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Article
Publication date: 6 July 2020

Yi-Hsin Lin, Yanzhe Guo, Chan-Joong Kim, Po-Han Chen and Mingwei Qian

In the process of undertaking overseas construction projects, relational governance has become indispensable for project stakeholders. This study examines how relational…

Abstract

Purpose

In the process of undertaking overseas construction projects, relational governance has become indispensable for project stakeholders. This study examines how relational governance influences contractors' adaptability to foreign situations and whether such associations are positively moderated by international environmental complexity.

Design/methodology/approach

A crosssectional survey methodology was applied to collect primary data through questionnaires sent to domestic contractors in China and South Korea (hereafter Korea). Multiple regression analysis was used to test the effects of four dimensions of relational governance on contractor adaptability. Thereafter, the Chinese and Korean subsamples were tested separately through moderated regression analysis to explore differences in the influence of relational governance on adaptability.

Findings

The results showed that quality communication, favor exchange and establishing an emotional relationship significantly and positively affected a contractor’s adaptability. However, there were significant differences between the Chinese and Korean international contractors in terms of the moderating effects of international environment complexity.

Research limitations/implications

East Asian engagement in international development is not limited to China and Korea alone, and the study should be replicated using large representative samples from more countries, such as Japan, to gain a fuller understanding of the influence of relational governance.

Originality/value

The results have great significance for the managers of international contractors in East Asian countries and contribute to the research on relational governance and contractor adaptability.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 10
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Book part
Publication date: 1 May 2019

Yafan Fu and Roine Leiringer

The paper aims to investigate the prevailing institutional logics that underpin the organisational behaviours of Chinese contractors and the institutional complexity they

Abstract

Purpose

The paper aims to investigate the prevailing institutional logics that underpin the organisational behaviours of Chinese contractors and the institutional complexity they face across several strategic areas when they undertake projects abroad.

Design/Methodology/Approach

The paper draws mainly on industry literature, reports and government websites to develop a typology of two ideal types of institutional logics that prevail among Chinese international contractors. The configurations of institutional complexity in different strategic areas are analysed through pattern-matching.

Findings

Two main logics are identified, namely, construction and investment logics. These logics in turn lead to patterns of volatile complexity in the strategic areas of business, technology, human resources and marketing; patterns of aligned complexity in operational and information technology strategic areas; and patterns of segregated complexity in financial strategic area.

Research Limitations/Implications

The paper presents an ongoing doctoral research. It provides a preliminary understanding of the institutional logics affecting Chinese international contractors and sets out the first step to understand the relationship between complex institutional environments and organisational responses.

Practical Implications

Chinese international contractors commonly face resistance, and at times resentment, from the local industries in the countries they operate. The findings of this paper are a first step towards a better understanding of why this is the case and what can be done to rectify the situation and improve long and short-term project performance.

Originality/Value

This paper provides practical implications for Chinese contractors to understand their internal context of institutional complexity and provides the basis for further understanding of Chinese contractors’ strategic responses.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Keywords

Article
Publication date: 10 July 2007

Florence Ling and Hwee Loon Lim

The aim of this research is to investigate how foreign firms manage financial and economic risks when operating in China's construction industry. The specific purposes of…

3501

Abstract

Purpose

The aim of this research is to investigate how foreign firms manage financial and economic risks when operating in China's construction industry. The specific purposes of the paper are to: identify the types of financial and economic risks foreign firms face and the frequency and severity of these risks; examine how foreign firms manage these risks; and recommend a risk management framework that can be adopted by foreign firms to mitigate financial and economic risks in China.

Design/methodology/approach

The data collection instrument was a questionnaire which had open‐ended questions. The data collection method was face‐to‐face in‐depth interviews with 22 experts from Singapore who have experience in China's construction industry.

Findings

Nine economic and financial risks affecting foreign firms that operate in China's construction industry are found. Of these, the risks that occur frequently and are severe are: labour and material price fluctuation; and contractors/subcontractors' default. Eighteen contractual and general measures were found to be useful in mitigating these risks.

Research limitations/implications

The findings may not be readily generalized because interviews were conducted with 22 China experts, all of whom are from Singapore.

Practical implications

Foreign firms could use the findings to help them decide on the most appropriate measures to adopt, to overcome financial and economic risks that they face when operating in China's construction industry.

Originality/value

The research proposed a framework for foreign firms to use in managing financial and economic risks in China. It recommends different measures to mitigate different types of risks.

Details

Engineering, Construction and Architectural Management, vol. 14 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 22 October 2019

Djoen San Santoso and Polwatta Gallage Madusha Piumal Gallage

This paper aims to analyse the factors affecting the performance of large construction projects in Sri Lanka. The causes, impacts and mitigations in association with the…

Abstract

Purpose

This paper aims to analyse the factors affecting the performance of large construction projects in Sri Lanka. The causes, impacts and mitigations in association with the critical factors are explored and discussed.

Design/methodology/approach

The research focuses on the evaluation and perspectives of clients and contractors of large projects in Sri Lanka. Combined quantitative and qualitative methods were applied in this research. Initially, a questionnaire survey was conducted with clients and contractors involved in large projects to evaluate the factors affecting the performance of projects and to identify the ten most critical factors. Interviews with the clients and contractors of three large projects were conducted to examine the causes and impacts of the critical factors and the approaches used to mitigate them.

Findings

Significant differences in the factors were observed for more than 40 per cent of the total factors under study, the contractors assigning more weight to most of the factors than the clients. The study identified nine internal factors and one external factor as the critical factors. Of these, seven were related to the contractors, which suggested that the contractors have greater roles in defining performance. Lack of management and technical skills of the parties involved, human capacity, lack of understanding and knowledge of the local context, changes in government policies and political interference were identified as significant causes of the critical factors.

Originality/value

The study analysed the factors affecting the performance of large projects in Sri Lanka, which, at the time of research, had just ended a 26-year-long civil war and was pushing the construction of large projects to be competitive. The challenges faced in this effort were explored as lessons learnt that might improve the efficiency and effectiveness of infrastructure development in Sri Lanka. The combined quantitative and qualitative methods applied in this study are expected to provide new insights in the project performance research, especially the interviews of the critical factors to gain an understanding on how the factors occurred and manifested themselves in real projects. The findings are, however, expected to be applicable to other developing countries that are currently aggressively developing their large infrastructure.

Details

Journal of Engineering, Design and Technology , vol. 18 no. 3
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 2 October 2007

Liu Jun Ying and Low Sui Pheng

The construction industry in China is progressing at a rapid pace. There are many important issues to be considered in the Chinese construction industry, not the least of…

1375

Abstract

Purpose

The construction industry in China is progressing at a rapid pace. There are many important issues to be considered in the Chinese construction industry, not the least of which is the distancing of the design aspects from the construction aspects of a construction project. Integrating design with construction through the buildability concept can yield many benefits relating to time, cost, quality and sustainable environment. The purpose of this paper is to propose how a building design appraisal system (BDAS) may be formalized to benefit the construction industry in China.

Design/methodology/approach

This study explains the basic principles of buildability; describes the development and implementation of the BDAS in Singapore; demonstrates how buildability scores can be computed using the BDAS model; and proposes the measures that can be taken in China to populate buildability and formalize a similar BDAS model in the Chinese construction industry.

Findings

The construction industry in Singapore has benefited tremendously from the BDAS formalized by the relevant building authorities. The construction industry in Singapore possesses relevant knowledge and expertise in buildability. This skills set can likewise be transferred to China to improve the effectiveness and efficiency of the Chinese construction industry.

Practical implications

Some countries, like Singapore, have recognized the importance of buildability towards raising overall productivity levels in the construction industry. In the case of Singapore, the implementation of buildability principles in the construction industry have been formalized through the BDAS whose minimum buildability scores must be complied with by all property developments before building plans approvals are given by the relevant building authorities.

Originality/value

There is ample scope for China to review how the BDAS was implemented in Singapore and to consider how such a formalized system can be modified, adapted and transferred for application in the Chinese construction industry.

Details

Journal of Technology Management in China, vol. 2 no. 3
Type: Research Article
ISSN: 1746-8779

Keywords

Article
Publication date: 19 January 2015

Yong Qiang Chen, Su Juan Zhang, Li Sha Liu and Jia Hu

Making the right bid/no-bid decision is critical to the success and development of construction contracting enterprises. Decision makers’ personal characteristics, such as…

2001

Abstract

Purpose

Making the right bid/no-bid decision is critical to the success and development of construction contracting enterprises. Decision makers’ personal characteristics, such as risk perception and propensity, have great impact on bid/no-bid decisions, which is the major concern of this research. The purpose of this paper is to explore the relationship among decision makers’ risk perception, risk propensity, and their bid/no-bid decision making of construction projects, as well as the factors influencing the risk perception and propensity.

Design/methodology/approach

In total, four hypotheses were proposed based on an extensive literature review. Experimental questionnaires were distributed to employees working in Chinese construction contracting enterprises with knowledge of construction bidding, and 134 valid questionnaires were obtained. Multivariate statistical analysis through SPSS 19.0 was used to analyze the acquired data.

Findings

Data analysis shows that in the context of international construction contracting: risk perception has a negative influence on bid/no-bid decision making; while risk propensity produces a positive influence and the probability and magnitude of potential gain or loss both have significant impacts on risk perception, and the probability plays a more important role.

Originality/value

This research studied the bid/no-bid decision making of construction projects from the new perspectives of risk perception and risk propensity of the decision makers.

Details

Engineering, Construction and Architectural Management, vol. 22 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

Expert briefing
Publication date: 4 August 2017

This will constrain future civilian governments from implementing policies not in line with existing master plans. Thailand’s military government will use this as a…

Article
Publication date: 1 March 2001

Z. REN, G.J. ANUMBA and O.O. UGWU

Disputes are now considered endemic in the construction industry. They often arise from the poor resolution of claims in the course of construction projects. Efforts have…

1027

Abstract

Disputes are now considered endemic in the construction industry. They often arise from the poor resolution of claims in the course of construction projects. Efforts have been geared towards reducing the incidence of claims. These efforts are of two kinds: those that seek answers from basic principles and legal issues at the pre‐construction phase and those that attempt to solve the problems through claims management procedures at the construction phase. This paper reviews the developments in claims management and highlights the deficiencies in current claims management approaches. It focuses on the need for improvement of the efficiency of claims negotiation and suggests the use of multiagent systems as an approach to achieve it. The potential benefits of the suggested approach are discussed in the concluding section of the paper.

Details

Engineering, Construction and Architectural Management, vol. 8 no. 3
Type: Research Article
ISSN: 0969-9988

Keywords

Expert briefing
Publication date: 5 October 2020

Moscow is a key partner in opposing Western hegemony, but Pakistan is the closest thing China has to an ally and depends increasingly on Chinese support. Territorial and…

Executive summary
Publication date: 14 April 2016

SOUTH ASIA: States will milk India-China competition

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