Institutional Theory as a Framework for Analyzing Conflicts on Global Projects

Abstract

Global construction projects that involve collaboration between participants from multiple countries often result in unique challenges, and costs due to cross-national interactions. Case studies performed to investigate the cross-national interactions and tensions present on global projects suggest that institutional differences—differences in workplace norms, legal regulations, and cultural values— contribute to these costs. We demonstrate how institutional theory—a branch of organizational theory—can comprehensively describe the cross-national challenges on global projects. We show how this theory can help practitioners to more accurately classify the cross-national issues they encounter, determine the causes behind the conflicts, and judge the relative ease with which each type of conflict can be resolved. However, there are gaps in the extant application of institutional theory that prevent us from predicting institutional conflicts on global projects and devising solution strategies. These gaps are identified and a research trajectory to understand them is proposed. This paper is aimed at starting a much-needed dialogue on the mitigation of cross-national issues on global projects, and not as a demonstration of methods to eliminate all cross-national conflicts.