The relation and effect of project management maturity on the performance of contractors: The case of Ethiopian Grade 1 contractors

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The main objective of this study is to assess the relation and effect of Project Management Maturity on the performance of the Grade 1 contractors in Ethiopia in managing their organization and projects, and to determine the areas that need to be focused to improve and development project management excellence in the industry. To achieve the intended research objective, the researcher used a quantitative research approach by collection of primary and secondary source mainly the primary data which are put to rigorous quantitative analysis. This research used descriptive analysis methods as it tries to describe the status of PM maturity in Grade 1 construction companies and measure the organizational and project performance of the contractors in relation to KPIs. A random sampling technique was used to get a more representative sample for the study because the sample is comprised of a homogeneous group. The study collected and validated data from 53 Grade 1 contractor and conducted full fledge analysis to measure the PM maturity of the contractors and its relation and effect on performance indicators. Project management maturity was evaluated using the maturity level of project management solutions processes described in PMBoK Project performance was evaluated using the key performance indicators proposed by (DETR, 2002). The data were analyzed by statistical methods such as descriptive statistics, Cronbach's alpha, bivariate correlations, multi-linear analysis, and based on the findings, the PM maturity of Ethiopian grade 1 contractors is found to be 3,11-dimension maturity level of PM Solutions maturity model standards which means that Contractors have Organizational Standards and Institutionalized Process, or all projects use organizationally institutionalized formal standards. In is also found that Ethiopian Grade 1 contractors have a higher maturity level on scope, schedule, cost, quality, resource, procurement and financial management knowledge areas while they have less maturity on integration, communication, risk, stakeholder and HSSE management knowledge areas. In addition to that it is found that PM Maturity of each PM knowledge area can predict performance of contractors, and for that a performance prediction formula model is developed and accordingly it is possible to predict each key performance indicator and set priority project management knowledge excellence areas to improve organizational performance


Prepared for Partial Fulfillment of the Degree of Executive Master of Business Administration [EMBA


Ethiopian Grade 1 Contractors, Key Performance Indicators, Organizational Performance, Project Management Maturity, Project Performance