ISSN 1750-9653, England, UK International Journal of Management Science and Engineering Management, 6(5): 343-349, 2011 http://www.ijmsem.org/ The critical success factors influencing project performance in Nigeria Amaka Ogwueleka * Department of Quantity Surveying, University of Uyo, Uyo PMB 1017, Nigeria (Received 2 September 2010, Revised 5 April 2011, Accepted 27 April 2011) Abstract. Success factors are inputs to management system which can lead directly or indirectly to project success. This paper aims to investigate the critical success factors influencing project performance in Nigeria. The objectives are to identify success factors existing in projects and also to examine the important index of these success factors on project performance in Nigeria. Twenty-two success factors were selected from the literature for the research with sample size of 188 professionals. The data obtained from the questionnaire are analyzed using frequency, severity and important indices. The reliability test on the data using Crobach’s alpha displays, sixteen success factors were necessary for true satisfaction of successful project implementation in Nigerian Construction Industry. Based on the result, objective management, management of design, technical factors, top management support and risk management were selected as the most critical success factors in project performance. The findings are focused to assist practitioners’ gain better understanding on the key areas based on prioritized success factors in order to improve performance in project delivery. Keywords: critical success factor, project performance, objective management, technical factors, top management support, market intelligence 1 Introduction The management of projects has shifted from the use of hard system approach to soft factors (Litsikakis, 2008). Hard systems approach involves the adoption of mechani- cal motions in project implementation (Major, 2005). Many researchers have proved the approach to be faulty due to the change in demand from conformance (specification) to performance (incorporating the voice of the customer). In order to achieve performance in project delivery, soft fac- tors must be considered. Soft factors involve the develop- ment of a series of soft skills focusing on maximum cus- tomer delight. These soft factors are applied throughout the lifecycle of the project in order to enhance the success of the project. Previous studies have revealed that soft fac- tors have been applied in project delivery in Nigeria but poor project performance has also been recorded. This has resulted to low productivity growth which runs across all industrial sectors including Nigerian Construction Indus- try (Adenikinju and Ayonrinde, 2001 [2]; Adenikinju and Soludo, 1997 [3]). Malladi (2007) [20] stipulated that en- hancement of project performance will bridge productivity gaps. In enhancing project performance, there is a need to address the problematic issues restricting project perfor- mance. However, many problems have arisen during project implementations which are centered on overruns of project indicators. In recent years, Nigerian economy has grown up speed- ily. Nigeria operates mono-product economy with absolute dependence on crude oil export. In 2001, crude oil export was estimated 98.7% of foreign exchange earned. This im- pact has eased financial constraints to infrastructure devel- opment and urbanization but has also created easy trans- mission of fluctuation existing in the highly volatile world oil market into economy. Instability in Nigerian economic system is driven primarily by accumulating factor inputs (Adenikinju, 2005 [1]). These involve continued accumu- lation of productive inputs and imports which have cre- ated negative impact on performance of Nigerian industries. Krugman (1994) [17] emphasized that continued accumula- tion of these inputs generate perspiration into an economy which may not be sustainable in the long run. Developing countries have higher rate of low project performance than developed countries (Lim and Alum, 1995 [18]). Most re- searchers discussed the increased challenges and decreasing performance of the construction industry (Casler and Gal- latin, 1997 [9]; Teicholz et al., 2001 [36]). The major indica- tors of performance in construction projects were identified as time, cost and quality (Mckim et al., 2000 [23]; Atkin- son, 1999 [5]). These indicators are driven by factors that can be used to ascertain the strengths and weaknesses in project performance (Marteralla, 2007 [21]). These factors may be pitfalls or success factors. According to Olav et al., (2007) [29], success factors were considered as opposite of pitfalls. This research is focused on success factors influenc- ing project performance. Cooke-Davies (2002) [13] defined project success factors as inputs to the management system that lead directly or indirectly to the project success. The identification of these success factors has become critical issues facing project managers (Motwani et al., 1995 [25]). Evidences have proved most construction projects in de- veloping countries suffer overrun in cost and time. Iyer and Tha (2006) [14] revealed that 40% of Indian Construction projects are facing time overrun ranging from 1 to 252 months. Ugandan Construction Industry experiences cost and time overruns (Mubiru, 2001 [26]). Construction delay * Correspondence to: E-mail address : chichiogwueleka@yahoo.com. ©International Society of Management Science and Engineering Management® Published by World Academic Press, World Academic Union