scholarly journals Risk response incorporating risk preferences in international construction projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peng Yan ◽  
Junying Liu ◽  
Xianbo Zhao ◽  
Martin Skitmore
Keyword(s):  
Sensitivity Analysis ◽  
Risk Preferences ◽  
Response Strategy ◽  
Industrial Plant ◽  
Chance Constrained Programming ◽  
Strategy Selection ◽  
Content Type ◽  
Risk Response ◽  
International Construction ◽  
Decision Method

PurposeThe objective of this research is to develop a decision method that can generate appropriate risk response strategies for international construction project managers (PMs) and allow these strategies to reflect their different risk preferences.Design/methodology/approachThe optimal model approach is adopted. A credibility-based fuzzy chance constrained programming (CFCCP) model is developed, which simultaneously minimizes the expected losses of risk events and total costs of risk response. To solve this multi-objective model, a fuzzy interactive solution method is used. Moreover, the model performance is demonstrated by a real international industrial plant project. In addition, a sensitivity analysis of the model is conducted.FindingsThe result of the sensitivity analysis indicates that PMs with a greater risk aversion can lead to a higher mitigation ratio of expected losses of risk events and a higher total cost of risk response.Practical implicationsThis research provides contractors with an effective decision-making model to develop a project risk response plan, and it will assist contractors to minimize risk losses and enhance the project performance in the international construction market.Originality/valuePrevious studies overlook the risk preference, which is an important behavioral factor influencing decisions in risk response strategy selection. This research proposed a novel risk response strategy selection decision method that considers different attitudes toward risk among decision makers.

Research on project risk response strategy selection based on grey K-shell algorithm

2020 ◽  
Vol 10 (4) ◽  
pp. 425-438
Author(s):  
Yanfeng Chu ◽  
Zhongren Wang
Keyword(s):  
Risk Factors ◽  
Project Managers ◽  
Selection Model ◽  
Response Strategy ◽  
Strategy Selection ◽  
Project Risk ◽  
Content Type ◽  
Risk Response ◽  
Response Strategies ◽  
Complex Project

Purpose There are a large number of interdependent risk factors in complex project. Risk response strategy without considering risk correlation cannot achieve good risk response. Therefore, the purpose of this paper is to propose a risk response strategy selection model considering risk correlation based on the grey K-shell algorithm. Design/methodology/approach This paper mainly focuses on the measurement of two aspects of risk factors. One is the ability of the risk factors to influence other risk factors, another is the degree affected by other risk factors. Both of the above are measured by the grey K-shell algorithm improved in this paper, and the weights of these are used for the constructing of risk response strategy selection model. Findings The risk response strategy considering risk relevance is more effective than the risk response strategy without considering risk relevance. Also, results indicate that as the risk response budget increases the risk response effect also increases, and the increasing trend is weakens. The relative gap between the effect of response strategies considering risk relevance and the strategy without considering risk relevance increases first and, then, decreases with the increase of budget. Originality/value The results of this paper demonstrate that the risk response strategy considering risk relevance is more effective than not considering risk relevance. The approach presented in this paper can guide project managers’ risk decisions and may also help to find the best risk response budget.

Private partner's risk response in PPP low-cost housing projects

2014 ◽  
Vol 32 (1) ◽  
pp. 67-94 ◽  
Author(s):  
Surangkana Trangkanont ◽  
Chotchai Charoenngam
Keyword(s):  
Life Cycle ◽  
Risk Mitigation ◽  
Low Cost ◽  
Response Strategy ◽  
Private Firms ◽  
Content Type ◽  
Risk Response ◽  
Project Life Cycle ◽  
Low Cost Housing ◽  
Project Life

Purpose – The purpose of this paper is to identify the salient risks borne by private firms and to investigate their effective risk response strategies in public-private partnership (PPP) low-cost housing (LCH) projects in Thailand. Design/methodology/approach – The paper employs grounded theory and case study methodologies to extensively analyze ten private firms’ risks and their strategic risk mitigation. As a result, the matrix of imperative risks’ root causes and the area of the project life cycle most exposed to their impacts were proposed. This included the framework of the risk response strategy application. Findings – The private firm's risk mitigation strategies depended on the salient risks’ impact and the private firms’ predictability and controllability of the risk outcome. This included the private firm's participating objectives and core business, decision maker's risk attitude, risk perception, experience of risk, and risk assessment skill, and the project life cycle phase of risk occurrence. Practical implications – Under the same characteristics of the immature PPP market in developing countries, the contractors’ effective risk management framework can be used as a guideline to complement the contractors’ decision making on risk response strategy selection and resource allocation in the PPP project life cycle. Originality/value – Despite working under the familiar environment of construction risk and generous payment method in PPP-LCH projects, only few contractors were successful. The examination of risks borne and effectively responded by the private sector increases the likelihood of the project success.

scholarly journals Risk analysis and strategic planning on bridge construction works at the toll road procurement projects in Central Java Province

2018 ◽  
Vol 49 ◽  
pp. 02020
Author(s):  
Hery Suliantoro ◽  
Nurul Fitriani ◽  
Bagus Hario Setiadji
Keyword(s):  
Avoidance Response ◽  
Construction Projects ◽  
Construction Project ◽  
Weather Forecast ◽  
Development Project ◽  
Response Strategy ◽  
Bridge Construction ◽  
Risk Response ◽  
Toll Road ◽  
The Impact

Risk is a condition caused by uncertainty. Risks will occur on any construction project, including bridge construction projects. Efforts that can be taken to minimize the impact of these risks are to engage in risk management activities. This research was conducted on bridge construction work on toll road procurement project in Pejagan-Pemalang, Pemalang-Batang and Salatiga-Kertasura. The purpose of this research is to analyze the risk of bridge development project in toll road project using Risk Breakdown Structure (RBS) method and then the result as database in discussing risk response strategy. The bridge construction project has 36 risks that are divided into six groups: materials and equipment, design, human resources, finance, management, nature and environmental conditions. Bad weather risks are the higest risk and seasonal risk causing temporary work stoppages. This risk-response strategy is avoidance. Short-term avoidance response strategy is to add shift workers, install tents and add additives in the acceleration of the process of maturation of concrete. The long-term avoidance response strategy is to evaluate and rearrange the work schedule by considering the weather forecast report.

An assessment of the readiness of construction firms for international construction joint ventures (ICJVs) using the VERDICT model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Akunyumu ◽  
Frank D.K. Fugar ◽  
Emmanuel Adinyira
Keyword(s):  
Joint Ventures ◽  
Technology Infrastructure ◽  
Commitment To Change ◽  
Content Type ◽  
Construction Firms ◽  
Construction Companies ◽  
Construction Joint ◽  
Foreign Companies ◽  
International Construction ◽  
Construction Organizations

Purpose The purpose of this study was to assess the readiness of construction companies in Ghana to partner with foreign companies in international construction joint ventures (ICJVs). Design/methodology/approach Using the Verify End-User e-Readiness using a Diagnostic Tool (VERDICT) model, a survey with 31 construction companies was conducted to assess their readiness through four pre-defined elements of readiness. Findings The results indicated the readiness of construction companies to collaborate with potential foreign partners in ICJVs. Notwithstanding, certain areas such as management commitment to change, employee buy-in, process flexibility and technology infrastructure need improvement in some firms to achieve readiness. Government has a role in ensuring the readiness of domestic firms for the international market. Originality/value This study applies the VERDICT model, a tool originally designed to assess construction organizations’ readiness for e-commerce, to assess the readiness of Ghanaian construction companies for ICJVs.

Do brand rumors matter? The role of brand equity and response strategy to brand rumor

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jihee Choi ◽  
Soobin Seo
Keyword(s):  
Brand Equity ◽  
Restaurant Industry ◽  
Response Strategy ◽  
Effective Response ◽  
Content Type ◽  
Consumer Responses ◽  
Response Strategies ◽  
Brand Crisis ◽  
Negative Impacts ◽  
The Impact

Purpose This paper aims to investigate consumer responses to brand rumors and corporate rumor response strategies in the restaurant industry. Design/methodology/approach A scenario-based experimental design was used to examine changes in consumers’ brand evaluation depending on level of brand equity and corporate choice of response strategy. Findings It was found that the impact of brand rumors on consumer responses is more negative when the restaurant’s brand equity is low compared to when it is high. It was also found that a company's use of active response strategies is more effective in combating brand rumor than a strategy of simple denial. Practical implications The findings have significant implications for both academics and practitioners in terms of developing effective response strategies for counteracting brand rumors. Originality/value Given the frequency of brand rumors in the restaurant industry and their serious negative impacts, this study extends the existing brand crisis communication literature by demonstrating how consumers respond to a rumor and the effectiveness of different corporate rumor response strategies.

The quicker, the better? The antecedents and consequences of response timing strategy in the aftermath of a corporate crisis

2019 ◽  
Vol 14 (1) ◽  
pp. 19-38 ◽  
Author(s):  
Nengzhi (Chris) Yao ◽  
Jiuchang Wei ◽  
Weiwei Zhu ◽  
Alexander Bondar
Keyword(s):  
Media Coverage ◽  
Firm Value ◽  
Structural Equation ◽  
Empirical Support ◽  
Equation Model ◽  
Response Strategy ◽  
Content Type ◽  
Response Timing ◽  
Buffering Effects

Purpose The conclusions on the importance of corporate response timing to a crisis have remained inconsistent. Some studies suggest that active response may reduce negative impacts, whereas managers argue that issuing official response frustrates stakeholders and thus decreases the firm value. The purpose of this paper is to investigate the role of external media in the response timing strategy and the consequent stock market reaction. Design/methodology/approach Based on 130 corporate crises that befell publicly listed firms in China from 2007 to 2014, this paper uses the Baidu News Search Engine and Chinese Lexical Analysis System to construct the variables of the media characteristics. A structural equation model is established to test the hypotheses. Findings The results of this paper suggest that media coverage drives response timing after a crisis. Although an official response is a burden for firms, the timing strategy has multidimensional benefits including effectively alleviating negative effects (defined as buffering effects) and repairing the market (defined as restoring effects). Moreover, the buffering effects of response timing are stronger when completeness of response is low. Originality/value This study mainly contributes to crisis communication literature by introducing the role of media in prompting managers to make timing decisions. The findings of this study provide empirical support for the importance of timing response strategy.

Dynamic supplier selection approach for mining equipment company

2019 ◽  
Vol 14 (1) ◽  
pp. 77-105 ◽  
Author(s):  
Md. Tanweer Ahmad ◽  
Sandeep Mondal
Keyword(s):  
Sensitivity Analysis ◽  
Supplier Selection ◽  
Business Environment ◽  
Spare Parts ◽  
Mixed Integer ◽  
Optimal Order ◽  
Mining Equipment ◽  
Order Allocation ◽  
Managerial Implication ◽  
Content Type

PurposeThis paper aims to address the supplier selection (SS) problem under dynamic business environments to optimize the procurement cost of spare-parts in the context of a mining equipment company (MEC). Practically, involved parameters’ value does not remain constant as planning periods due to fluctuation in the demand and their market dynamics. Therefore, dynamicity in the parameter is considered as an important factor when a company forms a responsive chain through most eligible suppliers with respect to planning periods. This area of study may be considered for their complexities to the approaches toward order-allocations with bi-products of unused and repair spare-parts.Design/methodology/approachAn integrated methodology of analytic hierarchy process (AHP) and mixed-integer non-linear programming (MILP) is implemented in the two stages during each planning periods. In the first stage, AHP is used to obtain the relative weights with respect to each spare-parts of each criterion and based on that, the ranking is evaluated in accordance with case considered. And in the second stage, MILP is formulated to find the allocations of each spare-part with two distinct approaches through Model-1 and Model-2 separately. Moreover, Model-1 and Model-2 are outlined based on the ranking and efficient parameters-value under cost, limited capacities, quality level and delay lead time respectively.FindingsThe ranking and their optimal order-allocation of potential suppliers are obtained during consecutive planning periods for both unused and repair spare-parts. Subsequently, sensitivity analysis is conducted to deduce the key nuggets with the comparison of Model-1 and Model-2 in the changing of capacity, demand and cost per spare-parts. From this analysis, it is found that suppliers who have optimal parameter settings would be better for order-allocations than ranking during the changing planning period.Practical implicationsThis paper points out the situation-specific approach for SS problem for a mining industry which often faces disruptive supplying environments. The managerial implication between ranking and parameters are highlighted through Model-1 and Model-2 by sensitivity analysis.Originality/valueIt provides useful directions for managers who are involved in the procurement of spare-parts in the mining environment. For this, suppliers are selected for order-allocation by using Model-1 and Model-2 in the dynamic business environment. The solvability of the model is presented using LINGO 17. Furthermore, the case company selected in this study can be extended to other sectors.

Optimal design of a parallel robotic gripper using enhanced multi-objective ant lion optimizer with a sensitivity analysis approach

2020 ◽  
Vol 40 (5) ◽  
pp. 703-721
Author(s):  
Golak Bihari Mahanta ◽  
Deepak BBVL ◽  
Bibhuti B. Biswal ◽  
Amruta Rout
Keyword(s):  
Sensitivity Analysis ◽  
Distribution Function ◽  
Design Parameters ◽  
Objective Functions ◽  
Content Type ◽  
Multi Objective ◽  
The Past ◽  
Design Variables ◽  
Pick And Place ◽  
Ant Lion

Purpose From the past few decades, parallel grippers are used successfully in the automation industries for performing various pick and place jobs due to their simple design, reliable nature and its economic feasibility. So, the purpose of this paperis to design a suitable gripper with appropriate design parameters for better performance in the robotic production systems. Design/methodology/approach In this paper, an enhanced multi-objective ant lion algorithm is introduced to find the optimal geometric and design variables of a parallel gripper. The considered robotic gripper systems are evaluated by considering three objective functions while satisfying eight constraint equations. The beta distribution function is introduced for generating the initial random number at the initialization phase of the proposed algorithm as a replacement of uniform distribution function. A local search algorithm, namely, achievement scalarizing function with multi-criteria decision-making technique and beta distribution are used to enhance the existing optimizer to evaluate the optimal gripper design problem. In this study, the newly proposed enhanced optimizer to obtain the optimum design condition of the design variables is called enhanced multi-objective ant lion optimizer. Findings This study aims to obtain optimal design parameters of the parallel gripper with the help of the developed algorithms. The acquired results are investigated with the past research paper conducted in that field for comparison. It is observed that the suggested method to get the best gripper arrangement and variables of the parallel gripper mechanism outperform its counterparts. The effects of the design variables are needed to be studied for a better design approach concerning the objective functions, which is achieved by sensitivity analysis. Practical implications The developed gripper is feasible to use in the assembly operation, as well as in other pick and place operations in different industries. Originality/value In this study, the problem to find the optimum design parameter (i.e. geometric parameters such as length of the link and parallel gripper joint angles) is addressed as a multi-objective optimization. The obtained results from the execution of the algorithm are evaluated using the performance indicator algorithm and a sensitivity analysis is introduced to validate the effects of the design variables. The obtained optimal parameters are used to develop a gripper prototype, which will be used for the assembly process.

Exploring incomplete information in maintenance materials inventory optimization

2014 ◽  
Vol 114 (1) ◽  
pp. 144-158 ◽  
Author(s):  
Antti Puurunen ◽  
Jukka Majava ◽  
Pekka Kess
Keyword(s):  
Sensitivity Analysis ◽  
Simulation Model ◽  
Input Data ◽  
Real Life ◽  
Significant Risk ◽  
Service Level ◽  
Content Type ◽  
Imperfect Data ◽  
Inventory Optimization ◽  
Critical Materials

Purpose – Ensuring the sufficient service level is essential for critical materials in industrial maintenance. This study aims to evaluate the use of statistically imperfect data in a stochastic simulation-based inventory optimization where items' failure characteristics are derived from historical consumption data, which represents a real-life situation in the implementation of such an optimization model. Design/methodology/approach – The risks of undesired shortages were evaluated through a service-level sensitivity analysis. The service levels were simulated within the error of margin of the key input variables by using StockOptim optimization software and real data from a Finnish steel mill. A random sample of 100 inventory items was selected. Findings – Service-level sensitivity is item specific, but, for many items, statistical imprecision in the input data causes significant uncertainty in the service level. On the other hand, some items seem to be more resistant to variations in the input data than others. Research limitations/implications – The case approach, with one simulation model, limits the generalization of the results. The possibility that the simulation model is not totally realistic exists, due to the model's normality assumptions. Practical implications – Margin of error in input data estimation causes a significant risk of not achieving the required service level. It is proposed that managers work to improve the preciseness of the data, while the sensitivity analysis against statistical uncertainty, and a correction mechanism if necessary, should be integrated into optimization models. Originality/value – The output limitations in the optimization, i.e. service level, are typically stated precisely, but the capabilities of the input data have not been addressed adequately. This study provides valuable insights into ensuring the availability of critical materials.

Budget allocation decisions for project risk response

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yao Zhang ◽  
Xin Guan
Keyword(s):  
Optimization Model ◽  
Fault Tree ◽  
Critical Issue ◽  
Inadequate Response ◽  
Expected Loss ◽  
Project Risk ◽  
Content Type ◽  
Risk Response ◽  
Total Budget ◽  
Risk Protection

Purpose The purpose of this paper is to propose a method integrating fault tree analysis and optimization model to allocate response budget from the preventive and protective perspectives. Design/methodology/approach The proposed method consists of two main steps. The first step is to analyze and calculate the probability and the loss of the risk. The second step is to build an optimization model for allocating response budget. Findings First, there exists an optimal response budget. Second, risk protection is preferred to risk prevention when the total budget is limited. Third, the protective budget should be first invested for the consequence event with greatest expected loss. Fourth, the preventive budget should be first allocated to the risk cause with highest occurrence probability that belongs to the OR set in the fault tree. Practical implications Managerially, our results indicate that project managers (PMs) should make a tradeoff between the budget invested for risk response and reduced expected loss of the risk. Then, in the case of inadequate response budget, PMs should pay more attention to risk protection and cope with the event that can cause severe loss. In addition, under this circumstance, PMs had to better allocate the risk preventive budget in proper order. Originality/value Project risk response is a critical issue in project risk management as PMs can take actions actively to cope with project risks in this phase. Effective risk response, in general, requires financial support in practice, and reasonable allocation of the total budget among risk response strategies can produce better response effects.

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