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Explaining Cost Performance in Belt and Road Transport Projects: Contractor Capabilities, Project Risk Management, and Cross-Cultural Communication

Abstract

The literature on cost performance in major transport infrastructure projects has expanded rapidly, yet much of it still explains overruns through macro conditions, project characteristics, or single-case narratives. Far less is known about how contractor-side capabilities are translated into cost outcomes in cross-border settings, particularly within Belt and Road Initiative (BRI) transport projects where institutional variation, technological demands, and multicultural collaboration are unusually salient. This article addresses that gap by examining contractor experience, contract management capability, technological complexity, and government support as antecedents of project cost performance, with project risk management capability as a mediator and cross-cultural communication effectiveness as a moderator. Drawing on a survey of 391 contractor project management personnel involved in railway and highway projects across Southeast Asia, East Africa, and Central Asia, the study applies partial least squares structural equation modelling. The results show that contractor experience, contract management capability, and government support have significant positive direct effects on cost performance, whereas technological complexity does not. All four antecedents significantly affect project risk management capability, which in turn improves cost performance. Mediation analysis shows a partial indirect effect for contract management capability and a full indirect effect for technological complexity, while the indirect effects of contractor experience and government support are not statistically significant. Cross-cultural communication effectiveness significantly strengthens the positive effect of project risk management capability on cost performance. The article contributes to BRI project management research by developing a contractor-centred explanation of cost performance, clarifying the differentiated roles of internal capabilities and external support, and showing that risk management and communication operate as distinct but complementary mechanisms in multinational project environments.

Keywords

Belt and Road Initiative, Transportation projects, Cost performance, Project risk management, Contract management capability, Cross-cultural communication

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References

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