The influence of critical success factors on project performance of joint ventures in the South African construction industry

Abstract: The formation of joint ventures, between construction companies is one of the recent efforts in combating contractors’ challenges in South Africa as far as the complexity of projects is involved. However, despite the irrefutable contribution of studies undertaken in joint ventures (JV) in the construction industry in South Africa, there seems to be trivial improvement on the delivery of construction projects in joint ventures. Therefore the specific research objectives delved into, to address this gap were, challenges encountered by partners entering into joint venture construction projects, the selection criteria for joint venture partners, the benefits of participating in joint venture construction projects; the critical success factors (CSFs) that contribute to the success of joint venture construction projects and finally, identify the critical success factors which influence the performance of joint venture construction projects in South Africa. A quantitative research philosophy was adopted which is positivist philosophy to address the specific research objectives. A questionnaire was developed from an in-depth review of the existing relevant literature to collect the field data. However, to achieve the content validity of the questionnaire a pilot study was first undertaken. The final questionnaire was distributed to conveniently sampled professionals who have been involved into joint venture construction projects. The respondents were registered with the South African Council for the Project and Construction Management Professions (SACPCMP). The response rate was 28.75 %, that is; 115 responses out of a sample size of 400 respondents. The respondents were sampled from the provinces of Gauteng, Limpopo and Western Cape. The validity and reliability tests were computed using Statistical Package for Social Sciences (SPSS) version 23.0. Descriptive statistics, were quantified, including inferential statistics from the factual data obtained. The key findings established that the main challenge which the respondents experienced the most in joint venture construction projects in South Africa was: the lack of collaboration of people from different cultures. However, the commitment between partners, and complementary technical skills, were considered favorable as selection criteria of JV partners in South Africa. Moreover, the study revealed that the main benefits of entering joint ventures in South Africa were: larger projects are made feasible and possible as well as the fact that JV improves the pooling of resources i.e. human talent, financial resources, equipment. Moreover, the critical success factors that were established included: a comprehensive and fair written agreement, mutual understanding, inter...M.Tech. (Construction Management