Identifying the antecedents of megaproject crises in China

Abstract

Characterized by strategic importance, dynamic complexity, adaptability and extensive impacts, megaprojects are inherently vulnerable to crises. Using structural equation modeling, this paper proposes and tests two new theoretical constructs that could be useful for understanding management of megaproject crises. The study proposes crisis orientation and crisis awareness as prominent antecedents to better anticipation of megaproject crises. Crisis orientation is a second-order construct that builds upon five independent first-order dimensions: lack of project management skills; clash of interest; lack of responsibility; red tape and centralization; and lack of ability to forecast. In addition, the paper suggests a first-order construct (crisis awareness) affects predictable risks concern. The survey results of 168 individuals in Chinese megaprojects suggest that higher crisis orientation and crisis awareness support higher predictable risks concern. The findings imply that strategies aimed at enhancing crisis orientation and crisis awareness would promote early detection and mitigation of future crises.