scholarly journals A Study of Joint Venture Formation between Construction Organizations in Tanzania

2013 ◽  
Vol 1 (2) ◽  
pp. 32 ◽  
Author(s):  
Steven Minja ◽  
Geraldine Kikwasi ◽  
Wellington Thwala
Keyword(s):  
Joint Ventures ◽  
Financial Stability ◽  
Joint Venture ◽  
Financial Risks ◽  
Multiple Sources ◽  
Construction Firms ◽  
Construction Companies ◽  
Tax Relief ◽  
Construction Organizations ◽  
Local Construction

Formation of joint ventures between construction companies is one of the recent efforts in combating contractors problems in Tanzania and addresses one of the key challenges facing the construction industry today in the country especially when large and complex projects are involved. The main objective of the research is to examine the formation of joint ventures in Tanzania, specifically to: study joint ventures formation procedures; identify criteria in selection of joint venture partner; and identify risks associated with and challenges facing joint venture undertakings in Tanzania. The study adopted a descriptive research design and purposive sampling. Multiple sources of evidence was used to collect information mainly literature review, questionnaires and interviews. Key findings reveal that legal and statutory requirements in the formation of joint ventures include registration by Business Registration and Licensing Agency (BRELA), Contractors Registration Board (CRB) and under Registration of Documents Act (RDA). All JV respondents were registered by BRELA and CRB which are mandatory but only 7 were registered by RDA. Most important factors considered during formation of JVs are: contract agreement, financial stability and commitment while key risks associated with JVs are cultural and social differences, delays in approvals and financial risks. In addition, main challenges facing joint ventures are: identification of possible risks and joint venture agreement interpretation. The study concludes that formation of JVs have been addressing some of emerging challenges facing local construction organizations despite the risks and challenges that exist. The study recommends that firms entering joint ventures should explore the benefits of registering with RDA and ensure risks associated with their JV are properly assessed. The study also recommends introduction of an incentive scheme through Tanzania Investment Centre to grant tax relief for foreign contractors going into joint venture with local construction firms.

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.

Constraints and opportunities facing construction organization in post-conflict condition in Afghanistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qais Amarkhil ◽  
Emad Elwakil
Keyword(s):  
Matrix Analysis ◽  
Content Type ◽  
Construction Firms ◽  
Construction Companies ◽  
Post Conflict ◽  
Conflict Condition ◽  
Local Construction ◽  
And Performance ◽  
Construction Organization ◽  
Critical Constraints

Purpose Although there are many challenges and constraints for construction organization operation and performance in a post-conflict condition, there is insufficient construction project management literature. Therefore, the purpose of this paper is to identify a framework to understand and determine critical constraints and opportunities in a post-conflict condition facing local construction firms in Afghanistan. The proposed framework is composed of three major steps: identify and determine key performance indicators; identify challenges impacting organization operation and performance in post-conflict condition; determine critical constraints and opportunities based on prioritized performance measures; and organizational strength and weakness factors. Design/methodology/approach The strength, weakness, opportunities and threat matrix analysis has been used to determine post-conflict condition constraints and opportunities. Then the analytical hierarchy process has been used to prioritize the measures and identify the constraints and opportunities facing construction companies in a post-conflict situation. The mix-research method is applied to this study to analyse qualitative variables and quantitative variables obtained from the experts’ opinions and 51 filled questioners. Findings The study shows that there are a total of 11 critical constraints and three essential opportunities for construction companies that industry practitioners and policymakers should take into account while formulating the organizational strategy. Practical implications The developed framework will benefit construction companies in improving their performance and operation in after-conflict conditions. Originality/value This paper is the first to provide a comprehensive conceptualization of the challenges and constraints for construction organization operation and performance in a post-conflict condition. It also offers a novel conceptual framework to understand and determine critical constraints and opportunities in a post-conflict condition facing local construction firms in Afghanistan.

CONTRIBUTION-BASED PROFIT-SHARING SCHEME FOR JOINT VENTURES / PELNO PASIDALIJIMO TARP ĮMONIŲ SCHEMA, PAGRĮSTA PATIRTOMIS IŠLAIDOMIS

2011 ◽  
Vol 17 (3) ◽  
pp. 445-458 ◽  
Author(s):  
Sung-Lin Hsueh ◽  
Min-Ren Yan
Keyword(s):  
Joint Ventures ◽  
Production Efficiency ◽  
Profit Sharing ◽  
Sharing Rule ◽  
Construction Firms ◽  
Domestic Markets ◽  
Construction Market ◽  
International Construction ◽  
Local Construction ◽  
Cooperative Relationship

Along with globalization of the construction market, international construction firms often choose to cooperate with local construction firms in the form of Joint Ventures (JV) when they enter into the domestic markets of different countries. In this way, they cannot only reduce investment risks, but also enhance production efficiency, reduce costs and generate more profits. The conventional method of profit-sharing between JV firms is based on ratio of investment. However, as the firms make different contributions to the project, the rationality of such a profit-sharing method is often doubtful and thus is difficult to maintain a stable cooperative relationship for a JV team. Based on the concept of the cooperative game theory, this paper proposes a contribution-based profit-sharing model using Shapley Value. A case study is used to describe how firms can use this model to reach decisions of participation, and determine a fair profit-sharing rule after cooperation to enhance mutual trust and create the advantages of cooperation. Santrauka Vykstant statybos rinkos globalizacijai, tarptautinės statybos įmonės, patekusios į vietinę kitos šalies rinką, dažnai linkusios bendradarbiauti su vietos statybos įmonėmis. Jos gali ne tik sumažinti investicijos riziką, bet ir padidinti gamybos efektyvumą, sumažinti išlaidas ir gauti didesnį pelną. Tradicinis pelno pasidalijimo metodas tarp įmonių grindžiamas investicijų santykiu. Tačiau kai įmonių įnašas į projektą skirtingas, toks pelno metodo racionalumas dažnai abejotinas, todėl tokiu atveju yra sunku palaikyti stabilų įmonių bendradarbiavimą. Remiantis lošimų teorijos koncepcija, šiame darbe siūlomas pelno pasidalijimo modelis naudojant Shapley reikšmę. Skaitmeniniu pavyzdžiu rodoma, kaip įmonės gali taikyti šį modelį priimdamos sprendimus dėl dalyvavimo bendroje veikloje ir teisingo pelno pasidalijimo. Taip sustiprinamas tarpusavio pasitikėjimas ir sukuriamos bendradarbiavimo prielaidos.

scholarly journals Investigating major challenges for industry 4.0 adoption among construction companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sevilay Demirkesen ◽  
Algan Tezel
Keyword(s):  
Construction Industry ◽  
Industry 4.0 ◽  
Construction Projects ◽  
Resistance To Change ◽  
Maximum Level ◽  
Information Modeling ◽  
Content Type ◽  
Construction Firms ◽  
Construction Companies ◽  
Construction Organizations

PurposeThe purpose of this study is to explore the challenges hindering the adoption of Industry 4.0 (I4.0) among construction companies.Design/methodology/approachThe construction industry needs innovative technologies due to its complex and dynamic nature. In this respect, the latest trends such as digitalization, building information modeling (BIM), Internet of things (IoT) are of utmost importance in terms of fostering the change in managing projects and encouraging industry practitioners to adopt the change for better performance. This paper focuses on I4.0adoption among construction companies. In this respect, a questionnaire was designed and administered to construction professionals to reveal the challenges in I4.0 adoption among construction firms. The respondents were requested to fill in the questionnaire on the I4.0 efforts of their companies. The questionnaire was intended to collect the perceptions of industry practitioners working at large construction companies. Based on these, the challenges listed were ranked based on their relative importance and success indices. Finally, the Mann–Whitney U test was conducted to test whether statistically significant responses exist among groups of respondents (i.e. young and old companies, large and small, high and low revenue and main area of expertise).FindingsThe results of the study indicated that resistance to change, unclear benefits and gains and cost of implementation are the major important challenges in terms of I4.0 adoption in construction projects. On the other hand, the data analysis implied that the majority of construction organizations successfully deal with the problems arising from lack of standardization, legal and contractual issues and cost of implementing in terms of promoting I4.0 adoption.Research limitations/implicationsThe study is expected to guide construction practitioners in terms of benefitting from I4.0 applications and deliver projects with better outcomes. This study might be used as a guide for the companies aiming to start their I4.0 transformation knowing the challenges and develop strategies for how to handle them. A concrete plan would help them achieve greater performance and benefit from the I4.0 implementation at the maximum level. Finally, the study implies that construction firms shall prepare action plans for handling each challenge listed and monitor their performance based on the planned and actual data of their projects.Originality/valueThis study investigates the major challenges of I4.0 among construction companies. This is one of the important studies, which puts I4.0 focus forefront of the construction industry with a clear identification of challenges that construction organizations have to address to transform their organizations into construction 4.0. The study has the potential to guide both industry practitioners and researchers to develop awareness for the benefits of using the latest technology and fostering innovation. This is expected to create value for construction clients in terms of achieving the product with serious gains such as time and cost.

Assessment of Electronic Procurement Practices on Project Delivery, Case Study of Selected Construction Companies in Oyo State

2018 ◽  
pp. 257-266
Keyword(s):  
Construction Industry ◽  
Information Exchange ◽  
Ease Of Use ◽  
Project Delivery ◽  
Development Programs ◽  
Construction Firms ◽  
Construction Companies ◽  
Electronic Procurement ◽  
Ict Infrastructure ◽  
E Mail

This study investigated the use of e-Procurement in selected construction firms in Oyo state, Nigeria. The data were derived using a well-structured questionnaire survey involving 104 respondents. Descriptive statistical and correlation analyses were used to analyze the data. Findings show that the use of electronic procurement in the selected construction firms for carrying out procurement function is high with majority of the professionals affirming the use of the system, the four categories of e-Procurement used were e-mail, static websites, web.2.0 technologies and portals that have capabilities of supporting the execution of functions limited to intra and inter firm communication and exchange of project information and data. Consequently, between 84 percent and 76 percent of the respondents used these e-Procurement technologies for communication of information, exchange of bill of quantities, project reports, CAD drawings and project specifications. Consequently, factors with the highest positive impacts on the use of these technologies in the firms were the speed of transactions, lower transaction cost and ease of use. The study implies that the selected construction firms in Oyo state Nigeria predominantly use e-mails and websites to support the execution of pre-award phase of construction procurement. Finding also shows that there is positive relationship between e-Procurement (e-Notifying, e-Exchange, and e-Submission of bid) and Project delivery. The study suggests that to accelerate the rate of uptake of e-Procurement and maximize its benefits in the Nigerian construction industry, there is a need to improve the quality and quantity of ICT infrastructure across the country; and to embark on aggressive enlightenment campaigns, training and skill development programs in the use of e-Procurement in the construction industry in this country.

Financial Risks of the Bank: Assessment and Mechanism of Neutralization

2020 ◽  
Vol 22 (1) ◽  
pp. 6-12
Author(s):  
Nelia Volkova ◽  
◽  
Alina Mukhina ◽  
Keyword(s):  
Risk Assessment ◽  
Financial Stability ◽  
Financial Risk ◽  
Stable Operation ◽  
Financial Risks ◽  
Negative Consequences ◽  
Conceptual Approach ◽  
Relevant Today ◽  
Banking Institution ◽  
The Impact

Abstract. Introduction. The issue of financial risk management of commercial banks is quite relevant today, because the activity of banks is the most risky of all. The presence of risks in banking can lead to unexpected losses, namely the loss of own resources. That’s why for the stable operation of the bank without loss the priority is to assess the financial risks, which is the basis for their further neutralization. Purpose. The purpose of the article is to develop conceptual provisions for assessment financial risks and justifying the need to neutralize them. Results. The article analyzes the impact of risks on the financial stability of a banking institution. The main methods of bank risk assessment are considered. All these include the statistical method, the analytical method, the expert method, the analogue method and the combined method. The necessity of neutralization of financial risks in order to avoid negative consequences is substantiated. Also the methods of bank risks neutralization are considered. It should be noted that these methods of neutralization can not only be used, but also supplement the list with new methods must be done, which in the future will protect the bank from the influence of undesirable factors. A conceptual approach to the assessment and neutralization of financial risks is proposed. This conceptual approach aims to ensure effective assessment of the level of risk with their subsequent neutralization Conclusions. Use of a conceptual approach will allow an effective risk assessment and decision-making to avoid or accept risk. Thanks to using this approach, the banking institution will be able to react swiftly to the presence of financial risks and to prevent the occurrence of negative consequences, which may lead to a violation of the financial stability of the bank.

scholarly journals Delay in payment effects on productivity of small and medium construction companies in Oman: exploration and ranking

2021 ◽  
Author(s):  
Mubarak Al Alawi
Keyword(s):  
Cash Flow ◽  
Questionnaire Survey ◽  
Financial Stability ◽  
Construction Project ◽  
Internal Factors ◽  
Construction Productivity ◽  
Construction Companies ◽  
Productivity Rate ◽  
Delay In Payments ◽  
Productivity Factors

AbstractMaintaining a stable productivity rate in a construction project is a challenge. Many external and internal factors influence it. Delay in payment is one of the factors representing the project cash flow and mirrors the company’s financial stability status. This study explores the delay in payments effects on the construction productivity of the small and medium construction companies in Oman. Also, it ranks the delay in payment among other productivity factors. Sixty-five small and medium construction companies registered in Oman Tender Board participated in the questionnaire survey. The results showed that delay in payment significantly affects the financial stability of the companies. The delay in payment was ranked third out of 21 influencing productivity factors. The results were compared with a previous study that covered large construction companies in Oman. It was found that the rank of delay in payment in the small and medium construction is significantly higher than what was found in large companies.

scholarly journals Impact of ISO 9001 Certification on the Projects' Success of Large-scale (AAA) Construction Firms in the Philippines

2017 ◽  
Author(s):  
Behnam Neyestani
Keyword(s):  
Large Scale ◽  
Project Success ◽  
The Philippines ◽  
General Purpose ◽  
Scale Construction ◽  
Iso 9001 ◽  
Survey Questionnaire ◽  
Construction Firms ◽  
Construction Companies ◽  
Metro Manila

The general purpose of this study is to investigate the effects of ISO 9001 certification on project success, and its main criteria into large-scale construction companies in Metro Manila, Philippines. For this aim, the research was conducted an in-depth literature review for identifying the main variables first. Subsequently, a survey questionnaire was designed, and distributed randomly among 67 managers working in ISO 9001:2008- certified projects of large-scale construction firms. Then the descriptive and inferential statistics analysis employed, in order to find the results and conclusions. Finally, the findings revealed that ISO 9001 certification can significatly affect the construction project success and its main criteria, except time lenght of projects in Metro Manila, Philippines.

scholarly journals Financial Stability and Climate Change

2020 ◽  
Vol 9 (3) ◽  
pp. 27-43
Author(s):  
Nikola Fabris
Keyword(s):  
Climate Change ◽  
Financial Institutions ◽  
Financial Stability ◽  
Financial Risk ◽  
Negative Impact ◽  
Weather Conditions ◽  
Extreme Weather ◽  
Financial Risks ◽  
Balance Sheets ◽  
Sea Levels

AbstractFighting climate change is one of the biggest challenges in the 21st century. Climate change that leads to global warming has been increasingly visible in our environment. Extreme weather conditions such as hurricanes, floods, and droughts have been escalating and their acceleration can be expected in the future. They cause changes in sea levels, epidemics, large fires, etc. Increasingly, we are witnessing minor or major damage caused by these extreme weather conditions. Numerous studies have proven that climate change has negative impact on economic growth and prosperity. However, this paper starts from the premise that in addition to unequivocally identified threats, climate change also creates opportunities.The paper reaches a conclusion that climate change can adversely affect balance sheets of financial institutions. Therefore, climate change is a source of financial risk and thus a part of the mandate of central banks and supervisors in preserving financial stability. This type of risk has not been given enough attention by either supervisors or financial institutions over the past period. This paper develops a model for managing financial risks as a result of climate change.

scholarly journals BUSINESS REPUTATION AND ITS IMPACT ON FINANCIAL STABILITY OF BANKS

2021 ◽  
Vol 1 (54) ◽  
Author(s):  
Victoria V. Kovalenko ◽  
Keyword(s):  
Financial Stability ◽  
Large Scale ◽  
Social Role ◽  
Financial Institution ◽  
Financial Instability ◽  
Financial Risks ◽  
Economic Relations ◽  
Stage Of Development ◽  
Banking Business ◽  
The Impact

In the article, the author considers the main aspects of the impact of goodwill on the financial stability of banks. It is substantiated that among the numerous threats that lead to financially unstable development of the banking business, a special place should be given to the support of banks’ business reputation. The main reasons are the phenomena of financial instability caused not only by the cyclical development of the economy, but also the ability to take into account a certain state in which the financial system is able to: effectively allocate resources, assess and manage financial risks, absorb shocks. It is proved that the relationship between business reputation and financial stability is determined by the characteristics of the conceptual apparatus; the system of risks to which they are exposed in the course of their activities; methodical approaches to assessing their level. The author concludes that the key challenges for the banking business in the context of digital transformation should be considered from the standpoint of customer interests, from the standpoint of investors (owners) of the banking business and from the standpoint of the regulator. In today’s realities, when the systemic banking crisis has imposed on a large-scale economic, the decisive factor for success and continued activity in the market is the quality of business reputation. The methods of quantitative assessment of the bank’s business reputation include balance-normative, methods of additional and excess profits, methods of royalties and residual value, the method of rating and comprehensive assessment. It is proved that the level of business reputation is related to the life cycle of banks, which includes the stages of formation, growth, maturity and decline. Measures to ensure business reputation depending on the stage of development of the bank are considered. Both the business reputation and financial stability are affected by the established image of the bank. The article states that a positive image is able to maintain the bank in times of financial instability. It is determined that depending on the group of users (non-financial corporations, households, government agencies or social organizations) the image of the bank should be different and meet all requirements.It is determined that a modern bank is not only an institution of the financial market, but also a financial institution for which social role and reputation in social and economic relations become the primary criteria for ensuring their competitive position.

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