Key challenges faced by Chinese contractors in Malaysian construction industry

2019 ◽  
Vol 18 (3) ◽  
pp. 705-726
Author(s):  
Jeffrey Boon Hui Yap ◽  
Sin Yi Cheah
Keyword(s):  
Factor Analysis ◽  
Performance Management ◽  
Construction Industry ◽  
Exploratory Factor Analysis ◽  
Construction Projects ◽  
Risk Mitigation ◽  
Mitigation Measures ◽  
Research Approach ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to investigate the major challenges faced by Chinese international contractors (CICs) in the Malaysian construction industry. Design/methodology/approach An exploratory sequential mixed-methods research approach was adopted where following a detailed literature review and semi-structured interviews with local professionals, 20 prevalent challenges experienced by CICs are identified. Subsequently, a questionnaire survey was used to elicit the views of 100 construction practitioners. Descriptive statistics were used to prioritise the challenges, while exploratory factor analysis was conducted to uncover the underlying factors. Findings The five most crucial challenges identified relate to: changes of regulation, cost control, contract clauses, language barrier and quality control. Exploratory factor analysis revealed four major underlying dimensions of these challenges, in connection to financial and government policy management, organisational performance management, supplier relationship management and cross-cultural management. Research limitations/implications The challenges are considered primarily involving CICs in the context of Malaysia; further work can be extended to Western or other East Asian, such as Japanese and Korean, international contractors undertaking construction projects in Malaysia or selected developing countries around the region. Practical implications This study will benefit professionals involved with China-backed construction projects in countries sharing demographics and socio-economic characteristics akin to Malaysia. The outcome of the study is expected to facilitate project managers to devise proactive risk-mitigation measures to reduce the impact of these challenges and to improve project delivery. Originality/value The paper examined the challenges faced by CICs in the Malaysian context. This is a timely study, as China’s Belt and Road Initiative will provide considerable opportunities for Chinese companies in Malaysia.

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.

Development of waste occurrence level indicator in Vietnam construction industry

2015 ◽  
Vol 22 (6) ◽  
pp. 715-731 ◽  
Author(s):  
Ha Duy Khanh ◽  
Soo Yong Kim
Keyword(s):  
Factor Analysis ◽  
Construction Industry ◽  
Construction Projects ◽  
Quantitative Information ◽  
Mean Value ◽  
Data Sets ◽  
Level Indicator ◽  
Content Type ◽  
Analysis Technique ◽  
Significant Difference

Purpose – The purpose of this paper is to evaluate the waste occurrence level in the construction industry. It includes: first, identifying the mean value of frequency of waste occurrence according to respondents’ characteristics; second, identifying the main predictive factors for waste occurrence based on latent relationships between initial waste factors; and third, identifying the waste occurrence-level indicator (WOLI) for the construction industry based on the main waste measurement factors. Design/methodology/approach – A total of 19 waste factors were sorted from the literature review. A structured questionnaire was adopted to carry out the survey. The respondents are professionals who have much experience in construction and management of project. Shapiro-Wilk test of normality, Levene’s test, ANOVA test, and factor analysis technique were used to analyze the collected data. Findings – Frequency of waste occurrence in construction projects is quite high. There was no statistically and practically significant difference in means for waste occurrence between selected population categories. Based on factor analysis technique, there were five principal components extracted with 56.7 percent of total variance. The WOLI in the construction industry was found as 61.55 per the scale of 100. Research limitations/implications – The non-probability sampling was applied to collect data because of several certain limitations and difficulties. The number of data sets is relatively small. This study has only examined the frequency of waste occurrence without quantitative information. Practical implications – This is another study of waste factors in the construction industry, which is different from traditional waste studies. Originality/value – The contribution of this study to the practical project management is that a proposed evaluation sheet for WOLI could be applied for any construction firm.

Underlying causes and mitigation measures of delays in construction projects

2020 ◽  
Vol 25 (2) ◽  
pp. 165-181 ◽  
Author(s):  
Amílcar Arantes ◽  
Luís Miguel D.F. Ferreira
Keyword(s):  
Factor Analysis ◽  
Project Management ◽  
Construction Projects ◽  
Theory And Practice ◽  
Mitigation Measures ◽  
Management Skills ◽  
Content Type ◽  
Importance Index ◽  
Underlying Causes ◽  
Causes Of Delays

Purpose The purpose of this study is to contribute to the theory and practice of project management in the construction industry by identifying the primary causes and extracting the underlying causes of construction delays and providing recommendations on delay mitigation measures. Design/methodology/approach AA survey was used to identify the importance of 47 causes of delays. The relative importance index was used to rank them, factor analysis was applied to extract the underlying causes and focus group interviews were used for discussion and development of mitigation measures. Findings Six of the ten most important causes are in the top ten universal delays in construction projects. Factor analysis revealed six underlying causes: improper planning, poor consultant performance, inefficient site management, owner influence, bureaucracy and sub-standard contracts. Practical implications The owner/sponsor/client must have adequate engineering and project management skills to be able to evaluate proposals and contractors more accurately, economically and technically. The bidding and contract award process should focus on the most economically advantageous proposal and contracts should provide for mechanisms for managing risks while executing projects. Contractors should select reliable, high-quality subcontractors and suppliers and should have competent site managers. Originality/value This work expands and improves the understanding of the causes of delays in construction projects by providing an empirical study of the causes of delays and respective mitigation measures in Portugal.

Inflation rate and labours’ wages in construction projects: economic relation investigation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Ali Musarat ◽  
Wesam Salah Alaloul ◽  
M.S. Liew
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Inflation Rate ◽  
Vital Role ◽  
Strongly Correlated ◽  
Cost Overrun ◽  
Content Type ◽  
Spearman Correlation Test ◽  
Key Resources ◽  
The Impact

PurposeLabours are one of the key resources of construction projects having a significant impact on economic development. With time, the construction industry is getting a boom due to numerous construction projects in which labours’ contribution is significant. Project betterment is associated with the project productivity which relates to the labours. Wages play a vital role in retaining labours in the construction industry.Design/methodology/approachThis study focuses on investigating the increasing and decreasing behaviour of labour wages in the construction industry and observing the impact of the inflation rate in deviating labour wages. Initially, the percentage deviation was calculated to observe the changing behaviour of the data and then the Spearman correlation test was used to find the relationship between the inflation rate and the labour wages.FindingsIt is evident that even with a good economy and a stable construction sector, still, the labour wages faced a decline over time, which is a matter of concern. Also, based on the correlation coefficient, it was revealed that several labour wages categories are moderately and strongly correlated with the inflation rate and can impact project cost if the inflation rate is not considered while finalizing the budget. Besides that, the changing behaviour of labour wages due to the inflation rate impacts significantly on gross domestic product (GDP); therefore, it requires vital attention.Originality/valueChanges in labour wages are not considered in budget estimation which drag the project towards cost overrun. This study brings the attention of the stakeholders on the issue with experimental justification. Also, how the inflation rate is affecting the labour wages has also been addressed.

Assessing and managing the impact of COVID-19: a study of six European cities participating in a circular economy project

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cristiana Parisi ◽  
Justyna Bekier
Keyword(s):  
Performance Management ◽  
Case Study Research ◽  
Comparative Case Study ◽  
Research Approach ◽  
Content Type ◽  
Measurement Systems ◽  
European Project ◽  
Performance Measurement Systems ◽  
The Impact

PurposeThis paper aims to explore the role of performance measurement systems as technologies of government for the assessment and management of the effects of COVID-19 in the context of six cities involved in a large European project.Design/methodology/approachBased on the field study of a large European project, this paper relies on a comparative case study research approach (Yin, 2003). This research design allows insights into the role of central and local key performance indicators (KPIs) in managing the ongoing pandemic.FindingsThis paper explores the role of accounting in the assessment of the COVID-19 pandemic. Its findings illustrate how the “adjudicating” and “territorialising” roles (Miller and Power, 2013) of local and central accounting technologies rendered the COVID-19 pandemic calculable.Originality/valueThis paper connects central and local performance management systems in the context of the COVID-19 pandemic. It relies on a governmentality approach to discuss how different programmes and the relative KPIs were impacted by the ongoing global crisis.

scholarly journals Criticality of project knowledge and experience in the delivery of construction projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jeffrey Boon Hui Yap ◽  
Ban Leong Lim ◽  
Martin Skitmore ◽  
Jason Gray
Keyword(s):  
Factor Analysis ◽  
Exploratory Factor Analysis ◽  
Construction Projects ◽  
Rank Correlation ◽  
Time Cost ◽  
Cost Overruns ◽  
Planning And Scheduling ◽  
Content Type ◽  
Spearman’S Rank Correlation ◽  
Correlation Tests

Purpose Poor project knowledge and inadequate experience are frequently linked to construction time-cost overruns. This paper aims to expound on the criticality of project knowledge and experience in the successful delivery of projects in the construction industry. Design/methodology/approach Following a detailed literature review, a quantitative positivist approach with a questionnaire survey involving industry professionals is used to appraise the 30 prevalent causes of time-cost overruns according to frequency, effectiveness and importance indices. The data are then subjected to Spearman’s rank correlation tests and exploratory factor analysis. Findings Using the importance index, which assimilates both frequency and effectiveness indices, the criticality of knowledge and experience in the overall context is seen as fundamental for addressing the contractor’s faulty planning and scheduling, construction mistakes and defective work, site management and supervision, delayed/slow decision-making, incomplete drawings and design documents and change/variation orders. Spearman’s rank correlation tests indicate a good consensus of perceptions among the key parties involved. Next, an exploratory factor analysis uncovers six underlying knowledge-based factors affecting construction performance, relating to inaccurate resource estimates, design changes, resource shortages, lack of experience, incompetence and mistakes and defects. Originality/value The study draws out the repercussions of the hitherto limited research into the deficiencies in knowledge and experience in undertaking construction projects to enhance performance using knowledge management functions.

Does cultural capital matter for individual job performance? A large-scale survey of the impact of cultural, social and psychological capital on individual performance in Brazil

2018 ◽  
Vol 67 (8) ◽  
pp. 1352-1370 ◽  
Author(s):  
Adailson Soares Santos ◽  
Mário Teixeira Reis Neto ◽  
Ernst Verwaal
Keyword(s):  
Factor Analysis ◽  
Job Performance ◽  
Cultural Capital ◽  
Large Scale ◽  
Psychological Capital ◽  
Individual Performance ◽  
Research Approach ◽  
Content Type ◽  
Large Scale Survey ◽  
The Impact

Purpose The purpose of this paper is to analyze the effect of cultural, social and psychological capital on the individual job performance. The authors propose and empirically test a combination of models, which originate from sociology and positive psychology, and demonstrate that cultural capital – in addition to social and psychological capital – is an important driver of individual job performance. Design/methodology/approach The paper opted for a large-scale survey research design. The sample consists of employees in several occupations who had formal contracts with companies from the public and private sector in Brazil. The measurement instrument is developed and tested by using data collected among 369 valid respondents in 2016. The methods applied include exploratory factor analysis and confirmatory factor analysis through partial least squares estimation. Findings The results obtained indicate that there is a significant simultaneous positive effect of cultural, social and psychological capital on individual job performance. The results indicate that cultural, psychological and social capitals together were able to explain 57 percent of the respondents’ individual job performance, with psychological capital being the dominant driver. The authors also find that cultural capital is at least as important as driver of individual job performance as social capital. Research limitations/implications Because of the chosen research approach, the research results may have limited generalizability and may suffer from potential bias in terms of social desirability. Therefore, researchers are encouraged to test the propositions in different country contexts using different research methods. Originality/value This paper is the first to quantify the relevance of Bourdieu’s cultural capital theory to the study of individual job performance, and offers tools with validated psychometric properties for its empirical assessment.

Impact of COVID-19 on project performance in the UAE construction industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Sami Ur Rehman ◽  
Muhammad Tariq Shafiq ◽  
Muneeb Afzal
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Health And Safety ◽  
Project Performance ◽  
Content Type ◽  
Government Institutions ◽  
Depth Analysis ◽  
The Government ◽  
The Impact

Purpose The coronavirus disease 2019 (COVID-19) pandemic has affected the global economy and, thus, the global construction industry. This paper aims to study the impact of COVID-19 on construction project performance in the United Arab Emirates (UAE). Design/methodology/approach This study adopted a qualitative and exploratory approach to investigate the impact of COVID-19 and its policies on project performance in the UAE construction industry in critical areas of the project management body of knowledge (e.g. schedule, cost, resources and contracts). Semi-structured interview questions were asked from ten construction professional to obtain valuable insights into the pandemic’s effects on the UAE construction industry and the effectiveness of policies implemented to rectify the damage and identify the industry’s new normal. Findings The findings indicate that the construction industry faced several challenges such as schedule delays, disrupted cashflows, delayed permits, approvals and inspections, travel restrictions, serious health and safety concerns, material and equipment shortages, among others which hindered the timely delivery of construction projects. It also indicates that efforts made by the government institutions and the construction industry of the UAE such as economic support programs, digitization of processes, fee and fine waivers, health facilities, among other statutory relaxations proved effective in supporting the construction industry against the adverse effects of the pandemic. Research limitations/implications The research findings are limited to the literature review and ten semi-structured interviews seeking an expert’s opinion from industry professionals working in the UAE construction industry. The research team did not get access to project documents, contracts and project progress reports which may be required to validate the interview findings, and to perform an in-depth analysis quantifying the impact of COVID 19 on construction projects performance, which is a limitation of this research. Practical implications The implication is that, owing to the imposed lockdowns and strict precautionary measures to curb the rapid spread of the pandemic, smooth execution of the construction project across the country was affected. The government institutions and stakeholders of the construction projects introduced and implemented various techniques and solutions which effectively handled the implications of the COVID-19 pandemic on the construction industry of the UAE. Originality/value This study has identified the challenges faced by the construction industry of the UAE in the context of the management of project schedule, project cost, construction contracts, health and safety of construction employees and other related aspects of the construction projects. This study also identified the techniques and solutions adopted by various public and private institutions of the country and their implications on construction projects. Therefore, this study provides guidelines for policymakers and future research studies alike.

Partnering in offshore drilling projects

2017 ◽  
Vol 10 (1) ◽  
pp. 84-108 ◽  
Author(s):  
Sjur Børve ◽  
Tuomas Ahola ◽  
Bjorn Andersen ◽  
Wenche Aarseth
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Design Methodology ◽  
Risk Mitigation ◽  
Offshore Drilling ◽  
Content Type ◽  
Integrated Risk ◽  
Offshore Development ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to evaluate to which extent partnering practices observed in earlier research focussing on the construction industry are applied in offshore development drilling projects. Design/methodology/approach The paper reviews earlier research on project partnering and the relationship-based procurement (RBP) taxonomy. The taxonomy is then empirically applied to describe partnering practices in an incentive-based drilling project in Norway. Findings Many elements of project partnering observed earlier in construction projects were found to characterize offshore development drilling projects. However, as assessed using the RBP framework, the authors found that partnering elements in observed context rated consistently lower than elements previously reported in the construction industry, indicating a lower maturity of partnering practices in the studied context. Practical implications The present study provides a multi-dimensional and systematic description of partnering practices in offshore drilling projects. Project owners can utilize this information to identify partnering elements requiring particular emphasis when initiating and managing drilling projects. Based on the findings, such elements include transparency and open-book auditing, integrated risk mitigation and insurance practices and establishment of authentic leadership. The findings further imply that partnering models cannot be directly applied across industry boundaries but must be tailored to fit the salient characteristics of each context. Originality/value The paper systematically describes to which extent specific partnering elements of the RBP taxonomy are applied in offshore drilling projects.

Green and sustainable practices in the construction industry

2019 ◽  
Vol 26 (6) ◽  
pp. 1063-1086 ◽  
Author(s):  
Jaber Shurrab ◽  
Matloub Hussain ◽  
Mehmood Khan
Keyword(s):  
Factor Analysis ◽  
Construction Industry ◽  
Environmental Sustainability ◽  
Corporate Image ◽  
Performance Model ◽  
Sustainable Construction ◽  
Content Type ◽  
Green Construction ◽  
Sustainable Performance ◽  
The Impact

Purpose The purpose of this paper is to differentiate between sustainable and green construction and significantly contribute to empirical investigations related to the impact of green construction factors on sustainable performance and to test the theory of planned behavior in the construction context and empirically assess green construction factors and the performance model. The model incorporates green construction factors that link construction activities with suppliers and customers to support environmental sustainability. Design/methodology/approach Data collected from 120 construction industry respondents were analyzed using exploratory factor analysis, which identified seven green construction factors. Two conformity factor analysis models were created to test the relationship fitness of the components and measure the impact of green construction factors on the sustainable performance of the construction. Findings The results provide substantial evidence that shows that the adoption of green construction factors by construction firms leads to improved sustainable performance. The overall perspective of respondents within the construction industry, according to the questionnaire survey, shows that the benefits, such as an improved corporate image and sustainable competitive advantage, increase compliance with customers’ expectations within the construction industry. Research limitations/implications This study covered private construction companies and measured the construction industry professional’s feedback without including the clients. Practical implications The results of this study will support the future success of ecological sustainability and green construction initiatives, mainly on enforcement and incentives; moreover, the results of this study will ensure that regulations will cover green practices for all types of projects and will be formally monitored for compliance. Originality/value The originality of this paper stems from drawing boundaries between green and sustainable construction and exploring the impact of green management on the sustainable performance of the construction industry. Most of the related previous works have used the concepts of green and sustainability interchangeably, and there is a lack of studies in this regard, particularly in the construction industry.

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