Structural equation model for construction equipment management affecting project and corporate performance

Construction equipment management by contractors demonstrates investment efficiency and service performance, which can affect the construction project and corporate performance. Although many studies have considered the components of construction equipment management, project performance and corporate performance, the causal relationships among these components have not been explored to date. This study explores these relationships. The research method included the collection of contractors’ opinions regarding the importance of these factors. Structural Equation Modeling (SEM) was employed to determine the causal relationships among the data. The results indicate four factors of construction equipment management, with their weights of relative importance, affect project and corporate performance. Selection management exhibits the greatest effect (33%); this is followed by operations management (27%), maintenance and repair management (25%), and retirement and replacement management (15%). Regarding the factors for measuring project performance, the quality and time factors were ranked first and second in importance, respectively. The customer factor was the most important factor for describing corporate performance. The findings of this study enable a greater understanding of these causal relationships, providing a starting point for improving the project and corporate procedures of equipment management.