Managing relationships in large public projects: comparative study of China and Singapore

2019 ◽  
Vol 9 (3) ◽  
pp. 348-363
Author(s):  
Yongjian Ke ◽  
Florence Y.Y. Ling ◽  
Yan Ning ◽  
Zhe Zhang

Purpose One of the solutions to manage large public projects that are complex and difficult to manage is through relationship management. Although formal and relational approaches have been adopted in managing relationships, it is widely recognized that participants from developed and developing economies have different mindsets toward these two approaches. The purpose of this paper is hence to elucidate the more effective practices for managers to manage relationships in large public projects that are in countries of different sizes and stages of development. Design/methodology/approach A structured questionnaire survey was conducted. Multiple stakeholders involved in public construction projects in Singapore and China that include public sector clients and consultants, private sector contractors and conszultants, were approached for data collection to provide information on one of their completed large public project. Findings Both Singapore and China primarily adopt contractual governance by making rational decisions, pursuing profit and using the contract to guard against trouble. Participants in Singapore are more deeply committed and work more collaboratively than their counterparts in China. Project partners in China build stronger relationships, which may be due to the importance of “guanxi” to conduct business activities there. Originality/value The comparative study provides managers with different sets of governance practices to adopt to improve the relationships with public clients in large public projects under different environments. In large public projects in developed countries, participants should rely more on relational practices that show commitment and teamwork, while those in developing countries participate in activities that build up their social networks.

2018 ◽  
Vol 18 (4) ◽  
pp. 412-432 ◽  
Author(s):  
Nurul Afroze Zainal Abidin ◽  
Bingunath Ingirige

Purpose The dynamics and effects of interconnected risks among construction organisations tend to be overlooked across the Malaysian public project supply chains, making them highly vulnerable to supply chain disruptions. This study aims to investigate this dynamism by assessing the supply chain’s critical vulnerabilities and capabilities that formulate the level of resilience in handling disruptive events in construction projects. Design/methodology/approach A comprehensive questionnaire survey was conducted with 105 construction professionals from two groups of respondents, the public and private organisations that work in public projects to identify their current vulnerabilities and capabilities. Data were analysed and compared using the Mann–Whitney U and Kruskal–Wallis tests. Findings The findings revealed that the top five critical vulnerability factors of the supply chain include political or regulatory changes, market pressures, management, financial and strategic vulnerability. Further comparisons highlighted that the public organisations faced significantly higher political threats compared to the private organisations whilst the private organisations faced significant market pressures. The survey also shows that despite the private organisations’ high capability in financial strength, the public organisations’ financial vulnerability has destabilised the entire supply chain. Originality/value This study presents the construction supply chain’s vulnerabilities in a layered framework approach that can provide managers a new perspective on the dynamics of the cascading impacts of these vulnerabilities when observed through several layers of supply chains.


There has been a persistent reported increase in project failure in many Iraqi’s construction public project. This has resulted in project withdrawal from contractors, and revoking of companies licenses due to weak performance. This study investigated the effect of strategic and employee factors on the performance of construction public projects in Iraqi. The findings indicated that strategic and employee factors were statistically significant and they are important determinants for performance measurement. On the overall, the employee factors are more important than strategic factors and its component rewards is the most important variables. There is therefore a need for policy makers in Iraqi to focus on strengthening the role of strategic and employee factors in enhancing the project performance in construction projects.


2019 ◽  
Vol 3 (1) ◽  
pp. 18-26
Author(s):  
Noori Sadeq Ali ◽  
Khalil Ismail Wali

Delay is one of the greatest challenges facing the implementation of construction projects. The completion project time is considered one of the measure indicators for assessing the success of any project. Delays usually have negative impacts of financial and social to all parties involved in the projects. The aim of the study is to find the most important causes of delay by evaluating the common causes of delays in terms of frequency, severity, and important indices in implementation of public construction projects in Erbil Governorate related to owners, contractors, consultants, and external factors. The data gathered through conducting a questionnaire for perception various parties involved in implementation of public construction projects. For these purpose, 104 forms of questionnaire were distributed to various parts to identify the delay causes in accordance with their opinions. It was concluded that the most significant factors causing the delay in construction of public project in Erbil Governorate related to the owner were “variation orders by owner during the construction” which came in the first rank, while the cause of delay related to the consultant that came in the first rank was “unclear and inadequate details in drawings,” whereas the factor related to the contractor which came in the first rank was “selecting incompetent contractor.”


2017 ◽  
Vol 21 (3) ◽  
pp. 208-223
Author(s):  
Byung Mun Lee

Purpose The purpose of this paper is to describe and analyze the rules on the formation of contracts under Korean law and the Contracts for the International Sale of Goods (CISG) in a comparative way and introduce the relevant proposed rules under the Amendment Draft of the Korean Civil Code (KCC). In addition, it attempts to compare and evaluate them in light of the discipline of comparative law. Design/methodology/approach In order to achieve the purposes of the study, it executes a comparative study of the rules as to the formation of contracts of the CISG, Korean law and the Amendment Draft of the KCC. The basic question for this comparative study is placed on whether a solution from one jurisdiction is more logical than the others and to what extent each jurisdiction has responded to protect the reasonable expectations of the parties in the rules as to the formation of contracts. Findings The comparative study finds that most of the rules under the CISG are quite plausible and logical and they are more or less well reflected in the proposals advanced by the KCC amendment committee. On the other hand, the other rules under the CISG which have brought criticisms in terms of their complexity and inconsistent case law invite us their revision or consistent interpretation. The drawbacks of the CISG have also been well responded in the Amendment Draft of the KCC. Nevertheless, it is quite unfortunate that the Amendment Draft of the KCC still has a rule that regards any purported performance with non-material alteration of the terms of an offer as an acceptance. Originality/value This study may provide legal and practical advice to both the seller and the buyer when they enter into a contract for international sales of goods. In addition, it may render us an insight into newly developed or developing rules in this area and show us how they interact with each other. Furthermore, it may be particularly useful in Korea where there is an ongoing discussion for revision of the KCC.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Heba Masoud ◽  
Mohamed Albaity

PurposeThis study examines the effect of general trust (GT) and confidence in banks (CIB) on bank risk-taking. Besides, it explores the moderating role of CIB on the relationship between GT and bank risk-taking.Design/methodology/approachSecondary data was obtained from the World Value Survey, World Bank and BankFocus from 2011 to 2018. Two-step system GMM estimator was used to examine the links between the GT and CIB with bank risk-taking in MENA region.FindingsResults indicated that both GT and CIB negatively influenced bank risk-taking. Moreover, CIB weakened the negative relationship between GT and bank risk-taking. However, the results were different for MENA region as compared to the full sample.Originality/valueThe studies on the link between trust and bank risk-taking are either carried out on an international sample or using a developed economies sample. However, the authors believe that developing economies might exhibit different relationships due to cultural and structural differences present in developed countries. Besides, the authors believe that testing the moderating effect of CIB could shed more light on the differences between developing and developed countries.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chipozya Kosta Tembo ◽  
Franco Muleya ◽  
Emmanuellie Phiri

PurposeThis research aimed to investigate the extent to which organisational culture is practised in local and foreign contractors in grade one and two categories and how it affects their performance.Design/methodology/approachThe approach for this research was positivist in nature adopting a mono-method of data collection through a survey using self-administered questionnaires. A total of 138 questionnaires were distributed among public clients and large-scale contractors registered in the stated grades, and 112 questionnaires were returned for analysis representing an overall response rate of 81% for contractors and clients.FindingsFindings revealed that in organisational culture, significant differences were found for management style and dominant characteristics of the organisation between local and foreign contractors. Differences were not found for leadership styles, measures of success and organisational glue. Results suggest that for local contractors to perform better, significant changes are needed to their management style and dominant characteristics of their organisations.Originality/valueForeign contractors in the Zambian construction industry are reportedly outperforming local contractors making them preferred contractors on larger public projects accounting for 85% of construction projects by value of works. This study presents the differences in organisational culture between foreign and local firms. It further demonstrates that organisational culture plays a key role in determining performance of a contracting firm. The study presents areas that local contractors can improve in organisational culture in order to remain competitive.


Author(s):  
Andreas Økland ◽  
Nils O. E. Olsson

Scope management in the form of reduction lists was integrated in the quality assurance scheme for Norwegian public projects in 2001. This article presents findings on the actual use of reduction lists for major public construction projects Project representatives were contacted to obtain information about the actual use of pre-defined potential scope reductions. Eight of the 14 studied projects did not implement any of the predefined reductions. Six projects implemented some of the reductions. The scope reductions on the reduction lists are very specific and detailed, unlike general theory on scope management and cost control. However, the findings from the study are in line with the general theory; it was the most general scope and cost reductions that where used in practice. The study subsequently looked into the relationship between scope reductions and sustainability. Although the most frequently observed reduction was of the category “reduced quality or functionality”, sustainability was rarely affected with the notable exception of the railway infrastructure projects.


2020 ◽  
Vol 28 (4) ◽  
pp. 577-605 ◽  
Author(s):  
Shamsun Nahar ◽  
Mohammad Istiaq Azim ◽  
Md Moazzem Hossain

Purpose The purpose of this paper is to explore to what extent risk disclosure is associated with banks’ governance characteristics. The research also focuses on how the business environment and culture may create a bank’s awareness of risk management and its disclosure. This study is conducted in a setting where banks are not mandated to follow international standards for their risk disclosures. Design/methodology/approach Using 300 bank-year observations comprising hand-collected private commercial bank data, the study uses regression analysis to investigate the influence of risk governance characteristics on risk disclosure. Findings This paper reports a positive relationship between risk disclosure and banks’ governance characteristics, such as the presence of various risk committees and a risk management unit. Practical implications Because studies are lacking on risk disclosure and risk governance conducted in developing countries, it is expected that this research will make a significant contribution to the literature and provide a foundation for further research in this field. Social implications This study complements the corporate governance literature, more specifically the risk governance literature, by incorporating agency theory, institutional theory and proprietary cost theory to provide robust evidence of the impact of risk governance practices in the context of a developing economy. Originality/value Previous studies on risk disclosure and governance determinants primarily involve developed countries. This paper’s contribution is to examine risk disclosure and risk governance characteristics in a developing country in which reporting according to international standards is effectively voluntary.


2019 ◽  
Vol 10 (1) ◽  
pp. 16-27
Author(s):  
Ahmed M.Z. Sayed ◽  
Sadi Assaf ◽  
Adel S. Aldosary ◽  
Mohammad A. Hassanain ◽  
Abdullatif Abdallah

Purpose The purpose of this paper is to identify the key drivers for adopting electronic bidding (e-bidding) systems in public construction projects located in Saudi Arabia. Design/methodology/approach Literature review was undertaken to identify the drivers of e-bidding practices. Nine drivers, classified under four categories, were identified. A questionnaire survey was developed to assess the significance of the identified drivers. Responses were obtained from 20 large contractors, classified as Grade I and II contractors in Saudi Arabia, and 12 governmental authorities, representing owners of construction projects. The drivers were ranked according to their respective significance index (SI) values. Finally, a Spearman’s rank correlation coefficient was employed to ascertain the extent to which the two parties agreed on the significance level of the drivers. Findings Analysis of the identified drivers revealed that the most significant driver was “reduction in the physical storage requirements of bidding paperwork.” Further, a consensus was observed with regards to the significance of the drivers. The findings of the present study highlight the strong potential of widespread e-bidding adoption in Saudi Arabia. It demonstrates the key drivers for the implementation of e-bidding through the perspective of professionals within the context of Saudi Arabia. Originality/value Prior to this study, no previous research has endeavored to assess the drivers of e-bidding adoption in Saudi Arabia. The adoption of e-bidding will benefit organizations through improved efficiencies, which could potentially lower construction costs, thereby contributing to economic growth and benefitting the society at large.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benti Gadisa ◽  
Hong Zhou

PurposeIt is well recognized that the construction industry is characterised by inefficient and ineffective service delivery due to various causative factors. Thus this study aims to examine the influential factors affecting public construction project performance in Ethiopia to improve the industry's service delivery.Design/methodology/approachFrom the extensive literature reviewed, 58 potential factors affecting construction project performance have been compiled. Based on the evidence accumulated, the conceptual model of this paper has been developed. By using survey questionnaires, valuable data were collected from the construction industry professionals in Ethiopia; analysed and interpreted with the use of both SPSS and AMOS software.FindingsIt is concluded that failure factors related to the “performance” of the contractor, the “capability” of the owner, the “project design-procurement process,” and project contract management can significantly contribute to the poor performance of public construction projects in Ethiopia. Ten key factors include inadequate contractor capacity, weak project site management and supervision, weak project management skills and capabilities of the owner, additional work orders, delayed payment, lack of comprehensive project plans between parties and incomplete project design, rising material prices, ineffective project schedules, and cost management, rising market prices and devaluation of the currency.Research limitations/implicationsThe scope of this study confined to public projects in Ethiopia. It suggests that further research needs to consider public and private construction from a comprehensive perspective in the developing countries.Practical implicationsIt provides practitioners with information and guidance on the factors that affect the performance of construction projects.Originality/valueIt provides inclusive evidence related to many factors that affect the performance of public construction projects.


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