Main Article Content
Organisational internal risk factors, which include management, material, finance, and design risk factors, affect oil and gas construction projects' success in emerging nations, in which Malaysia is no exception. The purpose of this study is to examine the effect of these internal risk factors and government support on oil and gas projects among sixty-one (61) employees of oil and gas firms using a questionnaire survey. The data collected were analysed using structural equation modelling (SEM) techniques. The results revealed that all the exogenous variables (design risk, management risk, financial risk and material risk factors and government support) significantly impact project success. According to the findings, all exogenous variables (design risk, management risk, financial risk, material risk factors, and government support) have substantial effects on project success. The study developed an all-inclusive framework that can assist stakeholders in the industry in mitigating internal risk factors in ensuring the success of projects. Policy implications and future study paths are considered.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
a) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share and adapt the work with an acknowledgement of the work's authorship and initial publication in this journal.
b) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
c) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Open Access Citation Advantage Service). Where authors include such a work in an institutional repository or on their website (ie. a copy of a work which has been published in a UTS ePRESS journal, or a pre-print or post-print version of that work), we request that they include a statement that acknowledges the UTS ePRESS publication including the name of the journal, the volume number and a web-link to the journal item.
d) Authors should be aware that the Creative Commons Attribution (CC-BY) License permits readers to share (copy and redistribute the work in any medium or format) and adapt (remix, transform, and build upon the work) for any purpose, even commercially, provided they also give appropriate credit to the work, provide a link to the license, and indicate if changes were made. They may do these things in any reasonable manner, but not in any way that suggests you or your publisher endorses their use.
Abelson, R. P. et al. (1968) ‘Theories of cognitive consistency: A sourcebook.’
Adeleke, A. Q. et al. (2018) ‘The influence of organizational external factors on construction risk management among Nigerian construction companies’, Safety and health at work, 9(1), pp. 115–124.
Ahmadabadi, A. A. and Heravi, G. (2019) ‘The effect of critical success factors on project success in Public-Private Partnership projects: A case study of highway projects in Iran’, Transport Policy, 73, pp. 152–161.
Aibinu, A. A. and Odeyinka, H. A. (2006) ‘Construction delays and their causative factors in Nigeria’, Journal of construction engineering and management, 132(7), pp. 667–677.
Alashwal, A. M., Fareed, N. F. and Al-Obaidi, K. M. (2017) ‘Determining success criteria and success factors for international construction projects for Malaysian contractors’, Construction Economics and Building, 17(2), pp. 62–80.
AlSanad, S. (2017) ‘Megaproject and Risk Management: A Case of Kuwait’, in Book of Proceedings 5th International Conference On Sustainable Development, p. 79.
Alsharef, A. et al. (2021) ‘Early impacts of the COVID-19 pandemic on the United States construction industry’, International journal of environmental research and public health, 18(4), p. 1559.
Armstrong, J. S. and Overton, T. S. (1977) ‘Estimating nonresponse bias in mail surveys’, Journal of marketing research, 14(3), pp. 396–402.
Badiru, A. B. and Osisanya, S. O. (2016) Project management for the oil and gas industry: a world system approach. CRC Press.
Baloi, D. and Price, A. D. F. (2003) ‘Modelling global risk factors affecting construction cost performance’, International journal of project management, 21(4), pp. 261–269.
Bamgbade, J. A. et al. (2018) ‘Does government support matter? Influence of organizational culture on sustainable construction among Malaysian contractors’, International Journal of Construction Management, 18(2), pp. 93–107.
Bamgbade, J. A., Kamaruddeen, A. M. and Nawi, M. N. M. (2017) ‘Malaysian construction firms’ social sustainability via organizational innovativeness and government support: The mediating role of market culture’, Journal of Cleaner Production, 154, pp. 114–124.
Baron, R. M. and Kenny, D. A. (1986) ‘The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations.’, Journal of personality and social psychology, 51(6), p. 1173.
Bastas, A. and Liyanage, K. (2018) ‘Sustainable supply chain quality management: A systematic review’, Journal of cleaner production, 181, pp. 726–744.
Belassi, W. and Tukel, O. I. (1996) ‘A new framework for determining critical success/failure factors in projects’, International journal of project management, 14(3), pp. 141–151.
Bluhm, R. et al. (2018) ‘Connective financing: Chinese infrastructure projects and the diffusion of economic activity in developing countries’.
Bommer, J. J., Crowley, H. and Pinho, R. (2015) ‘A risk-mitigation approach to the management of induced seismicity’, Journal of Seismology, 19(2), pp. 623–646.
Braimah, N. and Ndekugri, I. (2009) ‘Consultants’ perceptions on construction delay analysis methodologies’, Journal of Construction Engineering and Management, 135(12), pp. 1279–1288.
Chin, W. W. (1998) ‘Commentary: Issues and opinion on structural equation modeling’. JSTOR.
Cohen, J. (1988) ‘Statistical power analysis for the behavioral sciences–second edition. 12 Lawrence Erlbaum Associates Inc’, Hillsdale, New Jersey, 13.
Conti, J. et al. (2016) International energy outlook 2016 with projections to 2040. USDOE Energy Information Administration (EIA), Washington, DC (United States ….
Cooperrider, D. L. and Srivastva, S. (2013) ‘A Contemporary Commentary on Appreciative Inquiry in Organizational LifeAppreciative Inquiry in Organizational Life☆ Cooperrider, D. and Srivastva, S.(1987). Appreciative inquiry in organizational life. In R. Woodman and W. Pasmore (Eds.), Research in organizational change and development, Vol. 1, pp. 129–169.’, in Organizational generativity: The appreciative inquiry summit and a scholarship of transformation. Emerald Group Publishing Limited.
Crawford, L. H., BA, H. and Stretton, A. M. (2018) ‘Bodies of Knowledge and Competency Standards in Global Project Management’, The AMA Handbook of Project Management.
Dehdasht, G. et al. (2017) ‘DEMATEL-ANP risk assessment in oil and gas construction projects’, Sustainability, 9(8), p. 1420.
Denni-Fiberesima, D. and Rani, N. S. A. (2011) ‘An evaluation of critical success factors in oil and gas project portfolio in Nigeria’, African Journal of Business Management, 5(6), pp. 2378–2395.
Derakhshanalavijeh, R. and Teixeira, J. M. C. (2017) ‘Cost overrun in construction projects in developing countries, gas-oil industry of Iran as a case study’, Journal of Civil Engineering and Management, 23(1), pp. 125–136.
Doloi, H. et al. (2012) ‘Analysing factors affecting delays in Indian construction projects’, International journal of project management, 30(4), pp. 479–489.
Doloi, H., Sawhney, A. and Iyer, K. C. (2012) ‘Structural equation model for investigating factors affecting delay in Indian construction projects’, Construction Management and Economics, 30(10), pp. 869–884.
Durugbo, C. M. et al. (2020) ‘Critical indices and model of uncertainty perception for regional supply chains: insights from a Delphi-based study’, Supply Chain Management: An International Journal.
Fairholm, G. W. (2009) Organizational power politics: tactics in organizational leadership. ABC-CLIO.
Faul, F. et al. (2007) ‘G* Power 3: A flexible statistical power analysis program for the social, behavioral, and biomedical sciences’, Behavior research methods, 39(2), pp. 175–191.
Flamholtz, E. G., Das, T. K. and Tsui, A. S. (1985) ‘Toward an integrative framework of organizational control’, Accounting, organizations and society, 10(1), pp. 35–50.
Geiger, S. et al. (2009) ‘Transformational leadership as a mediator of the relationship between behavior‐based control and salespeople’s key outcomes’, European Journal of Marketing.
Gudienė, N. et al. (2013) ‘Development of a conceptual critical success factors model for construction projects: a case of Lithuania’, Procedia Engineering, 57, pp. 392–397.
Hair, J. F. et al. (2010) Essentials of marketing research. McGraw-Hill/Irwin New York, NY.
Hair, J. F. et al. (2019) ‘When to use and how to report the results of PLS-SEM’, European Business Review. Emerald Group Publishing Ltd., pp. 2–24. doi: 10.1108/EBR-11-2018-0203.
Hair, J. F., Gabriel, M. and Patel, V. (2014) ‘AMOS covariance-based structural equation modeling (CB-SEM): Guidelines on its application as a marketing research tool’, Brazilian Journal of Marketing, 13(2).
Hair, J. F., Ringle, C. M. and Sarstedt, M. (2013) ‘Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance’, Long range planning, 46(1–2), pp. 1–12.
Hair Jr, J. F. et al. (2014) ‘Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research’, European business review.
Hair Jr, J. F. et al. (2016) A primer on partial least squares structural equation modeling (PLS-SEM). Sage publications.
Hampton, G., Baldwin, A. N. and Holt, G. (2012) ‘Project delays and cost: stakeholder perceptions of traditional v. PPP procurement’, Journal of Financial Management of Property and Construction.
Hamzaoui, F. et al. (2015) ‘Evolutive Risk Breakdown Structure for managing construction project risks: application to a railway project in Algeria’, European Journal of Environmental and Civil Engineering, 19(2), pp. 238–262.
Hartmann, J., Inkpen, A. C. and Ramaswamy, K. (2020) ‘Different shades of green: Global oil and gas companies and renewable energy’, Journal of International Business Studies, pp. 1–25.
Hassan, A. K., Adeleke, A. Q. and Taofeeq, D. M. (2019) ‘The effects of project triple constraint on Malaysia Building Projects’, Social Science and Humanities Journal, pp. 1222–1238.
Henseler, J. and Fassott, G. (2010) ‘Testing moderating effects in PLS path models: An illustration of available procedures’, in Handbook of partial least squares. Springer, pp. 713–735.
Henseler, J., Ringle, C. M. and Sarstedt, M. (no date) ‘A new criterion for assessing discriminant validity in variance-based structural equation modeling’, 43(1), pp. 115–135. doi: 10.1007/s11747-014-0403-8.
Hoque, M. E., Wah, L. S. and Zaidi, M. A. S. (2020) ‘Do Oil and Gas Risk Factors Matter in the Malaysian Oil and Gas Industry? A Fama-MacBeth Two Stage Panel Regression Approach’, Energies, 13(5), p. 1154.
Hult, G. T. M. et al. (2018) ‘Addressing endogeneity in international marketing applications of partial least squares structural equation modeling’, Journal of International Marketing, 26(3), pp. 1–21.
In, J. (2017) ‘Introduction of a pilot study’, Korean journal of anesthesiology, 70(6), p. 601.
Ismayilova, A. and Silvius, G. (2021) ‘Cradle-to-Cradle in Project Management: A Case Study’, International Journal of Circular Economy and Waste Management (IJCEWM), 1(1), pp. 1–27.
Jafari, A. and Love, P. E. D. (2013) ‘Quality costs in construction: case of Qom Monorail Project in Iran’, Journal of Construction Engineering and Management, 139(9), pp. 1244–1249.
Kapsali, M. (2013) ‘Equifinality in project management exploring causal complexity in projects’, Systems Research and Behavioral Science, 30(1), pp. 2–14.
Kassem, M. A., Khoiry, M. A. and Hamzah, N. (2019) ‘Using probability impact matrix (PIM) in analyzing risk factors affecting the success of oil and gas construction projects in Yemen’, International Journal of Energy Sector Management.
Kassem, M. A., Khoiry, M. A. and Hamzah, N. (2020) ‘Assessment of the effect of external risk factors on the success of an oil and gas construction project’, Engineering, Construction and Architectural Management.
Kauppi, K. et al. (2016) ‘Managing country disruption risks and improving operational performance: risk management along integrated supply chains’, International Journal of Production Economics, 182, pp. 484–495.
Kim, S. et al. (2016) ‘The effect of service innovation on R&D activities and government support systems: the moderating role of government support systems in Korea’, Journal of Open Innovation: Technology, Market, and Complexity, 2(1), p. 5.
Kock, N. (2015) ‘Common method bias in PLS-SEM: A full collinearity assessment approach’, International Journal of e-Collaboration (ijec), 11(4), pp. 1–10.
Li, J. and Shui, B. (2015) ‘A comprehensive analysis of building energy efficiency policies in China: status quo and development perspective’, Journal of Cleaner Production, 90, pp. 326–344.
Li, M. (2021) ‘Uses and abuses of statistical control variables: Ruling out or creating alternative explanations?’, Journal of Business Research, 126, pp. 472–488.
Liu, J. et al. (2017) ‘Impact of design risk on the performance of design-build projects’, Journal of Construction Engineering and Management, 143(6), p. 04017010.
Liu, L., Borman, M. and Gao, J. (2014) ‘Delivering complex engineering projects: Reexamining organizational control theory’, International Journal of Project Management, 32(5), pp. 791–802.
Liu, Z. et al. (2016) ‘Handling social risks in government-driven mega project: An empirical case study from West China’, International Journal of Project Management, 34(2), pp. 202–218.
Lock, D. and Wagner, R. (2018) The Handbook of Project Portfolio Management. Routledge.
De Maere d’Aertrycke, G., Ehrenmann, A. and Smeers, Y. (2017) ‘Investment with incomplete markets for risk: The need for long-term contracts’, Energy Policy, 105, pp. 571–583.
Mani, V. et al. (2017) ‘Mitigating supply chain risk via sustainability using big data analytics: Evidence from the manufacturing supply chain’, Sustainability, 9(4), p. 608.
Md Noor, S. et al. (2019) ‘Inscription of a destination as a world heritage site and residents’ perceptions’, Asia Pacific Journal of Tourism Research, 24(1), pp. 14–30.
Miao, C. F. and Evans, K. R. (2012) ‘Effects of formal sales control systems: A combinatory perspective’, International Journal of Research in Marketing, 29(2), pp. 181–191.
Miao, C. F., Evans, K. R. and Shaoming, Z. (2007) ‘The role of salesperson motivation in sales control systems—Intrinsic and extrinsic motivation revisited’, Journal of Business Research, 60(5), pp. 417–425.
Mok, K. Y., Shen, G. Q. and Yang, J. (2015) ‘Stakeholder management studies in mega construction projects: A review and future directions’, International Journal of Project Management, 33(2), pp. 446–457.
Moshood, T. D. et al. (2020) ‘Does government policy matter? Factors influencing contractors’ risk attitudes in the malaysian construction industry: A structural equation modelling analysis’, International Journal of Construction Supply Chain Management, 10(1). doi: 10.14424/ijcscm100120-01-29.
Musa, M. M. et al. (2015) ‘Influence of external environmental factors on the success of public housing projects in developing countries’, Construction Economics and Building, 15(4), p. 30.
O’Sullivan, M. (2000) ‘The innovative enterprise and corporate governance’, Cambridge Journal of Economics, 24(4), pp. 393–416.
Ogbeibu, S. et al. (2020) ‘Augmenting environmental sustainability through the exchange of green creative ideas–evidence from an emerging economy’, Sustainable Production and Consumption, 26, pp. 275–287.
Ouchi, W. G. (1979) ‘A conceptual framework for the design of organizational control mechanisms’, Management science, 25(9), pp. 833–848.
Parker, D. et al. (2013) ‘Integration of project-based management and change management’, International Journal of Productivity and Performance Management.
PMBOK, P. M. I. (2013) ‘A Guide to the Project Management Body of Knowledge (PMBOK® Guide): Project Management Institute’. Incorporated.
Prăvălie, R. and Bandoc, G. (2018) ‘Nuclear energy: between global electricity demand, worldwide decarbonisation imperativeness, and planetary environmental implications’, Journal of environmental management, 209, pp. 81–92.
Qiang, M. et al. (2015) ‘Factors governing construction project delivery selection: A content analysis’, International Journal of Project Management, 33(8), pp. 1780–1794.
Raut, R. D., Narkhede, B. and Gardas, B. B. (2017) ‘To identify the critical success factors of sustainable supply chain management practices in the context of oil and gas industries: ISM approach’, Renewable and Sustainable Energy Reviews, 68, pp. 33–47.
Raykar, P. and Ghadge, A. N. (2016) ‘Analyzing the Critical Factors Influencing the Time Overrun and Cost Overrun in Construction Project’, International Journal of Engineering Research, 5(1), pp. 21–25.
Renuka, S. M., Kamal, S. and Umarani, C. (2017) ‘A model to estimate the time overrun risk in construction projects’, Theoretical and empirical researches in urban management, 12(2), pp. 64–76.
Ringle, C. M. et al. (2020) ‘Partial least squares structural equation modeling in HRM research’, The International Journal of Human Resource Management, 31(12), pp. 1617–1643.
Ringle, C. M., Sarstedt, M. and Straub, D. W. (2012) ‘Editor’s comments: a critical look at the use of PLS-SEM in" MIS Quarterly"’, MIS quarterly, pp. iii–xiv.
Ruqaishi, M. and Bashir, H. A. (2015) ‘Causes of delay in construction projects in the oil and gas industry in the gulf cooperation council countries: a case study’, Journal of management in engineering, 31(3), p. 05014017.
Salapatas, J. N. (2000) ‘Best practices—the nine elements to success’, in Project Management Institute Annual Seminars & Symposium, Houston, TX. Newtown Square, PA: Project Management Institute.
Salas, R. and Hallowell, M. (2016) ‘Predictive validity of safety leading indicators: Empirical assessment in the oil and gas sector’, Journal of construction engineering and management, 142(10), p. 04016052.
Sarstedt, M. et al. (2016) ‘Estimation issues with PLS and CBSEM: Where the bias lies!’, Journal of Business Research, 69(10), pp. 3998–4010.
Saudi, N. S. B. M. and Tsen, W. H. (2017) ‘The impact of oil and liquefied natural gas (LNG) prices on economic sectors in Malaysia’, Journal of BIMP-EAGA Regional Development, 3(2), pp. 90–100.
Sekar, G., Viswanathan, K. and Sambasivan, M. (2018) ‘Effects of project-related and organizational-related factors on five dimensions of project performance: A study across the construction sectors in Malaysia’, Engineering Management Journal, 30(4), pp. 247–261.
Sekaran, U. and Bougie, R. (2016) Research methods for business: A skill building approach. John Wiley & Sons.
Shafii, F., Arman Ali, Z. and Othman, M. Z. (2006) ‘Achieving sustainable construction in the developing countries of Southeast Asia’.
Shenhar, A. and Holzmann, V. (2017) ‘The three secrets of megaproject success: Clear strategic vision, total alignment, and adapting to complexity’, Project Management Journal, 48(6), pp. 29–46.
Shmueli, G. et al. (2016) ‘The elephant in the room: Predictive performance of PLS models’, Journal of Business Research, 69(10), pp. 4552–4564.
Shuen, A., Feiler, P. F. and Teece, D. J. (2014) ‘Dynamic capabilities in the upstream oil and gas sector: Managing next generation competition’, Energy Strategy Reviews, 3, pp. 5–13.
Shukla, A. and Karki, H. (2016) ‘Application of robotics in offshore oil and gas industry—A review Part II’, Robotics and Autonomous Systems, 75, pp. 508–524.
Sovacool, B. K., Gilbert, A. and Nugent, D. (2014) ‘Risk, innovation, electricity infrastructure and construction cost overruns: Testing six hypotheses’, Energy, 74, pp. 906–917.
Spence, R. (2004) ‘Risk and regulation: can improved government action reduce the impacts of natural disasters?’, Building Research & Information, 32(5), pp. 391–402.
Taillandier, F. et al. (2015) ‘A multi-agent model to manage risks in construction project (SMACC)’, Automation in Construction, 58, pp. 1–18.
Taroun, A. (2014) ‘Towards a better modelling and assessment of construction risk: Insights from a literature review’, International journal of Project management, 32(1), pp. 101–115.
Taylan, O. et al. (2014) ‘Construction projects selection and risk assessment by fuzzy AHP and fuzzy TOPSIS methodologies’, Applied Soft Computing, 17, pp. 105–116.
Van Thuyet, N., Ogunlana, S. O. and Dey, P. K. (2007) ‘Risk management in oil and gas construction projects in Vietnam’, International journal of energy sector management.
Umar, T. (2022) ‘The Impact of COVID-19 on the GCC Construction Industry’, International Journal of Service Science, Management, Engineering, and Technology (IJSSMET), 13(2), pp. 1–17.
Wijethilake, C. and Lama, T. (2019) ‘Sustainability core values and sustainability risk management: Moderating effects of top management commitment and stakeholder pressure’, Business Strategy and the Environment, 28(1), pp. 143–154.
Williams, P. et al. (2015) ‘Relationship quality and satisfaction: Customer-perceived success factors for on-time projects’, International Journal of Project Management, 33(8), pp. 1836–1850.
Wilson, C. and Wilson, P. (2017) Make poverty business: increase profits and reduce risks by engaging with the poor. Routledge.
Wu, G. et al. (2017) ‘Investigating the relationship between communication-conflict interaction and project success among construction project teams’, International Journal of Project Management, 35(8), pp. 1466–1482.
Young, T. L. (2016) Successful project management. Kogan Page Publishers.
Zou, P. X. W., Zhang, G. and Wang, J. (2007) ‘Understanding the key risks in construction projects in China’, International journal of project management, 25(6), pp. 601–614.
Al Zubaidi, H. and Al Otaibi, S. (2008) ‘An Empirical Approach for Identifying Critical Time‐Ovrerun Risk Factors in Kuwait’s Construction Projects’, Journal of Economic and Administrative Sciences.