The Influence of Domestic Political Environment on Stakeholder Engagement: Mediating Role in the Success of Malaysia's East Coast Rail Link Project

Abstract

The East Coast Rail Link (ECRL) project in Malaysia underscores the importance of effective governance in large-scale infrastructure development. This study explores the relationships among the domestic political environment (DPE), stakeholder engagement (SE), and project outcomes, including governance effectiveness and success. Grounded in collaborative governance and stakeholder theories, a conceptual model was developed to guide the analysis. A survey with 23 questions was administered to 361 stakeholders involved in the ECRL, with data analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4. Results reveal that a stable political environment positively influences stakeholder engagement and project outcomes, while active stakeholder involvement further enhances success. Additionally, stakeholder engagement serves as a partial mediator between the political environment and project outcomes, with moderate explanatory power for success. These findings highlight the critical role of political stability and stakeholder collaboration in driving project achievements, though contextual factors suggest further exploration. Implications for policymakers and project managers are discussed, along with recommendations for future research to strengthen governance strategies in similar initiatives.