Investigating the Causal Relationships between Causes of and Vulnerabilities to Corruption in the Chinese Public Construction Sector

Abstract

Understanding relationships between causes of and vulnerabilities to corruption are essential in corruption research in construction because it addresses the fundamental issues of the widespread corruption in the public construction sector. Through an empirical survey, this study aims to investigate effects of the two causes of corruption, the flawed regulation systems and lack of a positive industrial climate, on five various kinds of corrupt vulnerabilities in China. The data were collected from officials, practitioners, and academics involved in the Chinese public construction sector, and then analyzed by factor analysis and partial least-squares structural equation modeling. The analysis results suggest that the flawed regulation systems have a higher influence on corruption vulnerabilities than the lack of a positive industrial climate. The results also indicate that the most influential item on the flawed regulation systems is negative leader roles, followed by inadequate sanctions, lack of rigorous supervision, and multifarious licenses and permits. The most influential item on the lack of a positive industrial climate is interpersonal connections, followed by overclose relationships among contracting parties, great project complexity, and poor professional ethical standards. Based on these research findings, this study contributes to knowledge by validating the theoretical hypothesis in China. Finally, recommendations for future practice and research are provided in this study.