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Implication Of Adopting A Project Management System On Its Success In PSP Projects

Introduction-Implication Of Adopting A Project Management System On Its Success In PSP Projects

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With intense globalization, businesses have been exploiting their resources to maximize their profit by carrying out their operations and processes across boundaries. Many firms have carried out projects in countries where they were getting better margins or have high demand. Managing projects across boundaries have been prone to higher risks due to dynamism of external factors. For managing projects, it is desirable and highly recommended by experts to adopt a project management system. This paper will discuss the vitality and application of project management system for projects carried out across boundaries. This paper will focus on construction projects and its aspects that help the business to determine which project management to adopt for carrying out projects across borders. The paper will critically express elements such as cultural factors, economic, political, and technological factors that are significant in impacting the project management system. Each Project management system focuses upon the need of the project and objective of the business associated with such projects. In this paper we will discuss how construction projects are affected by choice of the Project Management System

Construction projects in India are influenced by several external factors such as topography, supporting infrastructure, legislature governing such projects, labor laws, and like. India is a country of diversity and therefore managing projects is sensitive to dynamism of the market as well as society of the country. This paper will aim to achieve a comprehensive understanding about choice of Project management system in context of construction projects in PSP Projects and elements that are significant to making such choices.

1.1 Background

With exponential rise in FDI, India has emerged as one of the most attractive nations for investment purposes. India has seen a healthy growth in inflows for carrying out construction projects (Singh, 2019). With the 1991 policy of privatization and globalization, India opened routes for foreign companies and favorable policies for carrying out construction projects has been the main driver of choosing the project management system regarding construction (Singh, Deep, and Banerjee, 2017). In the last decade, India had witnessed an enormous inflow of 25.69 billion USD as foreign investment in construction development along with 16.97 billion USD allocated directly to construction activities. Constructions in SEZ area, industrial parks, and in completed townships are subject to 100% FDI. Sharma (2018) views the project management system as a pivotal element that has paved the way for construction projects to be carried out in India. Whether it is monitoring the project using tools and techniques or laying the foundation by adopting management principles guiding the project, the Project management system has benefited construction projects to be completed timely and smoothly in India (Singh, Deep, and Banerjee, 2017). “PSP projects” was significantly affected by political factors and economic decisions by central authority that will be discussed in the paper. With increase in household income, these types of projects have also seen rise due to the rise in demand of housing projects, malls, shops, and other physical premises. Ogunde et al., (2017) highlight the role of project management systems to streamline the country’s market. Governments of different states have also stated their participation in boosting the economy of the nation by launching industrial estates for manufacturing purposes. With exponential rise in associated industries such as IT, Steel, Cement industries, construction industry has attracted many foreign investors. Recently, the government declared in the union budget, 2022, that it will inject finance in the market due to which construction projects were greatly impacted. Ogunde et al., (2017) state that the project management system works as a guide for managing projects in foreign countries and the best part is that it can be modified according to the environment. In case of construction projects, topography, economic factors, labor laws, and political factors are major factors that decide the project management system. Sharma (2018) states that construction projects of PSP projects have been carried out by following a definite and predetermined project management system and such projects have high success rates. Moreover, the research also focuses on determining the success of such projects that followed a definite system for project management. Singh, Deep, and Banerjee (2017) opined that for the success of construction projects, it is vital for the business to have a definite framework that governs the whole project. The system adopted provides the base for such projects and helps the business to minimize wastage to great extent. The large-scale projects are outsourced to construction companies that have their system to carry out construction activities. In India, construction activities have surged after the Covid-19 pandemic. These constructions were mainly carried out by the government and handed over to companies like PSP projects, Ashoka Buildcon, PNC Infratech which have a high success rate of completing construction projects. With strong fundamentals and a definite system, PSP projects have attracted many foreign investors. Likewise, foreign companies have observed that construction projects in India are highly dependent on the choice of project management system. Mavi and Standing, (2018) opine that the project management system does not direct the business or the company but provides a set of rules, guidelines, tools, and techniques to take decisions that streamline with their objectives. These aspects of the Project management system regarding PSP projects will be discussed in the paper for critically reviewing the success of executing projects following the project management system in India.

1.2 Research Aim and Objectives 

Research Aim

The study is aimed towards reviewing the project management system in the Indian construction company, PSP projects and determining the role of economic, political, and social factors in determining the Project Management System to recommend appropriate systems in the company

Research objectives

  • To determine the vitality of factors affecting planning of a construction project in India by reviewing literature.
  • To apply models and theories to determine its impact on the planning of a construction project in India.
  • To ascertain accuracy of these models and proposed Project management system in ensuring success of the project led by PSP projects.
  • To draw lucid conclusions and recommend research areas for further research.

1.3 Research Questions

The research questions are based on the above description of the case. Following questions will be the base of the whole research. The research will streamline with these questions to maintain objectivity and reach a concrete and lucid conclusion.

  1. How do economic, political, and social factors of India affect the choice of project management system regarding construction projects in India?
  2. How do external factors affect the planning of PSP Projects?
  3. What are those factors that affect construction projects in India, mainly in PSP projects?
  4. What are different types of project management systems and on what factors are they dependent on to make a project successful?

1.4 Research significance

This research is based on determining the role and impact of the project management system on the success of carrying out construction projects in India which is chosen based on external factors of the country. The research is significant as it will help the reader to get insight about the execution of projects in the construction industry and to determine the degree of sensitivity of these projects concerning the external environment (Verma, 2017). It is inevitable for a project to meet its objective while being cost-effective. The paper will discuss how a project management system helped PSP projects to achieve its goals by remaining cost effective. It will help the reader to gain knowledge about analytical and aid decision-making regarding the choice of project management system for different types of projects, especially in the case of the construction industry (Singh, Deep, and Banerjee, 2017). It will also help the reader to become enlightened about the difference between executing a project in the home country and executing a project in the host country. It is vital to study about the factors that affect the choice of project management system concerning different industries. One system adopted for one type of project might not be effective for another project because of certain differences and the different factors that affect them. An IT project is totally different from a construction project and therefore the factors affecting these projects will be different (Mavi and Standing, 2018). Therefore, it is vital to know what factors affect a specific project. Working conditions in India are totally different from that in America and therefore one should also be well educated about such differences that might impede the working of a project management system (Sharma, 2018). For instance, labor laws in America are more rigid and articulated than those in India. Because of loopholes in the legislature that governs labor laws and practices, PSP projects had to adopt a different project management system. For these reasons, it is advisable for the practitioner and project associates to know about the factors of the external market of the host country before choosing a project management system (Verma, 2017). This paper is focused on construction projects executed by PSP projects and how they are affected by the choice of Project management system based on factors that will affect the project during its implementation and therefore it will be a lucid research paper aiming to fulfill the research objectives and giving concrete answers after thorough study of empirical data used in this research (Singh, 2019).

Chapter 2: Literature review

All the factors have been thoroughly discussed in this report: how much of a social shortfall is there for the workers and what kind of problems are faced in their security in the construction. How the economic factor affects the construction industry has also been informed about it and how the political problem has to be faced. Some such factors have also been discussed in the report which gives information about the external variables of the UK and India and how they differ from each other. How the two countries work differently in creativity, in management systems and in a final way. This report also discusses which project management system is suitable for building projects in any country. In it, 5 types of processes have been discussed, which is the scope of recognition of the project, planning, execution, monitoring and closing of the project. And lastly, it has been told on how the political, economic and social sectors impact in planning the construction project.

Factors Affecting the Construction Industry Socially

  • The shortfall of workers: During the crisis, the construction sector lost approximately 2 million positions, although it has been difficult to get output back to the previous levels. In the research conducted by Guo et al. (2016) many individuals left the industry, even though they retired or were fired off, and got a job in plenty of other fields. As the crisis progressed, it became evident that even these people, who had moved on to new jobs were still not returning. The basic conclusion is that the construction sector is struggling to find sufficiently qualified workers to accommodate increasing demands. According to a recent study by both the AGC, 75% of businesses anticipate increasing staff in 2018, while 78% of businesses are experiencing difficulty hiring suitable personnel. In the words of Bilal et al. (2016) furthermore, 82 percent of businesses anticipate that finding and hiring skilled personnel will be challenging, if not impossible, in 2018.
  • Security: The construction sector remains to have a problem with safety procedures. For decades, construction has ranked first among all professions in terms of absolute occupational accidents. The study of researcher Al-ahdal state et al. (2020) for years, the number of operating medical problems has remained relatively stable. All big businesses should prioritise maintaining employees satisfied and safeguarding them from injuries and deaths. When vulnerabilities are reduced and risk control measures are properly and diligently implemented, tragedies are readily avoided. In the research conducted by Lin et al. (2017) protection starts with leadership, and research has already shown that firms with excellent safety systems seem to be more effective. The study of Smol et al. (2015) demonstrates a concern in the very well of its personnel, a development name and reputation can indeed be enhanced and quality players can really be attracted.

Factors Affecting the Construction Industry Economically

  • Development And higher-quality That Haven't Changed: Building, unlike some of the other businesses, has had little to no increased productivity throughout the last eight decades. As shown in the latest studies by McKinsey & Co., "although several India industries, such as mining and agriculture, have boosted production ten to fifteen per cent ever since the 1950s, economic growth has remained at almost the same levels as it was 80 years ago." According to existing data, the industry in terms of performance has been declining steadily since the late 1960s. These observations seem concerning, specifically considering the growing complexity of construction works. Low performance on building projects is caused by a variety of variables. These could become a problem in construction and budgeting, a shortage of interaction and collaboration among project team members, or unproductive time spent waiting for essential commodities to arrive or for earlier research to really be finished.
  • Financial shortcomings: Joblessness evaluation of the effectiveness of reduced purchasing rate for development supplies and resources will have an impact on the economic rate. Due to the obvious instability, it is difficult for the customer, banking institutions, property owners, and many other small enterprises to succeed.

Factors Affecting the Construction Industry Politically

  • Developing, organising, and developing a venture: The number of large developments requires support in and out of the municipal authorities. If the local authority wishes to change zoning restrictions for a specific bit of land, the enterprise will be affected by the closure of production. Furthermore, if the executive branch refuses to allow or authorise changes to the health and safety laws that would assist a building company in obtaining recurring high-pressure situations at work, the construction will be cancelled.
  • Concerning Security Requirements: Safety laws and policies at the government, regional, and municipal levels could act as ideological instruments affecting the production profession. This encompasses any safety concerns for the location in which the development will be built, and even the facility or superstructure itself, even during the development process. In addition, the correct supplies and materials must be used as well. If the administration rejects and therefore does not authorise the project, no construction will begin again until privacy and protection standards, procedures, and guidelines are approved.

Differences between UK and Indian external variables in the context of the construction industry

  • Creativity: Industries in the UK are able to organize seminars to enhance the skills of their workers in which their skills are further enhanced. Efforts are made to increase their level of creativity and innovation further. In the words of Aggarwal et al. (2017) due to seminars, workers get an opportunity to enhance their skills, but their chances of employment also increase further. More progress and creativeness and innovation have come in their work. But on the other hand in India, all these things are not so focused. Workers do not get proper guidance nor are such seminars organized for them, in which they get an opportunity to enhance their skills further. Due to not getting the right guidance and due to non-conduct of seminars, there are problems in the work of the workers and there is also a lack in their safety because how they should work in their work keeping their safety in mind. They do not understand that thing properly.
  • Financial: In the UK, the right funds are produced by the company for the work, which includes the materials of their constructions and also the safety equipment of the worker. Workers do not face much problem in working because the funds are made in the prescribed amount, due to which there is no interruption in their work and no shortage is found. But in India, the company does not produce as many funds as in the UK. In the research conducted by Patil et al. (2020) workers have to complete their work in some amount and their safety equipment is also not given so much attention due to which many engineers and death rates are found. Due to the non-availability of material in the set amount with the workers, there is a problem in the construction. This problem also leads to major accidents in the future.
  • Management System: In the Uk, the right management system is hired in the construction work itself, in which the management is able to get the work done only on the skills of each worker. The right leadership qualities also come in the right management system, in which the leadership gives equal respect to its employees and listens to their ideas. The research conducted by McLeod et al. (2017) all these things in the UK management system. But in India, not much focus is on the management system in which the management thinks which team of workers will be right for which project and in what work. The construction industry in India should prepare a management system in which they should provide things keeping in mind the safety of their work and which person will be right in what kind of work so that their company will also get profit and the employee will also get their performance in the right way. and he will be able to finish his work in the right way.

A project Management system that works well for PSP Projects in the country

Seven project management system models can improve the project management system in the country.

  • Agile: Agile was among the most well-known models and frameworks, and it is particularly suited for iterative development assignments in construction systems. It's a form of approach in which identity and cross-functional organizations and potential consumers work together to develop requests and responses of construction tasks and applications. It was devised as a reply to the shortcomings of the Waterfall technique (more on that later), whose operations failed to satisfy the needs of the technology industry in terms of intense competition and continual mobility in the construction projects system.
  • Scrum: In the research conducted by Golini et al. (2015) responsibility, tenacity, concentration, accessibility, and compassion are the five attributes that makeup Scrum. Its purpose is to use participation, transparency, and constant improvement to design, launch, and manage diverse products in construction systems. Scrum differs from many other Agile project management techniques in that it uses distinct responsibilities, engagements, and artefacts to execute the construction task.
  • Kanban: Kanban seems to be another well-known Agile software development methodology that, like Scrum, emphasises new copies and participatory, personality individuals in construction systems. That would be a very graphical strategy that attempts to offer excellent products by sketching a representation of the production process so that impediments may be discovered early in the development cycle. It is based on six fundamental principles: Visual representation, minimizing the quantity of effort in preparation, managing the transmission of a communication, clearly stating guidelines, and making use of feedback effects.
  • Lean: Lean concept encourages construction companies to maximise customer satisfaction while reducing waste. Its goal is to provide more value to its customers as well as use available materials. It is standards, which are derived from either the construction industrial sector.
  • Waterfall: Waterfall is a function of time, an iterative development framework in which measure typically slightly downward throughout one direction — like something of a waterfall— and also one of the more customary development methodologies in construction sites or projects. Its lack of stability in design decisions in the early stages of the project is due to it becoming exorbitantly more expensive relative to its formalised environmental features, which originated in the capital goods industry for the construction system. In the words of Fewings, et al. (2019) the Waterfall technique of managing projects emphasises the necessity of documents. The concept is that once a person leaves even during the planning process, their substitute may pick up where they left off by familiarising themselves only with papers' material. Prior to Agile, application implementation was done using the Project management methodology, which had a number of drawbacks, including non-adaptive inherent limitations, a lack of user engagement even during project development, and then a lengthy acceptance testing.
  • 6 Sigma: In the research of Radujkovi? et al. (2017) it seeks to increase quality by lowering the number of problems in something like a production by eliminating unnecessary what isn't operating in construction systems. It employs a variety of project methodologies, the majority of which are observational and mathematical, and even the competence of people who have experience in these techniques in the project of the construction system.
  • PMBOK and PMI: The Project Management Institute (PMI) is a non-profit professional association that also offers certificates of completion and requirements in project construction. The PMBOK, which is also not technically a paradigm but a reference defining the standards and guidelines that describe the management process, is produced by the PMI. This model states 5 processes for the construction system which are initiating, planning, executing, monitoring, closing.

Impact of Political, economic, and social factors on the planning of the construction project

  • Economic factors which impact the planning of the construction project: The construction sector is influenced by a variety of market issues, including increasing population, business development, unemployment, mortgage rates, customer preferences, and equipment. The requirement for construction repair and servicing would also expand. With time there has also been a change in the things related to the project, in which the requirement of more technical things is made in the things related to the project. The skills of the employees working in the project are also up to date, the company has to pay expenses to enhance their skills to produce their seminars. The research conducted by Oesterreich et al. (2016) employees also now work at higher rates, due to which there is a slight decrease in the company's score profits. Due to taking care of the safety of the employees, it is necessary to provide them with equipment, which also costs more. There are many such factors that affect the economic way in planning any construction project. In which the company has to complete the construction work after facing some financial difficulties. Considering the requirements of your business and also keeping in mind the requirements of the construction project.
  • Social factors which impact the planning of the construction project: There is a lot of problem of shortage of staff in construction projects. Somewhere problems arise due to the behaviour of the employees in the work outside. Due to a lack of proper relations among themselves, the employees do not do their work properly. And more and more employees are not so up to date as of now regarding their skills and performance, due to which he needs to conduct many seminars to the company. In the words of Preuss et al. (2015) due to the low skills and performance activity of the employees, the project has to face many problems. There is a lack of innovation and development associated with the project when employees do not have the right skills and performance activities. In this way, the social factor also influences planning for the construction project.
  • Political factors which impact on the planning of the construction project: Many times it happens that the company does not get much support from the government and municipal authority. Due to their restrictions, changes have to be made in the plan, due to which there is a lack of performance and innovation. There are many difficulties in the project to work considering the government rules and regulations. The study of researcher Loosemore states et al. (2016) organizations have to keep every little thing in mind. If a construction industry makes a mistake in any small thing, then that work is stopped by the government. And somewhere, due to the late permit by the government, there is a delay in the construction project, due to which the company has to bear heavy losses. There is a lack of time in preparing the same things, but they also get a reduction in profit. That's why such political factors affect the planning of any construction project.

Chapter 3 – Research Methodology


Research methodology refers to the specific techniques or procedures that can be adopted by the researchers for identifying, selecting, processing and critically analyzing the collected information or data with respect to the research topic. By making use of the suitable research methodologies, the readers can evaluate the reliability as well as the validity of the entire research report. It is important to choose the best and the most appropriate research methodologies for clarifying the research inquiry and carrying out the whole research in a systematic manner. For this purpose, the Saunders Onion research model has been applied which involved the detailed explanation for each stage of the research process. This model has greatly helped in designing the research methodology process and in ensuring its adaptability. Saunders had adopted the research onion framework to go from the outer layer of the research onion to the inner layer of the research onion. All the stages of the research methodology have been discussed as below with respect to the chosen onion research model and the research topic.

Figure: Saunders onion research model

Source: Saunders et al., 2007

Research philosophy

Research philosophy helps in dealing with the scope, nature and the development of the research knowledge or it is the belief that helps in collecting, using and analyzing data about a particular phenomenon. In addition to this, research philosophy further helps in making the researchers aware about the beliefs and assumptions that have been made for the research project. The basic assumptions being made by the researchers are reflected by the research philosophy on the basis of which the research strategies are being formulated (Melnikovas, 2018).

For this research project, the pragmatism research philosophy has been adopted which believes that the research project can be evaluated, interpreted and undertaken in different ways as there are multiple realities through which the project can be made understood. According to this philosophy, the implications of project management system can be ascertained for the success of PSP project from the perspectives of different researchers. The research questions have been considered as the important determinants during the application of pragmatism philosophy (Al-Ababneh, 2020). The chosen philosophy has further helped in the integration of multiple research methods and approaches for understanding the research project in a detailed manner.

Research approach

The second layer of the research onion is the research approach and for carrying out this research project, induction research approach has been followed that is also known as the inductive reasoning. This approach involves the critical observations and relevant theories that have been proposed for evaluating the final results of the research project. This approach did not required the researchers to formulate theories or generate research hypothesis and the data has been collected regarding the factors that affect the planning and application of project management system within the construction companies of India, especially within the context of PSP projects (Melnikovas, 2018).

The meanings have been generated by determining patterns and developing relationships between significant theories associated with the project management system being followed by the PSP project. For exploring the developed research questions, the existing theories in related of the project management systems have been taken into consideration for better and in-depth understanding. The detailed observations have been reviewed and abstract generalizations and ideas were reviewed for identifying crucial relationships between the economic, social and other factors that might influence the decision of the choice of project management system by the construction companies of India (Al-Ababneh, 2020). Inductive reasoning is also termed as the bottom-up approach as the researcher initiates the studying of the research project from observations and then move upwards towards developing the patterns and applying the existing theories.

Research strategies

This is the third layer of the research onion that has greatly helped the researchers in carrying out the research work. The research strategy involves multiple approaches and the researchers choose among them depending upon the scope and nature of the research project. For this research project, mainly two research strategies were used including the case study and systematic literature review (Sahay, 2016). The strategy of case study has enabled the researchers to particularly focus on one or single area i.e. the PSP project and offering the insights about the implications of project management system by giving the significant examples with relation to the PSP project. The case study research strategy has been considered as the single unit for establishing the key features about the particular system of project management and drawing key generalizations.

Another adopted research strategy of critical literature review has helped in carrying out the critical and in-depth investigation of the research questions by reviewing and evaluating different perspectives of different researchers. The systematic literature review has been undertaken by reviewing the peer-reviewed journal articles and investigating the latest sources that published information and knowledge about the trending factors that have been affecting or greatly influencing the project management system. This particular research strategy has been proven to be the best strategy as it has worked as the greatest evidence about the research topic (Snyder, 2019). The systematic literature review has enabled the researchers to determine the research gaps with respect to the recent understanding about the chosen field of the research project.

Research choice

It is the fourth layer of research onion which reflects three choices of research including the mono, mixed and multi methods of research. The mixed research choice has been reflected throughout this research project as the investigation of both the qualitative and quantitative has been combined with each other for developing a precise set of data. Depending on this research choice, the qualitative and quantitative forms of methodology were applied for analyzing and evaluating the collected data with respect to the developed research questions (Sahay, 2016).

Research time horizon

This layer of the research onion describes the total time being taken for completing the entire research project. As this research project has got completed within the specific period i.e. before the final submission of the research project; therefore this project is said to be the cross-sectional time horizon.

Research methods

Data collection

Data collection is considered as the most important stage or layer of the research onion as it is necessary for the researchers to collect reliable data that is being further investigated and analyzed during the process of data analysis. For this research project, the secondary data has been collected which was derived from identifying various opinions and perspectives of different researchers. For the purpose of collecting the secondary data, the recently published peer-reviewed journal articles have been searched and critically reviewed and many e-books about the factors affecting the success of project management system have been studied in-depth (Sahay, 2016). Other than this, the online websites of the PSP project were also evaluated and studied for ensuring the success of the particular project management system adopted and applied by it.

It has been further made sure that no data prior to the year 2015 must have been considered as the focus has been made on collecting data and information about the latest factors and trends in association with the advanced or updated project management systems. While choosing the journal articles and other sources for collecting the secondary data, some factors have been taken into account such as the date of publication, reliability and validity of the source, depth of analysis made in the source, credentials or background of the author and quality of discussions made within the source (Snyder, 2019).

Data analysis

For analyzing the collected secondary form of data, the qualitative data analysis method was adopted which refers to the non-numeric information such as analyzing the text and information from multiple documents. The particular category of narrative analysis has been focused for reflecting the data by taking into account the context of the chosen case of PSP project and evaluating difference experiences of the researchers through reviewing the journal articles, e-books and other online sources (Mohajan, 2018). The collected data has been analyzed by using graphical representations and tabular presentations for demonstrating the proper understanding of the factors that might affect the success of PSP project with respect to the particular system of project management being used by the Company. During the analysis, the research questions have been explored and answered by linking the findings with the literature review discussion to reflect and support the generated findings with the proper evidence as given in the section of literature review (Mohajan, 2018).


In this chapter, the Saunders model of research onion has been applied for choosing the applying the right methodologies in a systematic manner. The suitable and effective research methods were adopted for answering the developed research questions and meeting the research objectives of the research project. The secondary form of data has been collected and the narrative analysis method was used for carrying out the research analysis process. In this chapter, some relevant research strategies have also been discussed along with the appropriate ways in which the data has been collected, gathered, analyzed and in-depth discussion was made.

 Chapter 4 – Findings, discussion and analysis


In this chapter, the crucial findings and in-depth analysis will be presented of the research project. For demonstrating the findings and discussions, all the research questions will be critically reviewed and graphical representations will be used for discussing the answers. Further, all the findings will be supported by the evidence and will be linked with the discussions been made in the section of literature review. The findings will be elaborated with respect to the generated arguments made by different authors and researchers. The studies and theories will be used or applied as discussed in various journal articles. In addition to this, some online sources and documents of PSP project will be taken into consideration for the final review and evaluation of the findings. This chapter is structured systematically for answering and reflecting the findings of each research question separately. Multiple sources and secondary documents/ information will be analyzed and critiqued with supporting evidences and in association with the chosen case of PSP project.

Economic, political, and social factors of India on the choice of project management system

Factors affecting the planning of PSP project and other construction projects in India

Factors that make the right choice of project management system



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