FACTORS AFFECTING PERFORMANCE OF ROAD CONSTRUCTION

PROJECT IN AMHARA RURAL ROADS CONSTRUCTION AGENCY.

BY

GERTACHEW WURGESSA

ADVISOR:

AGUMAS ALAMIREW (PhD)

May 2023
BAHIR DAR
 FACTORS AFFECTING PERFORMANCE OF ROAD CONSTRUCTION
PROJECT IN AMHARA RURAL ROADS CONSTRUCTION AGENCY.

BY

GERTACHEW WURGESSA

ADVISOR:

AGUMAS ALAMIREW (PhD)

A RESEARCH THESIS SUBMITTED TO GAMBY MEDICAL AND BUSINESS

COLLEGE IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF THE DEGREE OF MASTER OF ACCOUNTING AND FINANCE.

May 2023

BAHIR DAR

i
 ACKNOWLEDGMENTS

First of all, I would like to thank the Almighty God, who gave me the commitment and
tolerance to pass various obstacles and come up to the accomplishment of this thesis

My heartfelt thanks and sincere appreciation go to my advisor Dr. Agumas Alamirew for his
unreserved support and insightful advice starting from proposal development throughout the
thesis work. I would like to thanks to my families especially to my wife Birtukan Tsige and my
Elder son Amanuel Getachew for their support and encouragement.

I would like to forward my honest appreciation to the Amhara rural road construction agency
management members and staffs, for their unreserved support in providing detail information
about KuyYikbehanaWaber road construction project and the Agency.

Finally, my deepest appreciations also go to my All teachers who share me all their
knowledge and all my friends how were supporting and encouraging me during my study.

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 Table of Contents
CONTENTS PAGE NUMBER
ACKNOWLEDGMENTS
LIST OF ABRIVATIONS
LIST OF TABLES
1. Chapter One:Introduction........................................................................................1
1.2.Statement of the Problem................................................................................................................4
1.3Research Questions..........................................................................................................................6
1.4General Objectives...........................................................................................................................6
1.4.1 Specific Objective...........................................................................................................6
1.5Significance of the study..................................................................................................................6
1.6Scope 7
1.7Organization of the study.................................................................................................................8
2.Chapter Two:Literature Review....................................................................................7
2.1Theoretical Literature Review.................................................................................................8
2.1.1 Theorretical Basic Concepts of Project.................................................................................8
2.1.2 Theoretical framework for construction Time and cost overrun.............................................9
2.1.3. Skills approach to Leadership 9
2.1.4 Top management theory 10
2.1.5. Team building theory 10
2.1.6. Project team commitment 11
2.2. Empirical Literature Review.............................................................................................12
2.2.1 Factors affecting project performance 12
2.2.2Factors affecting the project performance in Ethiopia 13
2.2.3 Top management support 14
2.2.4. Team building 16
2.2.5 Project team commitment 16
2.2.6 Project Performance.............................................................................................. .......17
2.2.7 Project Performancevscritical success factor........................................................ .......20
2.2.8 Top management support and project performance.................................................. ..21
2.3 Conceptual framework..................................................................................................................22
2.3.1 Research Hypothesis............................................................................................................22
3.Chaper Three:Research Design and Methodology...........................................................................23

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3.1 Introduction .................................................................................................................................23
3.2Description of Study Design...........................................................................................................23
3.3Target Population, sample design and sampling frame...................................................................23
3.3.1. Sampling Design................................................................................................................24
3.3.1.1 Sample Size and Sampling Determination...........................................................24
3.4. Sources and Tools of Data Collection..........................................................................................24
3.4.1 Data Collection Method...............................................................................................25
3.4.1.1 Questionnaire...................................................................................................................25
3.5. Method of Data Analysis..............................................................................................................26
3.6. Data Coding.................................................................................................................................27
3.7. Validity of the Instruments...........................................................................................................27
3.8. Reliability of the Instruments.......................................................................................................27
3.9 Ethical Consideration....................................................................................................27
4.Chaper Four: Results and Discusions..............................................................................................28
4.1 Response Rate.....................................................................................................................28
4.2 Descriptive Statistics...........................................................................................................29
4.2.1 Demographic Description of Sample............................................................................29
A. Age of Respondents.......................................................................................................30
B. Education level of Respondent.......................................................................................31
C. Distribution of Respondents by their Position...............................................................31
4.3 Top management support....................................................................................................32
4.4 Project team commitment....................................................................................................36
4.5 Project Performance............................................................................................................38
4.6 Inferencial Analysis.............................................................................................................40
4.6.1 The relationship between Top Management Support and Project team commitment

with project performance.....................................................................................................41

4.7 Multicollinearity of the regresion variables.........................................................................41

4.8 Linearity relationships.........................................................................................................41
4.9 Normality............................................................................................................................42
4.6 Analysis of ANOV.............................................................................................................43
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATION..........44
5.1 SUMMARY..................................................................................................................44
5.2 Conclusions of the Study...............................................................................................45

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5.3 Recommendations of the Study.....................................................................................45
References..........................................................................................................................47
APPindex........................................................................................................................................56

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 List of Abbreviations

ARRCA- Amhara Rural Roads Construction Agency.

Average_TOMG-Average Top management support

Average_TCOM- Average team commitment

Average_PP-Average Project Performance

ANOVA-Analysis of variance

GDP - Gross Domestic Product

CSF- Critical success factors

IBM’s SPSS -Statistical Package for Social Science

KPI- Key Performance Indicators

IBM- International Business Management

PP -Project Performance

PMBOK -Project management Body of knowledge

TMS -Top management support

VIF-Variance Inflation Factor

LIST OF TABLE
vi
Table 3.2 Likert scale…………………………………………………………….26
Table 4.1. Summary of number and percentage of questionnaires distributed
and returned, and response rate …………………………………… …30
Table 4. 2 Respondent's age…………………………………………… ………..31

Table 4. 3 Respondent's educational states ……………………………………….32

Table 4. 4 Distribution of respondents by their position……………………………33

Table 4. 5Correlation table…………………………………………………………41

Table 4. 6Multi colliniarity table......................................................................... ...43

Table 4. 7PP plot.............................................................………………….………43

Table 4. 8Analysis of ANOVA……………………………………………………45

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 ABSTRACT

The purpose of this research was to investigate factors affecting road project performance: the
case of Amhara Rural Road Construction Agency (ARRCA). Data was collected from primary
source from ARRCA employees. The research is used cross sectional survey method and the
researcher have used Yemane (1967) sample size determination but the population of the study
less than one hundred (100) the sample of the study was total population that is 75. Descriptive
and inferential statistics of correlation and regression analysis were used to analyse the empirical
data. Primary data were collected using five Point Likert-Scale questionnaires 73 responses were
properly filled and returned. SPSS (v.27) was used to analyse data collected through the close-
ended questions. The independent variables are top management support and project team
commitment whereas the dependent variable is road project performance. The mean (St. Dev.),
frequency (percentile) of the dependent and independent variables were computed and
interpreted. Pearson correlation Coefficient (r) was used to determine the relationship between
each independent variable with the dependent variable. The correlation result indicated that there
was positive relationship between both of independent variables and the dependent variable,
accepting alternative hypotheses. This implies that any increase or decrease on the independent
variable will bring corresponding change on road project performance. Multiple linear regression
result indicates independent variables has an 81.9% influence on the dependent variable while
the remaining 18.1% was unobserved factors in this study. The result revealed as increasing a
positive contribution of top management support and project team commitment were positively
affecting the road project performance. As result shown from correlation results, that top
management support and project team commitment have significant and positive relation on
organization performance. ARRCA must delegate power for project manager, improve
communication between top management and project team, improve process, structure and
controlling mechanisms, motivated the project team and increase participation of stakeholder.

Keywords: -top management support, project team commitment and project performance.

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 Chapter one

1. Introduction

This study proposal will cover background of the study, statement of the problem, objective of
the study, research question, the significance of the study, the scope of the study, operational
definitions, organization of the study, limitation of the study, relate literature review, method of
the study, ethical consideration, budget, work plan and reference.

1.1 Background of the Study

The construction industry plays significant roles to the socio-economic development process of
any nations. In many ways, the pace of the economic growth of any nation can be measured by
the development of physical infrastructures, such as buildings, roads and bridges. (Akintoye,
2002)
It is known that with the different types of construction industry, the road construction
infrastructure is one of the parts. According to (ASSEFA, 2019), Infrastructure acts as a support
system for production activity in the economy and, thereby, contributes to economic
development. Its importance emanates largely from the direct and indirect impact it has on all
economic activities. It contributes to the national output and stimulates the growth of other
sectors through a complex system of linkages. It is noted that about one-tenth of the global
economy is dedicated to constructing and operating homes and offices (UNEP, 1996).

Empirical studies have revealed that less than one-half of poverty eradication and community-
based project initiatives in Asia and Sub-Saharan Africa ever come close to achieving the
anticipated results (Gacheri et al., 2018). He reported that in the last quarter of twentieth century,
close to half of poverty eradication projects in the Sub-Saharan Africa and parts of Asia were
abandoned or re-engineered after a 2-year implementation effort failed due to poor leadership.
Leadership has long been considered an important factor that influences innovation and
performance in the workplace (Keegan &Hartog, 2004).

Road infrastructure is a key resource and output of development and is one of the main priorities
of our development activities. Therefore, establishing an efficient and effective road transport

2
service that can accelerate development and improving the level of roads in an efficient manner
is a task that is being done with special attention. Road and development are so closely related
that they are seen as two sides of the same coin. /Amhara Rural Roads Construction Agency
Road Magazine Page 1 Number 5 September 2015\.

Additionally, as (Lue, 2013), concluded top management support is one of the most important
determinants for project success. Several studies have also suggested strong empirical evidence
regarding the impact of top management support on project success. (Kerzner,2013), observed
that projects may fail to achieve targets and objectives due to low morale, de-motivation, poorly
managed project team relations and commitment. Thus, (Jason, 2016) argues that for every
project to be successful, senior management support is required to mobilize resources for project
goals. Similarly, (Morgan, 2012) argued that several studies in project management have ignored
the importance of project managers’ leadership as a key factor for project success. Project
managers, from all over the world, are expected to deliver any projects in a sustainable manner
(Dobrovolskiene, 2016). The relevance of project leadership apply not only to private projects,
but also public projects of all types and magnitude (Theophanus, 2018).

(Garbharran,et.al,2012),in their study Critical success factors influencing project success in the
construction industry in Durban, South Africa, discovered that both project managers and
contractors strongly support the key success factors of competence, commitment,
communication, and cooperation as significant in project success. A study by (Phillip,2007)
revealed that in Africa, many organizations have not yet managed to succeed in implementation
projects within their scope.

However, it is obvious that Ethiopia is one of the big economies with a consistent growing GDP
in east Africa. This primarily attributes to public infrastructural projects and ever-increasing
manufacturing industries investment in the economy. Despite an ever-increasing public
investment, a significant number of public projects performance is sluggish and
underperforming. This may attribute to a number of factors among others leadership takes the
share. The majority of the projects lack either good leadership or appropriate leadership styles
(Khajeh, 2018).

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Amhara rural roads construction agency (ARRCA) plan to work different infrastructure projects
like road maintenance, guarder bridges, small bridges ,box culverts and gravel roads and the like
but this study focus on gravel road construction on agency. The ARRCA Project Physical
Performance Report 2013 EC, shows that the number of projects completed on budget and on
time is 75.95 % the rest of the project is under performance, and since no research has been done
in this regard, this research confirmed the reasons for the delay in projects in ARRCA. (ARRCA
physical performance report 2013EC.)

There is also literature on factors affecting performance of road construction project in many
countries but they use different methodology and different variables which make confusion to
use the variables. This research study seeks to fill in ARRCA factors affecting project
performance in road construction the previous literature doesn’t consider the specific
construction sector and there is also a variable and geographical gap between the previous
research and literature. Additionally all the writer doesn’t consider a similar variable in their
research so creating clarity for the variables is necessary

The purpose of this study was identified factors affecting performance of road project in
ARRCA. The objectives of the study were established the influence to assess the effect of top
management support and team commitment on project performance.

1.2. Statement of the Problem

Project performance is the most important confirmation that project funds have been utilized
appropriately to deliver the project goals and targets. However, many projects still fail to achieve
and realize expected benefits (Njeri, 2017). Across the world, project failures have often been
reported more than project success. In addition, transformational top management support and
behaviors are a very critical factor for better performance of various projects (Yang et al., 2011).
This has hardly been reported in project management.

Performance dimensions may have one or more indicators, and could be influenced by various
project characteristics. As referred by (Adnan Enshassi , Sherif Mohamed & Saleh Abushaban,
2010) Past empirical studies in different country a study by (Cheung et al. 2004; DETR 2000;
Karim and Marosszeky 1999; Dissanayaka and Kumaraswamy 1999; Ofori et al. 2004; Samson
and Lema 2002; Iyer and Jha 2005; Enshassi et al. 2007; Alinaitwe et al. 2007) in different time

4
and different counters Various studies have shown that there is no common denominator among
the factors that hinder a project's success, which is controversial.

According to Bayissa,( 2018) the extent of the delays ranged from a minimum of 3% to a
maximum of 259% of the agreed contract time. The research revealed that the most contributing
factors to delays were: delay to deliver the site (right of way problem), financial problems,
inspections, resource availability and failure, suspension of work by owner or contractor and
weather conditions were the most delay causing factors of roads construction projects in Amhara
pertinent to ARRCA road projects. Time and budget overrun have been found to the most
dominant effects caused by delays in road construction projects in the region.

Thus, research in this area is vital for understanding the problems related to the factors affecting
project performance on road construction in ARRCA.

As project report of ARRCA (ARRCA, 2021) explain, ARRCA has many projects under

contraction one of this project is a 72-kilometer long gravel road which connect
KuyEkbehanawaber which is far 61 km. from the zone capital Debre Markos. The project
planned to be complete within three years and six months. The project is being implemented by

the own force of ARRCA. The total budget forproject is Birr310,299,493.30and the road was
planned to be completed within three years and six month. But the project exceeded more than
planned time an additional three and half years. The project was started on 2013 and the project
Status is 90.66 % while this information conducted.

However, the project could not be completed on time due to unknown various reasons. Because
of this visible problem this thesis study about the factor affecting performance of road project in
ARRCA by examining top management support and project team commitment on project
performance to improve performance of the construction projects. Hence, performance of any
construction projects can be evaluated according to key performance indicators. Knowing the
factors affecting project performance plays an important role for project managers to plan and
mitigate different risk that will happen in the project.

5
1.3 Research Questions

1.3.1 To what extent does top management support affect road construction project performance?
1.3.2 To what extent does project team commitment affect road construction project
performance?
1.3.3 To what extent does the interactive effect of top management support and team
commitment on the project performance of road construction?
1.4 General Objectives

To examine factors affecting performance of road construction Project in ARRCA. the

infrastructure of KuyYikbehanaWaber, which is under construction from own force.

1.4.1 Specific Objective

I. To examine the effect of top management support on the performance of road

construction projects.
II. To examine the effect of project team commitment on the performance of road
construction.
III. To identify the interactive effect of top management support and project team
commitment on the project performance of road construction?
1.5 Significance of the study

A study on factors affecting project performance is one of important aspect of development

research. Thus, the importance of this research will be pointed out from different beneficiaries’
view: -

Firstly, it has a great significance for the researcher. Through the study process, analyzes,
researcher becomes familiar with several research methods and methodology.

Secondly, the study will enable project managers, contractors and consultants, to know the
various factors that affects project performance and provides recommendations on how the
factors overcome. Knowing the factor affecting project performance make the stakeholder to be
alert for different problem-solving mechanism’s and make to use as opportunity rather than treat.

6
Thirdly, the study will provide project leaders and managers with an insight the various factors
affecting ARRCA road project which will help them in making for informed decisions.

Fourthly, society will get benefit from the project output and the outcome may lead the country
to development.

Finally, it might serve as a reference for further researchers for those who have an interest in
relation to this area and it will help the researcher to acquire knowledge and skills.

1.6 Scope

This research has the following independent variables: top management support project team
commitment and project performance as the dependent variable. Hence, the target respondents
for primary data will be client, consultants, and, department team leader, Project follow up
Engineers, project manager, and office engineers, the factors affecting the performance of road
construction projects in ARRCA. Secondary data collect from the previous document of project.

The project is located in the Amhara National Regional State, in East Gojam zone 61 km long

from the zone capital debre Markos.

The study was limited by unavailability of time as it is not able to include respondents outside
the project and nearby road project which could have provided relevant information about the
road projects completed in different parts of the country by different contractor. This leads to the
methodological limitation of small sample size where only project staff including consultant.
This study will collect data from respondent using questionnaires, and observation. The study
will delimit only the data with issue of performance of road construction project in ARRCA from
the time of 2013-2021.

1.7 Organization of the study

The research is organized into five chapters. Chapter one contains the introduction to the
research, statement of problem, study objectives, research questions, significance of the study,
delimitations of the study including the assumption of the study and definitions of significant
terms. Chapter two contains literature review, Chapter three the following topics illustrated;
research design, study population, sample and sampling procedure, data collection and data
collection procedures, validity and reliability of research instruments and data analysis

7
techniques. In chapter four the following topics were captured; data collection, analysis,
presentation and interpretations. Chapter five discoursed; the summary of findings, conclusion
and recommendations of the study.

8
 Chapter Two

Literature Review

2.1 Theoretical Literature Review

2.1.1 Theoretical Basic Concepts of Project

A project is a temporary endeavor undertaken to create a unique product, service or result
(NewtonSquare.Pennsyl vania, 2013). According to (Black k. , 2020) public project is any project that
is funded by a government, and is meant to be owned or operated by that government.

According to (NewtonSquare.Pennsyl vania, 2013), Project management is the application of

knowledge, skills, tools and techniques to project activities in order to meet project requirements.
Project management processes are grouped in to 5 categories known as project management
groups: initiation, planning, Executing, monitoring and controlling, closing process groups those
processes performed to finalize all activities across all process groups to formally close the
project phase.

According to (Takim, 2002),In relation to this, the UK working groups on Key Performance
Indicators (KPIs) have identified ten parameters for benchmarking projects, in order to achieve a
good performance, in response to Egan’s report. These consist of seven project performance
indicators, namely: construction cost, construction time, cost predictability, time predictability,
defects, client satisfaction with the product and client satisfaction with the service; and three
company performance indicators, namely: safety, profitability and productivity.

As (Banihashemi, 2017) mentioned, this study looks at the critical success factors (CSFs)
affecting integration of sustainability into project management practices of construction projects
in developing countries. Having innovation diffusion theory as the theoretical point of departure,
CSFs pertaining to the triple bottom line of sustainability (environmental, social and economic)
were identified through a comprehensive review of literature.

9
2.1.2 Theoretical framework for construction Time and cost overrun
(K Ullah1A, 2017) Identify the following factors causing delays in Construction projects. They
have categorized the factors that cause delays in the four categories: Contractor’s responsibility,
Consultant’s responsibility, Owner’s responsibility and External factors. In addition, Chan et al.
(2002), Alwi et al. (2002), Assaf (2006), Odeh and Battaineh (2002) and Alghbari et al. (2007)
classified factors that cause time overrun into eight groups; owner, Contractor, consultant,
material, labor and equipment, contract (inadequate contractor experience), contractual
relationships and external factors. In similar way this study will also examine the effect of both
time and cost factor on project performance in ARRCA road construction project.

2.1.3. Skills approach to Leadership

As (NORTHOUSE, 2013) explain in his book, The Skills Approach is a leader-centered

perspective that focuses on the competencies necessary to become a leader. Rather than looking
at characteristics that are innate and fixed, what is put in focus is one’s skills and the abilities can
be learned and developed. The first author to illustrate this theory has been R. L. Katz. In a
famous 1955 article appeared on Harvard Business Review (reprinted in 1974), he listed the
skills needed to effectively “administer” an organization. Based on field research in
administration and his own firsthand observations of executives in the workplace, Katz (1955, p.
34) suggested that effective administration (i.e., leadership) depends on three basic personal
skills: technical, human, and conceptual. Katz argued that these skills are quite different from
traits or qualities of leaders. Skills are what leaders can accomplish, whereas traits are who
leaders are (i.e., their innate characteristics). Leadership skills are defined as the ability to use
one’s knowledge and competencies to accomplish a set of goals or objectives. Leadership skills
can be acquired and leaders can be trained to develop them. Effective leadership depends skills
on the three basic administrative skills: technical (things), human (people), and conceptual
(ideas). While all three skills are crucial components for leaders, the relative importance of each
skill varies based on management levels. Technical and human skills are more important at lower
management levels, the three different skills are equally important for middle managers and
conceptual and human skills are most important at upper management levels.

10
 2.1.4 Top Management Theory

Different management levels are defined in an organization, one of them is termed as "top
management". Top management refers to the organization's key decision-makers, including the
chief executive officer, chief operating officer, chief financial officer, business unit leaders, and
vice presidents, according to (Mudassar,2020).

Management levels are split into three categories, according to numerous studies: corporate
managers, functional managers, and frontline managers (Hill & McShane, 2008). Others use
terminology like operational, middle, and top (strategic) management to characterize managerial
levels (Johnson et.al, (2011). Short-term goals, firefighting, and conflict management are more
important to lower-level (operational) managers, whereas long-term organizational goals are
more important to top-level managers. As a result, assistance from higher levels of management
has been regarded as crucial when dealing with exceptions and escalations (Boonstra, 2013),
(Ragu,2004). Guidance can also be helpful in conducting periodic reviews and generating new
ideas (Shaul, 2013). The transfer of support and information to the afflicted areas must pass
through the lines of hierarchy.Researchers have discovered a relationship between managerial
levels, authority, and information requirements (Felekoglu& Moultrie, 2014).

2.1.5 Team Building Theory

According (GRAŽULIS, 2012), during the establishment of a team, a group of employees must
go through four stages of development. (Figure 1) illustrates the stages from formation to
maturity, i.e. working together efficiently (1965; 1977).

It requires the development and acquisition of appropriate competencies, as well as a sense of

self-assurance, according to the writers. All academics who accept the stages of team growth
agree with the authors' theoretical model. The following team building stages can be provided as:
group formation, storm in a group, normalization, maturity.

11
 Figure 2. 1Stage/phase of working group becoming a team
2.1.6 Project Team Commitment

Project commitment was first defined as 'the acceptance of strong belief in the goals and values
of the project, the willingness to engage in the project, and the desire to maintain membership in
the project' (TMowday,et.al., 1979) team members with high commitment regard achieving
project goals as their obligation (Edward and MCDonough,2000). This research also examines
the effect of project team commitment on ARRCA road construction projects.

2.2Empirical Literature Review

This section covers previous studies done in relation to factors affecting performance of construction
project. Studies done abroad were looked at as well as studies done in Ethiopia. This section
covers various ideas about top management support and project team commitment discussed.

2.2.1 Factors Affecting Projects Performance

According to literature, Construction project management necessitates knowledge of modern

management as well as knowledge of the design and construction process (Rumane, 2017).
Construction projects are defined by a set of goals and limits, such as a deadline for completion.
They also employ a lot of people. There are many personalities, which makes it expensive; as a
result, the project suffers high cost overrun. The Cost change in the construction industry
influence the majority of state projects such as time lines, budget, and quality goals (Davis,
2017), causing them to fall short of their deadlines. Similarly, in Botswana, a number of state-
funded road construction projects have failed to deliver high-quality results (Fagbenle et al.,
2018). Many state-funded projects have been handed over without meeting quality performance
standards (Kerzner, 2019).

12
According to (Stare, 2011), a project's failure might be caused by a misunderstanding of the
objectives, an insufficient project schedule, many changes, insufficient control, poor
communication, a misunderstanding of the stakeholders' roles, or a lack of top management
support. These factors are all tied to the organizational structure and can be linked to one of three
main factors: organizational culture, project management culture, or project manager culture. As
a result, any modifications to the organizational system have an impact on the project manager's
performance as well as the project's outcome. Previous research has found a number of factors
that influence project performance and outcome (Davis, 2017).

Generally, academics who have characterized and investigated factors influencing project
performance and outcomes have focused on three primary streams. The first stream focuses on
the qualifications of the project manager (Schein, 1992); (Shenhar, et.al., 2011);

(Hosfstede, 2010); (Doolen et.al, (2003); (Anantatmula, 2012). According to research, a project
manager's Project success is influenced by skills, competencies, leadership, and motivation. The
second stream focuses on organizational factors. Several organizational cultural elements that
influence project success, such as organizational strategy, structure, system, culture types, and
behavioral patterns, have been studied in references (AnkrahN, 2007); (BrownC, 2013);
(PMBOK, A Guide to the Project Management Body of Knowledge., 2008) (Kerzner H. ,
Kerzner, H. (2001): Strategic planning for project management: using a project management
maturity model. , 2001).The third study stream focuses on project management culture, with
writers stating that project management culture is critical to project success (Ibbs&Reginato,
2002), (Anderson, 2003),(Standish group,2009), (Lindbergh ,2009), (Faridi& El-Sayegh, 2006).

Various elements affecting the construction industry's performance have been addressed in
previous studies. Despite the fact that everything in this world is changing at an incredible rate,
there is still a significant gap in our understanding of the underlying issues (Garcia,2005),
(Frisby,2018).

According to (Luong &Tsunemi, 2017), factor affecting project performance is contractor

commitment to contract commitments. Improved overall performance and participant satisfaction
are aided by goal alignment and reliance, contractor commitment, and worker orientation (i.e.,
commitment to workers). Contractor commitment and cooperative orientation boost labor

13
productivity, whereas goal alignment and trust, as well as contractor commitment, ensure
learning success (i.e., learning from experience).

According to (Amenu and Hong, 2019), The results from an extended statistical analysis on the
collected data revealed that the top 8 critical specific factors affecting government-financed
infrastructures projects performance in the Ethiopia comprehends: poor project planning &
administration system, weak project management leadership skills & institutional capacity,
inadequate project design, escalation of construction materials price, lack of integrated project
planning system among parties, inadequate capacity of the contractor, poor project schedule and
cost management system.

2.2.2 Factors affecting the Projects Performacne in Ethiopia

Ethiopia also not free from construction industry's performance problems. Conflict among
project participants, the project manager's ignorance and lack of understanding, and inadequate
human resource management are all major barriers (Sinesilassie,(2017).He also suggested that
Ethiopia suffers poor public infrastructure project execution due to a lack of focus on planning,
failure to update schedules on time, poor contract management, poor site supervision, inflation in
construction materials prices, change orders, delayed payments, schedule overruns, quality defect
cost overruns, capacity issues, weak organization, and coordination. Some of the factors similar
with the other counter’s issues (Taye,2016).

Similarly (Abera&Fekadu, 2016) investigated that extremely significant factors of affecting time
performance were delay to furnish and deliver the site (Right of way problem), financial
problems and improper planning.

When we see research conducted by Abera&Fekadu (2016), in regional level in Oromia industry
and urban development Bureau building construction projects, the extremely significant factors
affecting cost performance were design changes, fluctuations in the cost of most significant
factors affecting quality performance were well skilled personnel, quality of materials and
equipment used in the project construction and conformance to specification. The most
significant factors affecting the leadership performance were leader’s professional education,
leader’s relevant work experience and training.

14
2.2.3 Top Management Support

One of the most critical components for effective project implementation is top management
support (Liu et.al.2013). According to (kandelousi&Abdollahi 2011) top management assistance
can take many forms, including assisting teams in overcoming obstacles, demonstrating a
commitment to the job, and motivating subordinates. Furthermore, top management support
results in the timely availability of financial, human, and other physical resources required for
project success, and it also refers to the delegation of necessary power to project leaders and
project teams. As a result, senior management support is a critical suggestion for project success
(Lin, 2010).

A project leader should also possess a good relationship with top management as well as having
the required technical and administrative skills to lead a project toward success Morgan, 2012).
Also one of the most important factors in project success is devoted and effective leadership at
the top management level, which can moderate project performance. Although high-level
planning and/or support from top management is sometimes sufficient for project success, top
management support is virtually always required (Young & Poon, (Young, R., & Poon, S, 2013).

Projects are used to implement organizational plans, and senior management support is thought
to be crucial in their success.

For dealing with project stakeholders, top management should have advanced social skills such
as comprehension of role theory, role conflict, personality identification, and communication
(Ehsani et al, 2013). The degree to which top management understands the importance of project
success and the amount to which top management is active in project implementation is referred
to as top management support. According to (Kerzner, 2013), senior management involvement is
critical in offering guidance to the project leader, and top management involvement is not a new
invention that plays an important role in project management.
(Boostra, 2013) mentioned top management support as a multidimensional construct in his
framework of exploratory research. As a result, he defined these dimensions for measuring top
management support and investigating the impact of multidimensional top management support

15
on project performance. The dimensions of top management support are: Provide Resources,
Expertise, Structural Arrangements, Communication, and Power.
A functional organizational structure facilitates better resource sharing for the projects rather
than a pure project or matrix structure (Dwivedi,2013).

2.2.4. Team Building

Develop Team, as described by (PMBOK, 2017), is the process of enhancing project

performance by strengthening competencies, team member engagement, and the overall team
environment. Improved teamwork, greater interpersonal skills and competencies, engaged
personnel, lower attrition, and improved overall project performance are the main benefits of this
procedure and also, the goal-setting component of team-building introduces team members to a
target-setting framework that requires action planning to find ways to achieve these targets,
improve problem-solving skills and motivate the team toward achieving the objectives
(Shuffler,2018).Team members with predefined roles are expected to gain a better understanding
of their and others' respective roles and duties within the group (Salas et al., 1999), which has a
significant impact on project success (Sohmen, 2013).

However, Problem-solving focuses on identifying important problems in a team's tasks and then
improving the task-related skills of team members to tackle that problem (Misra, S., and
Srivastava, K.B., 2018). This gives the sense to subordinates of understanding the role
clarification and has an impact on organizational outcomes (Jeung, C.-W. and Yoon, H.J,
(2016)).

2.2.5 Project Team Commitment

One of the most important components of any project is selecting the right team. To make the
best decisions for the project's sake, choosing a team necessitates putting sympathies and
friendship to the side (Carson, 2009).

According to (Andreas, et al., 2021), Commitment indicates that team members comprehend and
agree to support team ideas and decisions. Teams can only move on if everyone on the team
accepts and supports the choice, even if one or more team members initially objected or

16
suggested an alternative idea. (Arthur, 2013), Individual commitment elements (affective,
normative, and continuance) significantly mediate the relationship between project
communication and perceived project performance. After discussing team commitment, the
researcher needs to see the effect of team commitment on project performance.

However, in their study "Team Performance Management," (Soo Jeoung Han, et al, 2017), found
that shared leadership significantly improved coordination activities, goal commitment, and
information sharing, which in turn positively affected team performance. Although shared
leadership had no direct effect on team performance, each team process aspect had a mediation
effect.
Leadership objectives, visions, strategic direction, and business goals should all be
communicated to the project team by top management. Top management communicates with
diverse groups of people regularly to support the project, inspire the team, sell the project to the
rest of the organization, discuss organizational implications and changes, explain prospective
system modifications, and work with other groups of people.
2.2.6 Project Performance

According to (Takim, 2002), the UK working groups on Key Performance Indicators (KPIs)
have identified ten parameters for benchmarking projects, in order to achieve a good
performance, in response to Egan’s report. These consist of seven project performance
indicators, namely: construction cost, construction time, cost predictability, time predictability,
defects, client satisfaction with the product and client satisfaction with the service; and three
company performance indicators, namely: safety, profitability and productivity.

According to Chan and Kumaraswamy (2005), during the construction phase, several unforeseen
problems and deviations from the original design develop, causing problems with the schedule
and performance. Poor site management, unanticipated ground conditions, and slow decision-
making by all project teams are identified to be the three most significant factors creating delays
and schedule problems.

Chan and Kumaraswamy (2005) stated that many unexpected problems and changes from the
original design arise during the construction phase, leading to problems in schedule and
performance. It is found that poor site management, unforeseen ground conditions, and low

17
speed of decision making involving all project teams are the three most significant factors
causing delays and problems of time performance in local building works. Okuwoga (2008)
stated that cost and time performance has been identified as general problems in the construction
industry worldwide.

However, (Doli et al., 2012), explored the delay causes of construction projects in India. Using a
selected set of forty-five (45) attributes, this study identified the key factors affecting delay in the
Indian construction industry and then established the relationship between the critical attributes
for developing prediction models for measuring the impact of these factors on delay. From the
factor analysis, seven (7) critical factors of construction delay identified are lack of commitment,
communication, and clarity in project scope, inefficient site management, improper planning,
poor site coordination, and substandard contracts.

Sweis et al, (2014), in their research explain the following factors that affect the project namely
financial difficulties, manpower shortages, excessive owner change orders, are leading factors
directly affecting contractor performance on construction projects.

Some of the studies conducted in Africa are described in detail below, (Owolabi et. al., 2014),
studied the cause and effect of delay on project construction delivery time in Nigeria. They
identified fifteen (15) causes for delay of construction projects, these are lack of funds to finance
the project completion, change in drawings, lack of effective communication among the parties,
lack of adequate information from consultant, slow decision making, contractor's insolvency,
variations, project management problem, a mistake during the construction stage, bad weather,
fluctuation in prices of building materials, inappropriate overall organizational structure linking
to the project, and labor strike. And also they identified nine (9) effects of delay of construction
projects, these include:- time overrun, increase in the financial cost of the project, wastage, and
under-utilization, tying down of client capital due to non - completion of the project, dispute
between parties, abandonment of building project, reduced profit, litigation, arbitration.

On the other hand, (Kahura N, 2014) in his study on factors influencing effective and efficient
delivery of road construction projects: A case of Nairobi. He concluded that benchmarking,
inappropriate procurement system, time, information technology, and poor project management.

According to (MWANGI, 2016), in his research on factors influencing the performance of

contractors in the case of selected road contractors in Kenya, the findings were that all the four

18
factors; working capital, skilled manpower, organization structure, and client support influence
the performance of contractors in the road sector. It was noted that working capital and
organization structure has the highest influence followed by skilled manpower and client support
in that order of significance. Less than 25 percent of road projects were completed within the
initial contract period. Working capital is critical in ensuring smooth construction operations,
skilled manpower enables the construction company to achieve overall goals of the company, the
strong organizational structure offers a comprehensive management plan that is easier to create
and execute, client support, which includes prompt payments and approvals, stakeholder
involvement, early land acquisition, helped to curb project delays, cost overruns, stalling and/ or
abandonment.

As discussed, (Mohamed.et.al, 2020) factors affecting project performance in Egypt listed as:
materials shortage; availability of resources as planned through project duration; leadership skills
for a project manager; escalation of material prices; personals with high experience and
qualification.

According to (Bitamb, 2020), Study on factors affecting the performance of construction projects
in the democratic republic of Congo. In their finding lists factors affecting project performance
are: design, client management, contractor productivity, scheduling, and the contract. The
experience and skill of the design team were found to affect the design-related factors, delayed
payments, and delivery of the construction site to the contractor are affecting client/owner-
related factors.

According to (Wambui, Ombui, &Kagiri, 2015), the study concludes the most important factors
affecting project performance are: delays because of borders/roads closure leading to materials
shortage; unavailability of resources; low level of project leadership skills; escalation of material
prices; unavailability of highly experienced and qualified personnel; and poor quality of
available equipment and raw materials.

According to (Werku, 2016), The findings show that the main critical factors that cause
construction delays in Ethiopia are: (1) Difficulties in financing project by a contractor; (2)
Escalation of the materials price; (3) Infective project planning; (4) Scheduling or resource
management; (5) Delay in progress payments for completed works, (6) Lack of skilled

19
professionals in the field of construction management in the organization, and (7) Fluctuating
labor availability season to season /Seasonal labors availability. This study shows that in
Ethiopia only 8.25% of projects have been finished to the originally targeted completion date.
The remaining 91.75% delayed 352% of its contractual time.

Public construction projects in Ethiopia are part of the country's development initiative. It shares
a considerable amount of the country's scarce financial resources. In Ethiopia, the construction
industry is the highest recipient of government budget in terms of a government development
program. Consequently, public construction projects consume an average annual rate of nearly
60% of the government's capital budget (Tito &Pierce, 2009).

(Merid, 2016), Studied the assessment of time and cost overrun in the construction project of
defense construction enterprise in Ethiopia. He identified fifteen the cause of time and cost
overrun, these include:- less emphasis on planning, poor contract management, poor per planning
process, lack of timely decision, changes in design, failure to update schedule on time, long
waiting time for approval of drawing and material sample, incomplete drawing, frequent
breakdown of construction plants and equipment, excessive change orders, inadequate early
planning of the project, setting unrealistic, contractual claim (extension of time with cost claims),
delay in site mobilization, and rework due to wrong work.

2.2.7 Project Performance vs Critical Success Factors

Thuillier (2010), surveyed The most prominent critical success factors for project supervisors,
according to World Bank Task Team Leaders and project supervisors, are design and
monitoring, at least in part because these are elements over which they have some control, while
other significant aspects of management (coordination, training, and institutional environment)
are under the control of national project coordinators.

According to (Tunji-Olayeni, 2016), by studying Evaluating Construction Project Cost, time,

quality, customer satisfaction, project profitability, labor productivity, safety, and teamwork are
the primary performance criteria employed by construction Small and medium-sized
enterprises SMEs in Nigeria. According to the data, the study also revealed that construction
SMEs do not apply either top management support or team commitment.
20
Four key factors are used to evaluate project implementation effectiveness: time, money,
effectiveness, and customer satisfaction. According to (Schultz and Slevin, 2009), project
management support, project managers, adequate resources, and, in general, any execution, are
critical in determining whether a project succeeds or fails. Project management is considered as
not only reliant on top management for authority, direction, and support, but also as the vehicle
through which top management's plans for the business or product are carried out (Beck, 2006),
( Manley, 2004). Project implementation refers to the steps taken to fulfill the tasks outlined in
the project management plan to meet the project's requirements.

Inexperienced project managers, poor communication, and poor monitoring and control systems,
according to (Mwadali, 2006), all have a detrimental impact on project management efficiency.
In project execution, effective communication develops a common perception, changes
behaviors, and gathers information.

According to (Gunduz et.al, 2020), assessing and prioritizing CSFs in the construction industry.
A list of 40 CSFs was generated by reviewing literature and related studies to achieve this aim.
The variables were categorized into seven major groupings. Project-related factors, the company-
and work-related factors, client-related factors, project-management-related factors, design-team-
related factors, contractor-related factors, and project-manager-related factors were all
prioritized, taking into account the impact of all stakeholders on project efficiency. The findings
show that the majority of the significant factors were related to financial issues (payment
mechanisms, project funds/resources), administrative issues (influence of client/representative,
client's availability of experienced managers and skilled workforce), and government approval
mechanisms (statutory approvals environment).

2.2.8 Top Management Support and Project Performance

Top management allocates resources to adapt technology, make modifications to technology, and
encourage the adoption of a new system, assisting developers and implementers in establishing
the required organizational structures. Top management uses resource provision, negotiation, and
persuasion to persuade powerful parties to work with the implementer and influence stakeholders
(Boonstra,2013).

21
Top management commitment is a critical enabler for effective strategy execution through
initiatives. Setting up the vision, mission, goals, and strategies for integrating departments and
units in businesses requires top management support. Top management, according to (Boonstra,
2013). plays a vital role in project success when top leaders are extremely supportive in giving
adequate people, material, and financial resources to the project team. Actively influencing
stakeholders through resource provision, negotiation, persuasion, and encouraging powerful
parties, all effective tasks for top management support.

Projects require financial and human resources to produce products or services, which must be
made available at an appropriate level by top management. Top management support for projects
is critical to the use of certain methods and the quality of project planning. In the context of
projects, many studies have considered top management support as a critical success factor
(Dwivedi, et al., 2013): (Young &Jordan, 2008): (Zwikael, 2008). Such as, all studies
disregarded the effect of multidimensional top management support on project success.

Project management and change management theories emphasize the necessity of top
management support in projects. Top management plays a crucial role in defining and delivering
the resources required for the project's successful completion. The importance of senior
management during project definition and team composition has been recognized in the
literature. Effective top management support instills trust in the project leader and motivates
them to direct their leadership toward project success. The degree to which top management
understands the importance of project success and the amount to which top management is active
in project implementation is referred to as top management support. The involvement of senior
management is vital in guiding the project leader. According to (Kerzner, 2013), the involvement
of top management is not a new invention that plays an integral role in project success.

Despite the numerous advancements in the field of project management, the majority of projects
continue to underperform and fail to deliver the desired results (Baily et al., 2012). Project
failures have been recorded more frequently than project successes around the world.

This is a rare occurrence in project management. Morgan (2012) stated that several project
managements studies have overlooked the relevance of project managers' leadership as a critical
component in project success. (Ahmed &Riaz, 2017) shows that a project manager's five

22
leadership skills are all linked to project performance in terms of schedule, cost, and quality, as
well as stakeholder satisfaction.
2.3. Conceptual framework.

The independent variables are proposed as determinants of the changes in the dependent
variables. The changes in the dependent measures are considered to represent “road project
performance” caused by the variations in the independent measures. The critical point here is
that road project performance as a concept involves measurement of the effects of agency actions
(Carton, 2004). In the citation of previous studies, little attention is being paid to construction
organization performance in Ethiopia and specifically in AARCA. Based on a literature review
of the existing factors affecting the project performance of construction firms, they can be
grouped as top management support and project team commitment. These categories form the
basis by which the research model developed to measure their effect on the project performance
of this study. It is graphically presented as shown below.

Top Management
Support Project
Performance
Project Team
Commitment

Figure 2.1. Conceptual Framework developed by researcher

Source: different literature reviews

2.4. Research Hypothesis

Hypothesis 1: Top management support have positive and significant effect on the project
performance of the road construction in ARRCA.

Hypothesis 2: Project team commitment have positive and significant effect on the project
performance of the road construction in ARRCA.

23
24
 Chapter Three

3. Research Design and Methodology

3.1. Introduction

The research method is the general guideline for the researcher by providing an understanding of
how the research conducts and organize to obtain an answer to the research questions. Therefore,
this section provides an overview of the study’s approach which lies within the quantitative
methods and other topics include strategies and focuses on research design, target population,
sampling technique and procedures, research instruments for data collection, validity and reliability
of the research instruments as well as data processing and analysis techniques.
Research Approach
To the attainment of the research objective presented in the first chapter, this study uses quantitative
research approach. Because in mostly conducted in social sciences using the statically methods. The
results achieved would be logical, statistical and unbiased. The quantitative research approach is
best to investigate the perceptions and problem of the study and to discover the hidden values,
feelings, attitudes and motivations (Svensone, 2003).
3.2. Research Design

A research design is a conceptual structure that shows how all the major parts of the research
project come together. According to Kothari (2004) it constitutes the blue print for the collection,
measurement and analysis of data.
In this study, both descriptive and explanatory analyses were conducted. Descriptive research
design is preferred for describing the existing descriptive characteristics of the variables.
Descriptive statistics like mean, percentage, etc. was used to describe the data. Explanatory analysis
using linear regression model is employed to analyze the major factors affecting organizational
performance in Amhara Rural Road Construction Agency. Correlation design regression analysis
have been applied to empirically investigate the association of variables and assess the cause-and-
effect relationship between the independent variables; top management support and project team
commitment and dependent variable that is road project performance.

25
 3.3. Population of the study

A research population is generally a large collection of individuals or objects that is the main focus
of a scientific query. It is for the benefit of the population that researches are done. However, due to
the large sizes of populations, researchers often cannot test every individual in the population
because it is too expensive and time-consuming. This is the reason why researchers rely on
sampling techniques. Target population refers to the entire group of individuals or objects to which
researchers are interested in generalizing the conclusions. Thus, the target population of this study
was including all employees of ARRCA office engineers and office management, project
management members and engineers, consultant leader and staff members and land bureau
management members and office engineers. Therefore, the total populations of this study are 75
employees.
3.4. Sample size determination
A sample size of more than 30 and less than 500 is appropriate for any social science research
(DELİCE*, 2010). In this research the following sample was taken.

NO Target population Total Population N

1. ARRCA office management members and office engineers 35

2. Project management members and engineers 15
3. Consultant leader and his staff 5
4. Land bureau management members and office engineers 20
Total 75

3.5. Data source, type and Collection Methods

The necessary data for the study was collected by questionnaire; information gathered directly from
respondents the data source is Primary data and data type would be quantitative. The layout of the
questionnaire has set very simple to encourage meaningful participation by the respondents. The
questions have set as concise / to the point/ as possible with care taken to the actual wording and
phrasing of the questions. The reason for the appearance and layout of the questionnaire are

26
importance in any survey where the questionnaire is to be complete by the respondent (Muijs,
2004).

Data Collection Method

Data collection procedure for the case of questionnaire, data collecting enumerators was assigned
from among the jobless youths who have completed secondary schools with provision of some
financial incentives and provide them clear orientation about the tool and the mechanism how to
facilitate the data gathering process. Even though the study was kept on supervising the overall
process carefully collect the responded questionnaire from the agents according to the number of
tools distributed.
Data Analysis and interpretation method

Collected data was organized to make analysis easy. In order to ensure logical competence and
consistency of responses, data editing was carried out daily by the researcher. Once editing was
completed, data where be analyzed quantitatively using statistical package for social science (SPSS)
version 27 software. The techniques for quantitative data analysis are used to both descriptive and
inferential statistics to analyze the result and draw conclusion. Descriptive Statistics used to
measure the central tendency and measures of variability or dispersion. Inferential statistics are used
to estimate the parameters and to test the statistical hypothesis, and to make generalizations about
the populations from which the samples are drawn. In particular, these statistics test for statistical
significance of results – i.e., statistically significant relationships between variables. The study was
employed multiple linear regressions so as to see the significant relationship between the
independent and dependent variables. Multiple linear regression analysis was a powerful technique
used for predicting the unknown value of a variable from the known value of two or more variables.
It is used to determine the proportion of respondents choosing the various responses and to see the
relationship between the independent variables (top management support and project team
commitment) and dependent variable road project performance. To measure or test the degree of
linear relationships between variables the researcher used correlation analysis (r), to check how
strong that relationship is and whether the relationship is positive or negative. In addition to this,
test multi-co linearity problem is tested.

27
 The study was also employed multiple linear regression analysis to establish the relationship
between the independent and the dependent variables. Also used paired correlation to analysis
relationship between independent and the dependent variables. The multiple linear regression
equation is:

Y = β0+ β1X1 + β2X2 +α

Whereby Y dependent variable = Project performance

β0 is the regression coefficient (constant /y -intercept)

X1= Top Management Support

X2= Project Team Commitment,

While β1, β2 and are coefficients of Xi variables and ε is the error term at 95% confidence level.
Having this general regression equation, the analysis was made as follows.

3.8 Validity Test

The study questionnaire was subjected to a panel of experts to assess if it captured all the items was
intended to measure, and their expert opinion was incorporated to ensure face validity. Content
validity was sought by pre-testing the questionnaire on a section of the study sample and arising
modifications incorporated for clarity, comprehensiveness, relevance, meaning and requisite depth.
This also gave the researcher a feel of the expected responses and data for the study. The foregoing
efforts are to ensure that the study instrument measures what it was intended to measure and reduce
to insignificant levels systematic error or non-random error. Construct validity was enlisted by
designing a set of items that match the theoretical latency of the constructs based on modified
versions of prior studies and instruments for the study variables. A deliberate effort to ensure that
these are in line with the conceptual framework as derived from the literature review was made.
This was in line with Cooper and Schindler (2011) proposition that in reality researchers should
confine their efforts to face, content, construct and concurrent validities.
3.9. Reliability Test
This study employed a three-step measure to enlist reliability. First, it developed the questionnaire
instruments based on items that were previously used by other researchers with acceptable tested

28
reliability levels. Secondly, it used a pre-tested questionnaire with a sample of the respondents and
emerging revisions done accordingly. Finally, the Cronbach’s Alpha coefficient (α) was used to
measure internal consistency and stability of scales used in the research instrument. Internal
consistency measures the correlations between different items on the same test (or the same
subscale on a larger test) and whether several items that propose to measure the same general
construct produce similar scores. Castillo (2009) provide the following rules of thumb: >0.9 –
Excellent, >0.8 – Good, >0.7 – Acceptable, >0.6 –Questionable, >0.5 – Poor and <0.5 –
Unacceptable. Nunnally (1978) suggested that as a rule of thumb, a reliability coefficient value of
above 0.7 was statistically reliable and acceptable for a study. This study employed this standard to
measure the extent to which the presented set of items measured individual latency of the variable
under examination.

3.9 Ethical Consideration

The purpose of the study was explained to the participants. And the researcher asked participants
of the study for their permission and inform them that the information they provide was only use
for the study purpose. Taking this reality in mind, any communication with the concerned bodies
was accomplished at their voluntarily consent without harming and threatening the personal and
institutional wellbeing.

There was no any physical or psychological damage to them because of the research.
Respondents were not asked about their name, race, religion, etc

29
 CHAPTER FOUR
RESEARCH FINDINGS AND DISCUSSION

4.1 Introduction

This chapter presents the finding of the study, their interpretations and discussions of the
findings guided by the objective of the study. The objective of this study was to investigate the
factors that affect road project performance of Amhara Rural Road Construction Agency
(ARRCA). Specifically, the study sought to assess the influence of top management support and
project team commitment on road project performance in Amhara Rural Road Construction
Agency (ARRCA). A detailed discussion has also been provided as the current findings are
compared to findings of other studies in related areas.

4.2 Response Rate

The number of questionnaires, administered to all the respondents, was 75. A total of 73
questionnaires were properly filled and returned. This represented an overall successful response
rate of 97.3%. According to Mugenda and Mugenda (2003), a response rate of 50% or more is
adequate. Babbie (2004) also asserted that return rates of 50% are acceptable to analyze and
publish, 60% is good and 70% is very good.
Table 4.1: Response Rate
Response Rate Frequency Percentage
Returned 73 97.3
Unreturned 2 2.7
Total 75 100

4.3. Demographic Information

This section presents the general demographic information of the respondents which entails the
gender, age, level of education and work experience of the respondents.
4.3.1. Gender of the Respondents

30
The respondents were asked to indicate their gender. Results were presented in table 4.2. 54.8%
of the respondents were male and 45.2% were female. This implies that the organization adheres
female during employment.

Table 4.2: Gender of the Respondents

Gender Frequency Percent

Male 40 54.8
Female 33 45.2
Total 73 100.0

4.3.2 Age of the Respondents

The respondents were asked to indicate their age brackets. Results in Table 4.3 revealed that
41.1% of the respondents were aged between 31 and 40 years while 24.6% of the respondents
were aged between 41 - 50 years, 17.8% respondents were aged between 20-30 and 16.5%
respondents were above 51 years. The finding of the study implies that the organization is
dominated by young people who are at their career peak and thus knowledgeable on human
resource allocation can enhance performance in their respective firms.
Table 4.3: Age Bracket of the Respondents

Age Frequency Percent

20 - 30 Years 13 17.8
31 – 40 Years 30 41.1
41-50 Years 18 24.6
51 above 12 16.5
Total 100

4.3.3 Level of Education

The respondents were asked to indicate their highest level of education. The findings in Table
4.4 illustrate that 42.5% of the respondents had reached university level, 15.1 % had attained
post graduate level, while 30.1% of the respondents had attained a diploma and 12.3% were

31
certificate level. The findings imply that most of the respondents had high level of education
which could have contributed to accurate responses. The high level of education of respondent
indicates that many employees have attained a given level of education and qualifications to
secure their jobs, hence more knowledgeable and educated manpower have positive impact on
performance.
Table 4.4: Level of Education
Level of Education Frequency Percent
Certificate 9 12.3
Diploma 22 30.1
Bachelor Degree holder 31 42.5
Master Degree and above 11 15.1
PhD 0 0.0
Total 73 100.0

Source; own Survey data, 2023

4.3.4 Years worked in the Organization (Experience)

The study sought to find out the years the respondents had worked in the organization. Table 4.5
shows that 50.7% of the respondents indicated they had worked in the organization for 5 to 10
years, 21.9% of respondents indicate less than 5 years, while 21.9% indicated 10-15 years and
5.5 % of the respondent indicated above 15 years. The findings imply that the respondents had
worked long enough in the organization and hence had knowledge about the issues that the
researcher was looking for.
Table 4.5: Years worked in the Organization

Work Experience Frequency Percent

Less than 5 years 16 21.9
5 - 10 years 37 50.7
10-15 years 16 21.9
Above 15 years 4 5.5
Total 73 100.0

Source; own Survey data, 2023

32
 4.3.5. Positions of Respondents
The respondents were requested to indicate their position to be sure that whether they are from
managerial level in road construction project performance. The finding presented in the
following table.

Table 4.6: Position in the Organization

Position Frequency Percent
Head 7 9.6
Team leaders 9 12.3
Site Engineer 16 21.9
Project manager 8 11
Employee 33 45.2
Total 73 100.0

Source; own Survey data, 2023

4.4. descriptive
4.4.1. Project Performance
This section presents the results and discussions of the dependent variable project performance of
Amhara Rural Roads Construction Agency (ARRCA). The respondents were asked to indicate their
level of agreement on different statements on project performance in their agency.
Table 4.7. Measures of Project Performance
Statements Mean Std. Deviation
Project design, planning and implementation are critical success factors for 3.55 1.43
project performance.
Organization support and project culture are conducive for quality project 3.51 1.31
performance.

The level of project team commitment directly affects the performance of 3.70 1.40
projects.
Project scheduling for various project activities affects project performance and 3.60 1.35
efficiency.
Project team efficiency directly affects project performance. 3.70 1.41

Project team accountability directly affect project performance. 3.60 1.35

33
 Availability of project team and top management accountability affect project 3.14 1.30
performance.

Source; own Survey data, 2023

According to the findings the respondents agreed that project team commitment and project team
efficiency as indicated by means of 3.70. The respondents also agreed project scheduled and
project team accountability indicated by means of 3.60. Project design, planning and
implementation, Organization support and project culture and Availability of project team and
top management accountability as indicated by means of 3.55, 3.51 and 3.14. respectively.
4.4.2. Top Management Support
The first objective of this study was to examine the effect of top management support on project
performance of road construction project of ARRCA. The staff working in ARRCA were asked
to state the extent to which they agreed with various statements on the effect of top management
support on ARRCA road construction project.

Table 4.8. Measures of top management support

Statements Mean Std.

Deviation
Top management supports and collaborates with project manager and team to ensure project 3.19 1.37
success.
Top management coaches and helps project teams to handle project hurdles or obstacles. 3.26 1.32
Top management delegates power to project manager and teams to enhance project 3.25 1.35
performance
Projects with inadequate top management support rarely survives. 3.11 1.38
The top management is committed and provides resources and leadership to enhance project 3.47 1.36
success.
There are clear communication channels between top management, project manager and 3.27 1.39
project teams.
Project manager’s transformational leadership is very critical in achieving project success. 3.49 1.31
Project manager should possess both good relations, technical and administrative skills to 2.93 1.46

34
lead a project to success.
All dimensions of top management support have significant positive influence on project 3.18 1.43
performance. (Provision of resource, Structural arrangement, communication, Expertise and
power)
Top management provided sufficient and ensured availability resources to encourage a 3.60 1.17
supportive stakeholder environment for successful project completion.
Top management organized and enforced adequate project structures to achieve project 3.42 1..45
objectives.
Top management instituted adequate processes, structures and controlling mechanism for 3.67 1.28
implementing organizational change in the adapting organizations.
Top management established frequent communication with project team members for 3.14 1.30
successful implementation of the project.
Top management recognized the power and interest of stakeholders around the project. 3.18 1.36
Top management motivated the project team to achieve project objectives and enhance 3.10 1.27
organizational performance.
Top management used its power to determine the roles and responsibilities of project 3.62 1.42
stakeholders.

Source; own Survey data, 2023

From the finding, power to determine the role and responsibility, instituted adequate process,
structure and control mechanism and provide sufficient and ensured available resource indicate
by means of 3.62, 3.67 and 3.60 respectively. In addition, the staff agreed with a means of 3.49,
3.47 and 3.42 that transformational leadership, committed and provides resources and leadership
and organized and enforced adequate project structures respectively. In addition, the staff agreed
with means of 3.27, 3.26, 3.25 and 3.19 that clear communication channels between top
management, project manager and project teams, coaches and helps project teams to handle
project hurdles or obstacles, delegates power to project manager and teams and collaborates with
project manager and team respectively. In addition, the staff agreed with a means of 3.14, 3.11
and 3.10 that established frequent communication with project team, Projects with inadequate
top management support rarely survives and motivated the project team to achieve project
objectives. Finally, recognized the power and interest of stakeholders and All dimensions of top
management support have significant positive influence on project performance with means of
3.18.

35
 Statements Mean Std.
Deviation
The organization conducts team building workshops to discuss project success 3.55 1.43

Composition of project teams, competency and level of responsibility accounts for failure 3.51 1.31
or success of projects.
Motivated and committed project teams enhance project performance. 3.70 1.40
I feel a strong personal attachment and satisfaction at the work place. 3.60 1.35

Level of involvement of project teams in planning and design determines project 3.14 1.30
performance.
Three values (trust, openness, and commitment) are essential to effective teamwork. 3.18 1.36

Lack of adequate project team involvement causes project implementation delays. 3.10 1.27

Project commitment is more important for knowledge sharing than team commitment. 3.62 1.42

4.4.3. Project Team Commitment

The second objective of this study was to examine the effect of project team commitment on
project performance of road construction project of ARRCA. The staff working in ARRCA were
asked to state the extent to which they agreed with various statements on the effect of project
team commitment on ARRCA road construction project.

Table 4.8. Measures of project team commitment

Source; own Survey data, 2023

According to the findings the staff agreed with a mean of 3.70, 3.62, 3.60 and 3.55 Motivated
and committed project teams enhance project performance, Project commitment is more
important for knowledge sharing than team commitment, strong personal attachment and
satisfaction at the work place and the organization conducts team building workshops to discuss
project success respectively. The respondents also agreed that Composition of project teams,
competency and level of responsibility accounts for failure or success of projects, three values
(trust, openness, and commitment) are essential to effective teamwork, Level of involvement of
project teams in planning and design determines project performance and Lack of adequate
project team involvement causes project implementation delays with a mean of 3.51, 3.18, 3.14
and 3.10 respectively.

36
4.5. Reliability and Validity Test
Table 4.9 Reliability and Validity Test

Variables Cronbach's Alpha

Top management support .860
Project team commitment .895
Project Performance .895

Source; own Survey data, 2023

According to (Tavakol and Dennick 2011), in order to test the correlation coefficient for the
independent and dependent variables by Cronbach’s alpha coefficient the coefficient should be
above 0.7 the study is reliability and the sample size of the study was enough according to the
population of the study. Based on these recommendations, the statements under the project
performance variable of this study were concluded to have adequate internal consistency,
therefore, reliable for the analysis and generalization on the population.
4.6. Level of Project Performance
In this part, the descriptive analysis is performed to assess the perceptions of the respondents
with regard to top management support and project team commitment. The items for
measurement of respondents’ perception of project performance are summarized to answer the
objective of the study. In this analysis, the response for each variable is compared using the mean
and standard deviation score. The higher the mean score, the more that respondent agreed with
the statement and vice versa. The figures for standard deviation (Sd) also indicate the degree to
which responses varied from each other; the higher the figure for Sd, the more variation in the
responses (Field, 2006).
To measure the level of respondent’s perception of project performance of ARRCA, the 24 items
of the instrument and the project performance of the 7 items of the instrument were analysed
with the help of descriptive statistics of SPSS version 27.

Table 4. 10 Mean and Standard deviation for independent and dependent variables

Descriptive Statistics

37
 N Mean Std. Deviation
Top Management Support 73 3.3048 1.03193
Project Team Commitment 73 3.4229 1.03217
Project Performance 73 3.5421 1.07089
Valid N (listwise) 73

Source: own survey data, 2023

According to Field (2006), the mean score below 2.50 considered as weak, from 2.50 up to 2.99
considered as moderate/average, above 3.00 was considered as strong illustrated by comparing
means of score of five-point Likert scale instrument.
As indicated in table 4.10, the mean score and standard deviation of independent variables
indicate the level of the different dimensions range from 3.30 to 3.54 and 1.031 to 1.070
respectively. All variables have strong mean scores. The highest mean score is the project team
commitment (PTC) (M= 3.422, SD= 1.032). This indicates that staffs give more value and agree
with the measuring statements of the project team commitment (The organization conducts team
building workshops to discuss project success, composition of project team, motivated and
committed project team, strong personal attachment and satisfaction, level of involvement of
project team, trust, openness and commitment, lack of adequate team project and knowledge
sharing) that ARRCA are being able to perform their projects and tasks in stable.
The second independent variable was top management support (TMS) have a mean score and
standard deviation (M= 3.304, SD= 1.031). This implies that most respondents have high
agreement on the measures of the factor of the top management support. This result indicates that
the agency has good experience support of project in (top management collaborate with project
team, top management coaches and helps project teams, delegate power to project manager,
inadequate support influence, commitment of top manager, clear communication channels,
transformation leadership, good relationship, technical and administrative skill, provision of
resource, structural arrangement and communication, sufficient and availability of resource and
process, structure and controlling mechanisms)

38
Generally, all independent variables (top management support and project team commitment)
have high and above average mean values and these indicate that respondents were agree
independent variable have influence on dependent variable that is project performance.

4.7. Inferential Analysis

The Pearson correlation coefficient is used to measure the degree of relationship or association
between the dependent and independent variables involved in the study. This analysis shows the
non-directional relationship between independent and dependent variables. Any correlation
coefficient that found within -1.00 or +1.00 indicates a perfect correlation between the variables.
Therefore, variables that are found with Pearson r- value that is closer to -1.00 or +1.00
identified as perfectly related, Lind,et.al (2008) as cited in (Bekele 2016). A coefficient is
considered significant if the p-value is less than 0.05, Schervish (1996) as cited (Greenland
2019).
Therefore p-value indicated the probability of significant relationships of the variables. The
result of the correlation is analysed to show the strength of the association between the variables
involved and to indicate the sign and significance levels of the relationship between these two
variables. An interpretation of the size of the coefficient has been described by Cohen (1992) as
-0.3 to +0.3 = weak, -0.5 to -0.3 or 0.3 to 0.5 = moderate, -0.9 to -0.5 or 0.5 to 0.9 = strong and -
1.0 to -0.9 or 0.9 to 1.0 = very strong.

Table 4. 11 Pearson Correlation

Correlations

39
 Top
Management Project Team Project
Support Commitment Performance
Top Management Pearson 1
Support Correlation
Sig. (2-tailed)
N 73
Project Team Pearson .833** 1
Commitment Correlation
Sig. (2-tailed) .000
N 73 73
Project Performance Pearson .749** .955** 1
Correlation
Sig. (2-tailed) .000 .000
N 73 73 73
**. Correlation is significant at the 0.01 level (2-tailed).

To determine the relationship between independent variable (top management support and
project team commitment) with dependent variable (project performance), the Pearson
correlation was computed. Table 4.11 above presents the results of the Pearson correlation on the
relationship between independent variables and dependent variable

4.7.1. The Relationship between Top management support and Project performance
From the Pearson correlation analysis result, Top management support (TMS) has significant
relation with project performance (r = 0.749**and p = < 0.001). The correlation value shows that
the relationship between top management support and project performance is positive and strong.
This correlation indicates that collectively these aspects of top management support have the
second greatest effect on project performance. Supporting these results, top management support
results in the timely availability of financial, human, and other physical resources required for
project success, and it also refers to the delegation of necessary power to project leaders and
project teams. As a result, senior management support is a critical suggestion for project success
(Lin, 2010).

40
4.7.2. The Relationship between project team commitment and Project performance
From the Pearson correlation analysis result, project team commitment (PTC) has significant
relation with project performance (r = 0.955**and p = < 0.001). The correlation value shows that
the relationship between project team commitment and project performance is positive and
strong. This correlation indicates that collectively these aspects of project team commitment
have the greatest effect on project performance. This result lies with (Arthur, 2013), Individual
commitment elements (affective, normative, and continuance) significantly mediate the
relationship between project communication and perceived project performance. After discussing
team commitment, the researcher needs to see the effect of team commitment on project
performance.

Generally, independent variables (top management support and project team commitment) that
have strong and significant relationship with organization performance.
To analyse the effect of top management support and project team commitment on project
performance in Amhara Rural Road Construction Agency (ARRCA), the study utilized multiple
leaner regression analysis. Multiple regressions examine the relationship between a single
outcome measure and several predictors or independent variables (Jaccard 2006). This analysis
shows the directional relationship between independent and dependent variables. In other words,
it shows the effect of independent variables on the dependent variable. The correct use of the
multiple regression models requires that several critical assumptions be satisfied in order to
apply the model and establish validity (Poole.et.al 1971). Inferences about the theory are only
valid if the assumptions in the analyses have been tested and fulfilled. Multiple regression
analysis was employed in this study to examine the effect of independent variables (top
management support and project team commitment) on dependent variable project performance
of Amhara Rural Road Construction Agency (ARRCA).
4.7. Regression assumption tests
Ignoring the regression assumptions contribute to wrong validity estimates (Ballance 1998,
Antonakis 2011). Before the hypotheses were tasted with the regression models, the
assumptions of multiple regressions include the assumptions of linearity, normality,
multicollinearity and homoscedasticity will be discussed separately in the following sections.

4.7.1. Normality Test

The normality test is used to determine whether the normal distribution of the data exists or not

41
Santoso (2010) as cited in (Ainiyah 2016). The normality assumption can be tested through
several pieces of information, i.e., visual inspection of data plots, skewness, kurtosis, a histogram
of the standardized residuals and P-Plots (Osborne 2002). To test the normality of the data of
this study, K-S (Kolmogorov-Smirnova) one-sample test (kurtosis and skewness value were
checked) using SPSS version 27 software.

According to Dallal and Wilkinson (1986) as cited in Zahediasl (2012), the K-S (Kolmogorov-
Smirnove) one-sample test compares the cumulative distribution function for a variable with a
uniform, normal, Poisson, or exponential distribution, and the test whether the distributions are
homogeneous. The parameters of the test distribution can be specified; the defaults are the
observed parameters. The output shows the number of valid cases, parameters of
the test distribution, most-extreme absolute, positive, and negative differences, Kolmogorov-
Smirnov Z, and two-tailed probability for each variable.

Skewness measures the degree to which cases are clustered towards one end of an asymmetric
distribution. It is the degree of asymmetry or departure from the symmetry of a distribution. In
general, the further the value of skewness is from zero, the more likely it is that the data are not
normally distributed Andy ( 2006) as cited in (Ganguli 2017). The normal distribution symmetric
has a skewness zero. Distribution with a significant positive skewness has a log right tail.
Distribution with a significant negative skewness has a log left tail.

Kurtosis, on the other hand, is a measure of the extent to which observation cluster around a
central point. Kurtosis measures the level of the peakiness in a histogram. High peak has a
positive kurtosis, while flatter distribution has negative kurtosis. For a normal distribution, the
value of the kurtosis is zero. Positive kurtosis indicates that, relative to a normal distribution, the
observations are more clustered about the centre of the distribution and have thinner tails until
the extreme value of the distribution at which point the tails of the leptokurtic distribution are
thicker relative to a normal distribution. Negative kurtosis indicates that, relative to the normal
distribution, the observations are clustered less and have a thicker tail, until the extreme value of
the distribution at which point the tails of the platykurtic distribution are thicker relative of
normal distribution.

42
Table 4. 12 Descriptive Statistics

Descriptive Statistics
N Skewness Kurtosis
Statistic Statistic Std. Error Statistic Std. Error
Top Management Support 73 .540 .281 .576 .555
Project Team Commitment 73 -.182 .281 -1.234 .555
Project Performance 73 -.215 .281 -1.346 .555
Valid N (listwise) 73

Figure 4. 1 Analysis Result of Histogram

Source: Own Survey Result (2023)

As Field (2009) stated by improving his concept that discussed in 2006 (Skewness and Kurtosis
are between -1.96 and 1.96, in many cases it is acceptable), an absolute value of the score greater
than 1.96 or lesser than -1.96 is significant at P < 0.05, while greater than 2.58 or lesser than -
2.58 is significant at P < 0.01, and greater than 3.29 or lesser than -3.29 is significant at P <
0.001. Results presented in table 4.12 indicate that parametric & non-parametric statistics should
be used for independent variables and dependent variable.

Therefore, based on the information in table 4.12 with a small sample is acceptable and normally
distributed. The tails of the histogram also show the distribution is negatively skewed. The shape
of the histogram follows the bell-shaped of the normal curve. Therefore, the data had spread

43
normally (the value of Skewness is negative, the negatively skewed & Kurtosis are positive that
have greater or lesser than 1.96 values in this research) and it can represent the population of this
study was acceptable.

The normal P-plot also supported the assumptions of normality; the closer the dots lie to the
diagonal line, the closer to normal the residuals are distributed. Residuals follow the 45-degree
line illustrated in figure 4.2 below and this revealed the assumption of normality. Therefore, the
normal P-Plot also revealed that the P-Plot is normally distributed and it assured the normality of
this study. Therefore, both the histogram and the p-plot confirmed that this study fulfilled the
assumptions of the normality test.

Figure 4. 1 the Analysis Result of Normal P-Plot Source: Multicollinearity Test

Own Survey Result (2023)

4.7.2. multicollinearity test

A multicollinearity test is used to determine the existence of the high correlation between
variables in a multiple regression model. Multicollinearity occurs when several independent

44
variables correlate at high levels with one another (Keith, 2006). Multicollinearity testing can be
done by looking at the value of variance inflation factors (VIF) and tolerance.

Gujarati and Porter, (2010) stated that the existence of multicollinearity can be diagnosed by
analysing the values of tolerance and variance inflation factors (VIF). A tolerance of < 0.10
and/or a VIF >10 indicates a multicollinearity problem. The result from the regression analysis
of this current study showed that the VIF and tolerance indicating that there is no
multicollinearity problem in the regression model used for this study. Because, variance inflation
factors (VIF) and tolerance all fall within the acceptance range (VIF = 1 - 10, or tolerance = 0.1 –
1.0).

Table 4. 13 The Multicollinearity Test Distribution Result

Coefficientsa
Collinearity Statistics
Model Tolerance VIF
1 (Constant)
Top Management .306 3.271
Support
Project Team .306 3.271
Commitment
a. Dependent Variable: Project Performance

Source: Own Survey Result (2022)

As it is shown from table 4.13 above, the multi-co linearity of this study shows that top
management support has the value of tolerance = 0.306 And VIF= 3.271 and project team
commitment have the value of tolerance= 0.306 And VIF= 3.271. Generally, the result shows
that the independent variables that are top management support and project team commitment
have the values of tolerance >0.10 and VIF<10. This revealed that there is no multi-co linearity
problem in this study.

45
4.7.3. Linearity Test
Linearity assumption refers to the presence of a straight-line relationship between each pair of
dependent variables. The linearity test is used to determine whether two or more variables have a
significant linear relationship or not. Regression assumes that variables have a linear relationship
(Berry and Feldman, 1985). This can be assessed in a number of ways. The residual and scatter
plots available indicate the presence of linearity (Keith, 2006; Osborne and Waters, 2002). When
we look at a scatter plot of this study in figure 4.3 below, most scores are laid in a straight line.
Visual inspection of P- Plot was also used by the researcher to have information about linearity.
The researcher observed in figure 4.2 above the normal P-plot follows the 45-degree line and this
confirmed as the linearity assumption of this study is fully satisfied.

4.7.4. Homoscedasticity Test

The assumption of homoscedasticity refers to the equal variance of errors across all levels of the
independent variables (Osborne and Waters, 2002). Homoscedasticity can be checked by a visual
examination of a plot of the standardized residuals from the regression standardized predicted

value (Osborne and Waters, 2002). The researcher was visually examined the homoscedasticity
test and as shows in figure 4.3 that it can be assured that the points are randomly and evenly
throughout the scattered diagram and there is no problem of heteroscedasticity. Therefore, the
assumption of homoscedasticity is satisfied. The scatterplot shows the fit, simultaneous confidence
intervals and prediction intervals.

46
 Figure 4. 2 Residuals Scatter plot matrix of Independent Variables
Source: Own Survey Result (2023)

From the regression model summary, Pearson’s r can range from -1 to 1; an r of -1 & +1
indicates a perfect relationship between variables respectively and an r = 0 indicates no linear
relationship between variables. The above figure 4.3 shows a scatter plot for which the value of r
is 0.819 which is nearer to one (Lane 2019).
Hypothesis Test

The hypothesis H1 Top management support have positive and significant effect on the project
performance, which means higher the Top management support in the agency higher will be
project performance. This prediction was supported as shown by the results (r = 0.749**), which
shows that the correlation is significant up to the 0.01 level.

The B value of top management support is 0.357 that is it has 35.7% impact on Project
performance. On the same side t value also showed result of 2.459 which showed a very

47
 significant impaction project performance. Hence our prediction is supported by the results, so
H1 is accepted.
The hypothesis H2 project team commitment and project performance have significant
relationship, which means higher the project team commitment in the agency higher will be
project performance. This prediction was supported as shown by the results (r = 0.955**), which
shows that the correlation is significant up to the 0.01 level.
The B value of project team commitment is 0.122 that is it has 12.2% impact on project
performance. On the same side t value also showed result of 1.555 which showed a very
significant impact on project performance. Hence our prediction is supported by the results, so
H2 is accepted.
Table 4. 1 Hypothesis Test

Hypotheses Sig. Decision

H1= Top management support have positive and significant effect on the Supporte
project performance of the road construction in ARRCA. .004 d
H2: Project team commitment have positive and significant effect on the Supporte
.004
project performance of the road construction in ARRCA d

Source: Own Survey Result (2023)

4.8. Evaluating the Regression Model

The overall enter method of the multiple linear regression model summarized in table 10 below
indicates the regression coefficient R = 0.949, R-square = 0.819 and adjusted R-square =0.817.
Table 4. 15 Model Summery

Model Summaryb
Change Statistics
Adjusted R Std. Error of R Square Sig. F
Model R R Square Square the Estimate Change F Change df1 df2 Change
1 .949 a
.819 .817 .30939 .919 396.306 2 70 .000
a. Predictors: (Constant), Project Team Commitment, Top Management Support
b. Dependent Variable: Project Performance

48
 Source: Own Survey Result (2023)

The R-square is the proportion of variation in the dependent variable of organization

performance that is explained by independent variables. Therefore, it is pointed out that 81.9% of
project performance (top management support and project team commitment) have the power to
explain the dependent variable of Amhara Rural Road Construction Agency (ARRCA) project
performance. The remaining 18.1% is affected by other variables that are out of this study.

4.9. Evaluation of Independent Variables

A standardized beta coefficient compares the strength of the effect of each independent variable
to the dependent variable in the regression analysis. If the value is positive, it indicates that there
is a positive relationship between the predictor and the outcome, whereas a negative coefficient
represents a negative relationship between predictors and outcome.
From the regression analysis result of this study, as indicated in table 4.15 below, the two
independent variables (top management support and project team commitment) have a positive
beta value, indicating that there is a positive relationship with the opposite of the dependent
variable of project performance.

The independent variable is said to be significantly affected dependent variable when the value
of p/sig < .05. If p/sig>.05, independent variable has no significant effect on the dependent
variable. In table 4.15 below, coefficients demonstrates that the two independent variables of this
study were found to have a significant and positive influence on project’s performance, i.e., top
management support (β = 0.351 and p/sig = .004) and project team commitment (β = 0.181 and
p/sig = .004) were found to have a positive and significant effect on project’s performance. The
two independent variables found to have positive influence on project performance.

In the case, all the two independent variables have a value of p/sig < 0.05, which indicate that
they have a significant effect on projects performance. Top management support has the higher
‘t’ and beta coefficient values (t = 2.459, β = 0.351 and p/sig = 0.004), which has the dominant
effect on the dependent variable of project performance, because the higher the absolute value of
the beta coefficient, the stronger effect on the dependent variable.

49
Table 4. 16 Beta Coefficients of the Independent Variables

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients Collinearity Statistics
Model B Std. Error Beta t Sig. Tolerance VIF
1 (Constant) .222 .130 1.715 .001
Top Management .357 .064 .351 2.459 .004 .306 3.271
Support
Project Team .122 .064 .181 1.555 .000 .306 3.271
Commitment
a. Dependent Variable: Project Performance

Source: Own Survey Result (2022)

A standardized beta coefficient ‘β’ for top management support (β = 0.351, p/sig = 0.004)
indicates the magnitude of the effect of top management support on project performance and it
interpreted as one unit increase in on top management support will result in units increase 0.351
in project performance.
A standardized beta coefficient ‘β’ for project team commitment (β = 0.181, p/sig = 0.000)
indicates the magnitude of the effect of project team commitment on project performance and it
interpreted as one unit increase in on project team commitment will result in units increase 0.181
in project performance.

4.10. Regression Model

The multiple linear regression equation of this study was built on two sets of variables,
dependent variable of project performance and independent variables of (top management
support and project team commitment). Based on table 4.15 above, the unstandardized beta
coefficients column gives us the coefficients of the independent variables in the regression
equation including all the predictor variables as indicated below.

Y = a + β 1TMS + β 2PTC + ei

Y = 0.222 + 0.357 TMS + 0.122 PTC + ei

Where:

50
 Y = Project Performance
TMS = Top Management Support
PTC = Project Team Commitment
a = Intercept term
β = Coefficients

ei = Error term
Both the explanatory variables in this study (TMS and PTC) can significantly explain at 95%
confidence level to the variation in the dependent variable of project performance. Thus, TMS
have the higher significant positive effect on Project Performance (β = 0.357 and P = 0.004) and
PTC have significant positive effect on Project Performance (β = 0.122 and P = 0.004). In this
case, both predictor’s variables have a positive and significant effect on project performance.

4.11. ANOVA Result

Analysis of variance (ANOVA) shows whether the regression model is significantly better at
explaining the dependent variable of project performance than using the mean as the best
predictor or the goodness of fit of the model. From the ANOVA table 4.16 below revealed that
the F value (390.306) and the small p/sig. value (< 0.001) independent variables (top
management support and project team commitment) of this research can predicted significantly
the dependent variable project performance. The model is significant with P < 0.05. Therefore,
there is strong evidence to suggest that the data is valid not obtained by chance.

Table 4. 17 Regression Analyses of ANOVA Results

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 75.869 2 37.935 396.306 .000b
Residual 6.700 70 .096
Total 82.570 72
a. Dependent Variable: Project Performance
b. Predictors: (Constant), Project Team Commitment, Top Management Support

51
 Source: Own Survey Result (2022)

4.12. Discussions
From the regression model summary, it can be seen that the R (correlation) value 0.819 (81.9%)
indicates that there is a relationship between the dependent and independent variables and the
adjusted R Square value for the model showed that 0.817 (81.7%) of the dependent variable in
the model can be predicted by the independent variables. The Beta coefficients revealed the
contributions or positive or negative relationship of each variable in the model. The B and p
values showed the influence of the independent variable on the dependent variable. From this, it
is clear that the independent variables had the highest significant effect on organization
performance. According to Pallant (2007); Somekh and Lewinn (2005), the variable with a
sig.value 0.05(<5%) could make a significant unique contribution to the predicted value of the
dependent variable; beyond this level of significance, the variable is not making a significant
contribution to the prediction of the dependent variable. Based on the coefficient results of this
study, independent variables (top management support and project team commitment) have a
positive and significant relationship with project performance with a sig. value of <0.05(5%). top
management support and project team commitment have positive and significant effect on
project performance.
The P-plot of the residuals helps to check the assumption of the normality of the error term. The
P-plotted residuals follow the 45-degree line very closely. Neither the histogram nor the P-plot
indicates that the normality assumption is violated. The resulting scatter plot appears to be
suitable for linear regression; with one possible cause for concern, the linearity between the
dependent variable and independent variables.
To sum up, this study indicated that project performance is influenced by these two internal
independent variables (top management support and project team commitment). The result also
helps us to understand which variables among the two independent variables are statistically
significant and determinant in explaining the variance in project performance.

52
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1. Summary of Findings

The study was intended to investigate the factors affecting road projec performance of Amhara
Rural Road Construction Agency (ARRCA). Explanatory research has been done using primary
data collected through a questionnaire collected from 75 employees to measure independent
variables and dependent variables. The data were analysed using statistical techniques of
descriptive and inferential statistics. Based on the detailed analysis, findings and discussions
made in chapter four, the major findings are summarized and presented as follows:
Both independent variables have high value of mean and std. deviation. That is, the mean and
std. deviation value of top management support (M= 3.30 & Std. = 1.031) and project team
commitment (M= 3.42 & Std. = 1.032) are high relative to the average mean and the response
variable. Project Performance (PP) has high mean and std. deviation value (M= 3.54 & Std. =
1.070). Therefore, respondents confirmed that independent variables are being exercised in Rural
Road Construction Agency (ARRCA) currently.
The result of Pearson’s correlation coefficient also shows that the relationship between
independent variables and dependent variable was assessed using a quantitative survey.
Inferential statistics of the quantitative analysis revealed significant relationships between all
independent and dependent variables. The correlation analysis result indicates that independent
variables; top management support r = 0.749 and project team commitment r = 0.955 have
positive relations with project performance in ARRCA. Both two independent variables have
strong and positive correlation with project performance.
 The result shows that 81.9% of the variation in project performance (PP) is caused
by top management support and project team commitment.
 Factors affecting project performance that is top management support can predict
PP positively by 35.7%.
 Factors affecting project performance that is project team commitment can predict
PP positively by 12.2%.

53
 From the regression result, we observed that both independent variables are significantly
contributing to PP positively. Based on the regression it can be concluded that the change
in PP level can be explained by independent variables.
5.2. Conclusions

The study, after doing different analyses that the research objectives need, arrived and based on
the major findings, the following conclusions were made: Determinant factors examined in this
study such as top management support and project team commitment in the study area are not
being implemented properly as they have to be put into effect. That means there are still
limitations in implementing this practice. As result shown from correlation results, that top
management support and project team commitment have significant and positive relation on
project performance.

Multiple linear regression analysis result indicates top management support and project team
commitment were positive and significant factors on road project performance in ARRCA. The
result indicates that positive or a unit change of top management support and project team
commitment that positively effect on road project performance.

Moreover, the overall bundles of these factors incorporated in this study have positive effect on
road project performance. For that reason, some extent of the project performance is explained
by top management support and project team commitment in the ARRCA.

5.3. Recommendations

This study was conducted to investigate factors affecting road project performance in ARRCA.
Based on the experience gained during conducted this research, the following potential
researchable factors are not addressed by this research.

 The study concludes top management support has significant contribution account
for road project performance. The researcher therefore, recommend that ARRCA,
which want to be determine the role and responsibility of top manager in the
project, develop good process, structure and control mechanism for project, provide
sufficient resource, organized and enforce project structure, develop clear
communication channel between top manager and project teams, delegate power for
project manager and teams.

54
  Since project team commitment was found to be a positive predictor of road project
performance, the ARRCA should motivate project team, knowledge sharing, strong
personal attachment and satisfaction on work place, composition of project team
and the tree values of project that are trust, openness and commitment of project
teams.

5.4 Further Research Work

This research work was limited to identify the effect of two internal factor particularly top
project performance and project team commitment on road project performance. The research
used a cross-sectional survey data collection method, used only two independent variables and
the target population focus on only one construction organization that is ARRCA. Therefore, the
future research works to identify the all determinants that effect on project performance by using
different variable combination in the analysis, use a longitudinal data and different organizations.
The result of this study demonstrated that there may be other factors that significantly affect road
project performance in ARRCA and it is important to investigate such other factors in future
researches.

55
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 APPENDIX A
GAMBY MEDICAL & BUSINESS COLLEGE DEPARTMENT OF
ACCOUNTING AND FINANCE.

QUESTIONER

INTRODUCTION

Dear respondent,

The purpose of the questionnaire is to collect data for research on ” FACTORS AFFECTING
PERFORMANCE OF ROAD CONSTRUCTION PROJECT IN ARRCA” the research is
defined to identify factors affecting performance of road construction Project in ARRCA.

The research outcomes are important for academic purpose and the final recommendation and
finding shall be forwarded to the respective office of ARRCA for their preventive measure and
action.

Your genuine and honest response is very important for the success of the research and the
researcher would like to thank your cooperation in advance.

Note: For any clarification or question please don’t hesitate to contact the researcher through the
following address. Tel:+251-913-79-10-57, E-mail: getachewwurgesa@yahoo.com

General Instruction:

1. Please read each questions or statements carefully and give your answers as
objectively as possible.
2. No need to write your name and address for confidentiality Purpose.
3. Your response confidentiality is maintained.
4. Instruction for each part of the questionnaire is given at the beginning of the
questions.

Thank you for your cooperation!

65
Part 1: General Background Information

1. Age

20–30  31–40 

41–50  Greater than 50 

2. What is your Gender?

Male  Female 

3. Position in the organization

Head  Team leader  Site engineer Project manager  Employee 

4. Indicate your Level of Education

Higher School  Certificate  Diploma  BA/BSC  MA/MSC  PhD 

5. Work Experience in current position:

<5  5-10  10-15 >15

Part 2: Top Management Support

Indicate your level of agreement to the statement below relating to Top Management Support
and its effect on construction performance in Road construction Projects.

Please tick [√] appropriately in your agreed position. The ratings are the following,

1= Strongly Disagree, 2= Disagree, 3= neither Agree nor Disagree; 4= Agree; 5= Strongly

Agree.

ITEM NO DESCRIPTION 1 2 3 4 5

1. Top management supports and

collaborates with project manager and

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 team to ensure project success.
2. Top management coaches and helps
project teams to handle project hurdles
or obstacles.
3. Top management delegates power to
project manager and teams to enhance
project performance
4. Projects with inadequate top
management support rarely survives.
5. The top management is committed and
provides resources and leadership to
enhance project success.
6. There are clear communication channels
between top management, project
manager and project teams.
7. Project manager’s transformational
leadership is very critical in achieving
project success.
8. Project manager should possess both
good relations, technical and
administrative skills to lead a project to
success.
9. All dimensions of top management
support have significant positive
influence on project performance.
(Provision of resource, Structural
arrangement, communication, Expertise
and power)
10. Top management provided sufficient
and ensured availability resources to
encourage a supportive stakeholder

67
 environment for successful project
completion.
11. Top management organized and
enforced adequate project structures to
achieve project objectives.
12. Top management instituted adequate
processes, structures and controlling
mechanism for implementing
organizational change in the adapting
organizations.
13. Top management established frequent
communication with project team
members for successful implementation
of the project.
14. Top management recognized the power
and interest of stakeholders around the
project.
15. Top management motivated the project
team to achieve project objectives and
enhance organizational performance.
16. Top management used its power to
determine the roles and responsibilities
of project stakeholders.

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Part 3: Project Team Commitment

ITE Indicate your level of

agreement to the
M DESCRIPTION 1 2 3 4 5
statement below relating
NO
to Project Team
1 The organization conducts
Commitment and its
team building workshops to
effect on construction
discuss project success
performance in Road
2 Composition of project
construction Projects.
teams, competency and level
Please tick [√]
of responsibility accounts for
appropriately in your
failure or success of projects.
agreed position. The
3 Motivated and committed
ratings are the following,
project teams enhance project
performance. 1= Strongly Disagree, 2=
4 I feel a strong personal Disagree, 3= neither
attachment and satisfaction at agree nor disagree; 4=
the work place. Agree; 5= Strongly
5 Level of involvement of Agree.
project teams in planning and
design determines project
performance.
6 Three values (trust, openness,
and commitment) are
essential to effective
teamwork.

7 Lack of adequate project

team involvement causes
project implementation
delays.
8 Project commitment is more
important for knowledge 69
sharing than team
commitment.
Part 4: Project Performance

Indicate your level of agreement to the statement below relating to Project Performance in Road
construction Projects.

Please tick [√] appropriately in your agreed position. The ratings are the following,

1= Strongly Disagree, 2= Disagree, 3= neither agree nor disagree; 4= Agree; 5= Strongly Agree.

ITEM NO DESCRIPTION 1 2 3 4 5

1 Project design, planning and implementation

are critical success factors for project
performance.
2 Organization support and project culture are
conducive for quality project performance.

3 The level of project team commitment

directly affects the performance of projects.
4 Project scheduling for various project
activities affects project performance and
efficiency.
5 Project team efficiency directly affects
project performance.
6 Project team accountability directly affect
project performance.
7 Availability of project team and top
management accountability affect project
performance.

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