scholarly journals Project risk management in Iranian small construction firms

2022 ◽  
Vol 69 (1) ◽  
Author(s):  
Nima Amani ◽  
Keyvan Safarzadeh
Keyword(s):  
Project Performance ◽  
Research Literature ◽  
Project Risk ◽  
Construction Firms ◽  
Construction Companies ◽  
Potential Benefits ◽  
Government Legislation ◽  
Analytical Tools ◽  
The Impact ◽  
Theoretical Foundations

AbstractThe objective of this study is to evaluate RM in small projects in Iran using identification of status, barriers, and the impact of RM on project performance. In this study, theoretical foundations and research literature were first developed through library, and then a questionnaire about these variables was designed and distributed among a number of experts in the active construction companies. Data were collected from 40 projects submitted by 25 experts from 5 executive companies. According to the studies, 10 barriers are identified as major obstacles to RM implementation in such projects, prioritized as follows: (1) lack of potential benefits, (2) not economical, (3) lack of time, (4) lack of budget, (5) lack of knowledge, (6) lack of government legislation, (7) lack of manpower, (8) low profit margin, (9) complexity of analytical tools, and (10) competition among SMCs. The findings of this research can provide an in-depth understanding of RM in small projects in Iran and make benefits of RM convincing to the participants of small projects.

Evaluation of the impact of risk management on project performance in small construction firms in South Africa

2019 ◽  
Vol 18 (3) ◽  
pp. 611-634 ◽  
Author(s):  
Christopher Amoah ◽  
Leon Pretorius
Keyword(s):  
Risk Management ◽  
Project Performance ◽  
Content Type ◽  
Construction Firms ◽  
Construction Companies ◽  
Management Processes ◽  
Project Failures ◽  
Project Deliverables ◽  
The Impact

Purpose Risk management has become an integral part in businesses around the world. In the construction industry, risk management has also been introduced and has been mainly entrusted in the hands of the project team to go through a laid down risk management processes to identify possible risk events, which may occur during the project execution and the impact they may have on the project deliverables should they occur. It is, however, believed that small construction firms do not take risk management as a serious exercise even though most of the project risks are transferred to them as subcontractors. The purpose of this study was, therefore, to investigate risk management processes in the small construction companies and the impact of risk management on their project deliverables. Design/methodology/approach A case study of a single construction company was used for this study. Data were collected through structured questionnaire to 16 respondents who are involved in the project execution in the case study company. Two managing directors of the case study company were also interviewed. In total, 11 project site meetings were also attended to observe meeting proceedings and to record issues discussed. In total, 15 monthly project reports and project close-out reports were also studied. In total, One hundred and five completed projects of which 58 per cent were renovation projects, 27 per cent were new projects and 15 per cent were civil/structural works were also examined. The data were then analysed using excel analytical tool and the content analysis method. Findings The findings indicate that small construction companies with respect to the case study company do not have a specific laid down risk management processes that project team are made to go through before and during the execution of their projects. There is, however, no conclusive evidence regarding the impact of risk management on project performance as a significant number of projects done were able to meet a successful project performance indicators even though risk management exercises were not done. Some of the identified risk events that caused project failures are payment delays, labour related issues, subcontractor/main contractor related issues, insufficient contingency reserves/plan, etc. Research limitations/implications Only one construction company was used as a case study for this research and all sources of data were related to a single company. The results may, therefore, be not generalisable. Practical implications The research has discovered that projects outcome could have improved tremendously if proper risk management exercises were implemented before project execution as most of the causes of project failures could have been identified through the risk management processes. This study, hence, gives an insight as to why small construction firms like the case study company should take risk management seriously in their projects execution to improve on the performance of their projects. Originality/value The research has discovered that projects outcome could have improved tremendously if proper risk management exercises were implemented before project execution as most of the causes of project failures could have been identified through the risk management processes. This study, hence, gives an insight as to why small construction firms like the case study company should take risk management seriously in their projects execution to improve on the performance of their projects.

scholarly journals Measuring the performance of project risk management: a preliminary model

2019 ◽  
Vol 11 (1) ◽  
pp. 1984-1991
Author(s):  
Alfredo Federico Serpell ◽  
Ximena Ferrada ◽  
Larissa Rubio
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Research Literature ◽  
Lessons Learned ◽  
Project Risk Management ◽  
Project Risk ◽  
Know How ◽  
Construction Companies ◽  
Important Concern ◽  
Preliminary Model

Abstract The function of project risk management (PRM) is to understand the uncertainty that surrounds a project and to identify the potential threats than can affect it as well as to know how to handle these risks in an appropriate way. Then, the measurement of the performance of PRM becomes an important concern, an issue that has not yet been addressed in the research literature. It is necessary to know how successful the application of the PRM process is and how capable is the process within the organization. Regarding construction projects, it is essential to know whether the selected responses to mitigate or eliminate identified risks were suitable and well implemented after the execution of the project. This paper presents a critical analysis of the relevance of measuring the performance of PRM and the benefits of doing so. Additionally, it presents a preliminary and pioneering methodology to measure the performance of PRM through the evaluation of the adequacy of responses applied to mitigate risks as well as to evaluate the resulting impacts as indicators of the effectiveness of these actions at the end of the project. This knowledge will allow construction companies to incorporate good practices, generate lessons learned, and thereby to promote a continuous improvement of the whole PRM process.

scholarly journals Effect of Company Strategies on Organisational Performance in Nigerian Construction Industry

2020 ◽  
pp. 25-33
Author(s):  
U. V. Alintah- Abel ◽  
N. B. Iheama ◽  
S. C. Ugochukwu
Keyword(s):  
Construction Industry ◽  
Positive Impact ◽  
Primary Data ◽  
Growth Strategies ◽  
Organisational Performance ◽  
Competitive Strategies ◽  
Construction Firms ◽  
Construction Companies ◽  
Generic Strategies ◽  
The Impact

Changes in the environment such as customers’ preferences and choices has put the companies on toes with each firm fighting for its survival and all is based on strategies choice and their implementation. Thus, Nigerian construction companies have to adopt and apply appropriate strategies to be more competitive in this industry and get success in their businesses. Hence, the aim of this study was to investigate the effect of company strategies on organisational performance in Nigerian construction industry. The conceptual framework was provided to give a guideline on how both independent and dependent variables will interact in other to get the impact of companies’ strategies on performance. Primary data with the aid of a structured questionnaire was used to elicit information from respondents. The data collected were analysed using both descriptive such as percentages and mean and inferential statistics of regression analysis was used to test the hypotheses. The findings revealed that construction companies adopt several company strategies at various levels; however, the strategies are generally applied moderately in the firms. The study deduced that both growth strategies and generic strategies have positive significant impact on performance. The study recommended that policy makers and the management of the construction firms should adopt a mix of the competitive strategies since both have positive impact on performance and there is need for companies to intensify their applications since it will spur performance in the organisation.

Predicting the Impact of Multiple Risks on Project Performance: A Scenario-Based Approach

2017 ◽  
Vol 48 (5) ◽  
pp. 95-114 ◽  
Author(s):  
Victor A. Bañuls ◽  
Cristina López ◽  
Murray Turoff ◽  
Fernando Tejedor
Keyword(s):  
Risk Analysis ◽  
Impact Analysis ◽  
Project Performance ◽  
Predictive Capacity ◽  
Interpretive Structural Modeling ◽  
Project Risk ◽  
Analysis Techniques ◽  
Multiple Risks ◽  
Engineering Company ◽  
The Impact

This article suggests a scenario-based approach to properly managing risks during the lifetime of a project. Our proposal aims at giving managers a structured process to predicting the impact of the occurrence of multiple risks that can affect project performance. This is a product of combining Cross-Impact Analysis (CIA) and Interpretive Structural Modeling (ISM) mechanics, which improve the predictive capacity of existing risk analysis techniques. In order to validate their risk predictions, we compare them with a sample of real projects carried out in an engineering company. The findings show a high explanatory capacity to forecast project risk influences.

Does size of construction firms matter? Impact of project-factors and organization-factors on project performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gopal Sekar ◽  
Murali Sambasivan ◽  
Kuperan Viswanathan
Keyword(s):  
Performance Indicators ◽  
Oil And Gas ◽  
Project Performance ◽  
Project Managers ◽  
The Body ◽  
Relative Impact ◽  
Content Type ◽  
Construction Firms ◽  
Medium Enterprise ◽  
The Impact

PurposeThe purpose of this study is to analyze and compare the impact of project-factors and organization-factors on five indicators of project performance for small and medium enterprise (SME) and large construction contracting firms that are fully responsible for the successful completion of the projects. The five performance indicators are time, cost, safety, quality and financial.Design/methodology/approachA questionnaire survey was conducted to solicit responses from project managers/directors from 342 construction firms in Malaysia. The construction firms included in this study came from various sectors: civil, building and infrastructure; oil and gas; marine and multidiscipline. Hierarchical multiple-regression was used to analyze the data.FindingsThe salient findings are as follows: (1) impacts of project-factors and organization-factors on performance indicators are different for SMEs and large construction firms and (2) relative impact of organization-factors on performance is much higher than the project-factors.Originality/valueAnalyzing the relative impact of project- and organization-factors on the performance of SMEs and large construction firms can significantly enhance the body of knowledge about performance levels and boost best practices in this respect related to construction industry.

scholarly journals The Impact of Financial Crisis on the determinants of Capital Structure among Shariah Constructions Firms

2019 ◽  
Vol 4 (2) ◽  
pp. 46
Author(s):  
Mohamad Nizam Jaafar ◽  
Amirul Afif Muhamat ◽  
Norzitah Abdul Karim ◽  
Sharifah Faigah Syed Alwi ◽  
Noraini Binti Peie
Keyword(s):  
Financial Crisis ◽  
Capital Structure ◽  
Firm Size ◽  
Free Cash Flow ◽  
Debt Ratio ◽  
Construction Firms ◽  
Construction Companies ◽  
Tangible Asset ◽  
The Impact ◽  
The Capital Structure

The aim of this empirical study is to explore the factors that affect the capital structure of construction firms and to investigate whether the capital structure models derived from Western settings provide convincing explanations for capital structure decisions of the Malaysia firms. This study focuses on Shariah compliant construction companies since this industry has been contributing significantly towards Malaysia economic growth. In addition, this study also includes the impact of financial crisis towards firms’ capital structure decision. Panel data from 11 Shariah compliant construction companies in Malaysia were analyzed for duration of 17 years (2001-2017). Different conditional theories of capital structure are reviewed i.e. trade‐off theory, pecking order theory, agency theory, and theory of free cash flow, in order to formulate testable propositions concerning the determinants of capital structure of the construction firms. The dependent variable that being used is debt ratio, while independent variables are firm size, profitability, tangible asset, growth opportunity, liquidity, and crisis respectively. Finding indicates that firm size, profitability and tangible asset are significant towards debt ratio. However, other variables including financial crisis did not have any significant impact on capital structure decision. The results of this study provide important implication to investors and manager of firms in making best decision on capital structure. This study also adds values to the existing knowledge regarding determinants of capital structure and financial crisis.

scholarly journals The Impact of Soft Skills of Project Managers in Construction Project Performance as the Mediation Role of a Conceptual Project Risk Management

2020 ◽  
Vol 6 (1) ◽  
pp. 16-19
Author(s):  
Nasser Salim Al Saadi ◽  
Abdul-Kahar ◽  
Prof. Madya Dr. Norhayati Binti Zakuan
Keyword(s):  
Risk Management ◽  
Soft Skills ◽  
Project Performance ◽  
Project Managers ◽  
Theoretical Research ◽  
Future Research ◽  
Project Risk Management ◽  
Conceptual Approach ◽  
Project Risk ◽  
The Impact

This paper is a conceptual data presentation and analysis on the impact of soft skills of project managers in the construction industry as the target survey which is vital since rapid economic development has increased the demand for construction of infrastructure and facilities around the globe. The methodology used in this study is a conceptual approach based on qualitative analysis of theoretical research and empirical data. The review of literatures and discussions from previous studies showed that project management soft skills can be correlated with project risk management and project performance. It recommended future research of this topic quantitatively.

scholarly journals A Study on the Influence of Project Leadership on Project Management and Performance

2020 ◽  
Author(s):  
Momanyi N. Theophanus
Keyword(s):  
Project Management ◽  
Leadership Skills ◽  
Project Performance ◽  
Project Leadership ◽  
Leadership Components ◽  
And Performance ◽  
Management Functions ◽  
The Impact ◽  
Leadership Influence ◽  
Theoretical Foundations

Abstract The current study was a survey into the issue of project leadership influence on project management and performance. It has objectively focused on effects of leadership skills, experience, quality and styles in enhancing project performance. Further, the study sought to answer questions on the impact of aligning, motivating, directing and influencing in enhancing project performance. Apart from conducting a review of past studies, theoretical foundations were also reviewed to underpin the hypotheses that guided the study. Quantitative data was collected using structured questionnaires and analysed descriptively. Further, regression analyses were done and results confirmed a positive and strong connection concerning leadership components and management functions on project performance. From obtained outcomes, recommendations are given for future studies to focus on, as well as for improvement in different industries while implementing various projects.

scholarly journals Impact of Informal Groups on Organisational Performance

2018 ◽  
Vol 6 (09) ◽  
Author(s):  
Dr. Cross Ogohi Daniel
Keyword(s):  
Organizational Performance ◽  
Significant Relationship ◽  
Employee Performance ◽  
Sampling Technique ◽  
Construction Firms ◽  
Construction Companies ◽  
Group Interest ◽  
Self Confidence ◽  
The Impact ◽  
Informal Groups

The purpose of this study is to investigate the impact of informal groups on organizational performance. Informal groups are a very powerful social network which are constructed in response to and through actions of their members, informal groupings when viewed on the degree of their being informal, creates a managerial burden informally for managers who require additional competences to manage their activities. Informal groups exist to achieve group interest which may not necessarily be in tandem with the overall goals of the organization. The aim of this study is to identify why employees engage in informal groups. A survey research design was adopted and copies of questionnaire were administered on 319 employees of the selected construction companies, using disproportionate stratified sampling technique. The data collected were analyzed using Pearson product moment correlation. The questionnaire was validated using content validity. The reliability of the questionnaire was confirmed by determining the correlation coefficient of the data collected at two different periods. The study discovered informal groups has a significant effect on employee performance, there is a significant relationship between informal groups and their characteristics, there is a significant relationship between informal groups and self-confidence in Nigerian construction firms and Informal groups has significant influence on organizational performance in Nigeria

scholarly journals Market Concentration, Market Power, and Firm Growth of Construction Companies

2021 ◽  
Vol 2021 ◽  
pp. 1-9
Author(s):  
Yumou Wang ◽  
Shilong Li
Keyword(s):  
Construction Industry ◽  
Market Power ◽  
Firm Growth ◽  
Market Concentration ◽  
Structural Effect ◽  
Construction Firms ◽  
Construction Companies ◽  
Fierce Competition ◽  
The Impact ◽  
China’S Economy

China’s economy has been transitioning from a phase of rapid growth to a stage of high-quality development that is called “new normal,” and China’s construction industry plays a pillar part in China’s economy. Nevertheless, the industry is large but not strong. This labour-intensive industry suffers from low concentration and fierce competition. Based on the organizational theory, which shows how market structure contributes to the growth of industry, this study aims to explore the impact of market concentration and market power on firm’s turnover and profit. Using statistical analysis and panel data of 37 China’s construction companies from 2009 to 2018, this study proposes and calculates the market concentration (CR) and the market power (MP) of China’s companies. Then the augmented Cobb–Douglas production function and OLS regression are used to explore the growth factors of China’s construction industry. The results show that the market concentration increases both the turnover and profit of construction firms. However, market power increases the profit of construction firms while decreases the turnover. In addition, the companies that are China’s non-state-owned have overseas income or are civil engineering and construction have more advantages in the growth of the construction industry in “quality”. This study provides a reference to understand the structures of the construction industries and the structural effect on the growth of different types of firms and could be replicated in other countries with the similar situation.

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