Key drivers for implementing international construction joint ventures (ICJVs): global insights for sustainable growth

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mershack Opoku Tetteh ◽  
Albert P.C. Chan ◽  
Amos Darko ◽  
Sitsofe Kwame Yevu ◽  
Emmanuel B. Boateng ◽  
...  
Keyword(s):  
Factor Analysis ◽  
Joint Ventures ◽  
Theory And Practice ◽  
Sustainable Growth ◽  
Successful Implementation ◽  
Content Type ◽  
Construction Joint ◽  
International Construction ◽  
Market Expansion ◽  
Key Drivers

PurposeInternational construction joint ventures (ICJVs) are an effective strategy for construction companies worldwide for delivering large and complex projects. Despite numerous ICJVs studies, there is a lack of comprehensive empirical examination of what drives ICJVs implementation. This study aims to investigate the key drivers for implementing ICJVs through an international survey.Design/methodology/approachGrounded on a comprehensive literature review and structured questionnaire survey, 123 ICJV experts' responses from 24 different countries/jurisdictions were analyzed using inferential and descriptive statistics. Mann–Whitney U test was used to determine any divergence of ranking of the drivers by the experts. Factor analysis (FA) was used to identify the clusters underlying the key drivers. Rank agreement analysis was later used to investigate the consensus between experts from developing and developed countries/jurisdictions on their ranking of the clusters.FindingsOut of 34 factors, 26 factors greatly drive the implementation of ICJVs. Mann–Whitney U test results prove the absence of significant disparity among the experts in the ranking of the drivers. Six clusters were obtained through factor analysis (FA), namely, market-penetration and innovation-driven drivers, legal and market-driven drivers, fiscal incentives and market expansion drivers, personal branding drivers, sustainable advantage/power drivers and industrial and organizational promotion drivers. Rank agreement analysis exhibited varied levels of concurrence between professionals from developed and developing countries/jurisdictions.Practical implicationsThe appreciation of the factors motivating ICJVs is beneficial to the successful implementation of ICJV strategies. A clear understanding of the drivers can help practitioners and policymakers to customize their ICJVs to reap the expected benefits.Originality/valueThe study has generated valuable insights into the factors that are greatly driving the implementation of ICJVs worldwide. While the findings of this study provide a profound contribution to theory and practice, it contributes to sustainable growth in different perspectives.

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.

Building competence to manage contractual claims in international construction environment

2006 ◽  
Vol 13 (1) ◽  
pp. 96-113 ◽  
Author(s):  
Adekunle Sabitu Oyegoke
Keyword(s):  
Construction Industry ◽  
Joint Ventures ◽  
Design Methodology ◽  
Three Dimensional ◽  
Continuing Professional Development ◽  
Successful Implementation ◽  
Content Type ◽  
Fair Dealing ◽  
International Construction ◽  
Operational Management

PurposeThis study was motivated by a belief that existing knowledge on management of a contractual claim in international contracting practice is different from a standardised local practice. The paper is aimed at building competence for managing contractual claims in a standardised practice.Design/methodology/approachComparative studies of British and Finnish contracting practices were used to determine the reason why claims are not pronounced in a standardised practice. Empirical study via direct interviews and questionnaires of a Finnish‐based contractor operating in the Russian markets was used. The players are three‐dimensional in nature where the client, consultants, and contractor come from different countries/practices and two of the projects studied were joint ventures.FindingsThe findings show the effects of: legal system, procurement methods, standardised practice and size of the market on the management of contractual claims. The remedial measures suggested include: operational management, i.e. learning through personal contacts, and management competence development of employees by learning through proper communication and education programmes in a form of continuing professional development.Originality/valueManagement of claims in the construction industry is vital to a successful implementation of the project. It brings about a fair dealing between the project owner and the contractor, improves contractor's cashflow and discourages abandonment of project and disputes. Lack of knowledge in managing claims constitutes a threat to successful implementation of project. The engagement of an expert and knowledge transfer through joint ventures/partnerships are suggested as solutions.

Management control structures and performance implications in international construction joint ventures: critical survey and conceptual framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mershack Opoku Tetteh ◽  
Albert P.C. Chan ◽  
Ernest Effah Ameyaw ◽  
Amos Darko ◽  
Sitsofe Kwame Yevu ◽  
...  
Keyword(s):  
Joint Ventures ◽  
Management Control ◽  
International Joint Ventures ◽  
Performance Criteria ◽  
Critical Survey ◽  
Content Type ◽  
Cooperative Relationships ◽  
Construction Joint ◽  
International Construction ◽  
And Performance

PurposeManagement control is needed in international joint ventures (IJVs) for successful management and performance. While IJV management control and performance concept has been widely explored, in the construction sector, the core understanding of the design of the two concepts is still lacking. This has resulted in the neglect of important questions and directions for research and practice improvement. This study aims to conduct a critical survey of prior studies addressing the conceptualization of management control and performance in IJVs and to propose a framework for studying the performance implications of management control in international construction joint ventures (ICJVs).Design/methodology/approachUsing Scopus database and search terms, a systematic desktop search was conducted to retrieve empirically related peer-reviewed papers for this study.FindingsDrawing on the transaction cost, institutional and relational logic, the first inclusive hypothetical model for studying the relationship between different dimensions of management control mechanism and multiple performance criteria in ICJVs is presented. The model proposes a measurement method for both the management control and performance and explains how they can be established in ICJVs.Practical implicationsThe proposed framework provides a methodology to understand the dynamics of management control and performance implications in ICJV. Specifically, uncovering the critical paths will assist ICJV frontliners to approach management control in a more holistic and systematic way to promote achievement of ICJV goals.Originality/valueThe study gives a firm ground to the construction industry, which is accurate and educational for related fields concentrating on several other forms of cooperative relationships.

International construction joint ventures between Singapore and developing countries

2017 ◽  
Vol 24 (2) ◽  
pp. 209-228 ◽  
Author(s):  
Bon-Gang Hwang ◽  
Xianbo Zhao ◽  
Eileen Wei Yan Chin
Keyword(s):  
Developing Countries ◽  
Joint Ventures ◽  
Questionnaire Survey ◽  
Joint Venture ◽  
Clear Understanding ◽  
Risk Allocation ◽  
Content Type ◽  
Construction Joint ◽  
International Construction ◽  
Allocation Preferences

Purpose The purposes of this paper is twofold: first, to assess the risks associated with the international construction joint ventures (ICJVs) between Singapore and developing countries and second, to investigate the risk allocation preferences in these ICJVs. Design/methodology/approach A questionnaire survey was conducted and responses were received from 38 firms that had participated in ICJVs with developing countries. A risk criticality (RC) index was adopted to evaluate the criticality of each risk. Findings The survey results reported “political instability” as the most critical risk and market-level risks were less critical than country and project-level risks. Additionally, the results showed agreement on the risk ranking between building and infrastructure ICJVs, despite significant differences in the criticalities of five risks. Furthermore, five risks were preferably allocated to host and foreign partners, respectively, while 13 risks could be shared among partners. Research limitations/implications First, due to the sample size, one should be cautious when interpreting and generalizing the results. Second, the RC index proposed in this study was subjective as it was influenced by the individual experience and risk attitude of the respondents. Also, the RC values were calculated without considering the weights of the respondents. Lastly, the questionnaire survey, which has been widely used in identifying risk allocation preferences, may not identify the insights of practitioners into the risk allocation practices. Practical implications This study provides a clear understanding of the risks associated with forming ICJVs with developing countries and the preferred risk allocation. Although, this study is focused on the risks faced by the Singapore-developing country ICJVs, the identification of the potential risks allows companies from other countries to customize their risk profile and assess the risks before they form ICJVs with developing countries. Originality/value As few studies have explored the risk allocation preferences in ICJVs, this study expands the literature and provides practitioners with important information for preparing joint venture contracts or agreements. Thus, this study can contribute to the literature relating to ICJVs.

Impact of culture differences on performance of international construction joint ventures: the moderating role of conflict management

2020 ◽  
Vol 27 (9) ◽  
pp. 2353-2377
Author(s):  
Junying Liu ◽  
Zhipeng Cui ◽  
Yingbin Feng ◽  
Srinath Perera ◽  
Jie Han
Keyword(s):  
Conflict Management ◽  
Cultural Differences ◽  
Joint Ventures ◽  
Project Managers ◽  
Interactive Effects ◽  
Management Approach ◽  
Cultural Issues ◽  
Content Type ◽  
Construction Joint ◽  
Management Approaches

PurposeCultural differences have been frequently cited as a major source of risks for international joint ventures (IJVs). Cultural differences may cause extensive conflicts in technology, norms and emotion among the international joint venture (IJV) partners. The purpose of this study is to explore the interactive effects of national culture differences (NCDs) and conflict management approaches on the performance of international construction joint ventures (ICJV).Design/methodology/approachData were collected using a questionnaire survey method with 143 valid responses. Partial least squares structural equation modeling (PLS-SEM) was used to test the research hypotheses.FindingsIt was found that ICJV performance declined with a high degree of NCDs. The negative effect of NCDs on ICJV performance was mitigated by adopting the cooperative conflict management approach; while it was aggravated by adopting the competitive conflict management approach. The findings may provide an alternative way (i.e. adopting the cooperative conflict management approach rather than avoiding or competitive approaches) to address the cultural conflicts in the multicultural project management teams.Practical implicationsFirstly, as NCD negatively impacts performance of ICJVs, project managers should pay attention to cultural issues and learn how to manage them; Secondly, as cooperative and competitive conflict management approaches have different moderating effects on the relationship between NCD and ICJV performance, project managers must choose appropriate conflict management styles in multination teams. Thirdly, as the avoiding approach has no significant moderating effect on the negative relationship between NCD and ICJV performance, it is important for Chinese partners not to employ avoiding approach to deal with conflicts in ICJV.Originality/valueThis study uniquely adds to the literature on cultural issues in managing ICJVs by integrating the moderating effects of conflict management approaches. The interactive effects of conflict management approaches and national cultural differences on ICJV project performance may contribute to the theories regarding conflict management theory in the context of cross-cultural management.

An empirical investigation and prioritization of barriers toward implementation of agile manufacturing in the manufacturing industry

2020 ◽  
Vol 33 (1) ◽  
pp. 183-203
Author(s):  
Rahul Kumar ◽  
Kanwarpreet Singh ◽  
Sanjiv Kumar Jain
Keyword(s):  
Factor Analysis ◽  
Large Scale ◽  
Manufacturing Industry ◽  
Agile Manufacturing ◽  
Successful Implementation ◽  
Vikor Method ◽  
Content Type ◽  
Empirical Survey ◽  
Technological Constraints ◽  
Operational Constraints

PurposeThe study aims at empirically investigating and prioritizing the critical barriers for the successful implementation of agile manufacturing in the medium- and large-scale Indian manufacturing industries.Design/methodology/approachA literature review of peer-reviewed journals and discussion with experts is used to identify 17 barriers to the implementation of agile manufacturing. An empirical survey is then conducted to collect data regarding the agile manufacturing barriers and is further analyzed using the factor analysis and vlsekriterijumska optimizacija i kompromisno resenje (VIKOR).FindingsBased on the survey of empirical data, the investigated critical barriers were reduced in five critical categories, as follows: Managerial constraints, technological constraints, human resource–related constraints, operational constraints and organizational culture-related constraints, which are further ranked in terms of their severity using VIKOR. This research advocates the development of a strategy for addressing the most critical barriers instead of focusing on all for the successful implementation of agile manufacturing.Originality/valueThis work contributes to agile manufacturing literature by the structured presentation of the barriers to implement agile manufacturing in the Indian manufacturing industry. It also extends the integrated factor analysis and VIKOR method to investigate and rank the barriers.

Development of a structural model of environmentally conscious manufacturing drivers

2014 ◽  
Vol 25 (8) ◽  
pp. 1195-1208 ◽  
Author(s):  
Varinder Kumar Mittal ◽  
Kuldip Singh Sangwan
Keyword(s):  
Factor Analysis ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Structural Model ◽  
Equation Modeling ◽  
Special Focus ◽  
Successful Implementation ◽  
Environmentally Conscious ◽  
Content Type ◽  
Environmentally Conscious Manufacturing

Purpose – Manufacturing firms consume energy and natural resources in highly unsustainable manner and release huge amounts of green house gases leading to many economic, environmental and social problems; from local waste disposal to climate change. Consciousness about these issues has lead to a new manufacturing paradigm of environmentally conscious manufacturing (ECM). There exist many social, legislative, policy, economic, internal, and environmental factors which can motivate and/or force industry to adopt ECM. The purpose of this paper is to identify the drivers for ECM, developing a model of these drivers using statistical analysis and testing the model using structural equation modeling (SEM) technique. Design/methodology/approach – The basic steps of methodology are ECM driver development, survey instrument development, data collection, model proposition, and model validation. The main data analysis approaches are exploratory factor analysis, confirmatory factor analysis, and SEM to develop a model of drivers and validating the same based on the data collected from the manufacturing industry. Findings – The reliable, valid, and tested model has three types of drivers – internal, policy, and economic. It has been found through hypothesis testing that internal drivers for the implementation of ECM are positively related to policy and economic drivers; and policy drivers are positively related to economy drivers. This research is expected to help government and industry in developing policies and strategies for the successful implementation of ECM. Practical implications – The novelty of this study is that it provides the relationship among the drivers which can be leveraged by the managers to focus on the root drivers for smooth and effective implementation of ECM. Originality/value – This paper provides new theoretical insight into the factors motivating the industry to implement ECM systems in the industry with special focus on manufacturing sector of emerging economies.

Sign in / Sign up

Export Citation Format

Share Document