The Effect of PMBOK Knowledge Areas on Critical Success Factors in Oil and Gas Projects in Iran: A SEM Modeling

Rostami, Mahdi; Ahangari, Mohammad Amin

doi:10.22050/ijogst.2023.381640.1665

The Effect of PMBOK Knowledge Areas on Critical Success Factors in Oil and Gas Projects in Iran: A SEM Modeling

Document Type : Research Paper

Authors

Mahdi Rostami ¹

Mohammad Amin Ahangari ²

¹ Assistant Professor, Department of Energy Economics and Management, Petroleum University of Technology, Tehran, Iran

² M.S. Student, Department of Energy Economics and Management, Petroleum University of Technology, Tehran, Iran

https://doi.org/10.22050/ijogst.2023.381640.1665

Abstract

The complicated nature of oil and gas projects demands the deployment of integrated and effective project management methodologies to achieve the project objectives, including the scope, cost, and timing of the project. However, the availability of alternative methods such as PMI/PMBOK, IPMA, and PRINCE2; high project failure rate; and limited resources can make decision-making challenging for project managers. Identification and ranking of the most critical factors in project management could be made through different methods, i.e., MCDM, regression analysis, or structural equation modeling, depending on the nature of the data and the purpose of the research. The primary purpose of this research is to provide insight into the effects of PMBOK’s 10 knowledge areas, including integration management, scope management, time management, cost management, quality management, human resources management, communication management, risk management, procurement management, and stakeholder management on critical success factors in Iran’s oil and gas industry. PMBOK knowledge areas were measured through the project management planning quality (PMPQ) survey, and the dependent variables, which were critical success factors, were operationalized through the project implementation profile (PIP) questionnaire. A total of 100 questionnaires were distributed among project managers, senior managers, and project experts in oil and gas organizations in Iran, and 72 acceptable responses were received and analyzed through structural equation modeling (SEM). The model was statistically significant and accounted for 33.7 % of the variation of CSFs. The standardized root mean square residual (SRMR) value of the modified model was 0.098, so the model fitting was appropriate. The overall positive relationship between the variables was also observed. The results of SEM analysis indicated that scope management was the most practical knowledge area with a weight equal to 0.855, followed by communication management and risk management with weights equal to 0.818 and 0.756, respectively.

Highlights

It is almost impossible for project managers to focus on all knowledge areas equally; they must be aware of which knowledge areas come first.
PMBOK knowledge areas significantly influence critical success factors in oil and gas projects.
The scope management is the most practical knowledge area.

Keywords

Critical Success Factors

PMBOK

Knowledge Areas

Project Management

Structural Equation Modeling

Subjects

Project Management

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