A conceptual hybrid project management model for SMEs in infrastructure development in Gauteng

Abstract

The growth and development of the country’s economy is mainly dependent on its infrastructural development programmes. This is taking into consideration that the South African government has intentionally prioritised and invested in infrastructure development, not only as a vital contribution to economic growth but also as an aspect of social upliftment and development. Infrastructure development and infrastructure projects are envisaged to play an influential role in economic growth. This sector not only provides a pivotal role in the economy but also contributes to national socio-economic growth by providing employment and economic participation for the various population members. In addition to producing structures that add to productivity and quality of life, the sector is labour-intensive when the sector is working at full capacity. Large sections of the nation's workforce are active as a result of the activities in infrastructure development. The contribution by the sector towards economic growth and development is significantly high given the variety and large scale of job opportunities created for unskilled, semi-skilled and skilled workforces. The creation of opportunities is not only limited to the direct workforce, but other indirect opportunities are created for those that are interfacing with the infrastructure development projects. Infrastructure development as a project-based industry is not isolated from external factors, especially global factors or economic disruptors. Infrastructure development programmes are organizationally complex and highly fragmented, with a predominance of small and medium-sized enterprise projects that often deliver projects with time delays and cost overruns which has been attributed to project complexity. This is evident in the large number of projects that have changed, failed or have been halted due to economic disruptors such as the global pandemic, socio-political unrest, natural disasters and the Russia-Ukraine conflict. The unprecedented economic disruptors and their impact continue to threaten the survival of economies globally, and the disruptors have affected various industries and sectors, especially infrastructure development programmes.

The South African government and private organisations have recognised the importance of providing necessary support to develop a conducive environment where businesses can operate optimally. Several initiatives have been explored and implemented by the government to assist in the development and sustainability of SMEs. The lack of sound business processes, including project management processes, tends to adversely impact the effectiveness of the businesses and delivery of the projects. In most instances, the challenge in the implementation or execution of the project emanates from projects not being managed effectively in terms of best practices. The concept of project management as a discipline is important for SMEs undertaking infrastructure projects because the lack or non-adherence to this discipline impedes the growth and sustainability of companies that are supposed to be contributing significantly to the economy and the provision of employment opportunities. The primary objective of this study is to evaluate existing project management methodologies and approaches adopted and/or utilised by SMEs in infrastructure development programmes in Gauteng and to present a hybrid project management approach that not only relies on traditional project management methodologies but also on agile methodologies. The conceptual model strives to be adaptive and agile to internal and external factors influencing and enhancing the successful management of infrastructure projects affected by economic disruptors. Additionally, the model aims to further increase project value by driving change and improving and strengthening client engagement through employing agile project management components to increase the likelihood of success of infrastructure development projects.