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1 – 10 of over 89000Mukhtar A Kassem, Muhamad Azry Khoiry and Noraini Hamzah
Construction projects in the oil and gas sector are greatly affected by external risk factors, especially those related to the economy, politics, security and stability factors…
Abstract
Purpose
Construction projects in the oil and gas sector are greatly affected by external risk factors, especially those related to the economy, politics, security and stability factors. Hence, this research aimed to investigate the fundamental relationship between the external risk factors and their effects on the construction project success using Structural Equation Modeling method and PLS-SEM approach.
Design/methodology/approach
Data collected through a structured survey distributed to projects teams in the oil and gas sectors in Yemeni companies involved in mega construction projects. A hierarchical model for assessing causative external risk factors and their effects on project success was developed and analyzed using Smart PLS 3 software of SEM.
Findings
The findings showed that economic, political, force majeure and security-related risk factors had a strong effect on project success. Besides, the Coefficient of Determination (R-squared value) equals 0.743, represented the proportion of variation in the dependent variable(s), which can be explained by one or more predictor variable. Moreover, the predictive relevance value Q2 is 0.375 above zero, which indicates that the conceptual model can predict the endogenous latent constructs. The calculated Goodness of Fit (GoF) Index of the model was 0.699, which shows that the developed model had substantial explanatory power to represent the relationship between the cause of external risk factors to and the effect on construction project success.
Research limitations/implications
This research was limited to the oil and gas construction projects in Yemen as case study.
Practical implications
Practically, this study highlights the external risk factors that cause a negative effect on the success of oil and gas construction projects in Yemen. The research model of these factors is the first step in the risk management process to develop strategic responses for risks and explain the relationship between cause and effect on project success.
Social implications
The model of external risks factors that cause the failure of construction projects helps develop response strategies for these risks, thereby increasing the chances of project success reflected in the oil and gas sector, which is a main tributary of the national economy in developing countries.
Originality/value
There is a need to improve the planning of economic and security performance as well as to mitigate political risk factors effects on project success and other risk factors discussed in this study, which effect on construction project success according to their priorities.
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Shaista Wasiuzzaman, Fook Lye Kevin Yong, Sheela Devi D. Sundarasen and Noor Shahaliza Othman
When a firm goes public for the first time, its prospectus serves as an important reference for investors. It is required by regulation that the risk factors which have…
Abstract
Purpose
When a firm goes public for the first time, its prospectus serves as an important reference for investors. It is required by regulation that the risk factors which have significant influence on the business be disclosed in the prospectus. The purpose of this study is to analyze how disclosure of these risk factors influences the initial returns of initial public offerings (IPOs).
Design/methodology/approach
To do this, a sample of 96 Malaysian new equity offerings (IPOs) from year 2009 to year 2013 is used. Ordinary least squares regression technique is used to regress initial returns against risk disclosures. Aside from overall risk disclosure, individual dimensions of risk (internal risk, external risk and investment risk) are also considered.
Findings
Results of the regression analyses reveal a direct relationship between the IPO initial returns and the disclosure of risk. Overall risk disclosure is found to be highly significant in influencing initial returns. However, further investigation into the individual group of risks shows that only investment risk is highly significant in influencing IPO initial returns.
Originality/value
The results found in this study are interesting as, unlike prior studies, it is shown that disclosures of internal and external risks are not significant in influencing investors’ actions possibly because of their generalizability, whereas disclosures related to investment risks are significant. Equity of firms which disclose more of its risk factors can be expected to generate higher initial returns.
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The global electronic equipment industry has evolved into one of the most innovative technology-based business sectors to transpire in the last three decades. Much of its success…
Abstract
Purpose
The global electronic equipment industry has evolved into one of the most innovative technology-based business sectors to transpire in the last three decades. Much of its success has been attributed to effective supply chain management. The purpose of this paper is to provide an examination of external risk factors associated with the industry’s key suppliers through the creation of Bayesian networks which can be used to benchmark external risks among these suppliers.
Design/methodology/approach
The study sample consists of the suppliers to seven of the leading global electronic equipment companies. Bayesian networks are used as a methodology for examining the supplier external risk profiles of the study sample.
Findings
The results of this study show that Bayesian networks can be effectively used to assist managers in making decisions regarding current and prospective suppliers with respect to their potential impact on supply chains as illustrated through their corresponding external risk profiles.
Research limitations/implications
A limitation to the use of Bayesian networks for modeling external risk profiles is the proper identification of risk events and risk categories that can impact a supply chain.
Practical implications
The methodology used in this study can be adopted by managers to assist them in making decisions regarding current or prospective suppliers vis-à-vis their corresponding external risk profiles.
Originality/value
As part of a comprehensive supplier risk management program, companies along with their suppliers can develop specific strategies and tactics to minimize the effects of supply chain external risk events.
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An Thi Binh Duong, Thu-Hang Hoang, Tram Thi Bich Nguyen, Mohammadreza Akbari, Thinh Gia Hoang and Huy Quang Truong
Proactive risk assessment suggests that risk assessment should emphasize the consequences that it might cause and the opportunities it might create for firms. Hence, this study…
Abstract
Purpose
Proactive risk assessment suggests that risk assessment should emphasize the consequences that it might cause and the opportunities it might create for firms. Hence, this study aims to validate risk impact on supply chain performance in the context of the Vietnamese construction sector. Also, a complex network, in which multiple risk factors mutually affect, impede or promote each other, is developed to assist managers in tackling unpredictable risks proactively. In particular, the authors investigate whether certain risks could be considered either challenges or opportunities for businesses in turbulent times to improve SC performance.
Design/methodology/approach
The construction industry is the focal study context as it is one of the most essential industries in charge of providing accommodations, infrastructures and employment for society. 289 valid responses used in this research are from a large-scale survey result, supported by a Japanese government project promoting sustainable socio-economic development in Vietnam.
Findings
From the study findings, the authors find that external risk brings opportunities for supply chain performance. Meanwhile, demand risk, when it occurs, can reduce the danger level of operational risk, which is an interesting finding of this research. It is evident that when multiple risk factors mutually affect, impede or promote each other, it provides a more meaningful examination of mutually interconnected supply chain risks.
Originality/value
Practitioners should perceive risks as an opportunity than a threat. This study contributes to preventing risks and guaranteeing an effective and efficient supply chain by tackling unpredictable risks in a disruptive period. Moreover, data on validating research models collected during the Covid-19 pandemic and Ukraine and Russia conflicts reflect the topicality of this study.
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Celso Augusto de Matos and Anderson Krielow
Based on the stimulus-organism-response (SOR) framework, this paper aims to analyze the influence of environmental factors (e.g. competitive pressure) on the firm’s evaluations…
Abstract
Purpose
Based on the stimulus-organism-response (SOR) framework, this paper aims to analyze the influence of environmental factors (e.g. competitive pressure) on the firm’s evaluations (i.e. perceived risk and convenience) and response (intention to purchase e-services).
Design/methodology/approach
A model is tested with data from a survey with 430 micro- and small-sized enterprises (MSEs) in an emerging country. The following constructs were measured: external factors, data security, lack of knowledge, perceived risk, convenience and purchase intention. Company size, internet use and previous experience were control variables.
Findings
MSEs’ intention to purchase e-services is strongly influenced by convenience, which in turn is more affected by external factors. Perceived risk is mainly affected by lack of knowledge and data security. Overall, the model supports the mediating role of perceived risk and convenience in the relationship between Stimuli factors (external factors, data security and lack of knowledge) on response (purchase intentions). For instance, data security influences purchase intention only through the mediation of perceived risk and convenience.
Practical implications
Firms interested in providing e-services for MSEs should improve the perceived convenience of e-commerce. At the same time, they can also reduce the lack of knowledge and increase data security to reduce the perceived risk of the decision-maker.
Originality/value
This paper demonstrates mediating effects of perceived risk and convenience, considering a SOR framework, as well as the analysis of business-to-business e-services in an understudied context, i.e. MSEs in an emerging country.
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Udechukwu Ojiako, Thanos Papadopoulos, Chonnikarn Thumborisuthi and Yun Fan Yang
This paper aims to examine how project managers frame variability for categorised risk factors on enterprise resource planning (ERP) projects.
Abstract
Purpose
This paper aims to examine how project managers frame variability for categorised risk factors on enterprise resource planning (ERP) projects.
Design/methodology/approach
Weighting and selection of the risk factors was undertaken based on an analysis of data (using PASW17), obtained from a random sample of 307 ERP project managers working in Thailand.
Findings
The findings suggest that: framing of variability for categorised risk factors in ERP projects is not necessarily culturally bound; both “internal” and “external” risk factors did have a strong impact on ERP project success; and the impact of the degree of inter‐relationships between critical risk and success factors may influence the success of a ERP project.
Practical implications
The authors anticipate that the results will stimulate future research in this area as well as raise the profile of critical success factors for ERP implementation, particularly in developing countries.
Originality/value
The study contributes to a better understanding of the viewpoint of consultants on critical success factors for ERP implementation in the context of a developing country.
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This paper aims to examine Korean jewelry manufacturers operating in China to assess the relationship between their perceptions of external risks and their intentions to relocate…
Abstract
Purpose
This paper aims to examine Korean jewelry manufacturers operating in China to assess the relationship between their perceptions of external risks and their intentions to relocate. The authors hypothesize that foreign firms finding risk in the current external environment are more likely to consider moving their facilities outside China. In particular, this paper explores whether firm performance and technological capability moderate the relationship between perceived external risk and relocation intentions.
Design/methodology/approach
Korean jewelry manufacturers were among the first Korean firms entering China in the early 1990s to avoid Korea’s rising labor costs. After 20 years, they face similar external risks in China. The authors collected and analyzed 238 survey samples from Korean jewelry manufacturers operating in China to determine whether perceived external risks affect decisions to relocate. Logistic regression was used to examine the hypotheses. In addition to an empirical method, five case studies related to empirical results have been included.
Findings
Analysis results suggest that firms perceiving riskier managerial and competitive environments are more likely to have relocation intentions. Perceptions of risks from the governmental/political environment and macroeconomic environment have no significant relationship with relocation intentions. Also, firms’ performance and technological capability negatively moderate the relationship between perceptions of managerial competitive environment risks and relocation intentions.
Originality/value
This study contributes to the literature on international business relocation strategies by examining perceptions of external risks that determine whether foreign manufacturing firms will relocate. In addition, the research sheds light on the transformation of Chinese economics from labor-intensive to capital-, technological- and knowledge-intensive structures. By applying multi-methods, this research further elaborates empirical results with five case studies.
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The purpose of this paper is to assess the determinants of the early termination of infrastructure projects implemented under public–private partnerships (PPP), concessions or…
Abstract
Purpose
The purpose of this paper is to assess the determinants of the early termination of infrastructure projects implemented under public–private partnerships (PPP), concessions or privately managed divested assets.
Design/methodology/approach
Cross-section and duration model estimations were applied to a sample of 2,655 infrastructure projects implemented in Latin America and the Caribbean for the period 1993–2017. Estimation techniques consist of a logistic model and cox proportional hazards model (CPHM) applied to alternative specifications, including diverse causal factors.
Findings
Evidence is found that early termination of infrastructure projects is determined by intrinsic and extrinsic factors. Among the intrinsic factors, the main characteristics of projects that increase the likelihood of failure are the size or scale of the project, the sector in which the project is developed (transport and water and sanitation) and being investments in divested assets. Extrinsic factors that showed a negative impact on the risk of early termination are good regulatory quality and domestic macroeconomic stability. Likewise, external real and financial shocks also contribute importantly to explain the likelihood of early termination of infrastructure projects.
Practical implications
The results reveal that particular care must be put in design and supervision of large-scale projects, either in transport or water and sanitation. As well, risks associated with external shocks must be explicitly acknowledged in project design, with appropriate remedies and safeguards. The prevalence of relatively high rates of early termination in projects in divested assets in contrast with PPP suggests the importance of introducing simpler way out mechanisms for concessionaires. Finally, the results show the key importance of institutional factors like regulatory quality in determining project failure on economic performance of infrastructure projects.
Originality/value
In contrast to the previous literature, the analysis shows the decisive role played by financial external factors and institutional factors of Latin American and Caribbean countries in early termination of private participation in infrastructure projects. As well, the finding of a higher likelihood of failure in projects that involve investments in divested assets versus concession or PPP suggests the need of investigate further the tradeoffs regarding the balance that must exist among guarantees offered to investors in infrastructure projects and the need to keep contractual decisions in line with market signals.
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Onyeka John Chukwuka, Jun Ren, Jin Wang and Dimitrios Paraskevadakis
Unforeseen events can disrupt the operational process and negatively impact emergency resources optimization and its supply chain. A limited number of studies have addressed risk…
Abstract
Purpose
Unforeseen events can disrupt the operational process and negatively impact emergency resources optimization and its supply chain. A limited number of studies have addressed risk management issues in the context of emergency supply chains, and this existing research lacks inbuilt and practical techniques that can significantly affect the reliability of risk management outcomes. Therefore, this paper aims to identify and practically analyze the specific risk factors that can most likely disrupt the normal functioning of the emergency supply chain in disaster relief operations.
Design/methodology/approach
This paper has used a three-step process to investigate and evaluate risk factors associated with the emergency supply chain. First, the study conducts a comprehensive literature review to identify the risk factors. Second, the research develops a questionnaire survey to validate and classify the identified risk factors. At the end of this step, the study develops a hierarchical structure. Finally, the research investigates the weighted priority of the validated risk factors using the fuzzy-analytical hierarchy process (FAHP) methodology. Experts were required to provide subjective judgments.
Findings
This paper identified and validated 28 specific risk factors prevalent in emergency supply chains. Based on their contextual meanings, the research classified these risk factors into two main categories: internal and external risk factors; four subcategories: demand, supply, infrastructural and environmental risk factors; and 11 risk types: forecast, inventory, procurement, supplier, quality, transportation, warehousing, systems, disruption, social and political risk factors. The most significant risk factors include war and terrorism, the absence of legislative rules that can influence and support disaster relief operations, the impact of cascading disasters, limited quality of relief supplies and sanctions and constraints that can hinder stakeholder collaboration. Therefore, emergency supply chain managers should adopt appropriate strategies to mitigate these risk factors.
Research limitations/implications
This study will contribute to the general knowledge of risk management in emergency supply chains. The identified risk factors and structural hierarchy taxonomic diagram will provide a comprehensive risk database for emergency supply chains.
Practical implications
The research findings will provide comprehensive and systemic support for respective practitioners and policymakers to obtain a firm understanding of the different risk categories and specific risk factors that can impede the effective functioning of the emergency supply chain during immediate disaster relief operations. Therefore, this will inform the need for the improvement of practices in critical aspects of the emergency supply chain through the selection of logistics and supply chain strategies that can ensure the robustness and resilience of the system.
Originality/value
This research uses empirical data to identify, categorize and validate risk factors in emergency supply chains. This study contributes to the theory of supply chain risk management. The study also adopts the fuzzy-AHP technique to evaluate and prioritize these risk factors to inform practitioners and policymakers of the most significant risk factors. Furthermore, this study serves as the first phase of managing risk in emergency supply chains since it motivates future studies to empirically identify, evaluate and select effective strategies that can eliminate or minimize the effects of these risk factors.
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Tao Wang, Shangde Gao, Pinchao Liao, Tsenguun Ganbat and Junhua Chen
The purpose of this paper is to construct a two-stage risk management framework for international construction projects based on the meta-network analysis (MNA) approach. A…
Abstract
Purpose
The purpose of this paper is to construct a two-stage risk management framework for international construction projects based on the meta-network analysis (MNA) approach. A plethora of international construction studies seems to assume risks as independent and therefore, risk intervention strategies are usually critiqued as ineffective.
Design/methodology/approach
In the risk assessment stage, a multi-tiered risk network structure was developed with the project objectives, risk events, risk factors and stakeholders, and critical risk factors were selected based on a series of calculations. In the risk intervention stage, targeted risk intervention strategies were proposed for stakeholders based on the results of the first stage. A highway construction project in Eastern Europe was selected as a case study.
Findings
The results showed that 17 risk factors in three categories – external, stakeholder-related and internal – are critical, and the project manager, construction management department, supplier and contract department are the most critical stakeholders that affect the entire project performance. Based on the critical risk factors and project stakeholders, targeted risk intervention strategies were proposed. The risk assessment results of MNA were found to be more reliable and consistent with the project conditions than the risk matrix method; the risk intervention strategies of MNA can effectively address project objectives.
Originality/value
This study modeled risk priorities based on risk associations and put forward a new method for risk management, supplementing the body of knowledge of international construction. The results of this study are of critical importance in management practices.
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