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Article
Publication date: 19 March 2018

Junying Liu, Sen Lin and Yingbin Feng

Construction insurance has been advocated as a useful financial means to transfer risks and mitigate potential project losses. However, there is a general reluctance to purchase…

Abstract

Purpose

Construction insurance has been advocated as a useful financial means to transfer risks and mitigate potential project losses. However, there is a general reluctance to purchase construction insurance in China. The purpose of this paper is to develop an extended theory of planned behavior (TPB) model to understand and predict contractors’ construction insurance purchasing intention.

Design/methodology/approach

Quantitative data were collected through a questionnaire survey. The respondents comprise 130 project directors/managers and contract managers/administrators who were involved in or familiar with the construction insurance purchasing or managing. Data were analyzed using structural equation modeling.

Findings

This study developed an extended TPB model to explain the contractors’ intention formation. The results indicated that the insurance purchasing intention was mainly influenced by attitudes and subjective norm, rather than perceived behavioral control. The analyses also revealed that the added variables (risk perception and past experience) had a significant impact on the attitudes and perceived behavioral control.

Originality/value

This study identified the factors leading to Chinese contractors’ low willingness to purchase construction insurance by extending the TPB model to the context of construction insurance purchasing. The extended TPB model may serve as a theoretical framework and basis for the Chinese contractors, insurers, and regulators to understand the root causes of contractors’ low willingness to purchase construction insurance and make joint efforts to address the risks and insurance in the construction industry.

Details

Engineering, Construction and Architectural Management, vol. 25 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 10 August 2021

Peng Yan, Junying Liu, Xianbo Zhao and Martin Skitmore

The objective of this research is to develop a decision method that can generate appropriate risk response strategies for international construction project managers (PMs) and…

Abstract

Purpose

The objective of this research is to develop a decision method that can generate appropriate risk response strategies for international construction project managers (PMs) and allow these strategies to reflect their different risk preferences.

Design/methodology/approach

The optimal model approach is adopted. A credibility-based fuzzy chance constrained programming (CFCCP) model is developed, which simultaneously minimizes the expected losses of risk events and total costs of risk response. To solve this multi-objective model, a fuzzy interactive solution method is used. Moreover, the model performance is demonstrated by a real international industrial plant project. In addition, a sensitivity analysis of the model is conducted.

Findings

The result of the sensitivity analysis indicates that PMs with a greater risk aversion can lead to a higher mitigation ratio of expected losses of risk events and a higher total cost of risk response.

Practical implications

This research provides contractors with an effective decision-making model to develop a project risk response plan, and it will assist contractors to minimize risk losses and enhance the project performance in the international construction market.

Originality/value

Previous studies overlook the risk preference, which is an important behavioral factor influencing decisions in risk response strategy selection. This research proposed a novel risk response strategy selection decision method that considers different attitudes toward risk among decision makers.

Details

Engineering, Construction and Architectural Management, vol. 29 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 23 April 2020

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…

2820

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.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 19 June 2019

Zhipeng Cui, Junying Liu, Bo Xia and Yaxiao Cheng

International construction joint ventures (ICJVs) have been widely used as a temporary arrangement in many projects all over the world, especially in megaprojects. Within ICJVs…

1630

Abstract

Purpose

International construction joint ventures (ICJVs) have been widely used as a temporary arrangement in many projects all over the world, especially in megaprojects. Within ICJVs, the national culture difference between partners affects their cooperation significantly. However, prior research has provided contradictory empirical evidence regarding these impacts. To address this problem, the purpose of this paper is to introduce cultural intelligence that judges an individual’s capability to function and manage effectively in culturally diverse settings as a moderating variable.

Design/methodology/approach

Multiple regression analysis and moderated multiple regression were undertaken to test proposed hypotheses. A questionnaire survey was conducted with international construction practitioners who had experiences of managing or participating in ICJVs.

Findings

The result of multiple regression analysis revealed that difference in national culture has significant negative effects on information exchange, shared problem solving and flexibility when asking for changes, thus effecting cooperation within ICJVs. Meanwhile, cultural intelligence of members can weaken these negative influences.

Practical implications

First, given that national culture difference affects negatively on the cooperation within ICJVs, it needs to be regarded as one of vital resources of risk which should be prevented and managed when attending ICJVs; Second, managers should build a series of mutually agreeable regulations and rules to lessen the negative effect of national culture difference; Third, it is recommended that ICJV management teams contain as many work-experienced members as possible and members within ICJVs, especially new staff, receive cross-cultural training termly to facilitate the cooperation between partners.

Originality/value

This research reveals the moderating effects of cultural intelligence on the relationship between national culture difference and cooperation in ICJVs as well as provides practical implications for ICJV managers to deal with national culture difference and reduce its negative impact on cooperation within ICJVs.

Details

Engineering, Construction and Architectural Management, vol. 26 no. 7
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 1 February 2022

Junying Liu, Yuqing Wang and Zhixiu Wang

This research aims to build a three-tiered driver system that entices contractor rule violations and explores the importance and the relationships among these drivers, hence…

Abstract

Purpose

This research aims to build a three-tiered driver system that entices contractor rule violations and explores the importance and the relationships among these drivers, hence providing theoretical support for the contractor rule violations governance.

Design/methodology/approach

A literature review based on fraud diamond theory identified drivers from Pressure, Opportunity, Rationalization and Capability that drive contractor rule violations. In the Chinese context, through feedback, discussion and analysis of semistructured interviews with ten experts, an improved three-tiered driver system was drafted. Based on this system, a survey was conducted and scored with experts to provide the data for this research. The decision-making trial and evaluation laboratory (DEMATEL) method was used to determine relationships and influences between factors, and the DEMATEL-based analytic network process method was used to weigh these factors.

Findings

This paper systematically studied the drivers of contractor rule violations, specifically, the results showed that pressure had an important driving effect across the driver system, and those five factors – poor cultural atmosphere, weak internal control, prior experience, moral disengagement and information asymmetry – had the most influence on contractor rule violations. The results also indicated the strong effect pressure has on enticing rule violations and revealed that culture atmosphere and internal company governance played crucial roles in the occurrence of rule violations.

Practical implications

This study provided construction practitioners with a robust tool to analyze the drivers of contractor rule violations. The rule violation drivers in the construction practice scenes identified in this study can provide more direct and effective violation-related guidance for contractors, regulators and the industry.

Originality/value

Based on the new perspective of fraud diamond, this paper systematically bulit a three-tiered driver system combining theory with practice. This study contributed to understand the driver mechanism of contractor rule violations especially the importance of internal factors of contractors, which provided theory reference for compliance governance of construction industry.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 1 September 2021

Zhixiu Wang, Junying Liu and Xinya Guan

Although the global construction industry has made great contributions to economic development, industry corruption is a challenge for governments all over the world. This paper…

Abstract

Purpose

Although the global construction industry has made great contributions to economic development, industry corruption is a challenge for governments all over the world. This paper aims to investigate the causal complexity of organizational corruption by exploring the configuration effect of multiple induced conditions of corruption in the construction sector.

Design/methodology/approach

This study is focused on bribery, a specific form of corrupt behavior through a scenario-based survey role-playing game in which participants encounter bribery. A total of 400 Chinese construction sector participants were randomly recruited to complete this survey.

Findings

Compared with studies that have identified a number of factors associated with corruption in the construction sector, this study found asymmetry and complexity in the causality of organizational corruption. That is, when a variable causing corruption changes from one condition to its opposite – for example, from fierce to mild competition – the degree of corruption is not necessarily reduced as one may expect.

Practical implications

Anti-corruption measures should not rely solely on the net effects of discrete conditions and the interactions between multiple factors should not be ignored. In other words, anti-corruption strategies should not be implemented in isolation of their context, and pairing control measures with configurations is critical in controlling corruption. Finally, multiple configuration paths should be reconsidered when considering the degree of corruption reduction.

Originality/value

This study proposes a comprehensive analysis framework for addressing organizational corruption in the construction sector by investigating configuration effects of multiple induced conditions and offers a useful method for addressing corruption.

Details

Engineering, Construction and Architectural Management, vol. 29 no. 10
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 29 September 2022

Junying Liu, Zhixiu Wang, Jiansheng Tang and Jingcong Song

While there is a general belief that a defective institutional environment will lead to higher compliance risk, the current state of knowledge about how the institutional…

Abstract

Purpose

While there is a general belief that a defective institutional environment will lead to higher compliance risk, the current state of knowledge about how the institutional environment affects enterprises' compliance is equivocal. This study aims to explore how does the host country's institutional environment affect the compliance risk perception of international engineering contractors and how to mitigate this impact.

Design/methodology/approach

This study empirically tests the impact of the institutional environment from the two dimensions of the institutional environment: legal completeness reflects whether the formal regulations are clear, detailed and comprehensive and legal effectiveness reflects whether rules and policies can be implemented effectively when the proper legal codes are provided. Based on 213 questionnaire data, this study uses partial least squares structural equation model (PLS-SEM) and Smart PLS software to test the hypothesis.

Findings

This study finds a negative relationship between the host country's legal completeness (LC) or legal effectiveness (LE) and a contractor's compliance risk perception. Further, the results show potential absorptive capacity (PAC) and realized absorptive capacity (RAC) of a contractor are critical for mitigating the impact of low LC in the host country, but not when LE is low.

Practical implications

The findings will be useful for international engineering contractors to respond to the compliance risk of the host country, both in choices of overseas investment locations and compliance capacity building.

Originality/value

This study reveals the impact of the host country's institutional environment on the compliance risk perception of international contractors, and provides theoretical guidance for how to alleviate the compliance barriers brought by the host country's institutional environment to international engineering contractors.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 3 April 2007

Junying Liu, Bingguang Li, Binshan Lin and Vanthuan Nguyen

The purpose of this study is to investigate the key issues and challenges in risk management and insurance in the Chinese construction industry and propose solutions to improve…

8533

Abstract

Purpose

The purpose of this study is to investigate the key issues and challenges in risk management and insurance in the Chinese construction industry and propose solutions to improve risk management.

Design/methodology/approach

The study is based on surveys which target people who have direct or relevant experience of risk management and construction insurance in China. Surveys were conducted by e‐mail, mail and fax to selected clients, contractors (project director, project managers, and contract managers/administrators), insurers, brokers, consultants, claim advisors, and academics; and e‐mails to Chinese researchers in the construction management field. Descriptive analysis is used for data analysis.

Findings

It is found that cultural considerations inhibit proper implementation of risk management in China's construction industry. It is also found that the perception and attitude of contractors play an important role in developing risk management. Accordingly, an organizational learning of a risk management model is designed and proposed as an organizational learning process through collaborative teamwork to improve risk management and create a learning organization.

Research limitations/implications

The major limitation is the sample size. A much larger sample size allows comparisons among different groups of contractors, regions, etc.

Originality/value

This empirical research identifies the real challenge of application of risk management in China's construction industry. It proposes a realistic organizational learning model through collaborative teamwork which could help Chinese contractors to improve their risk management.

Details

Industrial Management & Data Systems, vol. 107 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 27 April 2010

Sui Pheng Low, Junying Liu and Stephen Sio

The aim of this study is to determine whether large construction companies practise business continuity management (BCM), the type of crises which companies deem impactful for…

2852

Abstract

Purpose

The aim of this study is to determine whether large construction companies practise business continuity management (BCM), the type of crises which companies deem impactful for their organizations and their reactions to certain crises.

Design/methodology/approach

A survey of 22 large construction companies in Singapore was conducted.

Findings

The survey suggests that, although the importance and usefulness of having BCM are clear, the receptiveness of BCM among large construction firms is far from ideal. In today's unpredictable environment, there is a tendency for catastrophes to occur unexpectedly and to bring about undesired consequences. A large majority of the respondents did not have any form of BCM practices within their organization. This is mainly because they were unaware of what constitutes a business continuity plan.

Research limitations/implications

The survey was conducted only among large construction companies; as such, the results obtained cannot be used to represent the entire industry. However, focusing on the larger companies is strategically correct for a start, because BCM‐related initiatives, if any, tend to be undertaken by the larger companies, as they have the necessary resources, such as manpower and finance, to do so.

Practical implications

To be successful in promoting BCM in the building industry, the relevant authorities in Singapore, such as the Building and Construction Authority, should demonstrate to construction companies how beneficial BCM is for the company's operations, so that they can be better equipped to meet future challenges more confidently.

Originality/value

As with all other businesses, an effective business continuity plan is critical to companies in the construction industry. Being in an industry that is constantly subjected to internal and external pressure, construction companies are likely to incur costly errors if they are caught unprepared when a crisis strikes. This is the first ever study of BCM in the construction industry.

Details

Disaster Prevention and Management: An International Journal, vol. 19 no. 2
Type: Research Article
ISSN: 0965-3562

Keywords

Article
Publication date: 30 May 2008

Sui‐Pheng Low, Junying Liu and John Lim

Where buildability is concerned, the six total building performance (TBP) mandates are seldom taken into consideration.. The purpose of this paper is to examine the relationship…

1447

Abstract

Purpose

Where buildability is concerned, the six total building performance (TBP) mandates are seldom taken into consideration.. The purpose of this paper is to examine the relationship between buildability and the two TBP mandates of thermal performance and building integrity performance.

Design/methodology/approach

A real life case study of a worker dormitories building project was used as the base model for analysis. A breakdown of the buildability scores for the project was first noted. Thereafter, the TBP guidelines relating to thermal performance and building integrity performance were incorporated into the base model and the buildability scores were recomputed.

Findings

Following the thermal performance guidelines, a negative relationship with buildability was observed. However, a positive result was established between the building integrity performance guidelines and buildability. The different relationships occurred due to the different aspects of the base model that needed to be changed to conform to the guidelines for both mandates.

Practical implications

It appears that the incorporation of guidelines for any one of the six TBP mandates will yield different results depending on the situation. This was the case for both thermal performance and building integrity performance in the present study.

Originality/value

The paper establishes the relationship between the TBP mandates of thermal performance, building integrity performance and buildability for the first time, which is beneficial to building designers.

Details

Structural Survey, vol. 26 no. 2
Type: Research Article
ISSN: 0263-080X

Keywords

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