Evaluating the correlation between project selection criteria and organizational performance within the construction industry

Abstract

The project selection criteria are required for an effective project lifecycle, and the selected projects should correspond with organizational aims and objectives; yet, the organization lacks severely in its ability to act decisively on the problem. Hence, this study aims to highlight the best project selection criteria that are related to organizational success. In this manner, a quantitative survey approach was used, with closed-ended questions distributed to employees in Pakistan's construction industry. The relationship between project selection criteria and organizational performance was evaluated using structural equation modelling in SmartPLS through measurement and structural models. The findings reveal that a significant positive correlation was found for all the project selection criteria, except for the financial criteria. Furthermore, the results demonstrate that project selection criteria are critical for organizational success; hence, the findings will assist organizations in making better project selection decisions.