Identifying micro variables contributing to political risks in international construction projects

2018 ◽  
Vol 25 (3) ◽  
pp. 317-334 ◽  
Author(s):  
Xiaopeng Deng ◽  
Sui Pheng Low ◽  
Xianbo Zhao ◽  
Tengyuan Chang
Keyword(s):  
Construction Projects ◽  
Rank Correlation ◽  
Content Type ◽  
Construction Enterprises ◽  
International Construction ◽  
Political Risks ◽  
Significant Disagreement ◽  
Micro Level ◽  
Individual Variables ◽  
The Impact

Purpose The purpose of this paper is to explore the micro-level variables contributing to political risks in international construction projects. Design/methodology/approach A total of 25 micro-level variables were identified from the literature review, and a questionnaire survey was performed with 138 professionals from both academia and industry. Then, the Spearman rank correlation was used to test whether there was agreement on ranking between the two respondent groups. Furthermore, the 25 variables were grouped into six underlying factors through the exploratory factor analysis. Findings The results indicated that the most critical variables were “project desirability to the host country,” “relationship with governments,” “misconduct of contractors,” “public opposition to the project,” “experiential knowledge of political risks” and “advantageous conditions of contract.” In addition, the opinions within each group were consistent and there was no significant disagreement on the rankings of variables between academics and practitioners. However, the academic and practitioner groups held different opinions on some individual variables. The impact direction of the variables was associated with confusion among the respondents. Originality/value The findings presented in this paper can help international construction enterprises effectively manage political risks in international construction projects.

scholarly journals Identifying Political Risk Management Strategies in International Construction Projects

2018 ◽  
Vol 2018 ◽  
pp. 1-11 ◽  
Author(s):  
Tengyuan Chang ◽  
Bon-Gang Hwang ◽  
Xiaopeng Deng ◽  
Xianbo Zhao
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Management Strategies ◽  
Political Risk ◽  
Implementation Phase ◽  
Construction Enterprises ◽  
International Construction ◽  
Political Risks ◽  
Risk Management Strategies ◽  
International Experts

International construction projects are plagued with political risk, and international construction enterprises (ICEs) must manage this risk to survive. However, little attention has been devoted to political risk management strategies in international construction projects. To fill this research gap, a total of 27 possible strategies were identified through a comprehensive literature review and validated by a pilot survey with 10 international experts. Appraisals of these 27 strategies by relevant professionals were collected using questionnaires, 155 of which were returned. Exploratory factor analysis was conducted to explore the interrelationships among these 27 strategies. The results show that all of the 27 strategies are important for political risk management in international construction projects. Moreover, these 27 strategies were clustered into six components, namely, (1) making correct decisions, (2) conducting favorable negotiations, (3) completing full preparations, (4) shaping a good environment, (5) reducing unnecessary mistakes, and (6) obtaining a reasonable response. The 6 components can be regarded as 6 typical management techniques that contribute to political risk management in the preproject phase, project implementation phase, and postevent phases. The findings may help practitioners gain an in-depth understanding of political risk management strategies in international construction projects and provide a useful reference for ICEs to manage political risks when venturing outside their home countries.

scholarly journals Political Risk Paths in International Construction Projects: Case Study from Chinese Construction Enterprises

2018 ◽  
Vol 2018 ◽  
pp. 1-11 ◽  
Author(s):  
Tengyuan Chang ◽  
Xiaopeng Deng ◽  
Bon-Gang Hwang ◽  
Xiaojing Zhao
Keyword(s):  
Construction Projects ◽  
Political Risk ◽  
Global Market ◽  
The Political ◽  
Construction Enterprises ◽  
International Construction ◽  
Political Risks ◽  
International Environment ◽  
Negative Effect ◽  
Low Exposure

International construction enterprises (ICEs) have been plagued with political risks in the global market. To ensure the success of political risk management, it is necessary to comprehend the political risks in international construction projects. This study aims at exploring the political risk paths in international construction projects. The preliminary political risk factors and paths were proposed from the literature review. A survey questionnaire was developed to collect political risk cases faced by Chinese construction enterprises (CCEs) performing international construction projects, and 264 valid cases were received and analyzed for this study. Adopting the confirmatory factor analysis (CFA) method, 6 macrofactors (“sociopolitical stability” (A), “legal and regulatory” (B), “social safety” (C), “economy performance” (D), “attitude towards foreigners” (E), and “international environment” (F)) and 2 microfactors (“low exposure” (G) and “capability of enterprises” (H)) were identified. Moreover, the results of path analysis illustrated that 7 factors (A, B, C, D, E, G, and H) had the significant direct negative effect on “risk consequences” and 3 factors (A, D, and F) had the indirect negative effect on “risk consequences.” The findings from this study help practitioners gain an in-depth understanding of political risks in international construction projects and provide a useful reference for ICEs to manage political risks when venturing outside their home countries.

Quantitative analysis of the impact of craft worker availability on construction project safety performance

2016 ◽  
Vol 16 (3) ◽  
pp. 307-322 ◽  
Author(s):  
Hossein Karimi ◽  
Timothy R.B. Taylor ◽  
Paul M. Goodrum ◽  
Cidambi Srinivasan
Keyword(s):  
Regression Analysis ◽  
Poisson Regression ◽  
Construction Projects ◽  
Construction Project ◽  
Safety Performance ◽  
Content Type ◽  
Poisson Regression Analysis ◽  
Incident Cases ◽  
The Impact ◽  
Craft Worker

Purpose This paper aims to quantify the impact of craft worker shortage on construction project safety performance. Design/methodology/approach A database of 50 North American construction projects completed between 2001 and 2014 was compiled by taking information from a research project survey and the Construction Industry Institute Benchmarking and Metrics Database. The t-test and Mann-Whitney test were used to determine whether there was a significant difference in construction project safety performance on projects with craft worker recruiting difficulty. Poisson regression analysis was then used to examine the relationship between craft worker recruiting difficulty and Occupational Safety and Health Administration Total Number of Recordable Incident Cases per 200,000 Actual Direct Work Hours (TRIR) on construction projects. Findings The result showed that the TRIR distribution of a group of projects that reported craft worker recruiting difficulty tended to be higher than the TRIR distribution of a group of projects with no craft worker recruiting difficulty (p-value = 0.004). Moreover, the average TRIR of the projects that reported craft worker recruiting difficulty was more than two times the average TRIR of projects that experienced no craft recruiting difficulty (p-value = 0.035). Furthermore, the Poisson regression analysis demonstrated that there was a positive exponential relationship between craft worker recruiting difficulty and TRIR in construction projects (p-value = 0.004). Research limitations/implications The projects used to construct the database are heavily weighted towards industrial construction. Practical implications There have been significant long-term gains in construction safety within the USA. However, if recent craft shortages continue, the quantitative analyses presented herein indicate a strong possibility that more safety incidents will occur unless the shortages are reversed. Innovative construction means and methods should be developed and adopted to work in a safe manner with a less qualified workforce. Originality/value The Poisson regression model is the first model that quantifiably links project craft worker availability to construction project safety performance.

Forecasting the schedule performance resulting from the adoption of social distancing in construction projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hilary Omatule Onubi ◽  
Nor'Aini Yusof ◽  
Ahmad Sanusi Hassan ◽  
Ali Ahmed Salem Bahdad
Keyword(s):  
Construction Projects ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Social Distancing ◽  
Schedule Performance ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

PurposeThe coronavirus disease 2019 (COVID-19) pandemic has had major impacts on the performance of construction projects that have adopted social distancing measures. This study examines the effect of social distancing measures on project schedule performance through job reorganization on construction project sites.Design/methodology/approachResponses were obtained through a survey of 154 construction projects and analysed using the partial least square structural equation modeling (PLS-SEM) technique.FindingsThe findings established that social distancing has a negative effect on schedule performance, social distancing has a positive effect on job re-organization and job re-organization has a positive effect on schedule performance. Additionally, the results indicate that job re-organization partially mediates the relationship between social distancing and schedule performance, while social distancing moderates the relationship between job re-organization and schedule performance with low social distancing having the stronger positive effect.Originality/valueThis study contributes theoretically to a greater understanding of the impact of adopting COVID-19 safety measures such as social distancing on the schedule performance of construction projects. The study also shows how social distancing could lead to schedule performance through job reorganization.

Clustering of host countries to facilitate learning between similar international construction markets

2019 ◽  
Vol 27 (1) ◽  
pp. 66-82
Author(s):  
Beste Ozyurt ◽  
Irem Dikmen ◽  
M. Talat Birgonul
Keyword(s):  
Cluster Analysis ◽  
Construction Projects ◽  
Lessons Learned ◽  
Extensive Literature ◽  
Host Countries ◽  
Related Factors ◽  
Content Type ◽  
International Construction ◽  
Country Factors ◽  
Country Clusters

Purpose In the global construction industry, experience gained in various countries is a major source of competitive advantage. By transferring the knowledge gained in previous projects using an effective knowledge management strategy, they can increase their competitiveness by adopting best practices and by not repeating the same mistakes under similar conditions. The purpose of this paper is to demonstrate how similar countries can be clustered to facilitate learning in global markets. Design/methodology/approach Initially, country factors that can affect success in international projects and can be used to assess the similarity of markets were identified by an extensive literature review and prioritised by a web-based questionnaire. A country evaluation form was prepared to collect country-specific data to be used in the cluster analysis of 39 countries where the Turkish contractors have been frequently working since the last 45 years. Cluster analysis was performed with SPSS 23.0. Findings Three country clusters were obtained and validated. Ultimately, how obtained country clusters may be used to facilitate learning from international construction projects was demonstrated by using an illustrative example. Research limitations/implications The findings depend on the experience and perspective of Turkish contractors doing business abroad. Thus, the identified clusters are not generic. Moreover, country clusters were not identified considering only the country factors such as economy, culture, politics, etc.; thus, countries in the same cluster do not necessarily represent “similar” countries in terms of macro-factors. Clusters were identified so that the lessons learned can be effectively transferred within the same cluster considering construction and project-related factors as well as country-related factors. Although the findings cannot be generalised and clusters are not static, it is believed that the methodology used in this research is repeatable for different countries considering different timeframes. Originality/value Theoretical contributions include the identification of factors that can be used for similarity assessment of countries for transferring lessons learned as well as a methodology for clustering. Findings may also have a practical value for the Turkish contractors.

Drivers of e-bidding implementation in the Saudi Arabian construction industry

2019 ◽  
Vol 10 (1) ◽  
pp. 16-27
Author(s):  
Ahmed M.Z. Sayed ◽  
Sadi Assaf ◽  
Adel S. Aldosary ◽  
Mohammad A. Hassanain ◽  
Abdullatif Abdallah
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Rank Correlation ◽  
Construction Costs ◽  
Content Type ◽  
Significance Level ◽  
Spearman’S Rank Correlation ◽  
Spearman’S Rank Correlation Coefficient ◽  
Key Drivers ◽  
Public Construction

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.

Assessing the impact of risk allocation on sustainable energy innovation (SEI)

2016 ◽  
Vol 9 (2) ◽  
pp. 259-281 ◽  
Author(s):  
Sulafa M Badi ◽  
Stephen Pryke
Keyword(s):  
Construction Projects ◽  
Sustainable Energy ◽  
Empirical Work ◽  
Energy Performance ◽  
Risk Allocation ◽  
Content Type ◽  
Study Approach ◽  
Energy Innovation ◽  
The Impact

Purpose – The allocation of risk among project participants is an important determinant of innovation success in construction projects. The purpose of this paper is to examine the capacity of risk allocation to encourage the implementation of environmental innovation, particularly sustainable energy innovation (SEI), within the private finance initiative (PFI) project delivery model. Design/methodology/approach – A four-case qualitative research methodology is adopted within the context of the UK government’s building schools for the future programme. Findings – The findings identify that SEIs are encouraged on the innovative projects by the perceived clarity, appropriateness, and manageability of the risks associated with the project’s energy performance on the PFI contract. The main SEIs were largely developed as strategies to manage long-term energy performance risks allocated to private sector actors and safeguard their long-term commitment to the project. However, the findings indicate that excessive perceived innovation-related risks, particularly capital cost risk, may restrict further SEIs to be implemented. Research limitations/implications – The qualitative case study approach adopted may limit the generalisability of the findings. Practical implications – The study and provides practical guidance to policymakers and project managers in developing strategies to support the implementation of SEI in PFI projects. Originality/value – The study attends to a significant gap in knowledge as there is a lack of conceptual and empirical work on managing innovative processes for sustainable energy in PFI projects.

Risk mitigation modelling of international construction projects executed by Indian firms: a structural equation modelling approach

2020 ◽  
Vol 27 (9) ◽  
pp. 2687-2713
Author(s):  
Satish Kumar Viswanathan ◽  
Kumar Neeraj Jha
Keyword(s):  
Risk Factors ◽  
Structural Equation ◽  
Construction Projects ◽  
Risk Mitigation ◽  
Mitigation Measures ◽  
Content Type ◽  
Construction Firms ◽  
International Construction ◽  
Equation Modelling ◽  
International Projects

PurposeA number of previous studies have investigated international construction project risks and have proposed risk mitigation measures without examining their interdependence. The purpose of the current study is to identify the influence of various risk mitigation measures on macro-level risk factors in the international marketplace.Design/methodology/approachThe authors initially identified 26 risk variables and nine risk mitigation measures through a literature review, which were then verified for their pertinence to international projects by three experts. Subsequently, 105 questionnaire survey responses were collected and analysed using factor analysis and structural equation modelling to test the interrelations between the risk variables and mitigation measures.FindingsThe findings suggest that joint ventures with local partners is emerged as the most critical risk mitigation measure that influences the international projects, which are exposed to political, project and firm-specific risk factors. Further, it is worth noting that among the recognised risk mitigation measures in international projects, offering more local employment is the least critical mitigation measure in the international projects.Research limitations/implicationsThe findings of this study are based on the macro-risk factors encountered by Indian construction firms in international projects, mostly from specific Asian and African regions. Thus, the opinions of construction firms from the developed countries might be different.Originality/valueThe main contribution of this study to existing knowledge is empirical evidence of the interrelationships between risk mitigation measures and risk factors that are portrayed as latent variables of different manifest risk variables. The generated model can assist construction firms in emphasising several risk mitigation methods, in order to reduce risk and enhance performance in international construction projects.

A stakeholder-based risk assessment and intervention framework for international construction projects

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tao Wang ◽  
Shangde Gao ◽  
Pinchao Liao ◽  
Tsenguun Ganbat ◽  
Junhua Chen
Keyword(s):  
Risk Factors ◽  
Risk Assessment ◽  
Risk Management ◽  
Construction Projects ◽  
Management Practices ◽  
Intervention Strategies ◽  
The Body ◽  
Content Type ◽  
International Construction ◽  
Project Objectives

Purpose The purpose of this paper is to construct a two-stage risk management framework for international construction projects based on the meta-network analysis (MNA) approach. A plethora of international construction studies seems to assume risks as independent and therefore, risk intervention strategies are usually critiqued as ineffective. Design/methodology/approach In the risk assessment stage, a multi-tiered risk network structure was developed with the project objectives, risk events, risk factors and stakeholders, and critical risk factors were selected based on a series of calculations. In the risk intervention stage, targeted risk intervention strategies were proposed for stakeholders based on the results of the first stage. A highway construction project in Eastern Europe was selected as a case study. Findings The results showed that 17 risk factors in three categories – external, stakeholder-related and internal – are critical, and the project manager, construction management department, supplier and contract department are the most critical stakeholders that affect the entire project performance. Based on the critical risk factors and project stakeholders, targeted risk intervention strategies were proposed. The risk assessment results of MNA were found to be more reliable and consistent with the project conditions than the risk matrix method; the risk intervention strategies of MNA can effectively address project objectives. Originality/value This study modeled risk priorities based on risk associations and put forward a new method for risk management, supplementing the body of knowledge of international construction. The results of this study are of critical importance in management practices.

A scheduling methodology for dealing with uncertainty in construction projects

2011 ◽  
Vol 28 (8) ◽  
pp. 1064-1078 ◽  
Author(s):  
Maria Elena Bruni ◽  
Patrizia Beraldi ◽  
Francesca Guerriero ◽  
Erika Pinto
Keyword(s):  
Construction Projects ◽  
Quantitative Methodology ◽  
Project Schedule ◽  
Deterministic Method ◽  
Content Type ◽  
Probabilistic Information ◽  
Analysis Process ◽  
On Line ◽  
Schedule Reliability ◽  
The Impact

PurposeThe purpose of this paper is to address the problem of scheduling under uncertainty in construction projects. The existing methods for determining a project schedule are based on assumption of complete knowledge of project parameters; but in reality there is uncertainty in construction projects, deriving from a multitude of context‐dependent sources and often provided as outcome of a risk analysis process. Thus, classical deterministic analysis might provide a schedule which is not sufficiently protected against possible disruptions.Design/methodology/approachA quantitative methodology is developed for planning construction projects under uncertainty aimed at determining a reliable resource feasible project schedule by taking into account the available probabilistic information to produce solutions that are less sensitive to perturbations that occur on line. The methodology relies on a computer‐supported system that allows to identify, analyze and quantify the schedule reliability and the impact of possible disruptions on the duration of the project.FindingsIt is found that the proposed methodology can exploit more information about the uncertain parameters than the commonly‐used deterministic method, and it provides an improved understanding of the schedule reliability in presence of uncertainty. The schedule generated with a classical deterministic method sets a completely unrealistic planned project delivery date of about 1,250 days, with a probability around 50 per cent to be exceeded. This behavior can be very unsatisfactory for construction projects for which high penalties are usually associated to heavy due date violations.Originality/valueThis paper presents an approach for robust scheduling of construction project problem under uncertainty. We provide a tool able to support managers in developing a workable and realistic project schedule to be used as a guideline for project control and monitoring.

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