Administrative risks challenging the adoption of smart contracts in construction projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asli Pelin Gurgun ◽  
Kerim Koc
Keyword(s):  
Construction Projects ◽  
Risk Mitigation ◽  
Research Question ◽  
Group Discussion ◽  
Mitigation Strategies ◽  
Risk Category ◽  
Smart Contracts ◽  
Content Type ◽  
Smart Contract ◽  
Criteria Weights

PurposeAs a remedy to usually voluminous, complicated and not easily readable construction contracts, smart contracts can be considered as an effective and alternative solution. However, the construction industry is merely known as a frontrunner for fast adoption of recent technological advancements. Numerous administrative risks challenge construction companies to implement smart contracts. To highlight this issue, this study aims to assess the administrative risks of smart contract adoption in construction projects.Design/methodology/approachA literature survey is conducted to specify administrative risks of smart contracts followed by a pilot study to ensure that the framework is suitable to the research question. The criteria weights are calculated through the fuzzy analytical hierarchy process method, followed by a sensitivity analysis based on degree of fuzziness, which supports the robustness of the developed hierarchy and stability of the results. Then, a focus group discussion (FGD) is performed to discuss the mitigation strategies for the top-level risks in each risk category.FindingsThe final framework consists of 27 sub-criteria, which are categorized under five main criteria, namely, contractual, cultural, managerial, planning and relational. The findings show that (1) regulation change, (2) lack of a driving force, (3) works not accounted in planning, (4) shortcomings of current legal arrangements and (5) lack of dispute resolution mechanism are the top five risks challenging the adoption of smart contracts in construction projects. Risk mitigation strategies based on FGD show that improvements for the semi-automated smart contract drafting are considered more practicable compared to full automation.Originality/valueThe literature is limited in terms of the adoption of smart contracts, while the topic is receiving more attention recently. To support easy prevalence of smart contracts, this study attempts the most challenging aspects of smart contract adoption.

scholarly journals A Hybrid MCDM Technique for Risk Management in Construction Projects

2017 ◽  
Author(s):  
Kajal Chatterjee ◽  
Edmundas Kazimieras Zavadskas ◽  
Jolanta Tamošaitienė ◽  
Krishnendu Adhikary ◽  
Samarjit Kar
Keyword(s):  
Construction Projects ◽  
Risk Mitigation ◽  
Preference Relation ◽  
Real Life ◽  
Mitigation Strategies ◽  
Response Strategy ◽  
Decision Matrix ◽  
Life Problems ◽  
Criteria Weights ◽  
Project Risks

Multi-stakeholder based construction projects are subject to various risk factors due to dynamic business environments. These risks affect project activities which indirectly impact construction costs, resulting in delays and poor building quality. So, managing these project risks requires suitable risk mitigation strategies to evaluate and analyse their severity. Hence, risk evaluation and assessment of construction projects is a multi-criteria decision making (MCDM) problem. In present real-life problems, evaluation of project risks is often uncertain and even incomplete, and the prevailing methodologies fail to handle such situations. To address the problem, this paper extends the analytical network process (ANP) methodology in the D number domain to handle three types of ambiguous evaluations, viz. complete, uncertain, and incomplete, and assesses the weight of risk criteria. The D number based approach overcomes the deficiencies of the exclusiveness hypothesis and completeness constraint of Dempster-Shafer (D-S) theory. Here, preference ratings of the decision matrix for each decision-maker are determined using a D number extended consistent fuzzy preference relation (D-CFPR). An extended multi-attributive border approximation area comparison (MABAC) method in D number is then developed to rank and select the best alternative risk response strategy. Finally, an illustrative example from construction sector is presented to check the feasibility of the proposed approach. For checking the reliability of alternative ranking, a comparative analysis is performed with different MCDM approaches (D-COPRAS, D-ARAS, D-MABAC, and D-TOPSIS). Based on different criteria weights, a sensitivity analysis of obtained ranking of the hybrid D-ANP-MABAC model is performed for verify the robustness of the proposed method.

Risk analysis of belt and road infrastructure projects using integrated ISM-MICMAC approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Ajmal Nikjow ◽  
Li Liang ◽  
Qi Xijing ◽  
Harshad Sonar
Keyword(s):  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Strategic Decision ◽  
Chinese Government ◽  
Infrastructure Projects ◽  
Interpretive Structural Modeling ◽  
Content Type ◽  
Hierarchical Relationship ◽  
Belt And Road ◽  
Infrastructure Project

Purpose The historic Belt and Road Initiative (BRI) is an economic reform policy proposed by the Chinese Government that focuses on connectivity, improved collaboration and more robust economic relations. This paper aims to identify risks involved in BRI infrastructure project and establish a hierarchical relationship among them. Design/methodology/approach The methodology includes two phases, namely, identification of significant risks involved in the BRI project using systematic literature review and to develop a hierarchical relationship between the risks using interpretive structural modeling followed by the MICMAC analysis. Findings This work has identified the 11 risks of BRI infrastructure projects through academic literature. Based on the analysis, economic risk (R3), environmental risk (R1) and political risk (R2) are placed at level six in the ISM model and can significantly influence BRI infrastructure projects. These risks have high driving power, which exaggerates other risks. Research limitations/implications This study would help Engineering Procurements and Construction contractors in strategic decision-making select risk mitigation strategies and make robust and efficient infrastructure projects. However, additional factors may be considered, which are essential for the BRI infrastructure project. Originality/value This research’s novelty lies in the advancement of expertise in project risk assessment. This study contributes by identifying the most significant risks involved in the BRI project. The integrated ISM-MICMAC approach provides a macro picture of BRI project risks to formulate better strategies for its success.

Supply chain information sharing: challenges and risk mitigation strategies

2016 ◽  
Vol 27 (8) ◽  
pp. 1102-1126 ◽  
Author(s):  
Thi Thanh Huong Tran ◽  
Paul Childerhouse ◽  
Eric Deakins
Keyword(s):  
Supply Chain ◽  
New Zealand ◽  
Information Sharing ◽  
Data Exchange ◽  
Risk Mitigation ◽  
Exchange Process ◽  
Small Sample ◽  
Mitigation Strategies ◽  
Structured Interviews ◽  
Content Type

Purpose The purpose of this paper is to investigate how managers perceive risks associated with sharing information with trading partners, and how they attempt to mitigate them. Design/methodology/approach In this exploratory New Zealand study, qualitative research was conducted involving semi-structured interviews with boundary spanning managers who are responsible for inter-organizational interfaces. Multiple case studies in different industries are used to highlight managers’ perceptions of risks in data exchange process throughout the supply network, and their underlying reasoning. Findings Managers perceive several types of risks when exchanging information across external supply chain interfaces, and adopt different approaches to handling them. The research also reinforces the vital role played by interpersonal relationships and trust as key enablers of inter-organizational cooperation. Research limitations/implications The findings are based on a small sample of 11 case companies based in a single New Zealand province, thereby potentially restricting generalizability. Future work could usefully extend the sample size in order to investigate the correlations between firm sizes, levels of trust, and degrees of data integration within particular industry sectors. Practical implications The findings will help managers understand and evaluate different types of risks in the data exchange process, and enable them to make better decisions that enhance information sharing and supply chain performance. Originality/value Perceived information sharing risks are peculiar to the individual actors, and as such need to be mitigated through changes to their socially constructed perceptions. This work extends the literature on understanding the various dimensions of inter-organizational information sharing.

scholarly journals Reverse logistics risk management: identification, clustering and risk mitigation strategies

2020 ◽  
Vol 58 (7) ◽  
pp. 1449-1474 ◽  
Author(s):  
Hamidreza Panjehfouladgaran ◽  
Stanley Frederick W.T. Lim
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Supply Chain ◽  
Reverse Logistics ◽  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
Risk Mitigation Strategies

PurposeReverse logistics (RL), an inseparable aspect of supply chain management, returns used products to recovery processes with the aim of reducing waste generation. Enterprises, however, seem reluctant to apply RL due to various types of risks which are perceived as posing an economic threat to businesses. This paper draws on a synthesis of supply chain and risk management literature to identify and cluster RL risk factors and to recommend risk mitigation strategies for reducing the negative impact of risks on RL implementation.Design/methodology/approachThe authors identify and cluster risk factors in RL by using risk management theory. Experts in RL and supply chain risk management validated the risk factors via a questionnaire. An unsupervised data mining method, self-organising map, is utilised to cluster RL risk factors into homogeneous categories.FindingsA total of 41 risk factors in the context of RL were identified and clustered into three different groups: strategic, tactical and operational. Risk mitigation strategies are recommended to mitigate the RL risk factors by drawing on supply chain risk management approaches.Originality/valueThis paper studies risks in RL and recommends risk management strategies to control and mitigate risk factors to implement RL successfully.

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 contextual approach to supply chain risk mitigation

2015 ◽  
Vol 26 (3) ◽  
pp. 642-656 ◽  
Author(s):  
Woojung Chang ◽  
Alexander E. Ellinger ◽  
Jennifer Blackhurst
Keyword(s):  
Supply Chain ◽  
Risk Mitigation ◽  
Business Students ◽  
Mitigation Strategies ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
Risk Mitigation Strategies ◽  
And Performance ◽  
Research Propositions

Purpose – As global supply networks proliferate, the strategic significance of supply chain risk management (SCRM) – defined as the identification, evaluation, and management of supply chain-related risks to reduce overall supply chain vulnerability – also increases. Yet, despite consistent evidence that firm performance is enhanced by appropriate fit between strategy and context, extant SCRM research focusses more on identifying sources of supply chain risk, types of SCRM strategy, and performance implications associated with SCRM than on the relative efficacy of alternative primary supply chain risk mitigation strategies in different risk contexts. Drawing on contingency theory, a conceptual framework is proposed that aligns well-established aspects of SCRM to present a rubric for matching primary alternative supply chain risk mitigation strategies (redundancy and flexibility) with particular risk contexts (severity and probability of risk occurrence). The paper aims to discuss these issues. Design/methodology/approach – Conceptual paper. Findings – The proposed framework addresses supply chain managers’ need for a basic rubric to help them choose and implement risk mitigation approaches. The framework may also prove helpful for introducing business students to the fundamentals of SCRM. Originality/value – The framework and associated research propositions provide a theoretically grounded basis for managing the firm’s portfolio of potential supply chain risks by applying appropriate primary risk mitigation strategies based on the specific context of each risk rather than taking a “one size fits all” approach to risk mitigation. An agenda for progressing research on contingency-based approaches to SCRM is also presented.

scholarly journals Humanitarian supply chain strategies – a review of how actors mitigate supply chain risks

2017 ◽  
Vol 7 (2) ◽  
pp. 82-101 ◽  
Author(s):  
Marianne Jahre
Keyword(s):  
Supply Chain ◽  
Case Studies ◽  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Primary Data ◽  
Main Concern ◽  
Supply Chain Risk Management ◽  
Content Type ◽  
Trade Offs ◽  
Supply Chain Risks

Purpose The purpose of this paper is to link humanitarian logistics (HL) and supply chain risk management (SCRM) to provide an understanding of risk mitigation strategies that humanitarian organisations use, or could use, to improve their logistics preparedness. Design/methodology/approach Based on systematic reviews of RMS in SCRM and supply chain strategies (SCS) in HL literature, a framework is developed and used to review published case studies in HL. Findings The study finds that humanitarian actors use a number of the strategies proposed in the framework, particularly those related to strategic stocks, postponement, and collaboration. Strategies related to sourcing and procurement, however, especially those on supplier relationships, seem to be lacking in both research and practice. Research limitations/implications The study is based on secondary data and could be further developed through case studies based on primary data. Future studies should explore the generalisability of the findings. Practical implications Practitioners can use the framework to identify potential new SCS and how strategies can be combined. Findings can help them to understand the abnormal risks of main concern, how they may impact normal risks, and provide ideas on how to tackle trade-offs between different risks. Social implications The results can support improvements in humanitarian supply chains, which will provide affected people with rapid, cost-efficient, and better-adapted responses. Originality/value The paper connects SCRM and HL to develop a framework and suggests propositions on how humanitarian actors can mitigate supply chain risks. Questioning the focus on strategic stock it suggests complementary or alternative strategies for improving logistics preparedness.

Firms may need to tighten political risk reporting

2018 ◽  
Keyword(s):  
Business Strategy ◽  
Stock Exchange ◽  
Risk Mitigation ◽  
Political Risk ◽  
Mitigation Strategies ◽  
Annual Reports ◽  
Political Climate ◽  
Global Business ◽  
Content Type ◽  
Risk Reporting

Subject Political risk reporting. Significance Dramatic political developments such as the election of Donald Trump as US president, Brexit and the rise of far-right politicians in parts of Europe and most recently in Brazil have elevated the concept of political risk in global business circles. Yet analysis of annual reports from 2012 to 2017 of companies listed on the Financial Times Stock Exchange (FTSE) 100 suggests that political risk communication within corporates is a reactive practice, shaped by news rather than long-term mitigation strategies. Impacts Firms are likely to increase their investment in internal alerting structures for political risk. A rising number of companies will integrate political risk mitigation into their business strategy. The political climate in the developed world will be unpredictable for the foreseeable future.

scholarly journals Halal risk mitigation in the Australian–Indonesian red meat supply chain

2018 ◽  
Vol 9 (1) ◽  
pp. 60-79 ◽  
Author(s):  
Ujang Maman ◽  
Akhmad Mahbubi ◽  
Ferry Jie
Keyword(s):  
Supply Chain ◽  
Risk Mitigation ◽  
Control Point ◽  
Mitigation Strategies ◽  
Risk Level ◽  
Supply Chain Risk ◽  
Content Type ◽  
Qualitative And Quantitative ◽  
Risk Mitigation Strategies ◽  
Slaughter Method

Purpose This study aims to identify halal risk events, halal risk agents, measure halal risk level and formulate the halal risk control model (mitigation) in all stages in the beef supply chain from Australia to Indonesia. Design/methodology/approach This research combines qualitative and quantitative method. It elaborates nine variables as the Halal Control Point: halal animal, animal welfare, stunning, knife, slaughter person, slaughter method, invocation, packaging, labeling and halal meat. This study uses house of risk, a model for proactive supply chain risk. Findings The main mitigation strategies to guarantee the halal beef status in the abattoir is the obligation of vendor or the factory to issue a written manual of stunning tool. The priority of halal risk mitigation strategies for the retailing to avoid the meat contamination is the need of a halal policy for transporter’s companies and supermarkets. Research limitations/implications Every actor must be strongly committed to the application of halal risk mitigation strategies and every chain must be implemented in the halal assurance system. Originality/value This model will be a good reference for halal meat auditing and reference for halal meat import procurement policy.

A contingency framework on partnership risk

2014 ◽  
Vol 27 (4) ◽  
pp. 317-333 ◽  
Author(s):  
Tobias Krause
Keyword(s):  
Design Methodology ◽  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Role Conflicts ◽  
Content Type ◽  
Risk Mitigation Strategies ◽  
Shared Equity ◽  
Relational Accountability ◽  
Agency Capture ◽  
Practical Implications

Purpose – The purpose of this paper is to analyze and compare the specific contingencies of partnership risk in shared equity public-private partnerships (PPPs) with the contingencies of privately held, loose related PPPs. Design/methodology/approach – Drawing on instrumental and relational accountability perspectives, the author formulates theoretical propositions on partnership risk. Findings – The author conclude that loose related PPPs are characterized by high expertise and a higher risk of contract incompleteness by reason of opportunism. Shared ownership PPPs are characterized by lower opportunism but stronger goal ambiguities and role conflicts. These relationships are threatened by political micromanagement, agency capture and bailout problems. Research limitations/implications – The study offers an analytical frame of propositions and provides avenues for further research on partnership risk. Practical implications – The author suggest risk mitigation strategies for tight and loose related PPPs. Originality/value – Identifying crucial contingencies from both an instrumental and a relational perspective, the study makes a contribution to cooperation research in PPPs.

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