Institutional Compliance Framework and business continuity management in Mainland China, Hong Kong SAR and Singapore

Abstract

PurposeThe business environment is fraught with risks and crises. Yet, in spite of the uncertainties faced, many construction companies were not aware of business continuity management (BCM), nor have they implemented BCM within their organizations. The purpose of this study is to understand the reasons behind this observation.Design/methodology/approachA questionnaire survey was conducted with large construction companies in China, Hong Kong and Singapore to identify the threats and crises faced by these organizations. The survey findings were aggregated with a view to understanding why BCM is not widely implemented in construction companies.FindingsThe survey findings were mapped against the Institutional Compliance Framework to explain the behavior of construction companies pertaining to BCM implementation. The study suggests that rational choice theory, normative theory and cultural‐cognitive theory provide useful pointers to understanding the decisions made and the actions that should be taken to encourage more construction companies to adopt, develop and implement BCM in their organizations.Originality/valueThrough a three‐country survey, the study presents the threats and crises that construction companies have identified in China, Hong Kong, and Singapore. More significantly, the study provides, for the first time, a theoretical underpinning to explain how construction companies may receive BCM and the measures that decision makers can take to encourage these organizations to pay more attention strategically to BCM in their operations.