IMPACT OF SUCCESSION PLANNING ON PROJECT PERFORMANCE IN CONSTRUCTION COMPANIES: THE MEDIATING ROLE OF EMPLOYEE ENGAGEMENT

Abstract

This study aims to examine the impact of succession planning on project performance in construction companies of Pakistan and the mediating role of employee engagement. To test the proposed hypotheses, primary data were gathered using a questionnaire adopted from past studies.  The quantitative research method obtained face-to-face primary data by conducting a survey among the professionals in the construction industry based on the key variables on a five-point Likert scale. A total of 149 employees from construction companies were requested to fill out the printed questionnaire. Findings of this study confirmed all three direct hypotheses, including that succession planning has a positive and significant impact on project performance, and employee engagement has a positive and significant effect on project performance. Furthermore, the partial mediation effect of employee engagement between succession planning and project performance was also confirmed. The above findings will be of great benefit to construction managers in the emerging economy because they demonstrate the strategic value of combining a successful plan with staff engagement programs, as a means of promoting organizational success. The research will be valuable to the existing literature of human resource management because it will unravel the mediating processes or methods used by succession planning in impacting project results in high-turnover enterprises.