The Effect of Organizational Culture on Cost and Time Performance of Construction Projects: A Case Study of Elmi Olindo Contractors PLC, Ethiopia.

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Date

2026-08

Authors

Semir Mohammed

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Publisher

Addis Abeba Universty

Abstract

The purpose of this study was to test the effect of organizational culture on project cost and time performance within the construction sector. The study was conducted in Elmi Olindo Contractors, a construction company based in Addis Ababa, Ethiopia, Using Denison’s organizational culture model as the theoretical framework. A mixed methods approach was employed. Quantitative data were collected through questionnaires sent to employees of Elmi Olindo Construction PLC who are involved in projects, qualitative data were obtained through open ended questionnaire items and semi structured interviews. A census approach was used or the quantitative survey and purposive sampling was used to select interview participants.113 responses were collected and analyzed for the quantitative survey and 5 employees participated in the interview and their responses were analyzed thematically. The findings demonstrated that organizational culture has an effect on cost and time performances of a project. Regression analysis showed that involvement, adaptability and mission have a positive effect on both cost and time performance of a project however consistency did not show a significant effect. The qualitative findings further showed that communication, teamwork, leadership, effectiveness, coordination and organizational responsiveness play important roles in improving cost and time performances of project. The study concludes that organizational culture is a critical determinant of project success within construction companies. The findings suggest that improving employee involvement, improving organizational adaptability, enhancing communication and coordination, and promoting clear strategic direction can significantly improve project cost and time performance

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Keywords

Organizational Culture, Project Performance, Cost Performance, Time Performance, Denison Model

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