THE EFFECT OF MEGA PROJECTS SOCIAL

ON ORGANIZATION SOCIAL& FINICAL

PERFORMANCE WITH MODERATING ROLE
OF STAKE HOLDER NETWORK SYNERGY

By

MS Proposal
In
Project Management

COMSATS University Islamabad

Islamabad Campus - Pakistan

Spring 2022
THE EFFECT OF MEGA PROJECTS SOCIAL ON ORGANIZATION SOCIAL &
FINICAL PERFORMANCE WITH MODERATING ROLE OF STAKE HOLDER
NETWORK SYNERGY

A Graduate research proposal submitted to the Department of Management Sciences as

requirement for the Degree of MS in Project Management.

Research Scholar
Department of Management Sciences
COMSATS University Islamabad

Supervisor
Department of Management Sciences
COMSATS University Islamabad

i
 Certificate

It is certified that Janita Bakhtawar Registration No. CIIT/ SP20-RPM-010/ISB has carried out
all the work related to this proposal under my supervision at the Department of Management
Sciences COMSATS University Islamabad and the topic/area is satisfactory in terms of its
originality and contribution.

Date ___________________
Supervisor

______________________
Dr. Muhammad Tahir
Assistant Professor
COMSATS University Islamabad

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 TABLE OF CONTENTS
Abstract......................................................................................................................................1

CHAPTER 1....................................................................................................................................2

INTRODUCTION...........................................................................................................................2

1.1 Introduction.......................................................................................................................3

1.2 Problem Background......................................................................................................3

1.2 Problem Statement..........................................................................................................4

1.3 Research Objectives........................................................................................................5

1.4 Research Questions.........................................................................................................5

1.5 Significance of the study.................................................................................................5

1.6 Operational Definitions..................................................................................................6

CHAPTER 2....................................................................................................................................8

LITERATURE REVIEW................................................................................................................8

2.1 Introduction...........................................................................................................................9

2.2 Theories for Building Research Model.........................................................................9

2.2.1 Mega Projects Social Responsibility and Organization Social Responsibility..............9

2.3 Mega projects Social Responsibility............................................................................11

1.1.1 Environmental and Ethical......................................................................................11

2.1.1 Economic and Qualitative.......................................................................................12

2.4 Organization Social Performance................................................................................12

2.5 Stake Holder Network..................................................................................................12

2.6 Hypothesis Development..............................................................................................13

2.6.1 MSR and Organization Social Performance...........................................................13

2.6.2 MSR and Organization Finical Performance..........................................................14

2.6.3 Moderating Role of Stakeholder Synergy between MSR and Social Performance. 15

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 2.6.4 Moderating Role of Stakeholder Synergy between MSR and Finical Performance16

2.7 Model..............................................................................................................................17

CHAPTER 3..................................................................................................................................18

3.1 Introduction...................................................................................................................19

3.2 Research Methodology.................................................................................................19

3.2.1 Research Design......................................................................................................19

3.2.2 Research Paradigm.................................................................................................20

3.2.3 Research Approach..................................................................................................20

3.3 Population......................................................................................................................20

3.4 Sampling Technique.....................................................................................................21

3.4.1 Sample Size..............................................................................................................21

3.4.2 Unit of Analysis........................................................................................................21

3.5 Data Collection..............................................................................................................21

3.6 Measurements Scales....................................................................................................22

3.6.1 MSR..........................................................................................................................22

3.6.2 Organization Social Responsibility.........................................................................22

3.6.3 Stake Holder Network..............................................................................................22

3.7 Data Analysis.................................................................................................................23

3.7.1 Descriptive Analysis................................................................................................23

3.7.2 Structure Equation Modeling..................................................................................23

References.................................................................................................................................25

Appendix A....................................................................................................................................27

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 Abstract

In recent years, both the academic community and the business world have shown a significant
amount of interest in Megaproject Social Responsibility, often known as MSR. It entails a wide
variety of hard tasks, such as anticorruption, public involvement, workplace health and safety,
pollution control, and environmental protection, amongst others. The purpose of this research is
to investigate the impact of megaproject social responsibility (MSR) on the performance of the
participating organizations. This research finds, via the use of a survey of the organizations that
are participating in Pakistan megaprojects that the influence of MSR on a participant's
performance extends beyond the span of the megaproject that is now being worked on.
Keywords: Mega projects social responsibility, Organization social performance, origination
finical performance, Stakeholder networks synergy

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 CHAPTER 1

INTRODUCTION

2
1.1.1 Introduction

This chapter provides overview of the whole body of research. The problem statement as well as
the introduction to the study its background its purposes and its research questions are all
described in this chapter. In addition to this the importance of the proposed research would be
underlined further.

1.2 Problem Background

In recent years both the academic community and the business world have shown a significant
amount of interest in Megaproject Social Responsibility often known as MSR. It entails a wide
variety of hard tasks such as anticorruption public involvement workplace health and safety
pollution control and environmental protection amongst others (Zeng et al., 2015). Directly
engaged organizations in a megaproject's construction (including contractors planners operators
and suppliers) are certain to be impacted by the MSR's rules and procedures. They actively
engaged in the project's construction (Wang et al., 2018). In addition to discussing how MSR
directly affects project activities and organizational performance within the context of the current
megaproject this paper also addresses the following research question.
There is currently no widely recognized definition of CSR that can be found in the existing
research. Despite the fact that CSR is becoming more important in both business and society.
According to (Last & Kneutgen, 1970) the definition of corporate social responsibility is as
follows the firm's considerations and response to issues beyond the narrow economic technical
and legal requirements of the firm to accomplish social (including environmental) benefits along
with the traditional economic gains which the firm seeks. (Aguilera et al., 2007) also participated
and shared their thoughts stating that as CSR originates from society it is only fitting that it be
given back to society. In a similar (Robert G. Cooper, 1976)said that corporate social
responsibility (CSR) is the obligation of the corporation to behave in the best interest of the
people and communities impacted by its operations (p. 10). Because of this several academics
have used a variety of ways in order to define the idea of corporate social responsibility (CSR)
and each definition has its own set of meanings and qualities.
Carroll's (1979) model of CSR social performance includes many factors one of which is the
economic responsibilities of a business which include the creation of marketable goods and

3
services that are desired by customers and can be sold in the marketplace through which an
organization generates revenue. The notion of a company's legal responsibilities refers to the idea
that businesses have a responsibility to behave within the bounds set by government legislation
in order to fulfil the societal expectations that have been codified in law. The efforts that a
company makes to carry out commercial operations in ethical ways that are founded on society
standards are included under the category of the corporation's ethical duties. Philanthropic
obligations include all of these types of voluntary beneficial social behaviors that companies
engage in with the intention of helping society as a whole. On the basis of the social performance
model that (Xie et al., 2020) presented a definition and strategy that is generally recognized.
Within this definition and approach Carroll (1991) established four aspects of CSR that comprise
a pyramid of Corporate Social Responsibility. Recent research conducted by (Xie et al., 2021)
states that Economic legal ethical and even subjective societal demands are all included in the
realm of corporate social responsibility.
Relationship maintenance is a crucial part of stakeholder involvement. Maintaining people's
enthusiasm and dedication over the course of a change initiative's program or project execution is
also essential.

1.2 Problem Statement

Mega projects result in the creation of buildings and significant infrastructure to meet the
demands of both work and daily living. At the same time, these projects are an essential factor in
the expansion of any organization economy (Tapias Torrado, 2022). Despite this, the sector is
often criticized for failing to strike a balance between the economic, environmental, and social
aspects of the projects they undertake. Social responsibility in mega projects is very important
for getting finical performance in IT industry. If IT sector performs no social responsibility than
this has led to a number of unfavorable outcomes, such as contamination of the environment,
waste across the whole project lifespan, poor levels of productivity, and accidents that might
have been avoided. There is an immediate and critical need to identify mega Social
Responsibility (SR) indicators that incorporate social, environmental, and economic aspects.
As a result, the problem statement of this part of study is to determine the level to which MSR
comply with the standards set for social responsibility responsibly and finical performance in IT
sector of Pakistan.

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1.3 Research Gap

By considering the philosophy behind megaprojects, it becomes clear that it is essential to

investigate the success of megaprojects since it is connected to the significance of developing
social responsibility. The implementation of social responsibility in mega projects related to IT
industry for getting finical performance and organization social responsibility is still under
research. There are lots of mega projects related to IT sector in Pakistan fails due to lack social
responsibility which include legal, environmental and economic dimensions. As a consequence
of this, the MSR is an area that is little researched and underexplored in IT sector of Pakistan. In
addition, data from research on MSR suggest that in developing countries, OSR efforts are
largely focused on capturing charitable activities and are not considered as part of mainstream
corporate operations.

1.4 Contribution of Study

The main contribution of this study is find positive impact of mega projects social
responsibilities on finical and organizational performance of IT sector in Pakistan. OSR is not
core issue in developing countries IT industry. We will find social responsivity of employs in IT
sector with moderating stake holder synergy.

1.5 Research Objectives

There are following objectives of this study

1. How to find the positive impact of MSR on organizations social performance
2. How to find the positive impact of MSR on organizations finical performance
3. How to find moderating effect of stake holder network synergy between MSR and OSP
4. How to find moderating effect of stake holder network synergy between MSR and OFP

1.6 Research Questions

There are following questions of this study

1. To find the impact of MSR on organizations social performance
2. To find the impact of MSR on organizations finical performance

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 3. To find moderating effect of stake holder network synergy between MSR and OSP
4. To find moderating effect of stake holder network synergy between MSR and OFP

1.5 Significance of the study

In response to recent demands for studies on the social responsibility and sustainability of
megaprojects this study presents two additions to the current body of knowledge (He et al.,
2021). These submissions answer the request for study on the ethics and viability of
megaprojects in the public eye. To begin this study adds to the literature by expanding attention
to MSR's impact in institutional settings. Given that most previous studies have focused on the
impacts of CSR on the financial performance of firms or the effects of megaprojects on regional
development (macro spillovers) this is an important finding. The results of this research
emphasize MSR's impact on businesses (O2O). Future efforts to investigate the connection
between the origins of MSR and its repercussions need to be fueled by these as-yet-undiscovered
research issues. Second this work adds to the existing literature by doing the aforementioned
structural analysis of the four dimensions of MSR and the contingency perspectives of both
primary and secondary stakeholders.

1.6 Operational Definitions

Table 1.1 Operational Definitions for constructs
Constructs Operational definitions Source
Megaproject Social The term megaproject social (Ndu & Agbonifoh, 2014)
Responsibility responsibility (sometimes
abbreviated as MSR) refers
to the policies and practices
of the stakeholders over the
complete project lifespan
that reflect duties for the
well-being of the broader
society.
The term social performance
organizational social refers to the degree to which (Ndu & Agbonifoh, 2014)

6
performance an organization is successful
in achieving the social
objectives it has set for itself
and in generating value for
the target population. The
primary emphasis of social
performance management is
the manner in which an
organization's management
systems processes and
products transform its social
purpose into actualized form.
Consequently the linked web
Stakeholder network energy of stakeholders is known as a
stakeholder network. The (Ndu & Agbonifoh, 2014)

management of a stakeholder
network requires an awareness
of this interdependency and a
concerted effort to see
individual stakeholder groups
rather than in isolation as
interconnected nodes of a
larger network of influence
working toward a shared goal.
organizational finical The financial performance of a (Wang et al., 2018)
performance firm reveals how well it earns
revenues and manages its
assets, obligations, and the
monetary interests of its
shareholders and other
stakeholders. There are a lot of

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 different methods to evaluate a
company's financial success,
but you should always look at
everything together.

CHAPTER 2

LITERATURE REVIEW

8
2.1 Introduction

In this chapter we take a look at the research that has been conducted on the influence of
megaprojects' social responsibility on the performance of organizations. It investigates the
impact that mega projects have on the performance of stakeholder groups. It starts out by talking
about the key theoretical foundations that are necessary for the topic being discussed. Next the
completion of a literature review on the factors that are being investigated as part of this study
the following phase will be the formulation of hypotheses and the development of a research

9
model that will take into consideration the results of this investigation. The social responsibility
of megaprojects the social performance of organizations and the stakeholder networks of various
organizations are the factors that will be examined in this research.

2.2 Theories for Building Research Model

This section provides a definition of the theories that are essential to the development of a
research model.

2.2.1 Mega Projects Social Responsibility and Organization Social Responsibility

They define MSR as the policies and practices of the stakeholders over the whole megaproject
lifecycle that reflect responsibility for the well-being of the broad society which is a very
thorough definition. MSR has emerged as one of the most important strategic considerations for
the long-term viability of megaprojects as a result the complexity and one-of-a-kind
characteristics of MSR such as the dynamics that play out over the course of a project's entire life
cycle the diversity of its stakeholders and the interplay between its many different aspects call
for research that goes beyond the scope of conventional project management and CSR
(Evaluation, n.d.). Research questions addressed in this research include (1) who should engage
in MSR and (2) what concerns related to MSR should be taken into account while planning such
an endeavor. This research focuses on and defines MSR from the perspectives of the complexity
of megaproject management and the diversity of social responsibility definitions (Khan, n.d.). In
contrast to CSR which focuses on a single responsible firm MSR requires all players in a
megaproject to work to improve the project's related rules and procedures. Like corporate social
responsibility (CSR) the focus of MSR is on promoting sustainable development across four
dimensions (1) the economic and quantitative (2) the legal and regulatory (3) the environment
and ethical and (4) the political and communal. In summary this study focuses on the
aforementioned four facets of social responsibility that have been the focus of efforts from all
parties involved throughout the whole megaproject's life cycle.
These MSR-related activities are a constructive reaction to institutional demands and stakeholder
needs guaranteeing public interest and project sustainability for the megaproject's successful
completion. This is done to ensure public support and the long-term viability of the megaproject.
Cost schedule quality health safety and environmental initiatives are just some of the areas where
MSR demands success. This is due to the fact that a megaproject takes on crucial strategic

10
responsibilities for the area economic and social development. Further it's important to assess
how it will affect the people involved the wider community the market and the region (Zhai et
al., 2017) . The global and local economies will both benefit from this as will the progress of
industrialization worldwide. Research at the macro (regional and industrial) level has been
extensively covered in economics literature with a primary focus on the externalities of
infrastructure investments. However there hasn't been enough study of MSR's impact at the
organizational level. This is due to the fact that the majority of macro level studies have focused
on the impacts of infrastructure investments.
Multiple theoretical lenses may be utilized to analyses the situation including institutional theory
stakeholder theory the attention-based approach and the resource-based view. A company's
social responsibility efforts may be traced back to legitimate processes and policies inside the
organization. They will have succeeded in establishing legitimacy if and only if they lead to
organizational acts being accepted or tolerated by society in conformity with social norms values
and beliefs. Businesses must show they value their external stakeholders and local communities
if they are to succeed (Ma et al., 2021).
A corporation faces social pressure from its partner’s rivals and other members of the business
network to behave ethically toward its stakeholders in order to guarantee its long-term
sustainable financial success (Harrison & Freeman, 1999). Charity work environmental
preservation and other forms of corporate social responsibility increase an organization's
credibility with stakeholders and the public. This in turn improves their chances of getting
support from their constituents and gaining clout with the government. According to the attention
and resource-based perspectives for an organization to invest in the development of social
responsibility strategies and associated practices it must devote time and money to the task.
Management's focus boosts morale and funding enhances the company's abilities. Financial
capital and superior goods together with reduced operational expenses and less risk are only
some of the tangible assets that a firm may gain by embracing socially responsible activities.
Potentially these advantages might boost business results. Intangible assets like a company's
good name its brand its customers' devotion and public support may all rise in value if its
employees and management are actively engaged in socially responsible practices (Zhao et al.,
2022)

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2.3 Mega projects Social Responsibility

Megaprojects are known as major infrastructure projects (MIPs). Some examples of MIPs
include the construction of high-speed train lines extensive networks of motorways natural gas
pipelines enormous bridges and massive hydropower dams. Significantly impacting numerous
facets of a project's lifetime MIPs include economics public goods the environment politics and
more. As MIPs continue to develop and grow it is becoming more important to take into account
a wide range of economic environmental and social concerns. Megaprojects have the quality of
being public goods therefore their externalities need to take into account and meet societal
obligations. An emphasis on social responsibility is very beneficial to MIP sustainability and
project success. What is meant by megaproject social responsibility is the policies and practices
of the stakeholders over the complete project lifecycle that reflect obligations for the wider
societal well-being (MSR). The modern concept of MSR is a crucial factor in determining
whether or not MIPs can maintain sustainable growth. Because of its importance to long-term
sustainability MSR is quickly emerging as a new area of study for engineering managers.
Academics and professionals alike have taken an interest in MSR (Yang et al., 2020).

2.1.1 Environmental and Ethical

When there is widespread agreement that a certain behavior is unethical, such as drunk driving,
robbery or murder, the governing body will likely pass a legislation outlawing it. The local
context within which people operate and do business is shaped by these laws and at times, by
unwritten cultural conventions and values. A person's values and views are shaped by their
upbringing, social circle local and national culture society, religion or other forms of
communities and physical location. The choices to act or refrain from acting against wrongdoing
by others are influenced by an individual's beliefs and ethical standards thus it's necessary to
examine them. Peers subordinates and superiors, as well as the company culture may all have an
impact on an employee's ethical attitude in the workplace. The norms and values of an
organization may either inspire its members to behave ethically or encourage them to act in a
way that is counter to the organization's stated values(He et al., 2021).

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3.1.1 Economic and Qualitative
Interviews and focus groups are typically the first qualitative research methods that come to
people's minds when they think of qualitative methods. These approaches can be utilized to have
direct conversations with program participants and stakeholders about their experiences and the
outcomes that they have observed as a direct result of the program. Even though interviews and
focus groups are the two most common methods, this does not necessarily mean that they are the
most effective methods in every situation. Carefully consider what it is that you are attempting to
measure, as well as the possibility that another method could provide you with more insightful
data (Xie et al., 2021).

2.4 Organization Social Performance

According to one definition social performance is the successful translation of an institution's

purpose into practice in keeping with recognized societal principles. [Citation needed] The
degree to which an organization is successful in accomplishing its purpose or other social
objectives is referred to as its social performance. Organizations that utilize the PPI have a goal
to improve the lives of those living in poverty in some way whether it is by providing
information health services work opportunities finance or any combination of these and other
actions. These organizations make use of the PPI in order to improve their understanding of how
well they are doing in relation to these social aims (Tipaldo et al., 2020).

2.5 Organization Finical Performance

One aspect of an organization's overall success is its financial performance, which is why both
are managed. (Yang et al., 2022) looked at the growing recognition among business leaders that
quantitative and qualitative metrics are equally important for assessing success. As (Yang et al.,
2020) found, companies rely on financial performance metrics for survival. Most importantly, a
company's financial performance is used to determine its worth. According to (Lund-Thomsen &
Nadvi, 2010) several research projects have been assisted by the recognition of the limitations of
traditional financial performance calculations, promoting the use of non-financial performance
calculations. Consumer approval, transportation, and other "important accomplishment factors"
were noted by (Rahiem & Rahim, 2021) as indicators of non-financial success (NFPMs). (Xie et
al., 2021) found that well-run businesses have a solid foundation on which to build a marking
13
system that aids in the estimate of the growth of a company and its activities including
transactions, customer facilitation, expenditures, and worker monitoring. This might help a
company improve its bottom line.

2.6 Stake Holder Network Synergy

Dealing with several stakeholders may be difficult and at times it may seem that their interests
are at odds with one another. However the manner in which you generate value for your fellow
players is related to the manner in which you create value for the members of your organization
which is connected to the manner in which you create value for the general public allies and so
on. Included in the category of stakeholders are any and all organizations networks and private
groups that collaborate with the host people and have the ability to have an impact on the goals
of the organization. Personnel and students make up an institution's internal stakeholders while
community partners and corporations make up its exterior stakeholders. Stakeholders are
important to educational institutions on both levels. When public financing for educational
institutions of higher learning declines the significance of the many stakeholders from the
outside world grows (Rahiem & Rahim, 2021).

2.7 Hypothesis Development

2.7.1 MSR and Organization Social Performance

The results of this study imply that MSR may boost an organization's social performance in
unrelated projects or enterprises via two channels more motivation to participate in social
responsibility initiatives and improved social responsibility capacities. According to proponents
of the attention-based approach for MSR to be effective it requires the buy-in of a company's
highest management in order to fully grasp and respond to the social responsibility expectations
and demands of the company's constituency. Adopting such a strategy has the potential to boost
the motivation of its subjects to fulfil their social duties (Xie et al., 2021). Institutional pressure
to fulfil social duties is argued by neo-institutionalism to stem from three sources mimetic
processes coercive isomorphism and normative pressures (Campbel, 2007). Starting with an
analysis of how competitors and partners do business MSR teaches the organization how to
implement the best social practices and the rules of a social responsibility agenda.

14
Secondly a company may learn more about HSE-related public laws and regulations via MSR
which can be used as a coercive incentive to execute social responsibility initiatives (Zhao et al.,
2012). Third the public and other stakeholders' focus on a megaproject implies that the company
will be under close scrutiny while it carries out its social duties which is a natural motivator for
ethical decision-making in any setting.
The resource-based approach holds that when a corporation participates in MSR as part of a
megaproject it increases its capacity for socially responsible acts by gaining access to the
knowledge expertise and resources it needs to fulfil its social commitment. First taking part in a
megaproject is an excellent opportunity for companies to connect with and learn from other
businesses that share their interest in or commitment to environmentally conscious techniques
like green construction. Secondly because CSR practices in the construction industry are still in
their infancy the widespread institutional participation and cultural shift toward higher standards
that accompany a megaproject can help an organization acquire the knowledge and skills
necessary to develop a CSR strategy implement it and manage its CSR all of which can improve
its social performance (Maji & Maisha, 2021). It has been argued that thirdly MSR engagement
may build the stakeholder network which in turn may boost the organization's access to financial
political and social resources all of which are important to enhance its future social performance
(Aiyetan & Das, 2022). Therefore the following is proposed as Hypothesis.
H1 The social performance of an organization is correlated favorably with its
participation in MSR

2.7.2 MSR and Organization Finical Performance

The findings of this study support the hypothesis that MSR has a beneficial effect on the
performance of participating organizations in their future economic endeavors. This effect is
hypothesized to manifest itself in the form of increased legitimacy decreased transaction costs
and the acquisition of additional resources. According to the research that has been done so far
companies use different forms of social responsibility programs in order to achieve various sorts
of legitimacy for their company. In addition to the privilege of participating in the market
political participation and societal acceptance may be prerequisites for this legitimacy (Tipaldo et
al., 2020). In order for a megaproject to be a success its core stakeholders the contractor’s
designer’s operators and suppliers must work closely with its secondary stakeholders the

15
regulators local communities and the general public. In this way MSR helps organizations gain
and maintain the support of their constituents which boosts their credibility in the eyes of the
public and the government. The survival and development of an organization as well as its
competitiveness and long-term worth to its industry depend critically on its ability to establish its
bona fides (Locatelli et al., 2021). MSR may therefore be able to help the participating firm
improve its future financial performance.
In addition MSR might help the company save money on future transactions. Reducing
operational risks via social responsibility efforts by avoiding conflict with stakeholders. Taking
on a socially responsible stance has been shown to have a good effect on social performance
which in turn reduces uncertainty and transaction costs (Eccles et al., 2014). That's how MSR
may pave the way for increased collaboration between businesses already involved in the supply
chain and those looking to join those. Public-private partnership (PPP) projects and the costs
connected with them may both be aided by socially responsible megaproject management (Wang
et al., 2018).
More so MSR may facilitate the acquisition of resources vital to a business's functioning. By
taking part in megaprojects with responsible social performance businesses may increase their
political capital technical expertise public support etc. as staff get more experience in managing
complex relationships and settling issues with other stakeholders. The organization may gain
political capital via megaproject links which can lead to future market possibilities and perhaps
preferential policies and subsidies. The organization's capacity may be greatly strengthened by
the acquisition of technological resources through collaboration with industry partners. The
company's standing in the market and the eyes of the general public may both benefit from
MSR's implementation (Huda, 2022).
In conclusion MSR may assist an organization gain credibility save expenses and build up
reserves all of which can eventually enhance the organization's financial standing. Following this
logic we offer Hypothesis 1.

H2 The financial performance of an organization is correlated favorably with its

participation in MSR

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2.7.3 Moderating Role of Stakeholder Synergy between MSR and Social
Performance
Interactions between stakeholders synergy help to moderate the relationship in OSR by boosting
the incentive of participating organizations to engage in organization social responsibility (OSR).
OSR can help a participating organization obtain preferential treatment from the government,
such as prestigious environmental certifications or awards. This, in turn, increases the
organization's incentive to fulfil social responsibilities. When interactions with the public sector
in a megaproject are strong, OSR can help. According to (Rahiem & Rahim, 2021) MSR allows
participating firms to integrate environmental and social considerations into their decision-
making processes and commercial practices when such organizations successfully connect with
the communities in which they operate. These choices and deeds are important if the reputation
of an organization is shaped by the interactions that take place amongst stakeholders (e.g.,
NGOs, the media, and communities). So the hypothesis is

H3 There is a relationship between organizational social performances and mega

projects social responsibility with moderating role of stakeholder synergy

2.7.4 Moderating Role of Stakeholder Synergy between MSR and Finical

Performance
Stakeholder synergy should be prioritized from the earliest phases of an organization's and a
project's megaproject planning through the last stages of both. Stakeholder’s synergy include
those directly involved in the project's economics such as the designer’s contractor’s
subcontractor’s suppliers and operator’s. Stakeholder’s synergy include regulatory agencies
nongovernmental organizations (NGOs) the media and communities that are impacted by the
project's activities (Tipaldo et al., 2020).
Stakeholder’s synergy in a megaproject often interact with one another in contractual or
functional ways that relate to the project's operations. The social performance of megaprojects
might benefit from strengthened linkages between participants. Stakeholders synergy interactions
help companies involved in a megaproject gain economic legitimacy inside the project's
temporary organizational structure (Rahiem & Rahim, 2021). Particularly beneficial to a
developing company is the opportunity to broaden its commercial connections and enter new

17
markets afforded by involvement in a megaproject. These beneficial outcomes may be amplified
via interactions with other key stakeholders such as rivals and partners in the construction sector
where social learning methods can be used to further improve outcomes. Therefore MSR serves
a beneficial function which is amplified as a consequence of the interactions of the major
stakeholder. Moreover the participation of main stakeholders might aid the organizations
involved in lowering information asymmetry which in turn would lessen trade friction and
transaction costs in future economic activity(Robert G. Cooper, 1976). Furthermore MSR may
stimulate an organization to acquire and implement new information and technology by
facilitating communication with and interactions among key stake- holders. This improves the
company's ability to take in information which in turn frees up resources for more imaginative
value generation.
Financial success and the company's competitive edge. Therefore main stakeholder contacts may
magnify MSR's positive impact on the organization's bottom line. Therefore I offer the following
hypothesis:

H4 There is a relationship between organizational finical performances and mega

projects social responsibility with moderating role of stakeholder synergy

2.8 Model

Following the formulation of the hypotheses that would be investigated in this study the findings
of this research led to the production of a testable model which may be found below. The social
responsibility of megaprojects and the organization's overall social performance are both equally
significant elements to consider. MSR IS independent type variables. The OSR will serve as the
dependent variable in this study. However the intensity of individuals who care about the issue
acts as a buffer between MSR and OSR.

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 Figure 2.1 Conceptual Model

Note Mega projects social responsibility (IV), Organization social performance (DV),
Organization social performance (DV) Stake holder network synergy (Moderator).

19
 CHAPTER 3

RESEARCH METHODOLOGY

20
3.1 Introduction

While conducting research there are certain methods that should be adhered to and we will go
through those methods in this chapter. It describes the activities that need to be carried out in
order to accomplish the objectives that are outlined here. It starts with a review of the industrial
surroundings and then moves on to the research methodology (philosophy and design). After that
we will talk about several sampling strategies and designs and finally we will choose some
samples and talk about how to interpret the findings.

3.2 Research Methodology

3.2.1 Research Design
Qualitative research takes a more humanistic or idealistic approach to a research problem in
order to better comprehend it. The quantitative approach on the other hand is more trustworthy
since it relies on objective numerical data and reusable transferable methods. In order to better
understand abstract ideas like people's emotions values beliefs routines and connections
qualitative research is the method of choice. It produces data that defies easy numerical analysis.
There has been a recent uptick in the number of disciplines examining the process of
incorporating qualitative research into intervention studies (Tipaldo et al., 2020). Qualitative
research is often regarded to be philosophically incompatible with experimental research but
today it is widely acknowledged for its ability to provide a new dimension to controlled trials
that cannot be achieved by the measurement of variables alone (He et al., 2021).
Research that may be classified as quantitative relies on the collection of numerical data and the
use of mathematical statistical or computational techniques. The results of online quantitative
research such as polls questionnaires and surveys may be represented numerically. Existing and
potential consumers are polled or surveyed through online surveys polls and questionnaires as
part of quantitative research. You may use these figures to make educated guesses about the
future of your product or service and adjust accordingly.
Methodologies from the area of quantitative research which will use in the collection and
examination of reliable statistical data utilized in this study.

21
3.2.2 Research Paradigm
This study will use the positivist approach to research since it best suits the goals of the study.
The rule of cause and effect is central to the positivist worldview which maintains that there is
such a thing as objective truth (Aiyetan & Das, 2022). Positivists have doubts about the
reliability of the studies and the applicability of the findings. Reasoning will employee in the
process of putting existing assumptions to the test and deductive experiments will used as a
strategic tool to study the cause-and-effect relationships revealed via inquiry. Those who adhere
to the positivist tenet that a phenomenon can be understood only by direct observation and other
objective means accept that emotions are useless yet remain steadfast in this stance. According to
research (Xie et al., 2021) research questions and hypotheses are stated as propositions under
positivism and they must be tested empirically to rule out the risk of bias . Throughout the study
the investigator intends to maintain complete objectivity and autonomy. In conclusion positivism
is based on the belief that the only way to uncover the truth is via scientific inquiry and the
scientific process.

3.2.3 Research Approach

Deductive research methods namely quantitative ones cover the ground will use in study.
Conclusions and propositions will be drawn from this investigation and the quantitative
relationship between the variables will be explored. The research findings from such an approach
will be relevant to many other fields which is another advantage. Collecting information with a
questionnaire (primarily cross-sectional data). Reliable statistical data will collect and analyses
using quantitative research methods.

3.3 Population

We will use survey data from organizations that took part in Pakistan megaprojects to assess the
study's assumptions. Pakistan has accomplished much in the realm of megaproject construction
and Pakistanis contractors have fared well in markets. Pakistan has completed a number of large-
scale infrastructure projects such as the National Highway dam in Afghanistan. Pakistan's
megaproject and engineering enterprises have made strides in recent years but they still face
social performance issues (He et al., 2021). For this reason the papulation for this research will
consists entirely of Pakistan megaprojects and the organizations involved in them.

22
3.4 Sampling Technique

This study will use a non-probability convenience sampling technique for its sample procedure.
When a researcher needs an easy and accessible way to recruit participants for their study they
may resort to convenience sampling. The investigator usually knows or has worked closely with
the subject of the investigation. Depends heavily on the investigator's credibility and experience
in the area. Because of its low implementation cost this sampling strategy streamlines and
accelerates data collection.

3.4.1 Sample Size

The 10-times thumb rule will use to decide on a suitable sample size. It is a popular tool for
determining how many subjects should be included in a PLS-SEM study. This is because as
explained by (Yang et al., 2020)it is assumed that the minimum sample size is 10 times the
maximum number of inner or outer model linkages pointing to any latent variable in the model.
Because our model has seven directional arrows each pointing in the direction of the dependent
variable we can't conduct this study with less than seventy individuals. As a result the study will
recruit 206 participants. When examining a population whose number is uncertain recommends
using a sample size more than 30 but less than 500. The reason for this is because these limits are
more reasonable.

3.4.2 Unit of Analysis

The unit of analysis for this research consists of employees by project-based organizations in
Pakistan. The survey questionnaire includes questions on a wide range of subjects related to
variables. The survey is administered in both online and in-person formats due to the present
outbreak.

3.5 Data Collection

Four hundred surveys are sent out. The 40.0% response rate will be base on the 160 replies we
received. One hundred companies are contractors twenty-seven are construction management
firms fifteen are designers eight are investors six are suppliers and four are operators out of a
total of 160 that responded. Four participants with doctoral degrees seventeen with master's
degrees and 130 with undergraduate degrees filled out the survey. There are98 engineers 35

23
managers and 22 accountants and finance majors among them. There are16 upper-level
supervisors 59 project/department heads and 50 technical staff members. More specifically 78
had experience in excess of 10 years while another 38 had experience between 5 and 10 years.

3.6 Measurements Scales

3.6.1 MSR
Sustainability in the megaproject sector depends critically on MSR. Using a systematic approach
and a quantitative analytic model this research creates a comprehensive indicator system for
measuring MSR's efficacy (Ndu & Agbonifoh, 2014). The indicator system concurrently
incorporates project life-cycle dynamics stakeholder heterogeneity and social responsibility
interaction to address the multidimensionality of sustainability objectives for the well-being of
society at large. Also the indicator system is developed with care to translate key MSR concerns
into actionable metrics. . Typically an inventory would consist of a series of statements like the
ones below with respondents being asked to choose a response between 1 (strongly disagree) and
5 (strongly agree)

3.6.2 Organization Social Responsibility

There are a variety of measurement techniques that may be used to each of these topics including
conducting a survey or questionnaire using indices or scales doing content analysis measuring
based on perception and conducting case studies. For the purpose of gaining a deeper
comprehension of the challenges associated with CSR assessment we will investigate the various
methodologies and evaluate their shortcomings (He et al., 2021).

3.6.3 Organization Finical Responsibility

The balance sheet, the income statement, and the statement of cash flows are the three financial
statements that are used in the process of reviewing the overall financial performance. Indicators
of financial performance are quantitative criteria that are used to evaluate how well a firm is
performing financially (Locatelli et al., 2021).

24
3.6.4 Stake Holder Network
Mapping your stakeholders throughout an internal system is one approach to gauge their level of
involvement. Some companies for instance have numbered levels of management. A Tier 1
stakeholder is your most vocal supporter whereas a Tier 3 stakeholder is an outsider who has just
recently been acquainted with organization (Lund-Thomsen & Nadvi, 2010).

3.7 Data Analysis

After collecting data (through closed-ended questions) the following steps will take to assess
the results.

3.7.1 Descriptive Analysis

Descriptive analyses as their name suggests provide succinct descriptions of the variables and
data set under consideration. It's useful because it reveals possible connections between variables
and aids in making sense of the sample data. Descriptive statistics may be broken down into two
groups’ measurements of central tendency (such as the mean mode and median) and measures of
dispersion (variance std deviation). Dispersion examines the spread of values whereas central
tendency focuses focused on the center of the distribution. Since it is user-friendly has interactive
tables and is widely used for statistical testing the aforementioned variables' descriptive statistics
are analyses using SPSS.

3.7.2 Structure Equation Modeling

To analyses data and relationships social science researchers have relied on statistical analysis
for over a century. Complex relationships become more difficult to understand without using
sophisticated multivariate data analysis methods. Structural equation modelling a kind of second-
generation statistical analysis is used to examine structural relationships. Structural equation
modelling (SEM) as stated by (Locatelli et al., 2021) enables researchers to account for hidden
variables via the use of indicator variables to quantify the underlying construct. It combines the
best features of component analysis with multiple regression analysis in order to examine the
relationships between latent constructs and observable variables
Covariance-Based structural equation modelling (CB-SEM) and partial least squares structural
equation modelling (PLS-SEM) are two competing approaches to SEM (PLS-SEM). According
to (Zhai et al., 2017) covariance matrix estimation using the proposed model is the process

25
through which hypotheses are either rejected or confirmed. Conversely PLS-SEM is used in the
development of research theory via the characterization of DV variance throughout the course of
the model's analysis. The structural model which illustrates the relationships between the latent
variables and the measurement model which assesses the links between the latent constructs and
the indicator variables make up the two main parts of PLS-SEM.
Discriminant validity average variance extracted (AVE) and indicator reliability are all a part of
the PLS-SEM analysis of the measurement model. Path coefficients and coefficients of
determination are also included in the structural model assessment alongside B-values and T-
values (R2).
Research conducted in a simulated setting shows that PLS-SEM can provide reliable estimates
regardless of sample size or model complexity (in terms of the number of variables and
linkages). From what we can determine the PLS-SEM model's estimate is more statistically
sound than the CB-SEM model's (Hair 2017). Researchers like this method because it allowed
them to extrapolate their findings to a broader set of interconnections with less effort.
The data for this inquiry has been estimated and analyses using PLS-SEM using the statistical
analysis tool SmartPLS 3. SmartPLS 3 not only analyses the raw data but also any hypothesized
relationships between the variables. It's useful since it evaluates the models (both measurement
and structural) at the same time shedding light on the results.

26
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 Appendix A

Questionnaire
Dear Respondent
I am now attending COMSATS University in Islamabad to pursue a Master of Science in Project
Management degree. You may be of assistance to me by filling out the questionnaire which I
believe you will find to be extremely fascinating. I want to thank you for taking part in my
research and reassure you that your replies will be kept in strict confidence and will only be used
for the sake of furthering educational research.

Thank You.

Section A Demographics

1. Gender ο Male ο Female

2. Age
3. Experience (in years)
4. Academic Background

Section B Mega projects social responsibility

Please tick the relevant choices: 1= strongly disagree, 2= Disagree, 3= Neutral, 4= Agree,
5= Strongly Agree

1 The activities or programs of a corporation fall under the social 1 2 3 4 5

responsibility theme
2 MSR a valid theoretical basis from which to judge the actions of 1 2 3 4 5
global companies

3 Organizations live up to their social responsibility expectations 1 2 3 4 5

4 The action of global companies improve on the lives of people 1 2 3 4 5

Within their sphere of operation?

30
5 The outcomes of the MSR have directly benefited the intended 1 2 3 4 5
employees, either through increasing efficiency or effectiveness.

6 Sustainable delivery of the mega construction project (megaproject 1 2 3 4 5

hereafter) has attracted widespread attention from both academics
and practitioners.

7 I was satisfied with the process by which the MSR is 1 2 3 4 5

Implemented

8 Project team members were satisfied with the process by 1 2 3 4 5

which the MSR i s implemented

9 The MSR has made a visible positive impact on the 1 2 3 4 5

Origination

Section C: Organizations social Performance

1 OSP has legal impact on organization performance 1 2 3 4 5

2 OSP has environmental and ethical impact on organization 1 2 3 4 5

performance

3 By implementing MSR , organization can get OFP 1 2 3 4 5

4 Top management of the organization take in its concern crossing its 1 2 3 4 5

vision and enduring the  social performance

5 Business mentality has changed from the accepted economical firm 1 2 3 4 5

to the accepted social responsibility

6 Organizations social performance increase the delivery of projects 1 2 3 4 5

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Section D: Organizations Finical Performance
1 Organizational performance refers to a firm's market and financial 1 2 3 4 5
performance
2 sales or market growth, customer satisfaction, or establishing MSR 1 2 3 4 5
upon which increase finial performance

3 MSR have directly impact on organizations finical performance 1 2 3 4 5

4 Well balance of Culture and environmental dimensions increase OFP 1 2 3 4 5

5 Financial statements used in evaluating overall financial 1 2 3 4 5

performance include the balance sheet, the income statement, and
the statement of cash flows

Section E: stake holder synergy

1 Organization social responsibility can achieve through stake holder 1 2 3 4 5
synergy
2 Organization finical responsibility can achieve through stake holder 1 2 3 4 5
synergy

3 Stake holder synergy is an important factor in mega projects 1 2 3 4 5

4 Stakeholder synergy’ perspective identifies new value creation opportunities 1 2 3 4 5

that are especially effective strategically for MSR

5 The stakeholder synergy perspective extends stakeholder theory further 1 2 3 4 5

into the MSR and OSP

32