The Adoption of Critical Success Factors Theory and Resource-Based Theory to Increase Project Success

Abstract

The researchwasconductedto analyze the effects of the project resources on project success forgeothermal power plant construction projects in Indonesia. The research will provide contribution the project management area, especiallyin the effort to increase the current low project success rate in the said field.

The research method was quantitative type by using a questionnaire survey and interviews to collect the data. The critical success factors theory, “Factor” school of thought premise, the concept of grouping the project critical success factors, and the resource-based theory were appliedto develop the research model. The unit analysis was the completed power plant project. PLS-SEM was used for the data analysis and the hypothesis tests.

The study found that three project resources (foundation, support and process) increased the project success, while the fourth project resource (personnel) did not increase the project success. Personnel may increase the project success through project’scompetitive advantages. The fifth project resource (process flexibility) strengthened the effect of process on the project success.The results of this research are supported by the previous studies except for personnel. This study offers fiveproject resources, as groups of critical success factors,to be fulfilled bythe geothermal power plant construction projects project managers, to increase the project success.

The research model is strong and has predictive relevance. The result of this study cannot be applied other than for geothermal power plant construction projects inIndonesia. A larger number ofpower plant projects and respondents will increase the strength of the model.