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Analysing the causes of corruption in the Malaysian construction industry

Jeffrey Boon Hui Yap (Department of Surveying, Lee Kong Chian Faculty of Engineering and Science, Universiti Tunku Abdul Rahman (UTAR), Kajang, Malaysia)
Kai Yee Lee (Department of Surveying, Lee Kong Chian Faculty of Engineering and Science, Universiti Tunku Abdul Rahman (UTAR), Kajang, Malaysia)
Martin Skitmore (School of Civil Engineering and Built Environment, Queensland University of Technology (QUT), Brisbane, Australia)

Journal of Engineering, Design and Technology

ISSN: 1726-0531

Article publication date: 5 May 2020

Issue publication date: 28 October 2020

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734

Abstract

Purpose

Corruption continues to be a pervasive stain on the construction industry in developing countries worldwide, jeopardising project performance and with wide-ranging negative implications for all facets of society. As such, this study aims to identify and analyse the causes of corruption in the construction sector of an emerging economy such as Malaysia, as it is crucial to uncover the specific facilitating factors involved to devise effective counter strategies.

Design/methodology/approach

Following a detailed literature review, 18 causes of corruption are identified. The results of an opinion survey within the Malaysian construction industry are further reported to rank and analyse the causes. The factor analysis technique is then applied to uncover the principal factors involved.

Findings

The results indicate that all the considered causes are perceived to be significant, with the most critical causes being avarice, relationships between parties, lack of ethical standards, an intense competitive nature and the involvement of a large amount of money. A factor analysis reveals four major causal dimensions of these causes, comprising the unique nature of the construction industry and the extensive competition involved; unscrupulous leadership, culture and corruption perception; a flawed legal system and lack of accountability; and ineffective enforcement and an inefficient official bureaucracy.

Research limitations/implications

The study presents the Malaysian construction industry’s view of the causes of corruption. Therefore, the arguments made in the study are influenced by the social, economic and cultural settings of Malaysia, which may limit generalisation of the findings.

Practical implications

This paper helps stakeholders understand the root causes and underlying dimensions of corruption in the construction industry, especially in Malaysia. Recommendations for changing cultures that may be conducive to corrupt practices, and anti-corruption measures, are suggested based on the findings of the research.

Originality/value

These findings can guide practitioners and researchers in addressing the impediments that give rise to the vulnerability of the construction industry to corrupt practices and understanding the “red flags” in project delivery.

Keywords

Acknowledgements

The authors would like to acknowledge the support provided by UTAR Global Research Network Program (International Collaborative Partner). Special gratitude is also extended to those industrial practitioners who have responded to and contributed their valuable input in this research through their time and effort. The authors also wish to thank Dr Daphne Loke for the Best Community Project Award 2019 at Universiti Tunku Abdul Rahman (UTAR).

Citation

Yap, J.B.H., Lee, K.Y. and Skitmore, M. (2020), "Analysing the causes of corruption in the Malaysian construction industry", Journal of Engineering, Design and Technology, Vol. 18 No. 6, pp. 1823-1847. https://doi.org/10.1108/JEDT-02-2020-0037

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited