The relationships between multidimensional construction project risk exposure and overall risk-control strategy effectiveness in Oman: a quantitative PLS-SEM study

Abstract

This paper reports exclusively the quantitative phase of a broader study examining relationships between multidimensional construction project risk exposure and overall risk-control strategy effectiveness in Omani construction projects. Construction Project Risk Exposure was conceptualized as an overarching domain comprising seven dimensions: financial, environmental, operational, logistical, regulatory and legal, health and safety, and market risks. Overall Risk-Control Strategy Effectiveness, labelled Overall Strategy Effectiveness (OSE) in the statistical model, was specified as a single endogenous construct represented by seven corresponding strategy-effectiveness indicators. A cross-sectional questionnaire survey was administered to construction professionals working in the Duqm Special Economic Zone. Of 250 questionnaires distributed, 220 were returned and 210 complete responses were retained, producing an 84.0% usable response rate. Data were analysed using SPSS and SmartPLS 4 through descriptive statistics, correlation analysis, measurement-model assessment, and partial least squares structural equation modelling. Regulatory and legal risk recorded the highest perceived exposure, whereas financial risk recorded the lowest. Environmental strategies received the highest effectiveness rating, while financial strategies received the lowest. The refined measurement model showed acceptable internal consistency and convergent validity, and HTMT values supported construct distinctiveness. The seven risk dimensions jointly explained 43.0% of the variance in OSE. Financial, operational, logistical, regulatory and legal, and market risks had significant positive associations with OSE, while environmental risk had a significant negative association. Health and safety risk was not statistically significant. Because global-fit indices were weak and several coefficients were accompanied by very small effect sizes, the structural results are interpreted cautiously. The findings provide a quantitative basis for risk prioritization and future validation of risk-management models in Oman.