MODERATING EFFECT OF FIRM CHARACTERISTICS ON PROJECT FINANCING REQUIREMENTS AND PROJECT DELIVERY DELAY IN THE NIGERIAN CONSTRUCTION INDUSTRY

Abstract

The timely completion of construction projects is a global challenge, with project delivery delays resulting in significant economic losses and reputational damage. Firm characteristics and project financing requirements are critical factors influencing project delivery outcomes. Therefore, this study investigated the moderating effect of firm characteristics on the relationship between project financing requirements and project delivery delay in the Nigerian construction industry. Employing a survey research design, primary data was collected through a cross-sectional survey of 423 construction project stakeholders in Kaduna State. The data collected was analysed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with PLS 3.0 software. Findings of the study revealed that firm characteristics - including age, experience in obtaining construction project financing, and robust financial record-keeping - play a pivotal moderating role in mitigating construction project delivery delays. Notably, the study highlights the strategic importance of forming alliances with reputable partners to bolster firm characteristics, thereby unlocking favourable financing terms and expedited project delivery. To optimize project outcomes, construction firms are advised to forge strategic consortiums with esteemed organizations, enhancing their firm characteristics and ultimately reducing construction project delivery delays.