research done by me under the supervision and guidance of Dr. Zakkariya K.A., Associate Professor, School of Management Studies, Cochin University of Science and Technology. I also declare that this work has not been submitted elsewhere for the award of any degree, diploma or any other title or recognition. Kochi George Joseph 25/05/2015 ACKNOWLEDGMENT I would like to express my thanks and gratitude to the following people for their time, encouragement, help and guidance, in the preparation of this doctoral thesis. I am indebted to the participants for their time and comments on the various aspects of this study. This research would not have been possible without their participation. From the bottom of my heart, I thank Dr. Zakkariya K.A., my thesis supervisor, a man of amazing energy, optimism and wisdom; for his steadfast encouragement, advice and patience on all occasions during my years of PhD candidature. This thesis would certainly not exist without his inspiration and support. I also wish to express my gratitude to my doctoral committee member; Assistant Prof. Dr. Sam Thomas for his encouragement and support throughout this research. He was kind and approachable all throughout this research. I am thankful to Prof. (Dr.) M. Bhasi, Director, School of Management Studies, CUSAT, for the help and support extended to me by him and his office. I also wish to express my sincere gratitude to the administrative, and computer lab staffs for their help. Thanks also go to all my friends, colleagues and fellow research scholars for their moral support and encouragement. Finally, I am eternally grateful to my family for their relentless support and encouragement throughout this study, especially my parents for their endless support, prayers and blessings. Above all I thank God almighty the most merciful for being with me to bring this study to its completion. George Joseph Contents Chapter - 1 Introduction 1.1 Background............................................................................. 1 1.2 Operational Flexibility .......................................................... 3 1.3 Knowledge Gap....... .............................................................. 5 1.4 Research problem ............................................................... 15 1.5 Research aims and objectives ........................................... 16 1.6 Scope of the research ......................................................... 17 1.7 Research Method ................................................................ 17 1.8 Research Significance ......................................................... 17 1.9 Structure of the thesis ........................................................ 18 Chapter - 2 The Construction Project Environment 2.1 Introduction.......................................................................... 19 2.2 Nature of the Construction Industry ............................... 19 2.3 Indian Real Estate Market .................................................. 20 2.4 Nature and Characteristics of Construction Projects .. 30 2.5 Construction Project Management ................................. 30 2.6 Construction Project Environment .................................. 37 2.7 Developing a Sound Stakeholder Environment ............ 42 2.8 Project Public Relations ..................................................... 43 2.9 Variation Orders .................................................................. 44 2.10 Project Failure and Success ............................................. 47 2.11 Need for operational Flexibility ...................................... 49 Summary ............................................................................... 52 Chapter -3 Theoretical Foundations 3.1 Introduction .............................................................................53 3.2 Theories .....................................................................................54 3.2.1 Contingency Theories ...................................................55 3.2.2 Organizational Learning Theory ................................57 3.2.3 Resource-Based Theories .............................................59 3.2.4 Complexity Theory ........................................................61 3.2.5 Transaction Cost Theory ...............................................63 3.2.6 Organizational Slack Theory .......................................64 Summary ...............................................................................67 Chapter -4 Research Methodology Part 1 - Research Design and Method of Study 4.1.1 Introduction ....................................................................69 4.1.2 Research Design .............................................................70 4.1.3 Phases of this Research design ...................................71 4.1.4 Preliminary interview findings ....................................74 4.1.5 Definition of terms ........................................................77 Part II - Operationalization of Constructs 4.2.1 Introduction......................................................................78 4.2.2 Predictor 1-Project learning Culture ...........................80 4.2.3 Predictor 2- Supply chain capabilities .........................83 4.2.4 Predictor 3- Technological capabilities .......................87 4.2.5 Predictor 4- HRM practices ............................................90 4.2.6 Predictor 5-Employee skills and Behaviour ................93 4.2.7 Moderator 1 -Micro Environmental factor .................96 4.2.8 Moderator 2-Macro Environmental Factor ...............100 4.2.9 Operational flexibility .................................................. 102 4.2.10 Effective Project Management ..................................... 107 4.2.11 Research Hypotheses ....................................................... 110 4.2.12 Pilot Study .............................................................................. 115 4.2.13 Population .............................................................................. 116 4.2.14 Key Informant Retrospective Reporting ........................... 117 Part III - Questionnaire Development 4.3.1 Introduction ................................................................... 118 4.3.2 Use of multiple Item approach ................................. 118 4.3.3 Generation of measurement items ........................... 119 4.3.4 Design of the questionnaire ....................................... 119 4.3.5 Organization of questionnaire ................................... 119 4.3.6 Short Description of each part ................................... 120 Par IV - Methods of Research Analysis 4.4.1 Introduction .................................................................. 122 4.4.2 The SEM analysis procedure ...................................... 122 4.4.3 PLS Modelling Procedure .......................................... 123 4.4.4 Moderator analysis ...................................................... 135 Summary ............................................................................ 137 Chapter-5 Data Validation 5.1 Introduction........................................................................... 139 5.2 Sample Profile ...................................................................... 139 5.3 Validation Tests ..................................................................... 142 5.4 Results of classical validation ............................................. 147 5.5 Exploratory factor analysis .................................................