Management control structures and performance implications in international construction joint ventures: critical survey and conceptual framework

Abstract

PurposeManagement control is needed in international joint ventures (IJVs) for successful management and performance. While IJV management control and performance concept has been widely explored, in the construction sector, the core understanding of the design of the two concepts is still lacking. This has resulted in the neglect of important questions and directions for research and practice improvement. This study aims to conduct a critical survey of prior studies addressing the conceptualization of management control and performance in IJVs and to propose a framework for studying the performance implications of management control in international construction joint ventures (ICJVs).Design/methodology/approachUsing Scopus database and search terms, a systematic desktop search was conducted to retrieve empirically related peer-reviewed papers for this study.FindingsDrawing on the transaction cost, institutional and relational logic, the first inclusive hypothetical model for studying the relationship between different dimensions of management control mechanism and multiple performance criteria in ICJVs is presented. The model proposes a measurement method for both the management control and performance and explains how they can be established in ICJVs.Practical implicationsThe proposed framework provides a methodology to understand the dynamics of management control and performance implications in ICJV. Specifically, uncovering the critical paths will assist ICJV frontliners to approach management control in a more holistic and systematic way to promote achievement of ICJV goals.Originality/valueThe study gives a firm ground to the construction industry, which is accurate and educational for related fields concentrating on several other forms of cooperative relationships.

Mitigation of contractual breaches in international construction joint ventures under conditions of absent legal recourse: case studies from Iran

“…, 2007). If ICJV goals are to be achieved, appropriate, effective means must be employed (Tetteh et al. , 2021a).…”

“…Abdelghany and Ezeldin, 2010; Ozorhon Mitigation of contractual breaches et al, 2007). If ICJV goals are to be achieved, appropriate, effective means must be employed (Tetteh et al, 2021a). The relative poor success of ICJVs can be attributed in significant measure to the divergent habits, experiences and business practices of the different work cultures that are brought to bear on joint ventures (JVs) and the consequent complications that arise regarding project coordination (Vaara et al, 2012).…”

Impacts of management control mechanisms on the performance of international construction joint ventures: an empirical study

“…Thus, an integrated perspective of MC mechanisms impacting multiple performance goals of ICJVs has yet to be investigated. Recently, Tetteh et al (2021) proposed an integrated measurement framework for examining MC and performance impacts in ICJVs, yet it is only a literature review paper that lacks empirical evidence. Moreover, prior studies often focused on a single partner perspective, typically the foreign partner, and assume that it has a single performance goal.…”

“…It ensures the intensification of legal regulations and processes that corporations comply with to have support and legitimacy (Meyer and Scott, 1992). The interaction of environmental conditions and institutional rules often creates unique management and control values for IJVs' operation (Tetteh et al, 2021). In developing countries, for example, regulation constraints, partner culture and strategy, as well as several contextual factors connected to a partner's bargaining power during negotiations, affect the operational control arrangements.…”

What leads to the high capital cost of prefabricated construction in China: perspectives of stakeholders

“…Path analysis can provide a clear perspective for clarifying the causal relationship between factors and formulating targeted improvement measures (Yuan et al, 2018;Pereira et al, 2020). The management control of the critical path is conducive to improving the cost performance goals (Tetteh et al, 2021). Hence, based on the qualitative analysis of CIFs, a more in-depth exploration of the relationship between CIFs through quantitative analysis can discover the essence of high capital cost and effectively improve the efficiency of cost management (Zhang and Deng, 2010;Akinade et al, 2018).…”