Risk mitigation modelling of international construction projects executed by Indian firms: a structural equation modelling approach

Viswanathan, Satish Kumar; Jha, Kumar Neeraj

doi:10.1108/ecam-05-2019-0265

Cited by 9 publications

(9 citation statements)

References 94 publications

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“…Developing risk mitigation measures can be regarded as one of the most effective strategies to manage risks to improve project performance (Mbachu and Taylor, 2014; Viswanathan and Jha, 2020). The maturity can be improved through developing adequate mitigation measures, which could relationally cultivate the risk response (Hashim Motaleb and Kishk, 2014).…”

Section: Resultsmentioning

confidence: 99%

Administrative risks challenging the adoption of smart contracts in construction projects

Gürgün

Koç

2021

ECAM

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PurposeAs a remedy to usually voluminous, complicated and not easily readable construction contracts, smart contracts can be considered as an effective and alternative solution. However, the construction industry is merely known as a frontrunner for fast adoption of recent technological advancements. Numerous administrative risks challenge construction companies to implement smart contracts. To highlight this issue, this study aims to assess the administrative risks of smart contract adoption in construction projects.Design/methodology/approachA literature survey is conducted to specify administrative risks of smart contracts followed by a pilot study to ensure that the framework is suitable to the research question. The criteria weights are calculated through the fuzzy analytical hierarchy process method, followed by a sensitivity analysis based on degree of fuzziness, which supports the robustness of the developed hierarchy and stability of the results. Then, a focus group discussion (FGD) is performed to discuss the mitigation strategies for the top-level risks in each risk category.FindingsThe final framework consists of 27 sub-criteria, which are categorized under five main criteria, namely, contractual, cultural, managerial, planning and relational. The findings show that (1) regulation change, (2) lack of a driving force, (3) works not accounted in planning, (4) shortcomings of current legal arrangements and (5) lack of dispute resolution mechanism are the top five risks challenging the adoption of smart contracts in construction projects. Risk mitigation strategies based on FGD show that improvements for the semi-automated smart contract drafting are considered more practicable compared to full automation.Originality/valueThe literature is limited in terms of the adoption of smart contracts, while the topic is receiving more attention recently. To support easy prevalence of smart contracts, this study attempts the most challenging aspects of smart contract adoption.

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Section: Resultsmentioning

confidence: 99%

Administrative risks challenging the adoption of smart contracts in construction projects

Gürgün

Koç

2021

ECAM

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“…Therefore, a lack of communication among partners can weaken the effectiveness of the JV, thereby leading to failure. For the success of JVs, negotiations among partners are pertinent in resolving encountered problems in the process of project delivery (Viswanathan and Jha, 2020). Table 1 gives a summary of the identified factors influencing the failure of JVs in the construction industry.…”

Section: Literature Reviewmentioning

confidence: 99%

Critical factors influencing the failure of joint ventures in the South African construction industry: a confirmatory factor analysis approach

Ikuabe

Aigbavboa²,

Thwala³

et al. 2022

ECAM

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PurposeJoint ventures (JVs) serve as a viable tool in mitigating some of the challenges posed to the effective delivery of construction projects. However, JVs are highly susceptible to failure in most developing countries. Therefore, this study seeks to unravel the critical factors influencing the failure of JVs in the South African construction industry.Design/methodology/approachA quantitative approach was adopted for the study using a well-structured questionnaire as the instrument for data collection. Respondents for the study were built environment professionals in Gauteng province in South Africa. Data elicited from respondents were analyzed using a four-pronged process which included descriptive statistics, one sample t-test, exploratory factor analysis and confirmatory factor analysis.FindingsResulting from the analysis conducted, four critical components emerged as the major factors influencing the failure of JVs in the South African construction industry, which are inefficient financial framework, divergent organizational culture, poor project governance and inadequacies from project stakeholders.Practical implicationsThe outcome of this study presents a roadmap for stakeholders in the construction industry with the requisite knowledge of the critical factors leading to the failure of JVs, consequently providing a clear path for the successful delivery of JV mandates.Originality/valueEvidence from literature suggests that several studies have been conducted on the various aspects of JVs in the South African construction industry; however, none has focused on the leading factors attributed to the failure of JVs. Also, the findings of this study cultivate a good theoretical platform for future studies on JVs.

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“…Therefore, political risk factors emanate from government action alone and society and other countries (Crăciun, 2011; Howell, 2014). In furtherance, the most critical of all risk factors is political risk in international projects (Hwang et al , 2017; Viswanathan and Jha, 2020). Deng et al (2018) classified political risks into three categories of macro, meso and micro-risks.…”

Section: Risk Factors In Tertiary Education Building Projectsmentioning

confidence: 99%

Structural equation modelling of risk factors influencing the success of building projects

Adedokun

Egbelakin

2022

JFM

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Purpose Despite several research efforts tackling construction project risks globally, tertiary education building projects are not devoid of experiencing risks with cascading effects on projects. In the past decades, there has been increasing application of linear assessments of risks in construction risk management practices. However, this study aims to assess the influence of risk factors on the success of tertiary education building projects using a structural equation modelling approach. This study will further reinforce the risk factors that require attention because risk factors are not linear but interdependent. Design/methodology/approach A quantitative research method was undertaken in this study, where data collection was achieved via a structured questionnaire survey. In total, 452 questionnaires were administered to client representatives, consultants and contractors involved in executing tertiary education building projects across five public tertiary education institutions in Ondo State, Nigeria. Of 452 questionnaires, 279 were found usable for the analysis, implying a response rate of 61.73%. The Cronbach α test, average variances extracted and composite reliabilities values show high reliability and internal consistency of the instrument used for data gathering. Furthermore, the study adopted percentile, mean, correlation, regression analysis and structural equation modelling for analyzing the data collected upon which the study’s inferences were based. Findings The study found that three out of six criteria for measuring the success of tertiary education building projects were significantly affected by risk factors while using the structural equation modelling technique. With this non-linear method of assessment, completion to time was significantly impacted by environmental risk factors. In addition, safety performance was also significantly influenced by logistic, environmental and legal risk factors; furthermore, logistics, design and environmental risks significantly affected profit. However, completion to cost, standard/quality and end-user satisfaction was not significantly affected by the risk factors in tertiary education building projects. Research limitations/implications The quantitative data used for the analysis are limited to the tertiary education building projects from selected five tertiary education institutions in Ondo State; therefore, the results do not indicate all tertiary institutions in Nigeria. In addition, the findings are based on building projects that were procured through a competitive tendering arrangement only and thus considered a limitation for this study. Practical implications Not all the risks significantly influence the tertiary education building projects. Therefore, risk factors with a significant effect on the success indicators of tertiary education building projects should be prioritized for a successful project. While risk factors have not affected the completion to cost per se, the study implies that the resultant effect of risks on other success indicators could have a cascading effect on these projects in terms of cost and time overruns. These results may assist during the project risk management while also addressing complexity and uncertainty to avoid chaos in a tertiary education building projects. Originality/value The study found significant construction risk factors impacting the success of tertiary education building projects using a non-linear methodology, an extension beyond the usual linear method of assessment of risk impacts on the project performance.

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Risk mitigation modelling of international construction projects executed by Indian firms: a structural equation modelling approach

Cited by 9 publications

References 94 publications

Administrative risks challenging the adoption of smart contracts in construction projects

Administrative risks challenging the adoption of smart contracts in construction projects

Critical factors influencing the failure of joint ventures in the South African construction industry: a confirmatory factor analysis approach

Structural equation modelling of risk factors influencing the success of building projects

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