A Hybrid SEM-SD Method For Improving Governance Performance Of Megaprojects

According to international data reports,the total investment in megaprojects will increase to 363 trillion CNY in 2030,accounting for 8% of the global economy’s total output.In China,megaprojects have always played a very crucial role in economic construction,social development,and urbanization promotion.With the comprehensive promotion of new urbanization construction and the promotion of China’s “One Belt,One Road” development strategy,a new round of megaprojects investment and construction will continue to set off the climax.Megaprojects refer to mega-infrastructure projects that can drive social and economic development and provide basic public services for people’s lives.Megaprojects have the characteristics of large scale,complex technology,and extensive profound meaning,compared with general projects,which brings a huge challenge for decision making and project management.Therefore,it is significant to construct the governance mechanism framework of megaprojects,and explore the impact mechanism of the governance mechanism of megaprojects on governance performance,thus exploring the strategy of improving the governance performance of megaprojects.Different from general projects,megaprojects have multi participants and significant impacts.Therefore,the governance mechanism of megaprojects must be able to adapt to specific engineering contexts to deal with frequent and complex problems.Based on the existing research results on megaprojects governance mechanisms,combined with the special situation of megaprojects in China,this study adopts the method of combining the structural equation model(SEM)and system dynamics(SD)to explore the influence mechanism of governance mechanisms on governance performance.The following are the main contents of the study and some summaries:(1)The contextual characteristics of major engineering projects were described and the constitutive dimensions of the governance mechanism of megaprojects were analyzed.Then the framework of the governance mechanism of megaprojects was constructed and the influence mechanisms on the governance performance of megaprojects were analyzed.Finally,the measurement scale of governance mechanism and governance performance of megaprojects in the Chinese context was developed by combining the existing research results,and the questionnaires were designed and collected.(2)Based on the research framework of the Influence mechanism of the governance performance of megaprojects,and Amos Graphics software were used to construct a correlation model between the governance performance of megaprojects,governance mechanism,and their governance factors.t The questionnaire data collected with SPSS statistics 25.0.0 software were then imported into Amos graphics software,and the SEM model was modified to ensure its validity.The path coefficient between various governance factors was finally estimated,thus laying the foundation for the dynamic simulation later on.(3)Based on the dynamic governance theory,the system dynamics approach was used to construct the dynamic simulation SD model of megaprojects governance.Then,the overall analysis of governance strategy,single governance strategy analysis,and multiple governance strategy analysis was conducted respectively,thus exploring the interaction of multi-governance mechanisms and their influence on governance performance in megaprojects.The results show that the influence of different governance mechanisms on the governance performance of megaprojects varies greatly;Especially when the four governance mechanisms of risk sharing,relationship maintenance,governmental supervision,and governmental coordination are used in the governance of megaprojects,the governance performance can be significantly improved.It is of significant theoretical and practical implications to explore the governance mechanism of megaprojects and the influence on governance performance.The theoretical research considers the special situation and elements of major engineering projects in detail and puts forward a complete theoretical framework.In practice,due to the significant project is a kind of different from ordinary construction projects of large complex projects,through the combination of research methods of this research innovation and makes a simulation analysis on the whole life cycle of major projects,summarizes the effective governance performance improvement strategy for major project decision makers through project management performance improvement.