IMPACT OF ORGANIZATIONAL CULTURE ON PROJECT PERFORMANCE OF CONTRACTING ORGANIZATIONS IN ONDO STATE, NIGERIA.

Abstract

.Organizational culture is the pattern of values, norms, beliefs, attitudes and assumptions that may not have been articulated but shape the ways people in organizations behave and do things. This study assessed the impact of organizational culture on project performance of contracting organizations in Ondo State, Nigeria. This was with a view to developing an approach that will assist construction organizations in terms of project performance and change the possible outcomes of their cultural orientation. The study employed a survey design using a quantitative method. Forty-nine (49) registered contracting organizations were assessed and questionnaire was used to harness information from three hierarchies of construction professionals per organization. A total of 112 completed questionnaires were retrieved from 147 distributed to professionals in the contracting organizations using census survey. Psychometric test was carried out on the questionnaires with average cronbach’s alpha (α) value of 0.83. The research instrument was also justified on content, construct and external validity. Mean score was used to rank the identified factors determining organizational culture and types of organizational culture. Spearman rank correlation was used to evaluate the significant relationship between types of organizational culture and factors influencing construction project performance. Kruskal-Wallis H-test was used to test significant difference in the perceptions of the three hierarchies of construction professionals in contracting organizations on their organizational culture while multiple linear regression analysis was used to find the most set of independent variables (types of organizational culture) that are most effective in predicting the dependent variable (project performance measures). The study revealed that the major factors determining the culture of contracting organizations are; leadership, goals and objectives, employee, communication, business environment and macro– culture. The study also revealed that contracting organizations exhibit multiple organizational cultures, that is, power–oriented and role-oriented culture which are the dominant organizational culture. The major factors influencing project performance can be categorized under the consultant, contractor, contractual relationship as well as labor and material related factors. The study concluded that significant relationship exit between the types of organizational culture and project performance of contracting organizations. It is then recommended that there is a need for management of contracting organizations to embrace organizational culture as a norm for enhancing construction contracting organizations and the performance of the projects.