A cognitive model for understanding fraudulent behavior in construction industry

Abstract

PurposePrevious fraud studies focused on the influence of external environmental factors rather than the actor's own cognition or psychological factors. This paper aims to explore the influence of cognitive factors on people's intention to commit fraud in the construction industry.Design/methodology/approachA scenario-based questionnaire survey was conducted with 248 Chinese construction practitioners. Partial least squares structural equation modeling (PLS-SEM) was used to analyze the data.FindingsThe findings showed that perceived threat possibility and perceived threat severity positively affected people's attitudes towards fraud. The reward for compliance and response cost had adverse effects on people's attitudes. Attitude towards fraud and response efficacy directly influenced people's intentions to commit fraud.Research limitations/implicationsThe limitations of this study are that only behavioral intention data were collected, and a single scenario was designed. Despite these limitations, this study proposed a cognitive model to understand fraud in the construction industry and provided an empirical analysis using data from Chinese construction practitioners.Originality/valueThis study reveals the impact of cognitive factors on fraud in the construction industry. The results expand the understanding of fraud and propose a cognitive intervention framework to reduce fraud.

A Statistical Model for Identifying Collusive Bidding Based on Historical Quotations

“…Collusive bidding will pose a serious challenge to the fair competition with suppliers [4,5]. Contracts awarded on the basis of collusive bidding by bidders may result in increased costs for material procurement projects [6,7]. The essence of collusive bidding is that bidders quote higher or lower than the reasonable price of the project [8,9], aiming to gain an advantage over other competitors and achieve higher profits [10,11].…”