The Effect of Risk Management Practices on Project Performance in Grade One Construction Companies: The Moderating Role of Team Collaboration
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Date
2026-10
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Addis Abeba Universty
Abstract
The study examines how risk management methods impact project outcomes in Grade One construction companies based in Addis Ababa while assessing team collaboration as a factor that impacts project results. The research design applied an explanatory approach which used quantitative methods to establish causal links between variables. The research used Yamane's formula to select 114 participants from 158 project staff members through a process that involved stratified sampling. The researcher used a structured questionnaire with closed-ended questions to gather data which was analyzed through descriptive and inferential statistical methods using SPSS version 27. The researcher discovered that risk planning, risk identification, and risk response & monitoring all produced statistically significant positive impacts on project outcomes while risk assessment showed no direct effect on results. The analysis of moderation effects demonstrated that team collaboration enhanced the connection between risk planning and project results together with risk response and monitoring activities and their effect on project outcomes. The presence of collaboration did not create any meaningful impact on how risk identification and risk assessment processes influenced outcomes. The study demonstrates that organizations need to establish formalized risk management systems alongside building team-based environments to improve their ability to handle unexpected challenges while meeting stakeholder needs. The study advances project management theory by presenting a distinction between the technical aspects and the relational aspects of risk management while providing construction companies with practical methods to enhance their project performance. The researcher present both practical recommendations and research directions for upcoming studies.
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Keywords
Risk management, team collaboration, project performance, construction industry, Addis