Requirement engineering and project performance: Mediating effect of communication effectiveness, change readiness, stakeholder engagement and moderating effect of team cohesion

Purpose – This study aims to investigate the influence of requirement engineering (RE) on project performance (PP) in the context of NEOM* in Saudi Arabia. The study also aims to examine the relationship between three components of RE, evolving market needs (ECN), market changes (MC) and technological advancements (TA), on PP, through the mediating influence of effective communication (EC), change readiness (CR) and stakeholder engagement (SE). Further, the study aims to examine the moderating effect of team cohesion (TC) on the RE–PP relationships. Design/methodology/approach – A research framework is developed by drawing on the resource-based theory and with the support of empirical evidence and rational arguments to propose a set of hypotheses relating to the constructs in the framework. The hypotheses are tested through survey data collected from individual employees working on different projects across NEOM. A total of 336 useable responses were collected that were analyzed through covariance-based structural equation modeling using AMOS v.28. Findings – The results show although ECN and TA both have a positive impact on PP, MC had no significant relationship with PP. In terms of the mediation hypotheses, EC, CR and SE all partially mediate the relationships between ECN and TA with PP. However, there was no mediating effect in the relationship between MC and PP. Moreover, EC, CR and SE themselves have a significant positive influence on PP. Finally, TC proved to be a significant moderator between ECN and PP and TA and PP, but not in the case of MC and PP. Originality/value – This study makes three novel contributions. First, most prior empirical studies examined the overall impact of RE on PP; however, the current study provides a more nuanced insight into the relationships between the three components of RE (i.e. ECN, MC and TA) and PP. Second, the mediating roles of EC, CR and SE between components of RE and PP present a finer-grained understanding of how project resources are linked to project success goals through features of the project team. Third, moderating influence of TC with regard to a higher possibility of success for projects are highlighted through this discovery.