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.

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.

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.

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.

Societal institutions and control system characteristics: empirical evidence from the UAE

2015 ◽  
Vol 6 (2) ◽  
pp. 268-291 ◽  
Author(s):  
Mayada Abd El-Aziz Youssef ◽  
Essam Moustafa
Keyword(s):  
Performance Evaluation ◽  
Empirical Evidence ◽  
Business Environment ◽  
Management Control ◽  
Survey Method ◽  
Content Type ◽  
The Government ◽  
Business Entities ◽  
And Performance ◽  
And Control

Purpose – This paper aims to explore the existence of two sets of factors societal institutions and management control systems’ (MCS) characteristics in the UAE business entities. Subsequently, this paper empirically examines the bilateral and the multivariate associations between the two sets. The societal institutions include six factors categorised in three main groups: cultural conventions, state structures and policies and skill development and control. The MCS characteristics consist of four factors which are: reliance on formal rules, control over the behaviour of employees, involvement of subordinates in target setting and performance evaluation and scope of information used in performance evaluation. Design/methodology/approach – Whitley’s model (1999) is adopted in the UAE business environment and the analyses are performed at the organisational level. Qualified accounting officials and managers are surveyed. The Kruskal-Wallis test, Spearman’s partial correlation and multiple regression are used for data analyses. Findings – Findings reveal the characteristics of the UAE societal institutions and the MCS in UAE organisations. They also reveal significant associations among four of the societal institution factors and most of the MCS characteristics. The results highlight the role played by the government structures and policies group in influencing the MCS characteristics in the UAE organisations. However, these results do not entirely agree with Whitley’s model. Research limitations/implications – The results of this study are restricted by the typical constraints associated with the survey method. The obtained results have implications for researchers and managers in facilitating the understanding of the relations among the various societal institutions and the MCS characteristics. Originality/value – This research, to the best of the authors’ knowledge, provides significant new empirical evidence into the relation between societal institutions and MCS characteristics in a non-Western economy.

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