Abstract:
Purpose: The aim of this study is to analyze the perceived impact of economic factors on
project failure in Pakistan. These factors include financial resources, Foreign exchange rate,
foreign investment, and joint. In this study, quantitative techniques were used to analyze the
collected responses i.e. primary data using a specially designed questionnaire to meet the
requirements of the current study. This study highlights the perceived economic factors that
may impact project failure in Pakistan. A comprehensive analysis of the economic factors,
influencing the project failure would help to gets a clear understanding of economic factors
having an impact on the project. A comprehensive analysis and study of such economic
factors will help to identify the economic factors that could cause to lead any project towards
failure. Without a clear understanding of such factors, various processes involved in project
would become more complex and challenging for stakeholders particularly for project
managers and sponsors. This situation can increase the risk of project failure.
Research Methodology: Target population of this study was project managers working in
Pakistan. Population size was unknown because no authentic resource provided the number
of project managers working in Pakistan. In this study, Non-probability convenience
sampling technique was used. A sample of 400 was used. Out of 400 respondents, 159
completed and useful responses were received reaching a response rate of 40%.
Findings of the Research: The result of the study indicates a significant positive
relationship between financial resources and joint venture (independent variables) with
project failure (dependent variable). This study also found that foreign investment had no
significant impact on project failure.
Practical Implications: The reasons for project failure usually vary depending on nature of
a project. The knowledge of economic factors that significantly impact project failure will
help project managers and sponsors to set a strategy for a successful completion of their
projects. Professionals can use these findings to evaluate the result of these economic factors
in their project and accordingly they can set their strategies to decrease the probability of
project failure.
