Strategies for Improving Cost Performance through Effective Internal Stakeholder Management in Nigerian Building Construction Projects
Abstract
This study examines strategies for improving cost performance through effective internal stakeholder management in building construction projects in Nigeria. Despite the critical role of stakeholder management in project success, limited empirical research exists on specific strategies that enhance cost outcomes in the Nigerian construction context. Anchored on stakeholder theory and the resource-based view, this study evaluates stakeholder management strategies across five dimensions: stakeholder identification and analysis, communication and information sharing, trust and expectation management, conflict resolution and collaboration, and continuous improvement and feedback mechanisms. A quantitative survey research design was employed, with data collected from 106 construction professionals in North-Western Nigeria using structured questionnaires. Data were analyzed using descriptive statistics (mean scores, standard deviations, Relative Importance Index) and multiple regression analysis with comprehensive diagnostic testing. The findings reveal that trust between departments (RII = 0.745), consistency and transparency in decision-making (RII = 0.769), stakeholder participation in decision-making (RII = 0.759), and timely communication of project updates (RII = 0.745) are the most effective strategies for improving cost performance. Regression analysis, validated through multicollinearity diagnostics (VIF < 10) and stepwise regression, identified six significant predictors, with trust between departments (β = 7.852, p = 0.009), consistency in decision-making (β = 4.126, p = 0.025), and timely communication (β = 4.069, p = 0.026) as the strongest positive predictors. The study concludes that structured stakeholder management practices significantly enhance cost performance and recommends the adoption of systematic stakeholder identification tools, transparent communication protocols, collaborative decision-making processes, and continuous feedback mechanisms in Nigerian building construction projects.