The paper aims to identify the critical success factors (CSFs) at an individual level for real estate developers (REDs) in India.
Fifteen individual-level CSFs are identified from literature review. These CSFs are moderated through expert opinion, and they are customized for the real-estate sector. Five-point scale questionnaire is developed and furnished to REDs to understand the importance of these 15 CSFs. Fifty-six REDs responded to the survey. Using the responses from the survey, relative importance index is created for all 15 factors. These factors are also grouped in broad categories using exploratory factor analysis and the groups are further validated through confirmatory factor analysis.
The study finds that leadership quality, man-management skill, disputes resolution skill, ability to take risk and knowledge about construction and finance are the top five CSFs for REDs in India. The exploratory factor analysis resulted in five groups and they are named as “liaising with government,” “relationship management,” “knowledge management,” “skill management” and “ability.” The groups exhibit reasonable reliability and validity.
Despite useful results, study being exploratory in nature is limited because of a small sample size. Despite best efforts, authors find reluctance from REDs to respond to the survey.
The findings of the study are important for REDs and success of their business. The business of REDs can improve if they exhibit leadership quality, man-management skill and disputes resolution skill. The ability of the developers to take risk and their knowledge about construction and finance can also be vital for the success of their business.
To the best of authors’ knowledge, this is the first attempt to identify CSFs for REDs in India.
