Establishing Cooperative Relationships and Joint Risk Management in Construction Projects: Agency Theory Perspective

Osipova, Ekaterina

doi:10.1061/(asce)me.1943-5479.0000346

Cited by 39 publications

(21 citation statements)

References 50 publications

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“…This could be associated to the amount of risk involved in construction projects. Osipova (2015) observed that risks are inherent in all construction projects, which may negatively affect project delivery in terms of time, cost, and quality. If risks are not properly managed, the project stakeholders may seriously suffer from cost overruns, delays, or even project failures (Wang et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

Impact of Risk Factors on Construction Projects’ Completion Cost in Nigeria

Ishaq

2021

LAUJOCES

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Construction projects are prone to a number of risks due to their complexity, dynamic nature, capital intensive nature and involvement of many stakeholders. These risks if left unmanaged will negatively influence the completion cost and other primary objectives of construction projects. Numerous studies have been conducted globally to determine the potential risks that negatively impacts construction projects; however, the risks aren’t alike across all the regions and the potential degree of impact may changes with time. This study assessed the impact of risk factors on completion cost of construction projects in Nigeria. Data was collected using structured questionnaires administered to 192 construction practitioners using convenience sampling technique. Descriptive statistics (mean and standard deviation) were used to analyse the data. The study found ‘inadequate cost estimate’ (MS = 4.39), ‘risk incurred due to bribery and corruption’ (4.30), ‘increase in prices of materials’ (4.25), ‘increase in cost of labour’’ (4.11), ‘poor cash flow management’ (4.04) ‘mistakes/errors in design’ (4.04) and ‘mistakes during construction’ to be the topmost risk factors that impact on project completion cost. The study concludes that ‘economic’, ‘financial’ and ‘contract administration and project management’ related factors group are those with high impact on project completion cost.

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Section: Introductionmentioning

confidence: 99%

Impact of Risk Factors on Construction Projects’ Completion Cost in Nigeria

Ishaq

2021

LAUJOCES

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“…The process model of project manager replacement also offers several interesting points of departure as a means for examining extant leadership theory, most notably in identifying the remediation activities in which newly appointed project managers must engage. One tenant of agency theory presumes the primacy of maintaining positive and mutually supportive relationships between key organizational actors and influential stakeholders [49]. Thus, steps taken to repair and commodify these relationships (including those between the project manager and their team) as part of the remediation process are critical.…”

Section: Discussionmentioning

confidence: 99%

Drawing New Cards or Standing Pat: Antecedents, Dynamics, and Consequences of Project Manager Replacement

Davis

Maddaloni

Pinto

2023

IEEE Trans. Eng. Manage.

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The majority of projects -even ultimately successful ones -run into significant problems during their development. While organizations have a variety of mechanisms at their disposal to correct projects that are experiencing difficulties, one of the most radical is replacing the project manager. Replacing a project manager 'mid-stream' involves a major change to an on-going project with the potential benefits of onboarding an individual with a different perspective or set of managerial and/or technical skills. Using agency theory as our critical evaluative lens and a qualitative data collection methodology, we interviewed 19 key informants who had experience as part of project manager replacement efforts. This paper reports of the dynamics of replacing project managers, identifying the critical decision criteria and mechanisms involved in such decisions. We found that three themes emerged with regard to project manager replacement decision making: 1) replacement is a common correction practice for troubled projects, 2) replacement is viewed by decision makers and team members alike as a message for change, and 3) in reestablishing processes and trust in governance, project size is an important moderator when deciding on a course of action. We finally propose a process model, based on our analysis, which identifies the critical antecedents, effects, and consequences of project manager replacement.

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“…Since CSCs have finite durations, temporary sites, and episodic relationships, they are more prone to classical agency challenges such as short-termism, opportunism, and high-risk exposure (Behera et al, 2015;Osipova, 2015). In addition to such internal transaction cost risks, CSCs are also prone to other externalities associated with fiscal crises, governance, and policy risks (Aloini et al, 2012;Fearne and Fowler, 2006).…”

Section: The Unique Characteristics Of Construction Supply Chains (Csc)mentioning

confidence: 99%

“…Unlike manufacturing supply chains, CSCs are characteristically temporary arrangements of multi-national stakeholders with public-private governance structures, which increases the tendency for mistrust, power imbalances and transaction cost risks (Briscoe and Dainty, 2005;Hartmann and Caerteling, 2010). Since CSCs have finite durations, temporary sites and episodic relationships, they are more prone to classical agency challenges such as short-termism, opportunism and high-risk exposure (Behera et al, 2015;Osipova, 2015). In addition to such internal transaction cost risks, CSCs are also prone to other externalities associated with fiscal crises, governance and policy risks (Aloini et al, 2012;Fearne and Fowler, 2006).…”

Section: Reviewmentioning

confidence: 99%

A neo-institutional view of the transaction cost drivers of construction supply chain risk management

Obayi

Ebrahimi

2021

SCM

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Purpose In a departure from the efficiency theory assumptions implicit in most supply chain risk management (SCRM) literature, this study aims to explore the role that external neo-institutional pressures play in shaping the risk management strategies deployed to mitigate transaction cost risks in construction supply chains (CSC). Design/methodology/approach A theory-elaborating case study is used to investigate how regulatory, normative and mimetic neo-institutional pressures underpin SCRM strategies in state-led and private-led CSC in China. Findings The study finds that institutionalized Confucianist networks serve as proxies for regulatory accountability and thereby create a form of dysmorphia in the regulatory, normative and mimetic drivers of SCRM strategies in state-led and private-led CSC in China. Originality/value The findings reveal that relational costs such as bargaining, transfer and monitoring costs underpin SCRM in state-led CSC. Behavioral costs associated with search, screening and enforcement are the core drivers of SCRM in private-led CSC. These differences in transaction cost drivers of SCRM arise from the risk-buffering effect of personalized Guanxi networks, creating variants of institutional pressures on actors' risk analysis, identification and treatment strategies in China. Considering China's global hegemony in construction and related industries, this study provides valuable insights for practitioners and researchers on the need for a constrained efficiency view of SCRM in global CSC.

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Establishing Cooperative Relationships and Joint Risk Management in Construction Projects: Agency Theory Perspective

Cited by 39 publications

References 50 publications

Impact of Risk Factors on Construction Projects’ Completion Cost in Nigeria

Impact of Risk Factors on Construction Projects’ Completion Cost in Nigeria

Drawing New Cards or Standing Pat: Antecedents, Dynamics, and Consequences of Project Manager Replacement

A neo-institutional view of the transaction cost drivers of construction supply chain risk management

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