Project high performance work system for enabling high performing teams in construction

Main Article Content

Sarath Gunathilaka
Dulanga Wijesekara
Shing Fung Kwok

Abstract

Modern construction organizations demand high-performing teams (HPTs) in their projects in order to face increasing performance challenges. On the one hand, they face significant performance challenges due to the competition in the industry in many forms, such as competitive bidding to receive projects. On the other hand, they need to manage the performance challenges posed by the complexities of the uncertain and volatile construction project environment to deliver projects successfully and build up strong organizational profiles to face such issues. At the same time, they must also follow the legislative requirements of their countries, which are focused on the big issues and challenges that exist in the contemporary construction industry. In order to enable HPTs, they need a high-performance work system (HPWS) that can facilitate their projects. However, although literature shows numerous studies on organizational HPWSs that consist of human resource management practices, only limited attention has been given to identifying such a system for the project context. This study aimed to fill this knowledge gap through a quantitative research study. The project high-performance work system (PHPWS) was conceptualized using literature and tested using 221 responses to a questionnaire survey among team members in construction projects. The exploratory factor and confirmatory factor analyses were performed to analyze data to conclude this PHPWS. The findings facilitate the construction organizations to create the PHPWS for enabling HPTs in their projects and constitute a significant original contribution to the theory and practice in the construction management research domain.

Article Details

Section

Articles (Peer reviewed)

Author Biographies

Dulanga Wijesekara, Department of Construction Management; School of Architecture, Design and the Built Environment; Nottingham Trent University; Nottingham; United Kingdom

A PG student in the Construction Management Department

Shing Fung Kwok, Department of Construction Management; School of Architecture, Design and the Built Environment; Nottingham Trent University; Nottingham; United Kingdom

A PG student in the Construction Management Department

How to Cite

Project high performance work system for enabling high performing teams in construction. (2025). Construction Economics and Building, 25(3/4). https://doi.org/10.5130/AJCEB.v25i3/4.9322

References

Abdi, H. and Williams, L.J., 2010. Principal component analysis. Wiley Interdisciplinary Reviews: Computational Statistics, 2(4), pp.433-459.
Abuazoom, M. M., Hanafi, H. B. and Ahmad, Z. Z., 2017. Influence of HRM practices on project performance: conceptual framework. International Journal of Academic Research in Business and Social Sciences, 7(3), pp.47-54.
Abugre, J.B. and Nasere, D., 2020. Do high-performance work systems mediate the relationship between HR practices and employee performance in multinational corporations (MNCs) in developing economies?. African Journal of Economic and Management Studies, 11(4), pp.541-557.
Ahmed, M.O., El-Adaway, I.H. and Caldwell, A., 2024. Comprehensive understanding of factors impacting competitive construction bidding. Journal of Construction Engineering and Management, 150(4), p.04024017.
Akhtar, M., Mittal, R.K., 2014. Strategic flexibility, information system flexibility and enterprise performance management. In Organizational Flexibility and Competitiveness;, Springer: Berlin/Heidelberg, Germany, pp. 41-51.
Anjomshoa, E., 2024. Key performance indicators of construction companies in branding products and construction projects for success in a competitive environment in Iran. Engineering, Construction and Architectural Management, 31(5), pp.2151-2175.
Ashton, D. N. and Sung, J., 2002. Supporting workplace learning for high performance working. International Labour Organization.
Bellini, E. and Canonico, P., 2008. Knowing communities in project driven organizations: analysing the strategic impact of socially constructed HRM practices. International Journal of Project Management, 26(1), pp.44-50.
Bellocchi, A. and Travaglini, G., 2023. A quantitative analysis of the European construction sector: productivity, investment, and competitiveness. In Digital Transitions and Innovation in Construction Value Chains, Edward Elgar, pp.18-48.
Bentler PM., 1990. Comparative fit indexes in structural models. Psychol Bull, 107(2), pp.238–246.
Bin Saeed, B., Afsar, B., Shahjehan, A. and Imad Shah, S., 2019. Does transformational leadership foster innovative work behavior? The roles of psychological empowerment, intrinsic motivation, and creative process engagement. Economic Research-Ekonomska Istrazivanja, 32(1), pp.254-281. https://doi.org/10.1080/1331677X.2018.1556108
Blay Jnr, A.V.K., Kukah, A.S.K., Opoku, A. and Asiedu, R., 2023. Impact of competitive strategies on achieving the sustainable development goals: context of Ghanaian construction firms. International Journal of Construction Management, 23(13), pp.2209-2220.
Bolton, A., Butler, L., Dabson, I., Enzer, M., Evans, M., Fenemore, T., Harradence, F., Keaney, E., Kemp, A., Luck, A. and Pawsey, N., 2018. Gemini principles.
Bondarouk, T. V. and Ruël, H. J., 2008. HRM systems for successful information technology implementation: evidence from three case studies. European Management Journal, 26(3), pp.153-165.
Bowen, D. E. and Ostroff, C., 2004. Understanding HRM–firm performance linkages: the role of the “strength” of the HRM system. Academy of Management Review, 29(2), pp.203-221.
Boxall, P. and Macky, K., 2009. Research and theory on high‐performance work systems: progressing the high‐involvement stream. Human Resource Management Journal, 19(1), pp.3-23.
Browne, M.W., Cudeck, R., 1993. Alternative ways of assessing fit. In Bollen KA, Long JS (Eds.). Testing structural equation models. Sage, Thousand Oaks, CA, pp.136-162.
Bryman, A., 2015. Social research methods. Oxford University Press, UK.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, UK.
Chancellor, W., 2015. Drivers of productivity: a case study of the Australian construction industry. Construction Economics and Building, 15(3), pp85-97. https://doi.org/10.5130/AJCEB.v15i3.4551
Chen, Z.S., Liang, C.Z., Xu, Y.Q., Pedrycz, W. and Skibniewski, M.J., 2024. Dynamic collective opinion generation framework for digital transformation barrier analysis in the construction industry. Information Fusion, 103, p.102096.
Chiang, Y. H. and Hsu, C. C., 2012. Perceived high performance work system and individual creativity performance in work teams, Management of Innovation and Technology (ICMIT), IEEE International Conference, Jun 2012, pp.532-537.
Chowhan, J., 2016. Unpacking the black box: understanding the relationship between strategy, HRM practices, innovation and organizational performance. Human Resource Management Journal, 26(2), pp.112-133.
Cleland, D. I. and Kerzner, H., 1985. A project management dictionary of terms, Van Nostrand Reinhold.
Coggins, J., Teng, B. and Rameezdeen, R., 2016. Construction insolvency in Australia: reining in the beast. Construction Economics and Building, 16(3), pp.38-56. https://doi.org/10.5130/AJCEB.v16i3.5113
Cooke, F.L., Cooper, B., Bartram, T., Wang, J. and Mei, H., 2019. Mapping the relationships between high-performance work systems, employee resilience and engagement: a study of the banking industry in China. The International Journal of Human Resource Management, 30(8), pp.1239-1260.
Corner, S., 2009. Choosing the right type of rotation in PCA and EFA. JALT Testing & Evaluation SIG Newsletter, 13(3), pp.20-25.
Creswell, J. W. , 2014, Research design: qualitative, quantitative, and mixed methods approaches. 4th ed. Sage publications.
Cyert, R.M. and March, J.G., 1963. A behavioral theory of the firm. Englewood Cliffs, NJ: Prentice Hall.
Danford, A., Richardson, M., Steward, P., Tailby, S. and Upchurch, M., 2005. Partnership and the high performance workplace: work and employment relations in the aerospace industry. Basingstoke: Palgrave Macmillan.
Daniel, E.I., Pasquire, C., Dickens, G. and Ballard, H.G., 2017. The relationship between the last planner system and collaborative planning practice in UK construction. Engineering, Construction and Architectural Management, 24(3), pp.407-425.
Datta, D.K., Guthrie, J.P. and Wright, P.M., 2005. HRM and labor productivity: does industry matter. Academy of Management Journal. 48(1), pp.135–145. https://doi.org/10.5465/amj.2005.15993158
de Valence, G., 2011. Defining an industry: what is the size and scope of the Australian building and construction industry. Construction Economics and Building, 1(1), pp.53-65. https://doi.org/10.5130/AJCEB.v1i1.2280
Deep, S., Gajendran, T. and Jefferies, M., 2021. A systematic review of enablers of collaboration among the participants in construction projects. International Journal of Construction Management, 21(9), pp. 919–931. https://doi.org/10.1080/15623599.2019.1596624.
Estiri, M., Heidary Dahooie, J., Salar Vanaki, A., Banaitis, A. and Binkytė-Vėlienė, A., 2021. A multi-attribute framework for the selection of high-performance work systems: the hybrid DEMATEL-MABAC model. Economic Research-Ekonomska Istraživanja, 34(1), pp.970-997.
Farrukh, M., Khan, M.S., Raza, A. and Shahzad, I.A., 2021. Influence of high-performance work systems on intrapreneurial behavior. Journal of Science and Technology Policy Management, 12(4), pp.609-626.
Field, A., 2009. Discovering Statistics Using SPSS. 3rd ed. Sage publications.
Fu, N., Bosak, J., Flood, P.C. and Ma, Q., 2019. Chinese and Irish professional service firms compared: linking HPWS, organizational coordination, and firm performance. Journal of Business Research, 95, pp.266–276. https://doi.org/10.1016/j.jbusres.2018.08.021
Fu, N., Flood, P.C., Bosak, J., Morris, T., and O’Regan, P., 2015. How do high performance work systems influence organizational innovation in professional service firms. Employee Relations, 37(2), pp.209-231. https://doi.org/10.1108/ER-10-2013-0155
Garson, G.D., 2009. Factor Analysis from Statnotes: Topics in Multivariate Analysis. Available at http://faculty.chass.ncsu.edu/garson/pa765/statnote.htm .
Gong, Y., Chang, S. and Cheung, S. Y., 2010. High performance work system and collective OCB: a collective social exchange perspective. Human Resource Management Journal, 20(2), pp.119-137.
Goodman, A. and Goodman, L. P., 1976. Some management issues in temporary systems: a study of professional development and manpower-the theatre case. Administrative Science Quarterly, 21 (3), pp.494-501.
Goodman, R. A., 1981. Temporary systems: professional development, manpower utilization, task effectiveness, and innovation. New York: Praeger.
Greenacre, M., Groenen, P.J., Hastie, T., d’Enza, A.I., Markos, A. and Tuzhilina, E., 2022. Principal component analysis. Nature Reviews Methods Primers, 2(1), p.100.
Guadagnoli, E. and Velicer, W. F., 1988. Relation to sample size to the stability of component patterns. Psychological Bulletin, 103(2), p.265.
Guest, D.E. and Bos-Nehles, A.C., 2013. HRM and performance: the role of effective implementation. In HRM and performance: achievements and challenges, Wiley-Blackwell, pp.79-96.
Guthrie, J.P., 2001. High involvement work practices, turnover and productivity: evidence from New Zealand. Academy of Management Journal, 44(1), pp.180-190. https://doi.org/10.2307/3069345
Guthrie, J.P., Flood, P.C., Liu, W. and MacCurtain, S., 2009. High performance work systems in Ireland: human resource and organizational outcomes. The International Journal of Human Resource Management, 20(1), pp.112-125. https://doi.org/10.1080/09585190802528433
Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E. and Tatham, R.L., 2010. Multivariate data analysis, 7th ed. Pearson. New Jersey.
Han, J., Sun, J.M. and Wang, H.L., 2020. Do high performance work systems generate negative effects? how and when?. Human Resource Management Review, 30(2), p.100699.
Hassett, M.P., 2022. The effect of access to training and development opportunities, on rates of work engagement, within the US federal workforce. Public Personnel Management, 51(3), pp.380-404.
Hayduk, L., Cummings, G., Boadu, K., Pazderka-Robinson, H. and Boulianne, S., 2007. Testing! testing! one, two, three–Testing the theory in structural equation models!. Personality and Individual Differences, 42(5), pp.841-850.
Hu, L. and Bentler, P.M., 1999. Cutoff criteria for fit indexes in covariance structure analysis: conventional criteria versus new alternatives. Structural Equation Modelling, 6 (1), pp.1-55.
Hughes, J., 2008. The high-performance paradigm: a review and evaluation. Learning as Work Research Paper No. 16. Cardiff: Cardiff University School of Social Sciences.
Huselid, M. A., 1995. The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38, pp.635-672.
Jacobsson, M., Burström, T. and Wilson, T.L., 2013. The role of transition in temporary organizations: linking the temporary to the permanent. International Journal of Managing Projects in Business, 6(3), pp.576-586
Jiang, K., Lepak, D.P., Hu, J. and Baer, J.C., 2012. How does human resource management influence organizational outcomes: a metaanalytic investigation of mediating mechanisms, Academy of Management Journal, 55(6), pp.1264-1294.
Jo, H., Aryee, S., Hsiung, H.H. and Guest, D., 2023. Service-oriented high-performance work systems and service role performance: applying an integrated extended self and psychological ownership framework. Human Relations, 76(1), pp.168-196.
Katou, A., 2011. Test of a causal human resource management-performance linkage model: evidence from the Greek manufacturing sector. International Journal of Business Science & Applied Management (IJBSAM), 6(1), pp.16-29.
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices on employees’ attitudes and behaviors. Journal of Management, 39(2), pp.366-391.
Kim, J.O. and Mueller, C.W., 1978. Factor analysis: statistical methods and practical issues. sage.
Lepak, D.P. and Snell, S.A., 2002. Examining the human resource architecture: the relationships among human capital, employment, and human resource configurations. Journal of Management, 28, pp.517-543.
Li, X., Liu, X., Huang, Y., Li, J., He, J. and Dai, J., 2024. Evolutionary mechanism of green innovation behavior in construction enterprises: evidence from the construction industry. Engineering, Construction and Architectural Management, 31(1), pp.159-178.
Liu, Y., Gan, L., Cai, W. and Li, R., 2024. Decomposition and decoupling analysis of carbon emissions in China's construction industry using the generalized Divisia index method. Environmental Impact Assessment Review, 104, p.107321.
López-Malest, A., Gabor, M.R., Panait, M., Brezoi, A. and Veres, C., 2024. Green innovation for carbon footprint reduction in construction industry. Buildings, 14(2), p.374.
Lundin, R.A. and Söderholm, A., 1995. A theory of the temporary organization, Scandinavian Journal of Management, 11(4), pp.437-455.
MacDuffie, J., 1995. Human resource bundles and manufacturing performance: Organizational logic and flexible production systems in the world auto industry. ILR Review, 48(2), pp.197-221. https://doi.org/10.1177/001979399504800201
Marchi, S. and Sarcina, R., 2023. Temporariness in appreciative reflection: managing participatory and appreciative, action and reflection projects through temporary organizations. In Enabling Reflective Learning in Lifelong Career Guidance, Routledge, pp.9-26.
Miao, R., Lu, L., Cao, Y. and Du, Q., 2020. The high-performance work system, employee voice, and innovative behavior: the moderating role of psychological safety. International Journal of Environmental Research and Public Health, 17(4), p.1150.
Miles, M.B., 1964. On temporary systems. In: Miles, M. B. (Ed.), Innovation in Education, New York: Teachers College Press, pp.437-490.
Moriyani, M.A., Asaye, L., Le, C. and Le, T., 2024. Network theory–based approach to data-driven assessment of bidding competition in highway construction. Journal of Management in Engineering, 40(1), p.04023051.
Naderifar, M., Goli, H. and Ghaljaie, F., 2017. Snowball sampling: a purposeful method of sampling in qualitative research. Strides in Development of Medical Education, 14(3).
Napitupulu, D., Kadar, J.A. and Jati, R.K., 2017. Validity testing of technology acceptance model based on factor analysis approach. Indonesian Journal of Electrical Engineering and Computer Science, 5(3), pp.697-704.
Nassani, A.A., Hussain, H., Rosak-Szyrocka, J., Vasa, L., Yousaf, Z. and Haffar, M., 2023. Analyzing the leading role of high-performance work system towards strategic business performance. Sustainability, 15(7), p.5697.
Nelson, S., White, C.F., Hodges, B.D. and Tassone, M., 2017. Interprofessional team training at the prelicensure level: a review of the literature. Academic Medicine, 92(5), pp.709-716.
Ni, G.; Xu, H.; Cui, Q.; Qiao, Y.; Zhang, Z.; Li, H., Hickey, P.J., 2020. Influence mechanism of organizational flexibility on enterprise competitiveness: the mediating role of organizational innovation. Sustainability, 13, p.176.
Nye, C.D., 2023. Reviewer resources: confirmatory factor analysis. Organizational Research Methods, 26(4), pp.608-628.
Ogbonnaya, C., Daniels, K., Connolly, S. and van Veldhoven, M., 2017. Integrated and isolated impact of high-performance work practices on employee health and well-being: a comparative study. Journal of Occupational Health Psychology, 22(1), p.98.
Ogbonnaya, C. and Valizade, D., 2018. High performance work practices, employee outcomes and organizational performance: a 2-1-2 multilevel mediation analysis. The International Journal of Human Resource Management, 29(2), pp.239-259.
Olatunji, O. A. and Sher, W., 2014. Perspectives on modelling BIM-enabled estimating practices. Construction Economics and Building, 14(4), pp.32-53. https://doi.org/10.5130/AJCEB.v14i4.4102
Omopariola, E.D., Olanrewaju, O.I., Albert, I., Oke, A.E. and Ibiyemi, S.B., 2024. Sustainable construction in the Nigerian construction industry: unsustainable practices, barriers and strategies. Journal of Engineering, Design and Technology, 22(4), pp.1158-1184.
Packendorff, J., Lundin, I.R. and Packendorff, J., 1987. Temporary organizing: integrating organization theory and project management. Project Management, pp.21-41.
Pak, J. and Kim, S., 2016. Team manager’s implementation, high performance work systems intensity, and performance: a multilevel investigation. Journal of Management.
Palisi, B. J., 1970. Some suggestions about the transitory-permanence dimension of organizations. British Journal of Sociology, 21, pp.200-206.
Para-González, L., Jiménez-Jiménez, D. and Martínez-Lorente, Á.R., 2019, Do SHRM and HPWS shape employees’ affective commitment and empowerment. In Evidence-based HRM: a Global Forum for Empirical Scholarship, Emerald Publishing Limited, 7(3), pp.300-324.
Patton, M.Q., 1990. Qualitative evaluation and research methods. SAGE Publications, inc.
Pruzek, R., 2005. Factor analysis: exploratory. Encyclopedia of Statistics in Behavioral Science.
Rani, N.I.A., Ismail, S., Mohamed, Z. and Mat Isa, C.M., 2023. Competitiveness framework of local contractors in the Malaysian construction industry towards globalisation and liberalisation. International Journal of Construction Management, 23(3), pp.553-564.
Sankaran, S., Müller, R., and Drouin, N., 2020. Creating a sustainability sublime to enable megaprojects to meet the United Nations sustainable development goals. Systems Research and Behavioral Science, 37(5), pp.813–826.
Saunders, M.N., Lewis, P. and Thornhill, A., 2016. Research methods for business students, 7th ed. Pearson Education, Harlaw, England.
Shin, D. and Konrad, A.M., 2017. Causality between high-performance work systems and organizational performance. Journal of Management, 43(4), pp.973-997.
Siddique, M., Procter, S. and Gittell, J.H., 2019. The role of relational coordination in the relationship between high-performance work systems (HPWS) and organizational performance. Journal of Organizational Effectiveness: People and Performance, 6(4), pp.246-266.
Statista., 2019. Construction industry spending worldwide from 2014 to 2019, with forecasts from 2020 to 2035. https://www.statista.com/statistics/788128/construction-spending-worldwide/
Tabachnick, B.G. and Fidell, L.S., 2007. Experimental designs using ANOVA, Belmont, CA: Thomson/Brooks/Cole.
Takeuchi, R., Chen, G. and Lepak, D.P., 2009. Through the looking glass of a social system: cross‐level effects of high‐performance work systems on employees’ attitudes. Personnel Psychology, 62(1), pp.1-29.
Takeuchi, R., Lepak, D.P., Wang, H. and Takeuchi, K., 2007. An empirical examination of the mechanisms mediating between high-performance work systems and the performance of Japanese organizations. Journal of Applied Psychology, 92(4), p.1069.
Tavakol, M. and Wetzel, A., 2020. Factor analysis: a means for theory and instrument development in support of construct validity. International Journal of Medical Education, 11, p.245.
Teo, S.T., Bentley, T. and Nguyen, D., 2020. Psychosocial work environment, work engagement, and employee commitment: a moderated, mediation model. International Journal of Hospitality Management, 88, p.102415.
Turner, J.R. and Müller, R., 2003. On the nature of the project as a temporary organization. International Journal of Project Management, 21(1), pp.1-8.
Van De Voorde, K., Paauwe, J. and Van Veldhoven, M., 2012. Employee well‐being and the HRM - organizational performance relationship: a review of quantitative studies. International Journal of Management Reviews, 14(4), pp.391-407.
Wang, Y.; Cao, Y.; Xi, N.; Chen, H., 2021. High-performance work system, strategic flexibility, and organizational performance. The Moderating Role of Social Networks. 12, p.670132.
Zhang, B., Liu, L., Cooke, F.L., Zhou, P., Sun, X., Zhang, S., Sun, B. and Ba, Y., 2022. The boundary conditions of high-performance work systems-organizational citizenship behavior relationship: a multiple-perspective exploration in the Chinese context. Organizational Psychology, 12.
Zheng, X., Deng, J., Song, X., Ye, M. and Luo, L., 2024. Examining the nonlinear relationships of corporate social responsibility, innovation and construction firm performance: the moderating role of construction firms' competitive position. Engineering, Construction and Architectural Management, 31(4), pp.1517-1538.
Zhu, F., Gao, Y. and Chen, X., 2022. Tough love: impact of high-performance work system on employee innovation behavior. Frontiers in Psychology, 13, p.919993.