Communication Capacity and Project Performance: The Mediating Role of Managerial Capacity

Abstract

Previous studies illustrate the significance of communication to project outcomes. However, researchers do not systematically investigate the relationships between communication capacity, managerial capacity and project performance. This study investigates the triangle relationships among communication capacity, managerial capacity and project performance. Using structural equation modeling (SEM) to analyze a sample of 108 Taiwanese construction projects, this study finds that project communication capacity significantly affects not only project managerial capacity, but also construction project performance. The SEM analysis also shows that project managerial capacity significantly influences construction project performance. Bootstrap-based analysis with 1,000 bootstrap samples further reveals that project managerial capacity partially mediates the relationship between project communication capacity and construction project performance. Project communication has a larger impact on construction project performance than project managerial capacity, despite its smaller direct impact on project performance. Implications for managerial and research practice are discussed.