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Article
Publication date: 14 August 2019

Mukhtar A. Kassem, Muhamad Azry Khoiry and Noraini Hamzah

This study aims to identify and assess the significant risks in Yemen oil and gas construction projects based on their risk rating (impact and probability) by using…

Abstract

Purpose

This study aims to identify and assess the significant risks in Yemen oil and gas construction projects based on their risk rating (impact and probability) by using probability–impact matrix (PIM).

Design/methodology/approach

In total, 51 risk factors that might affect construction projects in the oil and gas sector are defined through a detailed literature review and expert judgment. The risk factors were tabulated in a questionnaire form, which was sent to a total of 400 participants asking their contribution in identifying the risk matrix for the risk factors in terms of impact and probability of occurrence during the project life cycle. Five zones were used in the matrix according to the degree of risk factor’s severity on the success of the project. These zones are light green, dark green, yellow, light red and dark red.

Findings

The PIM analysis for risk factors found that five factors are located in the dark red zone, as top risks factors have a very high impact and very high probability of occurring; 40 factors are located in the light red zone; six factors are located in the yellow zone; and no factors are located in the green zone (light and dark), which is considered an indication of the importance of risk factors under study and their impact on the success of construction projects in the oil and gas sector. Moreover, the factors under feasibility study and design and resources and material; are the most categories effect on project success.

Research limitations/implications

The research was limited to the oil and gas construction projects in Yemen.

Practical implications

Practically, this study highlights the top risk factors in oil and gas construction projects, which might cause an adverse effect on project success in Yemen. Classification and ranking of these factors by using the risk matrix provide the basis for risk response planning to enhance the chances of project success.

Originality/value

This paper identifies the matrix for risk factors affecting the success of construction projects in the oil and gas industry in Yemen. There is a significant contribution expected from this research, especially for companies operating in the oil and gas sector and other organizations that plan to invest in this field, in addition to expected benefits for the Yemeni Government and researchers because of lack of research in this area.

Details

International Journal of Energy Sector Management, vol. 14 no. 3
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 30 March 2020

Mukhtar A. Kassem, Muhamad Azry Khoiry and Noraini Hamzah

Project failure is the result of one or a combination of several causes of risk factors that are very important to identify for effective performance. This study aims to…

Abstract

Purpose

Project failure is the result of one or a combination of several causes of risk factors that are very important to identify for effective performance. This study aims to focus on studying the fundamental relationship between internal risk factors and the negative effect on oil and gas project success in Yemen using the partial least square structural equation modelling (PLS-SEM) method.

Design/methodology/approach

Data collection was carried out using a formal questionnaire survey of the oil field sector in Yemen by companies involved in mega-oil and gas construction projects. A hierarchical model for determining causative internal risk factors and their effects was developed and evaluated using SEM method by SmartPLS3 software technology.

Findings

The findings of analyzing model indicate that all categories have a significant effect on project success, while the most significant affected categories in the internal risk factors are project management factors, feasibility study-design and resources-material supply with a path coefficient value of 0.213, 0.197 and 0.186, respectively. Moreover, for the hypotheses test, the positive relationship means that all experimental hypotheses are accepted according to path coefficient value analysis. In addition, the internal risk factors research model shows the ranking of effects on project success starting with project stoppage (loading factor 0.841), cost overruns (loading factor 0.818), time overruns (loading factor 0.726) and project target failure with loading factor 0.539.

Research limitations/implications

The research was limited to the oil and gas construction projects in Yemen.

Practical implications

Interpreting the relationship between internal risk factors and their impact on the success of construction projects in the oil and gas sector will assist project team and oil companies in developing risk response strategies and developing appropriate plans to mitigate the effects of risks, which is presented in this paper.

Originality/value

The paper explains the relationship between cause and effect of internal risk factors in oil and gas projects in Yemen, and is expected to be a guideline for the oil companies and future academic research in the risk management area.

Article
Publication date: 2 May 2020

Mukhtar 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…

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.

Details

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

Keywords

Article
Publication date: 30 July 2020

Mukhtar A Kassem, Muhamad Azry Khoiry and Noraini Hamzah

The oil and gas construction projects are affected negatively by the drop in oil price in recent years. Thus, most engineering, procurement and construction (EPC…

Abstract

Purpose

The oil and gas construction projects are affected negatively by the drop in oil price in recent years. Thus, most engineering, procurement and construction (EPC) companies are opting to optimize the project mainly to mitigate the source of risks in construction to achieve the project expectation. Risk factors cause a threat to the project objectives regarding time, cost and quality. It is additionally a vital component in deviating from the client's expectation of productivity, safety and standards. This research aims to investigate the causes of risk in the oil and gas construction projects in Yemen.

Design/methodology/approach

A comprehensive literature review from various sources including books, conference proceedings, the Internet project management journals and oil and gas industry journals was conducted to achieve the objectives of this study. This initial work was predicated strictly on a literature review and the judgments of experts to develop the risk factor framework for the oil and gas construction projects in Yemen.

Findings

The authors found a few studies related to risk factors in oil and gas construction projects and shared a similar view about general construction projects. However, only a fraction of the factors accepted have included the variances of other studies on a regional basis or specific countries, such as the Yemen situation, due to the differences between the general construction industry and oil and gas industry. Moreover, the factors of these attributes were still accepted due to their applicability to the oil and gas industry, and no significant variances existed between countries. Research has indicated that 51 critical factors cause risks in the oil and gas construction projects in Yemen. Such risk factors can be divided into two major groups: (1) internal risk factors, including seven critical sources of risks, namely client, contractor, consultant, feasibility study and design, tendering and contract, resources and material supply and project management; and (2) external risk factors, including six sources of critical risk factors, namely national economic, political risk, local people, environment and safety, security risk and force-majeure-related risk factors. A risk factor framework was developed to identify the critical risk factors in the oil and gas construction projects in Yemen.

Research limitations/implications

This research was limited to the oil and gas construction projects.

Practical implications

Practically, this study highlights the risk factors that cause a negative effect on the success of oil and gas construction projects in Yemen. The identification of these factors is the first step in the risk management process to develop strategic responses for risks and enhance the chances of project success.

Social implications

The identification of 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

This research is the pioneer for future investigations into this vital economic sector. Given the lack of resources and studies in the field of construction projects for the Yemeni oil and gas sector, the Yemeni government, oil companies and researchers in this field are expected to benefit from the results of this study. The critical risk factors specific to the oil and gas construction projects in Yemen should be further investigated with focus only on Yemen and its oil and gas industry players.

Details

Engineering, Construction and Architectural Management, vol. 28 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 13 March 2019

Mukhtar A. Kassem, Muhamad Azry Khoiry and Noraini Hamzah

This study aims to investigate the risk factors in construction projects in oil and gas processing facilities in Yemen and serves as a case study for developing countries.

Abstract

Purpose

This study aims to investigate the risk factors in construction projects in oil and gas processing facilities in Yemen and serves as a case study for developing countries.

Design/methodology/approach

By using a questionnaire, data were collected from 201 project managers and engineers employed in different sectors in the oil and gas industry in Yemen.

Findings

The survey analysis based on Kruskal–Wallis test method shows a high degree of agreement on the perceptions of risk factors depending on categories of companies. In other words, the tested risk factors exist in all sectors of oil companies in Yemen and are valid as a measure of risk factors in construction projects in oil and gas organizations in general. Although no evidence suggests that the risk factors differ significantly according to job title, the result of identifiable risk factors according to experience shows a statistically significant difference among participants in terms of their experience. The relative importance of the ranking of risk factors was obtained by the statistical analysis of responses on the impact and likelihood of occurrence of these risks. Findings show that internal risks are the greatest influential factors in construction projects in the oil and gas sector, followed by changes during construction project, government instability, incorrect project cost estimation, government delay in decision making, incorrect project schedule estimation, and political situation and war in the country.

Originality/value

These findings are valuable to organizations that are planning to conduct construction projects for oil and gas processing facilities in Yemen and other nations with similar environments, such as developing countries.

Details

International Journal of Energy Sector Management, vol. 13 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

Abstract

Details

International Journal of Building Pathology and Adaptation, vol. 38 no. 2
Type: Research Article
ISSN: 2398-4708

Book part
Publication date: 9 December 2016

Fiffy Hanisdah Saikim, Bruce Prideaux, Maryati Mohamed and Zulhazman Hamzah

In Sabah, Malaysia, illegal hunting has increased in recent years putting considerable pressure on large mammal populations. The causes for this phenomenon lie in…

Abstract

In Sabah, Malaysia, illegal hunting has increased in recent years putting considerable pressure on large mammal populations. The causes for this phenomenon lie in increasing rural poverty, ineffective policies to regulate hunting, as well as a ready market for many wildlife products in the Chinese medicine markets. This paper examines how Community-Based Ecotourism has some potential to be used as a tool to reducing poaching using the Tidong community in Sabah as a case study. The key finding is that successful conservation outcomes for Community-Based Ecotourism projects are only sustainable over the long run if projects are structured to ensure that the local community is able to continue effective management once sponsoring organizations hand over control and that revenue from tourism does not decline. If tourist revenue declines communities may be forced to revert to previous practices reversing any initial conservation gains.

Details

Advances in Hospitality and Leisure
Type: Book
ISBN: 978-1-78635-615-4

Keywords

Article
Publication date: 11 September 2017

Baharudin Othman, Sharifudin Md. Shaarani and Arsiah Bahron

The purpose of this research is to observe how the industry’s knowledge, attitude and sensitivity of the industry to the government’s current policy regarding the halal…

1345

Abstract

Purpose

The purpose of this research is to observe how the industry’s knowledge, attitude and sensitivity of the industry to the government’s current policy regarding the halal certification process influence the organization performance.

Design/methodology/approach

This study used a self-administered questionnaire with closed-ended questions to measure the human capital factors and the practice of halal requirements. The questionnaire was distributed to multinational companies and small and medium enterprises (SMEs) in Malaysia, of which 206 responses were usable for analysis. The respondents were halal committee members in the respective companies. Smart PLS version 2.0 was used to analyze the relationship of each construct using the structural equation modeling (SEM) approach. The outcome of this study showed a positive relationship between knowledge of and attitude and sensitivity toward government policies and organizational performance.

Findings

The outcome of this study showed a positive relationship between knowledge, attitude, sensitivity to government policy and organizational performance. The R2 value for the main model is 0.419, indicating that 41.9 per cent of the variance in the extent of collaboration can be explained by knowledge, attitude and sensitivity to government policies. Result also showed that all the hypotheses were supported and were significant at p < 0.01. It also showed that the control of an organization’s internal resources through human factors ranging from knowledge, attitude and sensitivity to government policies should be emphasized, as it is a contributing factor and it strives to improve organizational performance.

Research limitations/implications

There were a limited number of respondents. A larger number of respondents would reflect a more accurate study. Besides, this study only focused on the halal food industry operators, while the presence of halal now covers other schemes such as logistics, consumer products and others. Moreover, this study only focused on two main groups: multinational companies and SMEs.

Practical implications

This study has provided some major implications. First, on behalf of the state, the results of this study clearly show that the human capital factor should be prioritized. Second, on behalf of the industry, this study can fill the void that exists in strengthening the industry through efforts to improve internal controls related to organizations including attending halal food courses and applying values among members of the organization. Third, the implication to theory and literature that the research-based view is suitable for use even in the food industry has been proved.

Social implications

The results of this study can increase consumer confidence in the management of an organization, especially in the halal food industry.

Originality/value

Halal’s rapid development has led many researchers to study halal. Till now, there is no research on three major areas of human capital aspects, namely, knowledge, attitude and sensitivity to governmental policies that involve internal halal committee members in the industry as subject of study in one model. Moreover, this research attempts to cover the latest acts, standards, procedures and guidelines provided by the government.

Details

Journal of Islamic Marketing, vol. 8 no. 3
Type: Research Article
ISSN: 1759-0833

Keywords

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