A hybrid approach for investigating impacts of leadership dynamics on project performance

Purpose: This paper proposes a novel hybrid simulation approach that incorporates the structural equation model (SEM) and system dynamics (SD) to investigate the impacts of leadership dynamics on project performance under different scenarios. Design/methodology/approach: SEM is used to identify and validate a correlation between leadership variables and project performance statically. On this basis, the SD model is constructed to depict a system model connecting the leadership and project performance. Different scenarios are simulated to dynamically model the variation in leadership on the evolution of project performance. Findings: Results indicate that (1) leadership can be divided into personal ability, relationship atmosphere and organizational strategy in complex construction projects; (2) personal ability, relationship atmosphere and organizational strategy positively correlate with project performance over time; and (3) L1 (stress management ability), L7 (team building) and L17 (institution support) are the leading factors influencing project performance and should be paid more attention under limited resources. Originality/value: This research contributes to (1) the state of the knowledge by proposing a hybrid methodology that can systematically model the impacts of leadership dynamics on project performance over time and (2) the state of the practice by gaining a better understanding of the strategy of resource distribution for enhancing project performance in complex construction projects.