Effect of Stakeholder Management on Project Performance in the Case of GIZ
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Date
2021-09-02
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Addis Ababa University
Abstract
Effective management and coordination of the various project stakeholders contributes to
achieve successful project outcome. Stakeholder management involves managing
relationships to enable smooth execution of projects. This study is aimed to identify the effect
of stakeholder management on project performance in the case of GIZ. Stakeholder
management variables considered includes stakeholder identification, planning stakeholder
engagement, managing stakeholder engagement and monitoring stakeholder engagement.
Target population of 152 stakeholders encompassed the 12 projects under GIZ-QEP.
Stratified random sampling technique was employed where the strata included all the
internal and external stakeholders of the projects. Primary data were collected from 122
respondents whereby reliability of the questionnaire was ensured through pilot testing of the
instrument. Statistical analysis of the collected data was conducted using SPSS version 25
whereby descriptive and inferential statistical outputs were generated. Findings reveal that
there is a positive correlation between project performance and all the variables of project
stakeholder management. Regression model was used to test the causal link between the
independent and dependent variables of the study. Results of the linear regression indicates
that stakeholder identification, planning stakeholder engagement, managing stakeholder
engagement and monitoring stakeholder engagement all have a statistically significant and
positive effect on project performance. It is recommended to give ample focus to project
stakeholder management as it determines the performance of a project. It is the author’s
belief that proactively and carefully managing stakeholders stimulates productive
collaborations which help for an effective project delivery.
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Keywords
Stakeholder management, Stakeholder identification, Stakeholder engagement, Stakeholder monitoring, project performance