International Construction Joint Ventures Research Articles

Project Management Practices to Address the Challenges in International Construction Joint Ventures in the Sri Lankan Construction Industry

ABSTRACT International Construction Joint Ventures (ICJVs) offer benefits to both local and foreign partners. However, their failure rates tend to be high, leading to poor ICJV performance. Effective Project Management (PM) is considered a means to resolve challenges in a construction project. Therefore, this research aims to address the challenges in ICJV projects within the Sri Lankan construction industry through PM practices to establish successful ICJVs. The research adopted a mixed-method approach. A preliminary survey was conducted to validate the challenges in the Sri Lankan context. After that, challenges were ranked based on their significance level using the Relative Importance Index (RII) method through a questionnaire survey. Then, Semi-structured interviews were conducted to identify the PM practices that can address significant challenges through code-based content analysis. The study revealed 38 challenges applicable to ICJVs and identified 88 PM practices for resolving 10 significant challenges out of the 38 identified in ICJV projects in Sri Lanka (SL). Finally, a framework was developed for successful ICJVs by addressing challenges through PM practices. This study marks the first attempt to establish a framework for successful ICJVs by addressing challenges through PM practices in the Sri Lankan construction industry.

Developing a multidimensional performance measurement framework for international construction joint ventures (ICJVs): the perspective of Ghana-hosted ICJVs' practitioners

PurposeInternational construction joint ventures (ICJVs) will fully realize their potential for success and effectively monitor performance when an adequate and suitable performance benchmark is established. However, existing studies fall short of adequately providing a mutually acceptable benchmark for assessing the performance of ICJVs. This study aims to develop an adequate and suitable performance measurement framework for ICJVs.Design/methodology/approachA twofold structured questionnaire survey, supplemented by semi-structured interviews, was used to collect data from the practitioners of ICJVs hosted in the developing country of Ghana. The data were analyzed by using descriptive statistics, confirmatory factor analysis (CFA) and a hybrid-fuzzy logic approach.FindingsA list of 30 performance indicators (PIs), defined by project performance, perceived satisfaction, company/partner performance, socio-environmental performance and performance of ICJV management, was validated and proved to be significant. Only 22 out of the 30 PIs, focusing on project efficiency, societal improvement and organizational goals are realized by the ICJV practitioners. Further, suitable determinants and viable quantitative ranges for measuring each PI are established to prevent different interpretations of the meanings of PIs and objectively express the level of success in quantitative terms. The results call for further investigation of the convergence between the practice of and research into some PIs (e.g. socio-environmental performance) and a range of different performance levels (PLs) in a more scientific manner.Practical implicationsThis study not only advances the knowledge base and practice of performance measurement in ICJVs but could also assist stakeholders and decision-makers to assess, compare and monitor the performance of different ICJV projects on common grounds objectively.Originality/valueThis study not only comprehensively assessed PIs – what to measure – but also systematically determined suitable determinants – how to measure – for each PI.

An investigation of the conflict management strategies in international construction joint ventures of Sri Lanka

Purpose Most developing countries, such as Sri Lanka (SL), are now looking for the support of foreign construction companies for large-scale infrastructure projects in return for expertise and resources. Thus, foreign companies may enter into agreements with local contractors through joint ventures (JVs). However, the priorities of construction project stakeholders may differ, which may ultimately end up in conflicts. Therefore, this research aims to investigate the most suitable conflict management strategies for international construction JVs (ICJVs) considering the SL context. Design/methodology/approach The mixed method was used for the research choice by selecting a questionnaire survey and expert interviews. Completed questionnaires (n = 78) were analysed using statistical techniques. The expert interviews with six industry practitioners were piloted to increase the validity and credibility of survey findings through a triangulation process where the collected data was analysed through content analysis. Findings The findings confirm that JV parties should first seek collaborative solutions in a conflict and seek legal redress only when those efforts are unsuccessful. Collaborating and compromising were recommended as the most appropriate tactics if an informal approach to conflict management was chosen. Alternative dispute resolution and litigation were identified as formal conflict management strategies. Originality/value This study, to the best of the authors’ knowledge, will be the first of its kind in SL, which will lead to a better understanding of conflict management in IJCVs and will encourage other researchers to extend this study through further work.

Diagnosing critical barriers to international construction joint ventures success in the developing country of Ghana

PurposeInternational construction joint ventures (ICJVs) implementation is plagued with several barriers, full understanding of which is still lacking due to a lack of an in-depth exploration of them, particularly in developing countries. To fill this knowledge gap, this study aims to investigate the critical barriers to the success of ICJVs hosted in developing countries by examining the Ghanaian case.Design/methodology/approachThis study builds on a previous study that identified 37 barriers factors to ICJVs success via a systematic literature review. Through expert interviews, 34 potential barriers were identified, and a two-round survey was conducted with 84 ICJVs practitioners in Ghana. The data collected was analyzed using the combination of a multidimensional fuzzy logic method and confirmatory factor analysis.FindingsResults showed that 22 barriers were critical. The top five most critical barriers were “lack of preparedness to accept company philosophy,” “competing objectives,” “opportunistic behavior of parties,” “conflicts” and “lack of management control.” Furthermore, the results uncovered and confirmed five significant underlying components for the 22 critical barriers, namely, organizational-related, cultural-related, knowledge-related, individual-related and logistics-related barriers.Practical implicationsThe findings could be useful to ICJVs practitioners and policymakers in developing suitable strategies for the successful implementation of ICJVs. Further, foreign firms aiming to execute and promote ICJVs in Ghana could have prior knowledge of the critical barriers and prepare for them.Originality/valueThis study empirically analyzed the individual levels of barriers criticalities in ICJVs context and from a specific-country perspective – the developing country of Ghana – rather than in the context of construction joint ventures and from a cross-country perspective in extant studies.

Social Networks and Knowledge Transfer in International Construction Joint Venture Projects: A Case Study in Thailand

International joint ventures (IJVs) are a specific type of strategic alliance between contractors from developed and developing countries and have been increasingly used. IJVs between multinational organisations are considered a successful strategy to benefit from international market opportunities in the globalised world. International construction joint ventures (ICJVs) have become of significant interest as the global construction market continues to be integrated into the more competitive business environment. The aim of this article is to uncover the knowledge transfer (KT) practices in an ICJV using social network analysis (SNA). The case presented here is the pilot study. A total of 19 questionnaire surveys were undertaken with selected team members. UCINET 6.0, an SNA package, was used to analyse the collected data and NetDraw was used to visualise the sociogram. This article first presents the actors' attributes; then, social network characteristics, which consist of network structure, network density and degree of centrality and cliques of actors, are presented. This analysis will be used to identify the key actors that influence the KT processes in this case study.

Towards attaining efficient joint ventures in international construction: the case of Saudi Arabia

PurposeDespite the numerous benefits of adopting international construction joint ventures (ICJVs), effective operation of the joint ventures in Saudi Arabia is impeded by various limitations. Thus, this paper is aimed at determining, analyzing, and prioritizing these major limitations and to propose a strategy that can provide guidance on how best to promote the achievement of efficient joint ventures in international construction in Saudi Arabian construction industry.Design/methodology/approachContent analysis was augmented by the expert-based assessment process to identify the critical limitations while the interpretive structural modeling (ISM) technique was utilized to analyze and determine the hierarchical structure of the limitations. This is important in order to comprehend and describe the complex relationship between the limitations.FindingsThe results identified “selecting unsuitable partner”, “divergent organizational cultures, policies and procedures”, and “poor knowledge of local regulations by foreign partners” as the most critical limitations affecting the efficiency of joint ventures in international construction in Saudi Arabia.Research limitations/implicationsThe inclusion of many variables (limitations) increases the complexity of the ISM technique, which compels the researchers to consider reduced number of variables in establishing the ISM structural hierarchy. Other variables that were perceived to be less critical were not included in the development of the ISM structural hierarchy. On the other hand, the structural hierarchy was not validated statistically, and this requires the use of other linear structural relationship techniques like the Structural Equation Modeling to test the validity of the hypothetical ISM structural hierarchy. The proposed strategy to mitigate the limitations presented in this study was not validated, and this requires further study to verify the accuracy of the strategy.Practical implicationsThe implications inferred in this study are better performing ICJVs in the execution of mega infrastructure projects in Saudi Arabia. The findings and managerial implications of the study are expected to further provide an invaluable guide that can support policymakers and all key stakeholders to establish efficient strategies and suitable measures that can enhance the successful implementation of ICJVs.Originality/valueThe findings of this study provide comprehensive understanding of the limitations affecting the efficiency of ICJVs in Saudi Arabia. This can assist in mitigating the potential impacts of these limitations and to advocate for the achievement of efficient joint ventures in international construction in Saudi Arabia. Meanwhile, there is a need to further develop a framework that can elucidate on the proposed strategy to promote better performing ICJVs in Saudi Arabia. Also, the further study will seek to investigate the influence of project duration, value, location, or ownership on the performance of the joint ventures in order to generalize the findings to all forms of ICJVs.

Impacts of management control mechanisms on the performance of international construction joint ventures: an empirical study

PurposeWhile previous studies have focused on identifying management control (MC) mechanisms in international construction joint ventures (ICJVs), the impacts of such MC mechanisms on the performance of ICJVs remain largely unknown. This study aims to investigate the impacts of MC mechanisms on the performance of ICJVs hosted in the developing country of Ghana.Design/methodology/approachThrough a comprehensive review of the literature, a theoretical model was developed, and data were collected through a questionnaire survey with 190 project managers composed of Ghanaians/locals and their foreign partners of ICJVs. The data were analyzed using partial least squares structural equation modeling.FindingsResults showed that both personnel and support and training control mechanisms have a positive and significant impact on project and company/partner performance. Surprisingly, insignificant and negative impacts exist between both mechanisms and socioenvironmental and company/partner performance from the local partners' view, respectively; the reverse is rather true from the foreign partners' perspective.Practical implicationsThis study contributes to the ICJV body of knowledge by analyzing the impacts of MC mechanisms on the ICJVs’ performance, enabling ICJVs frontliners (i.e. top managers) and project managers to better enhance their control structures and the ICJVs’ performance.Originality/valueThis is arguably the first study to take the bipartite perspective rather than the unilateral view of studying the impacts of MC mechanisms on the performance of ICJVs.

International construction joint ventures as a resourcing model

Shortages in materials, skilled labour and equipment are well known within construction industries, and impede performance on ongoing and pipeline projects. This study explores international construction joint ventures (ICJVs) as a resourcing model that could relieve pressures within the New Zealand (NZ) construction industry. The study goes further to identify the risks and constraints associated with ICJVs. There is a dearth of literature on the role of ICJVs and their impact on the industry within the context of resource acquisition. The data for this study were collected by way of the administration of an online questionnaire survey to a representative sample of contractors, developers and consultants. A simple descriptive method of analysis was employed for ease of understanding. The study established that materials and labour were the most demanding resources that ICJVs could help address in NZ. Risks associated with compliance with local regulations and certification requirements and those related to lead times were the most critical constraints for international material acquisition. The study findings also indicate that language and communication barriers and differences in the practice of rules and regulations were the most significant constraints for utilising international skilled labour.

An assessment of the readiness of construction firms for international construction joint ventures (ICJVs) using the VERDICT model

PurposeThe purpose of this study was to assess the readiness of construction companies in Ghana to partner with foreign companies in international construction joint ventures (ICJVs).Design/methodology/approachUsing the Verify End-User e-Readiness using a Diagnostic Tool (VERDICT) model, a survey with 31 construction companies was conducted to assess their readiness through four pre-defined elements of readiness.FindingsThe results indicated the readiness of construction companies to collaborate with potential foreign partners in ICJVs. Notwithstanding, certain areas such as management commitment to change, employee buy-in, process flexibility and technology infrastructure need improvement in some firms to achieve readiness. Government has a role in ensuring the readiness of domestic firms for the international market.Originality/valueThis study applies the VERDICT model, a tool originally designed to assess construction organizations’ readiness for e-commerce, to assess the readiness of Ghanaian construction companies for ICJVs.

Key drivers for implementing international construction joint ventures (ICJVs): global insights for sustainable growth

PurposeInternational construction joint ventures (ICJVs) are an effective strategy for construction companies worldwide for delivering large and complex projects. Despite numerous ICJVs studies, there is a lack of comprehensive empirical examination of what drives ICJVs implementation. This study aims to investigate the key drivers for implementing ICJVs through an international survey.Design/methodology/approachGrounded on a comprehensive literature review and structured questionnaire survey, 123 ICJV experts' responses from 24 different countries/jurisdictions were analyzed using inferential and descriptive statistics. Mann–Whitney U test was used to determine any divergence of ranking of the drivers by the experts. Factor analysis (FA) was used to identify the clusters underlying the key drivers. Rank agreement analysis was later used to investigate the consensus between experts from developing and developed countries/jurisdictions on their ranking of the clusters.FindingsOut of 34 factors, 26 factors greatly drive the implementation of ICJVs. Mann–Whitney U test results prove the absence of significant disparity among the experts in the ranking of the drivers. Six clusters were obtained through factor analysis (FA), namely, market-penetration and innovation-driven drivers, legal and market-driven drivers, fiscal incentives and market expansion drivers, personal branding drivers, sustainable advantage/power drivers and industrial and organizational promotion drivers. Rank agreement analysis exhibited varied levels of concurrence between professionals from developed and developing countries/jurisdictions.Practical implicationsThe appreciation of the factors motivating ICJVs is beneficial to the successful implementation of ICJV strategies. A clear understanding of the drivers can help practitioners and policymakers to customize their ICJVs to reap the expected benefits.Originality/valueThe study has generated valuable insights into the factors that are greatly driving the implementation of ICJVs worldwide. While the findings of this study provide a profound contribution to theory and practice, it contributes to sustainable growth in different perspectives.

RSIAM risk profile for managing risk factors of international construction joint ventures

The international construction joint venture (ICJV) has been adopted in the global construction industry. However, it is extremely risky due to the size, complexity, and multifaceted operations of ICJV projects. Although there were many studies focusing on the risks in the ICJV, none of them examined simultaneously the chain of risk factors, risk sources, as well as the impact spectrum of risk factors, risk assessment, and risk response measures. The objective of this study is to establish a RSIAM profile, which stands for risk factors (R), risk sources (S), impact spectrum of risk factors on ICJV project objectives (I), risk assessment in different stages (A), and risk response measures for the implementation of ICJV projects (M). In this study, the risk factors were identified based on previous studies and pilot tests with 8 experienced professionals. Structured interviews with 15 experienced professionals were conducted to identify the risk sources and the impact spectrum of risk factors, to assess the likelihood of occurrence and the impact of each risk factor, as well as to compile risk response methods and measures. The results from the interviews were then used to build the RSIAM risk profile for ICJV projects. The RSIAM risk profile can assist practitioners to manage all risk factors in every stage of ICJV projects systematically and efficiently.

Management control structures and performance implications in international construction joint ventures: critical survey and conceptual framework

PurposeManagement control is needed in international joint ventures (IJVs) for successful management and performance. While IJV management control and performance concept has been widely explored, in the construction sector, the core understanding of the design of the two concepts is still lacking. This has resulted in the neglect of important questions and directions for research and practice improvement. This study aims to conduct a critical survey of prior studies addressing the conceptualization of management control and performance in IJVs and to propose a framework for studying the performance implications of management control in international construction joint ventures (ICJVs).Design/methodology/approachUsing Scopus database and search terms, a systematic desktop search was conducted to retrieve empirically related peer-reviewed papers for this study.FindingsDrawing on the transaction cost, institutional and relational logic, the first inclusive hypothetical model for studying the relationship between different dimensions of management control mechanism and multiple performance criteria in ICJVs is presented. The model proposes a measurement method for both the management control and performance and explains how they can be established in ICJVs.Practical implicationsThe proposed framework provides a methodology to understand the dynamics of management control and performance implications in ICJV. Specifically, uncovering the critical paths will assist ICJV frontliners to approach management control in a more holistic and systematic way to promote achievement of ICJV goals.Originality/valueThe study gives a firm ground to the construction industry, which is accurate and educational for related fields concentrating on several other forms of cooperative relationships.

国際建設合弁事業の成功・失敗要因に関する研究‐レビュー論文

国際建設合弁事業の成功・失敗要因に関する研究‐レビュー論文

Defining international construction joint ventures from the Wittgenstein family-resemblance theory

Defining international construction joint ventures from the Wittgenstein family-resemblance theory

Factors affecting international construction joint ventures: a systematic literature review

International construction joint ventures (ICJVs) have become an important way of exploiting business opportunities for construction companies worldwide. Yet, several barriers and risk factors contribute to their failure. This study aims to identify the barrier and risk factors affecting ICJVs through the lens of a systematic review methodology. Findings from 43 peer-reviewed articles showed an increasing publication trend for the past three decades (1990–2020). The bulk of the studies were conducted in Asia and Europe, particularly China and the UK, respectively. Overall, 37 barrier factors were identified, and these fall into six categories, namely, inter-organizational differences, lack of expertise and confidence, lack of effective planning and strategies, lack of knowledge of ICJV’s fundamentals, conflicts, and management difficulties. Next, 53 risk factors were identified and grouped into six, namely, policy and political risks, legal risks, financial risks, management risks, project and technical risks, and market risks. More importantly, knowledge gaps in existing studies are highlighted and future research directions are then proposed. The list of failure factors creates a valuable frame of reference for researchers and practitioners to develop more reliable, comprehensive, and proactive management strategies for ICJVs.

Impact of culture differences on performance of international construction joint ventures: the moderating role of conflict management

PurposeCultural differences have been frequently cited as a major source of risks for international joint ventures (IJVs). Cultural differences may cause extensive conflicts in technology, norms and emotion among the international joint venture (IJV) partners. The purpose of this study is to explore the interactive effects of national culture differences (NCDs) and conflict management approaches on the performance of international construction joint ventures (ICJV).Design/methodology/approachData were collected using a questionnaire survey method with 143 valid responses. Partial least squares structural equation modeling (PLS-SEM) was used to test the research hypotheses.FindingsIt was found that ICJV performance declined with a high degree of NCDs. The negative effect of NCDs on ICJV performance was mitigated by adopting the cooperative conflict management approach; while it was aggravated by adopting the competitive conflict management approach. The findings may provide an alternative way (i.e. adopting the cooperative conflict management approach rather than avoiding or competitive approaches) to address the cultural conflicts in the multicultural project management teams.Practical implicationsFirstly, as NCD negatively impacts performance of ICJVs, project managers should pay attention to cultural issues and learn how to manage them; Secondly, as cooperative and competitive conflict management approaches have different moderating effects on the relationship between NCD and ICJV performance, project managers must choose appropriate conflict management styles in multination teams. Thirdly, as the avoiding approach has no significant moderating effect on the negative relationship between NCD and ICJV performance, it is important for Chinese partners not to employ avoiding approach to deal with conflicts in ICJV.Originality/valueThis study uniquely adds to the literature on cultural issues in managing ICJVs by integrating the moderating effects of conflict management approaches. The interactive effects of conflict management approaches and national cultural differences on ICJV project performance may contribute to the theories regarding conflict management theory in the context of cross-cultural management.

Drivers for international construction joint ventures adoption: a systematic literature review

Recognizing that there exist discrete sets of factors driving the adoption of international construction joint ventures (ICJVs) for different countries, organizations, and stakeholders, this study aims to identify the driving factors, and integrate them into a classification framework for better understanding. The Virtual Libraries (VLs) of respective journals were accessed directly to retrieve the related papers for the study. Popular search engines such as Google Scholar, the Web of Science, and Engineering Village were also used to complement the search process. From the review, universal drivers that promote the adoption of ICJV have been identified for policymakers and stakeholders’ realization. The UK, Australia, Singapore, Turkey, and China have been the top countries noted for pioneering ICJV drivers’ research. While the bulk of studies has come from developed countries, developing countries have also made a significant contribution. A conceptual framework has been developed to guide, determine, and assess the success of ICJVs based on 47 identified drivers. The framework consists of five major constructs of ICJV drivers: legal and market-driven drivers, strategic vision drivers, organizational and personal goal drivers, relationship building and operational success drivers, and capacity building drivers. These drivers act as a blueprint for the parties to the venture and could be used to determine the success and failure dynamics of ICJVs. The developed framework serves as a guide for all industry practitioners and decision-makers interested in adopting an ICJV. Further, it can facilitate the development of appropriate and effective policies by government agencies to promote the adoption of ICJVs. Moreover, the checklist and framework provide a strong foundation for researchers to conduct a further empirical investigation on the topic.

Review of Concepts and Trends in International Construction Joint Ventures Research

AbstractThe adoption of international construction joint ventures (ICJVs) of late for more complex and large-scale construction projects across the globe has drawn an increasing broad range of rese...

Combining process analysis method and four-pronged approach to integrate corporate sustainability metrics for assessing international construction joint ventures performance

Abstract While the number of publications on international construction joint ventures (ICJVs) performance assessment has gained attention, yet it suffers from the lack of complete and standardized appraisal. The incomplete ICJV performance metrics and the neglection of corporate sustainability (CS) performance indicators in the ICJVs performance assessment are the prime reasons for its inadequacy. This paper systematically reviews the literature on ICJVs performance measurement and integrates CS indicators into ICJV performance assessment using a hybrid technique, fusing process analysis method and four-pronged approach. Based on 86 articles retrieved from Scopus and the Web of Science, the results point out that while traditional economic indicators account for more than half of the extracted indicators, environmental and social indicators have been partially considered in ICJVs performance measurement. Moving forward, organizations have embraced the CS agenda, and its integration into businesses has been intensively present. In this study, 36 performance indicators were identified and categorized into five major constructs, namely: project-based performance, company/partner performance, perceived satisfaction, performance of the ICJV management, and socio-environmental performance. The novel contributions include updating and aggregating the discrete ICJVs performance metrics and introducing a new dimension of performance assessment into ICJVs. This study offers potential avenues for future research by triggering a shift from the confined economic and incomplete ICJV performance appraisal to a more complete and standardized performance evaluation. Consequently, managers and practitioners can use the novel framework for assessing their performance and reporting purposes. This study can contribute to global sustainable development and corporate competitive advantage. Lastly, this study enriches both ICJV performance and sustainability literature by providing a systematic review of extant literature.

Risk assessment for international construction joint ventures in Vietnam

Risk assessment for international construction joint ventures in Vietnam