Exploring the nexus of stakeholder management, project performance and stakeholder satisfaction in Malaysian residential building projects: a PLS-SEM approach

Purpose In this research, the authors distributed a survey to 156 residential construction developers and 468 buyers to assess the level of perceived agreement of developers and buyers on the key indicators for measuring stakeholder management, project performance and stakeholder satisfaction. Following this, a partial least squares structural equation modelling (PLS-SEM) model was developed to quantitatively analyse the direct impacts of stakeholder management on both project performance and stakeholder satisfaction, and to analyse the mediating role of stakeholder satisfaction in enhancing project performance. Design/methodology/approach This paper seeks to investigate the direct effects of stakeholder management on project performance and stakeholder satisfaction within residential construction projects, and also examine the mediating role of stakeholder satisfaction in enhancing project performance by surveying residential buildings’ developers and buyers in Malaysia. Findings This research found that effective stakeholder management directly improves project performance and stakeholder satisfaction within Malaysian residential construction projects. It further identified that stakeholder satisfaction significantly enhances project performance, serving as a critical mediator in the relationship between stakeholder management and project performance. Practical implications This study enhances the understanding of stakeholder management, stakeholder satisfaction and project performance in the Malaysian construction industry, offering strategic insights that emphasise the importance of stakeholder-centric practices for improving project outcomes, ensuring better collaboration and fostering enhanced project performance. Integrating these insights with digital technologies like building information modelling can lead to clearer communication, more informed stakeholder engagement, and, ultimately, enhanced project efficiency and satisfaction. Originality/value This paper offers empirical evidence on the critical role of stakeholder management and satisfaction in enhancing project performance in Malaysia’s residential construction projects, providing novel insights into stakeholder-centric approaches that contribute to improved project outcomes.