Impact of value management critical success factors on overall sustainability success in Australian steel sector

Abstract

Purpose – The present study aims to explore the effects of the critical success factors (CSFs) on the overall sustainability success (OSS) in the Australian steel industry, an infrastructure business that is important for city facility management with a focus on the satisfaction of city residents, based on partial least squares structural equation modelling (PLS-SEM) to add the empirical support and to further develop on the previous conceptual study. Design/methodology/approach – An Australian steel sector stakeholder-based Likert-scale survey, a major ingredient in citizen-centric urban facility management, was distributed. With the use of PLS-SEM, this research examined the effect of VM CSFs established by a broad literature review on OSS. The exploratory research with numerous constructs and small sample size has PLS-SEM as the suggested approach. Findings – This research found that VM CSFs have a strong and positive effect on OSS in the Australian steel industry which produces basic facilities materials for urban citizen needs. The effect is positive, significant and relatively high (ß = 0.500, p = 0.000). Statistically, CSFs explain approximately 25% of the variance of OSS. In other words, a quarter of the effect of system success in the steel industry can be attributed to CSFs and their proper management. Practical implications – Successful steel industry systems depend on proper management of CSFs like leadership resources and collaboration to meet city facility management needs based on citizen requirements. Because CSFs explain 25% of the performance, they could be seen as a strategic control lever to reach sustainable citizen-oriented success. Originality/value – This investigation expands existing knowledge by using PLS-SEM to examine how CSFs influence sustainability achievements which supports urban facilities management and prioritizes citizen welfare. Stakeholders can use this study’s findings to identify CSFs that influence OSS which will enhance their strategic planning efforts.