Impact of Lean Construction on Contractor Performance and Organisational Resilience in Post-disaster Infrastructure Projects

Abstract

In recent decades, natural hazards have had significant destructive impacts on human lives, the global economy, the built environment, and the functions and services provided by infrastructure. As a result, post-disaster recovery projects for impacted infrastructure have attracted particular attention to ensure necessary services in disaster-stricken areas. Construction companies play a significant role in recovery projects by providing resources, logistics and expertise. However, due to the complexity and dynamic nature of recovery projects, contractors have experienced diverse challenges. These conditions pose numerous threats to performance and undermine the resilience of companies involved in recovery projects, resulting in their failure to complete recovery projects. One possible means of improving contractor performance and organisational resilience is lean construction practices. Lean construction tools have been widely and successfully implemented in construction projects to improve performance, but the literature lacks consensus on their capability in disaster recovery projects. There is also a dearth of agreement on lean construction capability to improve organisational resilience. Finally, there is a lack of empirical research on the interrelationship between the implementation of lean practices, contractor performance and organisational resilience. Construction companies have played a significant role in infrastructure recovery projects following earthquakes in Christchurch and Kaikoura, New Zealand. However, the environment in which these companies operate significantly challenges their performance and organisational resilience. The thesis investigates the implementation of lean construction practices to improve organisational resilience and contractor performance in the presence of lean barriers stemming from post-disaster reconstruction projects. A conceptual framework incorporating six hypotheses is developed to empirically examine the impact of lean construction on contractor performance and organisational resilience in the presence of lean barriers in infrastructure recovery projects. Data was gathered through an online questionnaire survey distributed to construction companies involved in infrastructure recovery projects following earthquakes in Christchurch and Kaikoura in New Zealand. In total, 57 responses were received (response rate, 57%), and partial least squares structural equation modelling (PLS-SEM) was applied to test the hypothesised interrelationships in the structural models. The results suggest that implementing lean practices, such as just-in-time, total quality management and visual management, positively correlates with contractor performance and organisational resilience in recovery projects. It was also found that the greater the organisational resilience, the greater the contractors’ performance. Another finding is that organisational resilience has a mediating impact on the relationship between implementation of lean construction and improvement of contractor performance. The moderation analysis of lean barriers revealed that financial barriers negatively influence the implementation of lean practices on contractor performance. Finally, the results indicate that lean practices are more efficient in long-term recovery projects than short-term projects. The results can be used to assist construction companies and organisations involved in recovery projects to find practical ways to improve contractor performance and organisational resilience and invest their efforts and resources more efficiently to implement lean practices in infrastructure recovery projects.