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1 – 10 of over 9000Despite the numerous benefits of adopting international construction joint ventures (ICJVs), effective operation of the joint ventures in Saudi Arabia is impeded by various…
Abstract
Purpose
Despite the numerous benefits of adopting international construction joint ventures (ICJVs), effective operation of the joint ventures in Saudi Arabia is impeded by various limitations. Thus, this paper is aimed at determining, analyzing, and prioritizing these major limitations and to propose a strategy that can provide guidance on how best to promote the achievement of efficient joint ventures in international construction in Saudi Arabian construction industry.
Design/methodology/approach
Content analysis was augmented by the expert-based assessment process to identify the critical limitations while the interpretive structural modeling (ISM) technique was utilized to analyze and determine the hierarchical structure of the limitations. This is important in order to comprehend and describe the complex relationship between the limitations.
Findings
The results identified “selecting unsuitable partner”, “divergent organizational cultures, policies and procedures”, and “poor knowledge of local regulations by foreign partners” as the most critical limitations affecting the efficiency of joint ventures in international construction in Saudi Arabia.
Research limitations/implications
The inclusion of many variables (limitations) increases the complexity of the ISM technique, which compels the researchers to consider reduced number of variables in establishing the ISM structural hierarchy. Other variables that were perceived to be less critical were not included in the development of the ISM structural hierarchy. On the other hand, the structural hierarchy was not validated statistically, and this requires the use of other linear structural relationship techniques like the Structural Equation Modeling to test the validity of the hypothetical ISM structural hierarchy. The proposed strategy to mitigate the limitations presented in this study was not validated, and this requires further study to verify the accuracy of the strategy.
Practical implications
The implications inferred in this study are better performing ICJVs in the execution of mega infrastructure projects in Saudi Arabia. The findings and managerial implications of the study are expected to further provide an invaluable guide that can support policymakers and all key stakeholders to establish efficient strategies and suitable measures that can enhance the successful implementation of ICJVs.
Originality/value
The findings of this study provide comprehensive understanding of the limitations affecting the efficiency of ICJVs in Saudi Arabia. This can assist in mitigating the potential impacts of these limitations and to advocate for the achievement of efficient joint ventures in international construction in Saudi Arabia. Meanwhile, there is a need to further develop a framework that can elucidate on the proposed strategy to promote better performing ICJVs in Saudi Arabia. Also, the further study will seek to investigate the influence of project duration, value, location, or ownership on the performance of the joint ventures in order to generalize the findings to all forms of ICJVs.
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I.O. Famakin, I.O. Aje and D.R. Ogunsemi
The increasing pressure from clients and global construction trends have led the construction industry to seek better options for overcoming the emerging challenges and critical…
Abstract
Purpose
The increasing pressure from clients and global construction trends have led the construction industry to seek better options for overcoming the emerging challenges and critical issues battling construction projects. The purpose of this paper is to assess the factors affecting the performance of partners in joint ventures construction projects in Nigeria.
Design/methodology/approach
Primary data were collected through the administration of questionnaire to partners and consultants who have engaged in joint venture construction project in partnership with the Lagos State Development and Property Corporation. The data obtained were analyzed using Mean Item Score, Wilcoxon‐Mann‐Whitney (U‐test) test, Kruskal‐Wallis (H‐test) test and factor analysis.
Findings
The study revealed that all the factors identified were significant to the performance of partners in joint venture construction with communication, compatibility of objectives and mutual understanding among partners ranked as the most important to the performance of partners in Joint Venture Projects. A KMO value of 0.743 was also derived indicating the suitability of the data for factor analysis.
Practical implications
The research could be beneficial to potential investors for deciding the factors that contribute significantly to the performance of Partners in Joint Venture Construction Projects for inclusion in the drafting of Joint Venture Agreements. The five groupings from factor analysis and their relationship will also help in developing a framework for Joint Venture Construction Projects.
Originality/value
The extracted factors and values will help to identify prioritized factors which could be used as an assessment tool to evaluate the performance of partners and thus identifying areas for improvement.
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Yuming Hong and Daniel W.M. Chan
This paper aims to systematically and critically explore the research trend of construction joint ventures (CJVs) in some selected leading construction journals over the past two…
Abstract
Purpose
This paper aims to systematically and critically explore the research trend of construction joint ventures (CJVs) in some selected leading construction journals over the past two decades between 1993 and 2012. It is also expected that some valuable insights into the extended application of JVs to facilities service management and maintenance could be generated from the research findings.
Design/methodology/approach
A powerful search engine “Scopus” was selected to identify those journals that have published CJV-related articles. The papers related to CJVs, as retrieved from the selected journals, were first classified based on their relevance to CJV study and were then analyzed in terms of the annual number of CJV-related publications, research focus of CJV studies and the applied research methods and techniques. Future research directions are suggested to enrich and add value to the extant literature about CJVs.
Findings
An apparent increasing trend of research on CJVs has been witnessed over the past two decades. A critical analysis of the two-decade research outputs indicated that research topics of CJVs published in the selected journals consist of several key areas: theory and model development; motives, benefits and other strategic demands of application; performance measurement or management; risk assessment or management; influential factors for practice; problematic issues and challenges in practice; and managerial practices of CJVs in the industry. This study also identified that the research methods employed in CJV studies are predominantly questionnaire survey, case study, literature review/analysis, and interview. Research techniques applied in CJV studies were classified into seven main groups, with rank-order analysis, structural equation modelling and regression analysis being the three mostly adopted analytical tools.
Research limitations/implications
The critical review of CJV literature reveals several inherent limitations of the existing research and practices of CJVs, The research findings also help visualize future research directions associated with the identification of barriers to the adoption and successful operation of CJVs, investigation of the appropriateness and effectiveness of CJV contracting strategies, and exploration into possible strategies for improving the industrial applications in future.
Originality/value
Joint ventures have been extensively used in the construction sector, which calls for the need of more rigorous and meaningful research to guide the appropriate and effective use of it. The findings of this taxonomic review could provide useful insights towards researchers into shaping their research foci under the umbrella of CJVs to suit the demands of both the literature base and the real construction market.
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Mershack Opoku Tetteh, Albert P.C. Chan, Ernest Effah Ameyaw, Amos Darko, Sitsofe Kwame Yevu and Emmanuel B. Boateng
Management control is needed in international joint ventures (IJVs) for successful management and performance. While IJV management control and performance concept has been widely…
Abstract
Purpose
Management control is needed in international joint ventures (IJVs) for successful management and performance. While IJV management control and performance concept has been widely explored, in the construction sector, the core understanding of the design of the two concepts is still lacking. This has resulted in the neglect of important questions and directions for research and practice improvement. This study aims to conduct a critical survey of prior studies addressing the conceptualization of management control and performance in IJVs and to propose a framework for studying the performance implications of management control in international construction joint ventures (ICJVs).
Design/methodology/approach
Using Scopus database and search terms, a systematic desktop search was conducted to retrieve empirically related peer-reviewed papers for this study.
Findings
Drawing on the transaction cost, institutional and relational logic, the first inclusive hypothetical model for studying the relationship between different dimensions of management control mechanism and multiple performance criteria in ICJVs is presented. The model proposes a measurement method for both the management control and performance and explains how they can be established in ICJVs.
Practical implications
The proposed framework provides a methodology to understand the dynamics of management control and performance implications in ICJV. Specifically, uncovering the critical paths will assist ICJV frontliners to approach management control in a more holistic and systematic way to promote achievement of ICJV goals.
Originality/value
The study gives a firm ground to the construction industry, which is accurate and educational for related fields concentrating on several other forms of cooperative relationships.
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Mershack Opoku Tetteh, Albert P.C. Chan, Amos Darko, Sitsofe Kwame Yevu, Emmanuel B. Boateng and Janet Mayowa Nwaogu
International construction joint ventures (ICJVs) are an effective strategy for construction companies worldwide for delivering large and complex projects. Despite numerous ICJVs…
Abstract
Purpose
International construction joint ventures (ICJVs) are an effective strategy for construction companies worldwide for delivering large and complex projects. Despite numerous ICJVs studies, there is a lack of comprehensive empirical examination of what drives ICJVs implementation. This study aims to investigate the key drivers for implementing ICJVs through an international survey.
Design/methodology/approach
Grounded on a comprehensive literature review and structured questionnaire survey, 123 ICJV experts' responses from 24 different countries/jurisdictions were analyzed using inferential and descriptive statistics. Mann–Whitney U test was used to determine any divergence of ranking of the drivers by the experts. Factor analysis (FA) was used to identify the clusters underlying the key drivers. Rank agreement analysis was later used to investigate the consensus between experts from developing and developed countries/jurisdictions on their ranking of the clusters.
Findings
Out of 34 factors, 26 factors greatly drive the implementation of ICJVs. Mann–Whitney U test results prove the absence of significant disparity among the experts in the ranking of the drivers. Six clusters were obtained through factor analysis (FA), namely, market-penetration and innovation-driven drivers, legal and market-driven drivers, fiscal incentives and market expansion drivers, personal branding drivers, sustainable advantage/power drivers and industrial and organizational promotion drivers. Rank agreement analysis exhibited varied levels of concurrence between professionals from developed and developing countries/jurisdictions.
Practical implications
The appreciation of the factors motivating ICJVs is beneficial to the successful implementation of ICJV strategies. A clear understanding of the drivers can help practitioners and policymakers to customize their ICJVs to reap the expected benefits.
Originality/value
The study has generated valuable insights into the factors that are greatly driving the implementation of ICJVs worldwide. While the findings of this study provide a profound contribution to theory and practice, it contributes to sustainable growth in different perspectives.
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Namal Thilakarathne, Akila Pramodh Rathnasinghe, Udayangani Kulatunga, Niraj Thurairajah and Lichini Weerasinghe
Most developing countries, such as Sri Lanka (SL), are now looking for the support of foreign construction companies for large-scale infrastructure projects in return for…
Abstract
Purpose
Most developing countries, such as Sri Lanka (SL), are now looking for the support of foreign construction companies for large-scale infrastructure projects in return for expertise and resources. Thus, foreign companies may enter into agreements with local contractors through joint ventures (JVs). However, the priorities of construction project stakeholders may differ, which may ultimately end up in conflicts. Therefore, this research aims to investigate the most suitable conflict management strategies for international construction JVs (ICJVs) considering the SL context.
Design/methodology/approach
The mixed method was used for the research choice by selecting a questionnaire survey and expert interviews. Completed questionnaires (n = 78) were analysed using statistical techniques. The expert interviews with six industry practitioners were piloted to increase the validity and credibility of survey findings through a triangulation process where the collected data was analysed through content analysis.
Findings
The findings confirm that JV parties should first seek collaborative solutions in a conflict and seek legal redress only when those efforts are unsuccessful. Collaborating and compromising were recommended as the most appropriate tactics if an informal approach to conflict management was chosen. Alternative dispute resolution and litigation were identified as formal conflict management strategies.
Originality/value
This study, to the best of the authors’ knowledge, will be the first of its kind in SL, which will lead to a better understanding of conflict management in IJCVs and will encourage other researchers to extend this study through further work.
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Ali Mohammad Mirzaee, M. Reza Hosseini, Igor Martek, Payam Rahnamayiezekavat and Mehrdad Arashpour
Legal remedies are incorporated into international construction joint ventures (ICJVs) to mitigate contractual breaches. The effectiveness of remedies is predicated on two…
Abstract
Purpose
Legal remedies are incorporated into international construction joint ventures (ICJVs) to mitigate contractual breaches. The effectiveness of remedies is predicated on two conditions; the comprehensiveness of the contract and its enforceability within the jurisdiction of interpretation. Relational-related weaknesses contribute to contracting parties placing a premium on the contract's capacity for mediating the relationship. However, contracts are not always enforceable. This study aims to examine means by which joint venture relational governance can be maintained under conditions of minimal legal recourse.
Design/methodology/approach
A relational contracting (RC) theory was used as the theoretical underpinning of the paper. Data were collected and analyzed following a multiple-case study approach from case projects in which ICJVs' was used.
Findings
The findings reveal (1) 17 relational and contractual governance problems; the main six being contractual flexibility, contractual joint venture system, contract reviewing, project conflict, national culture and leader–follower transgressions; (2) relational and contractual governance problems are managed differently, depending on financing sources and partners' national culture; and (3) that a developed RC-based framework comprising four stages is able to facilitate relational and contractual governance in ICJVs.
Originality/value
This study is novel in providing a guided approach to developing non-legal remedies for the mitigation of contractual breaches in ICJVs, grounded in theory and contextualized for the construction sector.
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Stephen Akunyumu, Frank Fugar and Emmanuel Adinyira
The failure rate of international construction joint venture (ICJV) projects has been noted to be high in developing countries due to the complexity and risky nature of…
Abstract
Purpose
The failure rate of international construction joint venture (ICJV) projects has been noted to be high in developing countries due to the complexity and risky nature of construction projects in the international market. The purpose of this study is to identify and evaluate the risks facing ICJV projects in Ghana.
Design/methodology/approach
A risk register was developed through a comprehensive literature review. The identified risks were then used in a questionnaire survey involving local and foreign partners in ICJV projects in Ghana.
Findings
From a total of 74 risks identified, categorized into country-level risks, market-level risks and project-level risks, the “top ten” risks found to be the most critical risks facing ICJV projects in Ghana include unstable currency exchange rates, inflation, design changes, high-interest rate, budget overrun, cash flow problems of the client, economy fluctuation, difficulty in obtaining approval of projects from host government authorities/bureaucracy, potential financial distress of JV partner and bribery and corruption.
Originality/value
This study provides a comprehensive list of risks ICJV partners are likely to encounter on their projects in developing countries. Furthermore, this study improves on one of the major limitations of previous ICJV studies by collecting data from both partners of the ICJV, appropriate for cross-cultural examination and comparison.
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Junying Liu, Zhipeng Cui, Yingbin Feng, Srinath Perera and Jie Han
Cultural differences have been frequently cited as a major source of risks for international joint ventures (IJVs). Cultural differences may cause extensive conflicts in…
Abstract
Purpose
Cultural differences have been frequently cited as a major source of risks for international joint ventures (IJVs). Cultural differences may cause extensive conflicts in technology, norms and emotion among the international joint venture (IJV) partners. The purpose of this study is to explore the interactive effects of national culture differences (NCDs) and conflict management approaches on the performance of international construction joint ventures (ICJV).
Design/methodology/approach
Data were collected using a questionnaire survey method with 143 valid responses. Partial least squares structural equation modeling (PLS-SEM) was used to test the research hypotheses.
Findings
It was found that ICJV performance declined with a high degree of NCDs. The negative effect of NCDs on ICJV performance was mitigated by adopting the cooperative conflict management approach; while it was aggravated by adopting the competitive conflict management approach. The findings may provide an alternative way (i.e. adopting the cooperative conflict management approach rather than avoiding or competitive approaches) to address the cultural conflicts in the multicultural project management teams.
Practical implications
Firstly, as NCD negatively impacts performance of ICJVs, project managers should pay attention to cultural issues and learn how to manage them; Secondly, as cooperative and competitive conflict management approaches have different moderating effects on the relationship between NCD and ICJV performance, project managers must choose appropriate conflict management styles in multination teams. Thirdly, as the avoiding approach has no significant moderating effect on the negative relationship between NCD and ICJV performance, it is important for Chinese partners not to employ avoiding approach to deal with conflicts in ICJV.
Originality/value
This study uniquely adds to the literature on cultural issues in managing ICJVs by integrating the moderating effects of conflict management approaches. The interactive effects of conflict management approaches and national cultural differences on ICJV project performance may contribute to the theories regarding conflict management theory in the context of cross-cultural management.
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Stephen Akunyumu, Frank D.K. Fugar and Emmanuel Adinyira
The purpose of this study was to assess the readiness of construction companies in Ghana to partner with foreign companies in international construction joint ventures (ICJVs).
Abstract
Purpose
The purpose of this study was to assess the readiness of construction companies in Ghana to partner with foreign companies in international construction joint ventures (ICJVs).
Design/methodology/approach
Using the Verify End-User e-Readiness using a Diagnostic Tool (VERDICT) model, a survey with 31 construction companies was conducted to assess their readiness through four pre-defined elements of readiness.
Findings
The results indicated the readiness of construction companies to collaborate with potential foreign partners in ICJVs. Notwithstanding, certain areas such as management commitment to change, employee buy-in, process flexibility and technology infrastructure need improvement in some firms to achieve readiness. Government has a role in ensuring the readiness of domestic firms for the international market.
Originality/value
This study applies the VERDICT model, a tool originally designed to assess construction organizations’ readiness for e-commerce, to assess the readiness of Ghanaian construction companies for ICJVs.
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