Integrated model for enhancing value management performance in the construction industry
Authors:   , Olubukola Iyiola Comfort 
Published: September 2024

The introduction and integration of Value Management (VM), originally stemming from the manufacturing sector, has been actively promoted within the construction industry to enhance project delivery performance and its economic impact. Regrettably, the application of VM in construction faces several formidable challenges. These challenges can be attributed to various factors, including the transplantation of a management concept from manufacturing without adequate consideration of the specific variables and conditions conducive to VM's effective application in the construction sector. This research diligently investigated and formulated the variables essential for achieving optimal VM performance, thereby ensuring the appropriate application of VM principles in the construction industry. The study employed a comprehensive research methodology, encompassing the sequential exploratory mixed-method research involving both qualitative and quantitative approaches. The qualitative aspect involved a Delphi study supported by relevant literature, engaging fourteen experts in a three-stage process. The insights obtained through the Delphi process aided in identifying the key dimensions (both primary and secondary) that contribute to the effectiveness of VM in the Nigerian construction industry. The findings derived from the Delphi study and the review of existing literature culminated in the development of a five-component model for enhancing VM performance in the Nigerian construction sector. These components comprise integration, collaboration, standardization, utilization of digital technologies, and the fostering of a conducive corporate culture. Subsequently, a quantitative survey employing questionnaires was conducted among professionals in the built environment. Over a three-month period, 202 completed questionnaires were collected through purposive and snowball sampling techniques. Initially, a descriptive statistical analysis was conducted using the Statistical Package for the Social Sciences (SPSS) version 25 to present the demographic information of the respondents. Furthermore, the study embraced structural equation modeling (SEM) utilizing the partial least squares (PLS) approach, leveraging the SmartPLS version 4 software. This analytical framework aimed to identify the constructs that most significantly influence effective VM performance and subsequently construct a model for improving VM performance in the Nigerian built environment. The methodological process, coupled with extensive analysis, pinpointed the constructs with direct influence and robust relationships with the outcome variables. This analysis encompassed assessments of indicator reliability, internal consistency reliability, convergent validity, discriminant validity, collinearity, explanatory power of the model, predictive relevance of the model, goodness of fit indices, path significance, and several other quality checks, culminating in the formulation of the final VM performance model (referred to as Model 2.0). The questionnaire findings substantiated that these constructs collectively serve as predictors of VM performance in the Nigerian construction industry. Additionally, the study unearthed that the performance indicators for VM in construction are associated with the benefits of adopting VM, which include cost savings, efficient time management, improved project management, and the elimination of delays. This study offers contributions to existing knowledge on three fronts: theoretical, methodological, and practical. Theoretical contributions encompass the recognition that existing constructs for modeling VM performance in construction are incomplete without the inclusion of corporate culture and digital technologies. Furthermore, the study highlights the most critical construct for predicting VM performance in the Nigerian construction industry. Methodologically, the study contributes by employing a mixed research approach, providing a comprehensive understanding of the issue at hand. The Delphi study enabled input from construction industry professionals to identify previously unaddressed indicators, while SEM effectively considers the indicators used in measuring the constructs and provides guidelines for adding or eliminating indicators. This methodological approach has facilitated the creation of a comprehensive VM model tailored to the Nigerian construction industry. On the practical front, the study aids construction stakeholders in improved project planning by identifying key variables that ensure VM performance. In conclusion, this study recommends that similar research should be conducted in other developing countries. It also underscores the importance of corporate culture in promoting integration and collaboration within the Nigerian construction sector. Furthermore, the utilization of digital technologies is encouraged to facilitate stakeholder collaboration. Finally, stakeholders in the Nigerian construction industry are advised to align their VM practices with the five-factor model, with particular emphasis on integration, collaboration, and fostering effective corporate culture as pivotal components.