Managerial control mechanisms and their influence on project performance: An investigation of the moderating role of complexity risk

Purpose: Despite the efforts of project managers and the widespread use of project management methodologies, most of the projects remain unfulfilling in terms of delivering targeted performance. This for most part can be attributed to the inability of an organization to implement control mechanisms and ineffective management of complexity risk. Keeping in view the aforementioned problem, the objective of this study is to investigate the association between control modes and project performance. Moreover, this study also examines the moderating role of complexity risk on the association among various control modes and project performance. Design/methodology/approach: The data were collected from 171 construction projects through a postal questionnaire survey. Partial least squares structural equation modeling was utilized for testing the hypothesized relationships of the research model. Findings: This study found significant positive relation between formal and informal control mechanisms and project performance. It is found that complexity risk significantly moderates the relationship between control modes and project performance. The results indicate that complexity risk positively moderates the relationship between outcome control and clan control with project performance. Furthermore, complexity risks negatively moderates the relationship between behavior control and project performance. However, the association between self-control and project performance is found insignificant in the presence of complexity risk. Originality/value: This study is the first attempt to study the relationship of control mechanisms, complexity risk and project performance in the construction industry.