Evaluating The Influence of Stakeholder Engagement on the Performance of Construction Projects in Nigeria

Abstract

The construction industry in Nigeria continues to experience significant project delays and cost overruns, mainly due to ineffective stakeholder engagement. Despite the global recognition of stakeholder involvement as a key factor in project success, there is a gap in empirical studies assessing its direct impact on construction projects in Nigeria. This study aimed to analyse the impact of stakeholder engagement on the success of construction projects in Nigeria, focusing on four main variables: Customer Engagement (CuE), Employee Engagement (EE), Community Engagement (CE), and Supplier Engagement (SE). Using a robust multiple regression model, data were collected from 48 participants, including project managers, contractors, and community representatives. Statistical analysis, including correlation analysis and multiple regression using SPSS version 25, was conducted to test four main hypotheses. The findings reveal that Employee Engagement (EE) and Community Engagement (CE) have a statistically significant positive impact on construction project success. Specifically, higher levels of Employee Engagement were associated with more tremendous project success, highlighting the critical role of workforce participation in achieving project objectives. Similarly, Community Engagement enhanced project success significantly, emphasising the importance of community involvement in shaping favorable outcomes. In contrast, Customer Engagement (CuE) and Supplier Engagement (SE) did not significantly impact project success, suggesting that their roles in construction project execution may be indirect or context dependent. While these findings contradict some prior research, they underscore the nuances of stakeholder involvement within Nigeria’s construction sector. This study concludes that Employee and Community Engagements are critical drivers of project success, while further research is needed to understand the roles of Customer and Supplier Engagements. This study contributes to the existing literature by providing novel insights into the dynamics of stakeholder engagement in Nigeria’s construction sector, offering valuable guidance for practitioners and policymakers. These findings shed light on the unique contextual factors influencing project success in Nigeria and provide a foundation for future research to explore the complexities of stakeholder interactions in construction project management.