Enterprise risk management implementation in construction firms : An organizational change perspective

Abstract

Purpose

The purposes of this paper are to: first, identify the critical drivers for and hindrances to enterprise risk management (ERM) implementation in Singapore-based Chinese construction firms (CCFs); second, interpret the critical drivers and hindrances in tandem with organizational change theories; and third, provide possible strategies to strengthen the drivers and overcome the hindrances.

Design/methodology/approach

A questionnaire survey was conducted and responses were received from 35 experienced managers in CCFs operating in Singapore.

Findings

A total of 13 drivers and 25 hindrances with significant influence were identified. Of them, “improved decision-making” was the top driver, while “insufficient resources (e.g. time, money, people, etc.)” was the most influential hindrance.

Research limitations/implications

As the survey was performed with the Singapore-based CCFs, there may be geographical limitation on the identification of the critical drivers for and hindrances to ERM implementation. The sample size was still small, despite a relatively high response rate.

Practical implications

Specific strategies were identified to strengthen the drivers for ERM implementation and overcome the hindrances to ERM implementation.

Originality/value

This study present the theoretical rational behind the critical drivers for and hindrances to ERM implementation. As few studies have attempted to investigate ERM in construction firms, this study contributes to the literature through interpreting ERM implementation from an organizational change perspective. The identification of the drivers and hindrances and the managerial implications provide practitioners and academics with valuable information as well as a clear understanding of how to consolidate ERM programs and overcome the hindrances.

Citation

Zhao, X., Hwang, B.-G. and Pheng Low, S. (2014), "Enterprise risk management implementation in construction firms : An organizational change perspective", Management Decision, Vol. 52 No. 5, pp. 814-833. https://doi.org/10.1108/MD-02-2014-0082