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Article
Publication date: 15 July 2024

Li Feng, Junying Liu, Zhixiu Wang and Yanyan Hong

The regulatory landscape surrounding international construction projects presents significant challenges, and contractors are still struggling to pay a painful price for their…

Abstract

Purpose

The regulatory landscape surrounding international construction projects presents significant challenges, and contractors are still struggling to pay a painful price for their performance in the project. While existing research has identified various causes of contractor compliance, the intricate interplay of these factors and their impact on compliance remain largely elusive. The motivation-opportunity-ability (MOA) framework may hold the key to determining what factors can foster induced contractor compliance in international projects.

Design/methodology/approach

This study collected 124 valid data samples from practitioners involved in large-scale international contracting projects through expert interviews and questionnaire surveys. Fuzzy-set qualitative comparative analysis (fsQCA) was employed to analyze the diverse combinations of contractor compliance factors.

Findings

The study identifies seven key factors that contribute to compliance behavior among international construction contractors: economic motivation, social motivation, normative motivation, legal completeness, deterrent sanctions, organizational learning and compliance management ability. The interplay of these factors promotes compliance in the following ways: When international construction contractors are influenced by both social and normative motivations, they exhibit a higher level of compliance. In situations where regulatory systems are relatively weak, the ability to manage compliance becomes the primary driver of compliance behavior for businesses. A comprehensive legal framework creates a conducive environment for contractors to improve their compliance through organizational learning.

Research limitations/implications

The findings offer guidance for international construction contractors in enhancing compliance by considering factors such as motivations, legal frameworks, organizational learning and compliance management. This can lead to improved risk management and performance in international projects.

Social implications

This research enhances fair and ethical practices in international construction by identifying compliance drivers, fostering positive social impact, mitigating negative consequences and empowering local communities. It informs legal and regulatory reform, encourages improved business practices and contributes to knowledge advancement in the field. Overall, the findings have the potential to positively impact the social fabric of international construction projects.

Originality/value

This study has made an important contribution to the field of compliance theory by integrating theories from multiple disciplinary domains and constructing a new theoretical framework from the perspectives of motivation, opportunity and capability. By elucidating how these factors interact and influence compliance behavior among international construction contractors, this research aids in understanding the complex dynamics of contractor compliance behavior and provides theoretical reference for compliance governance within the construction industry.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 20 January 2023

Liping Li, Chuan Chen, Igor Martek and Guanghua Li

Given their interrelationship, international market selection (IMS) and entry mode selection (EMS) must be considered jointly if an optimal entry strategy is to be realized…

Abstract

Purpose

Given their interrelationship, international market selection (IMS) and entry mode selection (EMS) must be considered jointly if an optimal entry strategy is to be realized. However, researchers in the field of international construction have the tendency to consider IMS and EMS independently or sequentially. Therefore, this paper aims to explore a holistic framework that can accommodate IMS and EMS concurrently and test it using empirical data.

Design/methodology/approach

his study includes theoretical and empirical research. In theoretical part, an integrated decision model of IMS and EMS is proposed adopting literature review and theoretical derivation, then hypotheses are developed for the impact of decision-making factors. In the latter part, the IMS and EMS of 54 Chinese contractors in 67 countries were investigated, empirical data are collected according to hypotheses, an ordinal logistic regression model is established for statistics analysis. Finally, findings are drawn by comparing literature-based hypotheses with data-based analysis results.

Findings

Results show that empirical data fit theoretical model well. Findings are: IMS and EMS can be integrated into a holistic decision-making framework when be properly sequenced. When IMS and EMS are determined simultaneously, the decision can benefit from a sharing of common information. And the roles of at least 13 common factors are empirically demonstrated in this study.

Research limitations/implications

The integrated decision sequence proposed in this study is applicable for a specific market, and cannot compare multiple alternative markets directly. The decision-making factors identified in this paper do not cover the enterprise strategic objectives and some other factors. Empirical data and some theoretical assumptions are based on the international market entry strategy of Chinese contractors. Therefore, the conclusions may not be completely applicable to global contractors though have certain reference value.

Originality/value

Based on the idea of holistic decision-making of IMS and EMS, this study proposes an international market entry strategy (IMES) sequence and an explicit model for determinants, then tests them with empirical data. This paper provides a new idea to manage IMS and EMS concurrently, which can improve the efficiency of IMES decision-making and avoid missing optimal alternatives. This study paves the way for a practical model and provides reference for contractors' international market entry strategy.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 6
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 23 August 2024

Chunmei Wang and Sujuan Zhang

The sustainable development of contractor organizations depends highly on bidding decision-making of projects. This current study, leveraging the risk decision-making theory…

Abstract

Purpose

The sustainable development of contractor organizations depends highly on bidding decision-making of projects. This current study, leveraging the risk decision-making theory, attempts to elucidate the process of contractors’ bid/no-bid decision-making and reveal how the process is influenced by their perception of risk. In particular, this study aims to explore the multiple mediating effects of contractors’ trust in owners and risk perception in explaining the relationship between contractual governance outlined in owners’ bidding documents and the bid/no-bid decisions.

Design/methodology/approach

A questionnaire survey was used to obtain data from the Chinese construction industry. The PLS-SEM technique was employed to analyze a dataset of 557 available questionnaires.

Findings

The findings indicate that (1) the contractual governance provided by owners’ bidding documents positively impacts contractors’ bid/no-bid decisions; (2) both risk perception and trust serve as multiple mediators in this relationship and (3) trust mediates the relationship between contractual governance and contractors’ risk perception.

Originality/value

Drawing upon the risk decision-making theory, this study proposes a multiple mediation model for understanding contractors’ bid/no-bid decision-making processes. It contributes to a better understanding of contractors’ bidding decision-making mechanisms, thereby offering theoretical guidance for contractors to make reasonable and informed risk decisions.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 25 July 2024

Per Erik Eriksson

This paper aims to examine how different contextual contingency factors and organizational goals influence construction clients’ decision-making when procuring contractors in the…

Abstract

Purpose

This paper aims to examine how different contextual contingency factors and organizational goals influence construction clients’ decision-making when procuring contractors in the housing sector. More specifically, it investigates how clients’ choice of procurement strategies and organizational control systems is contingent upon various contextual factors and organizational goals.

Design/methodology/approach

It is based on an explorative interview study of clients and contractors in the Swedish housing sector underpinned by a review of organizational control literature.

Findings

The client's knowledge and resources, as well as project complexity and uncertainty, are the most important contextual contingency factors, while property management and sustainable development are the most important organizational goals that housing clients consider when designing procurement strategies.

Research limitations/implications

The paper contributes to the understanding of how construction clients choose procurement strategies, by providing new insights into effects of the mentioned contextual contingency factors and organizational goals on clients’ choice of control systems through their procurement strategies.

Practical implications

Property owners who continuously procure housing projects with sustainability requirements and high degrees of complexity and uncertainty should develop knowledge and resources related to their client role, to enable the design and implementation of appropriate procurement strategies.

Originality/value

Novel aspects of the paper are the demonstration of the value of a holistic approach, considering both contextual contingency factors and organizational goals, when selecting control systems and explicit discussion of how the client's knowledge and resources influence possibilities to implement different control systems.

Details

Journal of Financial Management of Property and Construction , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 3 April 2024

Lili Gao, Xicheng Zhang, Xiaopeng Deng, Na Zhang and Ying Lu

This study aims to investigate the relationship between individual-level psychological resources and team resilience in the context of expatriate project management teams. It…

Abstract

Purpose

This study aims to investigate the relationship between individual-level psychological resources and team resilience in the context of expatriate project management teams. It seeks to understand how personal psychological resources contribute to team resilience and explore the dynamic evolution mechanism of team resilience. The goal is to enhance team resilience among expatriates in a BANI (Brittle, Anxious, Nonlinear, and Incomprehensible) world, where organizations face volatile and uncertain conditions.

Design/methodology/approach

An online survey was applied for data collection, and 315 valid samples from Chinese expatriates in international construction projects were utilized for data analysis. A structural equation model (SEM) examines the relationships between personal psychological resources and team resilience. The study identifies five psychological factors influencing team resilience: Employee Resilience, Cross-cultural Adjustment, Self-efficacy, Social Support, and Team Climate. The hypothesized relationships are validated through the SEM analysis. Additionally, a fuzzy cognitive map (FCM) is constructed to explore the dynamic mechanism of team resilience formation based on the results of the SEM.

Findings

The SEM analysis confirms that employee resilience, cross-cultural adjustment, and team climate positively impact team resilience. Social support and self-efficacy also have positive effects on team climate. Moreover, team climate is found to fully mediate the relationship between self-efficacy and team resilience, as well as between social support and team resilience. The FCM model provides further insights into the dynamic evolution of team resilience, highlighting the varying impact effects of antecedents during the team resilience development process and the effectiveness of different combinations of intervention strategies.

Originality/value

This study contributes to understanding team resilience by identifying the psychological factors influencing team resilience in expatriate project management teams. The findings emphasize the importance of social support and team climate in promoting team resilience. Interventions targeting team climate are found to facilitate the rapid development of team resilience. In contrast, interventions for social support are necessary for sustainable, long-term high levels of team resilience. Based on the dynamic simulation results, strategies for cultivating team resilience through external intervention and internal adjustment are proposed, focusing on social support and team climate. Implementing these strategies can enhance project management team resilience and improve the core competitiveness of contractors in the BANI era.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 30 August 2024

Zhixiu Wang and Kunhui Ye

Construction enterprises increase their competitive advantage by joining the project ecosystem, but the dual nature of the enterprise’s niche has attracted attention, and existing…

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Abstract

Purpose

Construction enterprises increase their competitive advantage by joining the project ecosystem, but the dual nature of the enterprise’s niche has attracted attention, and existing research has gaps in understanding niche and ecosystem governance issues. This study aims to promote ecosystem compliance governance by exploring the impact of the niche of the key role of construction enterprises on compliance behavior.

Design/methodology/approach

First, the study proposes a model on the impact of the enterprise's niche on its compliance behavior and the mediating role of the enterprise's perception of sanctions and the moderating role of a shared vision for compliance of ecological partners within these relationships. Second, we used 205 samples, who were Chinese contractors with international construction project experience through a questionnaire survey. Third, the study conducted a hierarchical regression to test the hypothesis.

Findings

The results show that construction enterprises with a wider niche or with a higher degree of niche overlap are more inclined to performance compliance. Enterprises' perception of sanctions plays a part in mediating the enterprise's niche and compliance behavior. The relationship between enterprises' perception of sanctions and compliance behavior can be moderated by the shared vision for compliance of ecological partners. Given a low compliance shared vision of ecological partners, the impact of enterprise perception of sanctions on compliance behavior is positively stronger.

Practical implications

The findings provide valuable evidence upon which ecosystem governance needs to focus and leverage the role of key members, using the advantageous resources of key members as a fulcrum to leverage a larger governance scope. Construction enterprises should keep improving their niche and the shared vision for partners' compliance to promote the evolution and upgrading of cooperation to an ecosystem model that creates greater value.

Originality/value

This study provides new insights for future compliance governance in the project ecosystem by introducing the concept of niche and answering whether construction enterprises with a higher niche in the project ecosystem are more willing to implement compliance behavior.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 8 November 2022

Ahmad Shah Kakar, Abid Hasan, Kumar Neeraj Jha and Amarjit Singh

The Afghan construction industry faces resource shortages and heavily relies on foreign aid to fund public projects on the path to recovery and reconstruction. While the resource…

Abstract

Purpose

The Afghan construction industry faces resource shortages and heavily relies on foreign aid to fund public projects on the path to recovery and reconstruction. While the resource constraints demand cost-efficient delivery of construction projects, many Afghan public projects experience delays and cost overruns. This study aims to evaluate various attributes and factors influencing cost performance in public construction projects in Afghanistan.

Design/methodology/approach

The literature review and Delphi method identified 30 cost performance attributes relevant to the context of Afghanistan. Next, a questionnaire survey was conducted with construction management professionals working in the public sector in the Afghan construction industry to evaluate these attributes.

Findings

This study found that the lack of resources, poor project management skills and corruption in procurement are the leading causes behind cost overruns in Afghan public projects. This study also identified five latent factors influencing cost performance in public projects in Afghanistan: competency of the project team, socioeconomic and political support, governance and public procurement, planning and risk management and project characteristics.

Research limitations/implications

The exploratory factor analysis did not reveal the relative significance of different cost performance success factors. Moreover, the ranking of cost performance attributes is based on the responses from the public sector construction professionals only.

Practical implications

The construction industry in Afghanistan significantly contributes to the country’s social and economic growth and employment. This study’s findings will help researchers, project sponsors, government departments and industry practitioners interested in improving the cost performance in Afghan public projects.

Originality/value

Given the scarcity of research in war-affected and conflict-sensitive regions, this study fills a research gap on project cost performance by providing insights into the cost performance success factors in public projects in Afghanistan.

Details

Journal of Engineering, Design and Technology , vol. 22 no. 5
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 14 February 2023

Zhixiu Wang, Lifeng Shi and Haiqian Cui

The operation mode of enterprises will affect its resource commitment in the host country, involving different costs and time, as well as risks. Yet, the current state of…

Abstract

Purpose

The operation mode of enterprises will affect its resource commitment in the host country, involving different costs and time, as well as risks. Yet, the current state of knowledge about how the institutional environment affects the operation mode change of international construction enterprises is equivocal. This study aims to explore the impact of a host country's institutional environment on the operation mode change of international construction enterprises.

Design/methodology/approach

First, this study proposes a model on the impact of the institutional environment on the operation mode change of international construction enterprises. Second, this study used the Worldwide Governance Indicators (WGI) published by the World Bank and a questionnaire survey to collect data. Finally, the study employs a multiple regression methodology to test the hypothesis and discusses the results.

Findings

Results highlight that the important impact of the institutional environment on the operation mode change of international construction enterprises. The results showed that enterprises are more willing to increase resource commitments under the condition of stable institutional environment. In addition, enterprises' market-specific experience and general international experience, as moderating variables, weaken the impact of the institutional environment on the operation mode change. However, general international experience has no significant moderating effect.

Practical implications

The findings of this study provide practical implications for the investment risk assessment of international construction enterprises. Enterprises need to consider the change in institutional quality and institutional instability of the host country, as well as their own international experience when changing operation mode.

Originality/value

This study extends internationalization theory to the international construction field and provided theoretical guidance for the mechanism of operation mode change of international construction enterprises.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 7
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 1 July 2024

Anand Prakash and Sudhir Ambekar

Implementing enterprise risk management (ERM) systems in construction firms of developing countries like India is critical for targeting strong risk management strategies that…

Abstract

Purpose

Implementing enterprise risk management (ERM) systems in construction firms of developing countries like India is critical for targeting strong risk management strategies that support their growth. It requires such firms to holistically understand the major barriers in terms of their definitions, relationships with one another and interdependencies. Thus, this study aims to identify, model and analyze the barriers to implementing ERM in construction firms using interpretive structural modeling (ISM).

Design/methodology/approach

This study used a Delphi process to identify barriers to the implementation of ERM in Indian construction firms, ISM to model them and Matrice d’Impacts Croisés Multiplication Appliquée à un Classement (MICMAC) to analyze their interrelationships.

Findings

The study’s results revealed that individual-level factors are the most important among the barriers present at the lowest level in the hierarchical model, whereas organizational commitment with the highest dependence power is present at the highest level in the hierarchical model.

Research limitations/implications

Since the usage of ERM in the construction industry is highly culture-dependent and may have regional nuances, the data on ERM usage might accurately reflect the Indian construction industry but may not apply to other regions.

Practical implications

This study can be used to develop effective strategies to improve the implementation of ERM in construction firms in developing countries like India.

Social implications

ERM is crucial for managing risks in Indian construction firms due to the high degree of complexity and uncertainty associated with construction projects coming from changes due to technological advancement, regulatory changes, changes in consumer preferences, global competition and other socioeconomic and political factors.

Originality/value

The study’s results will help researchers and practitioners working in the construction industry of developing countries like India to identify the challenges in adopting ERM systems. It will guide construction firms to appropriately develop risk management strategies for managing the inevitable risks in their complex project environments. This will help improve their contribution to the country’s economic development.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 13 December 2022

Matthew Osivue Ikuabe, Clinton Ohis Aigbavboa, Wellington Didibhuku Thwala, Donald Chiyangwa and Ayodeji Emmanuel Oke

Joint ventures (JVs) serve as a viable tool in mitigating some of the challenges posed to the effective delivery of construction projects. However, JVs are highly susceptible to…

Abstract

Purpose

Joint ventures (JVs) serve as a viable tool in mitigating some of the challenges posed to the effective delivery of construction projects. However, JVs are highly susceptible to failure in most developing countries. Therefore, this study seeks to unravel the critical factors influencing the failure of JVs in the South African construction industry.

Design/methodology/approach

A quantitative approach was adopted for the study using a well-structured questionnaire as the instrument for data collection. Respondents for the study were built environment professionals in Gauteng province in South Africa. Data elicited from respondents were analyzed using a four-pronged process which included descriptive statistics, one sample t-test, exploratory factor analysis and confirmatory factor analysis.

Findings

Resulting from the analysis conducted, four critical components emerged as the major factors influencing the failure of JVs in the South African construction industry, which are inefficient financial framework, divergent organizational culture, poor project governance and inadequacies from project stakeholders.

Practical implications

The outcome of this study presents a roadmap for stakeholders in the construction industry with the requisite knowledge of the critical factors leading to the failure of JVs, consequently providing a clear path for the successful delivery of JV mandates.

Originality/value

Evidence from literature suggests that several studies have been conducted on the various aspects of JVs in the South African construction industry; however, none has focused on the leading factors attributed to the failure of JVs. Also, the findings of this study cultivate a good theoretical platform for future studies on JVs.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

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