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Critical factors influencing the failure of joint ventures in the South African construction industry: a confirmatory factor analysis approach

Matthew Osivue Ikuabe (cidb Centre of Excellence, Faculty of Engineering and the Built Environment, University of Johannesburg–Doornfontein Campus, Johannesburg, South Africa)
Clinton Ohis Aigbavboa (cidb Centre of Excellence, Faculty of Engineering and the Built Environment, University of Johannesburg–Doornfontein Campus, Johannesburg, South Africa)
Wellington Didibhuku Thwala (Department of Civil Engineering, College of Science Engineering and Technology, University of South Africa, Pretoria, South Africa)
Donald Chiyangwa (Department of Construction Management and Quantity Surveying, University of Johannesburg, Doornfontein Campus, Johannesburg, South Africa)
Ayodeji Emmanuel Oke (Department of Quantity Surveying, Federal University of Technology Akure, Akure, Nigeria) (cidb Centre of Excellence, Faculty of Engineering and the Built Environment, University of Johannesburg, Auckland Park, South Africa)

Engineering, Construction and Architectural Management

ISSN: 0969-9988

Article publication date: 13 December 2022

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Abstract

Purpose

Joint ventures (JVs) serve as a viable tool in mitigating some of the challenges posed to the effective delivery of construction projects. However, JVs are highly susceptible to failure in most developing countries. Therefore, this study seeks to unravel the critical factors influencing the failure of JVs in the South African construction industry.

Design/methodology/approach

A quantitative approach was adopted for the study using a well-structured questionnaire as the instrument for data collection. Respondents for the study were built environment professionals in Gauteng province in South Africa. Data elicited from respondents were analyzed using a four-pronged process which included descriptive statistics, one sample t-test, exploratory factor analysis and confirmatory factor analysis.

Findings

Resulting from the analysis conducted, four critical components emerged as the major factors influencing the failure of JVs in the South African construction industry, which are inefficient financial framework, divergent organizational culture, poor project governance and inadequacies from project stakeholders.

Practical implications

The outcome of this study presents a roadmap for stakeholders in the construction industry with the requisite knowledge of the critical factors leading to the failure of JVs, consequently providing a clear path for the successful delivery of JV mandates.

Originality/value

Evidence from literature suggests that several studies have been conducted on the various aspects of JVs in the South African construction industry; however, none has focused on the leading factors attributed to the failure of JVs. Also, the findings of this study cultivate a good theoretical platform for future studies on JVs.

Keywords

Citation

Ikuabe, M.O., Aigbavboa, C.O., Thwala, W.D., Chiyangwa, D. and Oke, A.E. (2022), "Critical factors influencing the failure of joint ventures in the South African construction industry: a confirmatory factor analysis approach", Engineering, Construction and Architectural Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ECAM-04-2022-0298

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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