Joint Venture Projects Research Articles

Assessing risk allocation preferences of partners in international construction joint venture projects in Ghana

Assessing risk allocation preferences of partners in international construction joint venture projects in Ghana

ROLE OF ADR IN RESOLVING DISPUTES OF INDIAN INFRASTRUCTURE SECTOR

In this decade, Government of India has taken up infrastructure developments of huge magnitude under Public-Private Participation (PPP) in the areas like irrigation, roads, ports, and power projects, which need abundant private sector investments. Development of infrastructure in a country like India involves large number of projects being carried out across the country amidst various economic, political, social & climatic conditions, and challenges. Many of these projects have often suffered cost and time delays due to disputes over land acquisition, grants for environmental and forest clearance, and other approval. Disputes arising in the Infrastructure Sector been a toll on the overall growth and development of Indian infrastructure projects resulting in either delayed completion or abandoning the project itself. Many foreign companies are willing to invest and set up joint venture projects in India but they apprehend that in case of any dispute the Indian courts would take long to decide the claim which in turn will lead to increase in overall cost of the project. Thus, it can be said that slow dispute resolution process prevailing in the country is keeping the foreign investment at bay. The shortcomings of civil or commercial litigation have come to the forefront in the developing nations in the contemporary period which has necessitated the rise of alternate dispute resolution mechanisms all over the world. It is necessary to cut down the demand for adjudication, through arbitration and other ADR mechanisms. DR provisions in the ‘Project Concession Agreement’ may not be sufficient to manage the evolving dispute that is expected to be encountered at different stages of the project. This paper explores the various dimensions of disputes arising out of infrastructure construction industry and their possibility of being resolved amicably by alternate modes of dispute resolution. This paper tries to clarified the critical issues affecting current infrastructure PPP practice, thereby enhancing infrastructure PPP practitioners understanding of potential barriers to successful infrastructure PPP in Dispute Resolution.

Evaluation of risks affecting international construction joint venture (ICJV) projects in Ghana

Purpose The failure rate of international construction joint venture (ICJV) projects has been noted to be high in developing countries due to the complexity and risky nature of construction projects in the international market. The purpose of this study is to identify and evaluate the risks facing ICJV projects in Ghana. Design/methodology/approach A risk register was developed through a comprehensive literature review. The identified risks were then used in a questionnaire survey involving local and foreign partners in ICJV projects in Ghana. Findings From a total of 74 risks identified, categorized into country-level risks, market-level risks and project-level risks, the “top ten” risks found to be the most critical risks facing ICJV projects in Ghana include unstable currency exchange rates, inflation, design changes, high-interest rate, budget overrun, cash flow problems of the client, economy fluctuation, difficulty in obtaining approval of projects from host government authorities/bureaucracy, potential financial distress of JV partner and bribery and corruption. Originality/value This study provides a comprehensive list of risks ICJV partners are likely to encounter on their projects in developing countries. Furthermore, this study improves on one of the major limitations of previous ICJV studies by collecting data from both partners of the ICJV, appropriate for cross-cultural examination and comparison.

The importance of auditing as a success factor for oil and gas joint venture projects

The importance of auditing as a success factor for oil and gas joint venture projects

The importance of auditing as a success factor for oil and gas joint venture projects

The importance of auditing as a success factor for oil and gas joint venture projects

A Cross-case Analysis on the Barriers to Knowledge Sharing Practices in Construction Joint Ventures

Construction joint ventures often used as a strategic platform to facilitate learning and acquire knowledge associated with individual partner skills and capabilities, and further integrate the new knowledge into their own system and structure. Although previous literature has highlighted many benefits of joint ventures, in reality it does not work well as people are often hesitant to share their knowledge and experience. Furthermore, the nature of construction projects and temporary setting of joint venture organisations often results in difficulty to retain the knowledge of each project member once the project completed, and the joint venture dissolved. Such problems become more critical in the local-foreign joint venture projects where knowledge has to be shared across different organisations and national culture. This research paper aims to assess the barriers for knowledge sharing practices by using cross-case analysis of joint venture projects as case studies. This research took a qualitative approach with a multiple-case study method adopted to perform exploratory case studies into construction joint ventures in Malaysia. Qualitative data were collected using the semi-structured interview techniques with 20 interviewees from two case studies. The primary data was analysed using content analysis and cognitive mapping techniques. The research findings revealed several barriers to knowledge sharing practices within joint venture project settings such as the cultural barriers, lack of loyalty and project continuity, language barriers, unwilling to share and learn; and lack of time. The Malaysian construction industry is taking initiatives to improve its current project performance through capacity development which is one of the strategic thrusts outlined in CIDB Construction Revolution 4.0 (CR4.0). The capacity development can be done by encouraging the collaboration between construction participants. It gives a very significant justification for undertaking this research focusing on improving the collaboration and project performance of joint venture project settings through effective knowledge sharing.

THE IMPACT OF SOUTH KOREA’S NEW SOUTHERN POLICY ON INDONESIA: ECONOMY AND DEFENSE SECTORS

South Korea’s economy has been heavily depend on major power countries such as US, China, Japan, and Russia. However, with the changing dynamics in international world such as growing protectionism in US during Trump leadership, China’s expansion of influence in Asia, as well as trade war between US and China causing President Moon Jae In to switch South Korea’s economy horizon. New Southern Policy is a diplomatic initiative established to reduce those dependence. South Korea invites India and ASEAN as its brand new partners. South Korea stated that Indonesia is a major partner in New Southern Policy. This research aims to analyze the impact of New Southern Policy in Indonesia, especially in economy and defense sectors. The impact on economy sectors are both countries agreed to signed IK-CEPA agreement, South Korea which eager to make Indonesia as new production base in ASEAN through Hyundai company factory construction, and LG Consortium investment in the electric vehicle battery cell industry. Moreover, the impact on defense sectors is joint venture project for the production of KFX/IFX fighter jets.

Lived environmental citizenship through intersectional lenses: The experience of female community leaders in rural Chile

The 2019 social uprising in Chile revealed the widespread discontent the citizens of this country experience. In particular, rural areas were part of this social mobilization during which discontent around environmental issues were particularly salient. However, we still know little about the daily experiences of environmental suffering outside urban areas, and the different ways individuals and collectives confront it. To tackle these issues and contribute to the broader discussion about environmental citizenship and non-traditional forms of mobilization and activism, we build on the experience of the “School for Female Leaders on Socio-environmental and Territorial Issues”, a research-action joint-venture project that brought together women from different non-urban districts of the Metropolitan Region with a team of social and social scientists and practitioners. Sharing experiences about environmental suffering and the particular ways female leaders respond led us to propose the concept of lived environmental citizenship, which accounts for the incompleteness these women felt in relation to the promises of formal citizenship, and their personal, community and political work to address it. This concept and the findings of our research contribute to enhancing discussions on gendered rural and environmental politics.

PERTAMINA AND SAUDI ARAMCO JOINT VENTURE PROJECT OF REFINERY BUILDING IN INDONESIA AS INDONESIAN STRATEGY FOR ENERGY SECURITY

Indonesia’s demand for energy to maintain its industrial development has grown significantly. As a consequence, Jakarta needs new energy sources to support the shortage of diesel and gasoline as the main resources. Saudi Aramco has been a vital partner to fulfil the energy supply considering its source and production capacity. This paper will scrutinise the joint venture project between Indonesian oil company, Pertamina and Saudi Arabian oil company, Saudi Aramco as an Indonesian strategy to overcome its growing need for oil and pursue its energy security. This qualitative research will employ the concept of the International Joint Venture (IJV to examine the role of the government of Indonesia in the negotiation and Implementation process and the challenges in implementing the project.

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.

Synergy effect evaluation of coal and electricity joint venture based on DID model

In order to alleviate the contradictions between coal industry and power industry, promote the synergistic development of the two industry, reduce the waste of resources caused by the coal-power game, and enhance low-carbon development, China has promulgated a number of policies to promote the development of coal and electricity joint venture project. This paper firstly provides an overview of coal and electricity joint venture policies issued by the state in recent years, and analyzes the actual implementation of these policies. Secondly, it analyzes and compares the policy evaluation methods and identifies the most suitable methods for evaluating the effectiveness of coal and electricity joint venture policies. Finally, this paper uses the level of synergistic development of coal and electricity joint venture complex system to evaluate and verify the effectiveness of coal and electricity joint venture policies, and point out the future development direction of coal and electricity joint venture policies.

Critical Risk Factors of Joint Venture Projects in the Oil and Gas Industry between Malaysia and Thailand

Oil and Gas (O&G) industry is one of the riskiest, most dynamic and challenging industries and plays a vital role in every nation’s economy. Like any other major industry, O&G is exposed to a host of both predictable and unpredictable risks. Joint venture projects (JVP) are often regarded as risky businesses as there is a high failure rate among them because of the complexities involved. This paper aims to identify the critical risk factors (CRFs) of JVPs for O&G between Malaysia and Thailand. Via systematic literature review (SLR) the risk factors for O&G and JVPs around the globe are identified and a set of questions relating to them designed and used in a pilot study. A total of 15 respondents from different background experiences working in O&G JVPs were requested to answer the designed questionnaire during the pilot study. The data collected involves 170 respondents currently working or have worked in O&G JVPs. The relative importance index (RII) for each risk factor’s (RF) value was quantified and the RFs ranked based on the value. A RII value exceeding 60% is considered to have agreement and of importance to the respondents. The RII value can be used as an indicator to rank the RFs from the most to the least critical. The CRF categories determined in this study are environmental, cultural and social, and organisation. Under environmental, the main CRFs are losses due to fluctuations in exchange rates/interest rates. For cultural and social, the main CRFs are problems associated with cultural differences and cooperation. Organisational issues are related to organisational fit, incompetent project management team, difficulty in finding and keeping skilled workers, and low worker productivity.

Improving the Joint Venture Relationship and Working Culture in the Nigeria Oil & Gas Industry

The focus of this research is to investigate the working culture and the relationship between joint venture (JV) partners in the Nigerian oil industry and its impact on JV project performance. The major international oil companies (IOC) having JV with the Nigeria National Petroleum Company (NNPC) in Nigeria are ExxonMobil, Royal Dutch Shell, Total, Chevron, and ENI. An organizational working culture can be said to be the organization’s belief system, thought processes, the attitude of the employees, their ideologies, and the organizational principles of doing things. The research methodology used is a qualitative questionnaire based on a systematic random sampling of targeted participants both in and out of the Nigerian oil and gas industry. The research analyzes the root cause of the inefficiency experienced in the Nigerian oil industry, which is responsible for JV project delays, recent divestment by the IOCs, frequent community-related work stoppages at JV project sites, sabotage of oil pipelines, and the un-restfulness in the Niger Delta area. The research work is intended to inform the need for cultural change in JV operations in Nigeria oil and gas industry by providing information on the existing JV working culture, partners relationship under the current joint operating agreement (JOA) vis a vis best global practices and to make recommendations to the Nigerian populace especially the new board of director that will be appointed early 2022 following the new petroleum industrial bill (PIB) that has just been signed into law. This article is to provide information for the required restructuring and define the effective and efficient relationships and working culture under a new JOA. The result obtained established the fact that the existing working culture and relationship between the JV partners in the Nigerian oil and gas industry are not only unsustainable but unfit to deliver individual or joint venture interest. The JV operations must be incorporated as a legal entity having its own organization, dedicated management, and a workforce that will develop a positive working culture focused on achieving the JV goals and objectives.

Critical Risk Factors of Joint Venture Projects in the Oil and Gas Industry

The Oil and Gas (O&G) industry is one of the riskiest, most dynamic and challenging industries and plays a vital role in every nation’s economy. Like any other major industry, O&G is exposed to a host of both predictable and unpredictable risks. Joint venture projects (JVP) are often regarded as a risky business as there is a high failure rate among them because of the complexities involved. This paper aims to identify the critical risk factors (CRFs) of JVPs for O&G between Malaysia and Thailand. Via systematic literature review (SLR) the risk factors for O&G and JVPs around the globe are identified and a set of questions relating to them were designed and used in a pilot study. A total of 15 respondents from different background experiences working in O&G JVPs were requested to answer the designed questionnaire during the pilot study. The questionnaire survey passed the required Cronbach Alpha value of 0.6 with a score of 0.98. The data collected involved 170 respondents currently working or have worked in O&G JVPs. The relative importance index (RII) for each risk factor’s (RF) value was quantified and the RFs ranked based on the value. A RII value exceeding 60% is considered to have agreement and of importance to the respondents. The RII value can be used as an indicator to rank the RFs from the most to the least critical. The CRF categories determined in this study are environmental, cultural and social, and organisation. Under environmental, the main CRFs are losses due to fluctuations in exchange rates/interest rates. For cultural and social, the main CRFs are problems associated with cultural differences and cooperation. Organisational issues related to organisational fit, incompetent project management team, difficulty in finding and keeping skilled workers, and low worker productivity. All the listed RFs underwent a comprehensive study on their impact and probability of occurrence to determine the best processes, methods, and tools for managing the risks. It is recommended that key players in the O&G industry consider all the RFs of JVPs during the risk management evaluation stage.

Potential for the Application of the Emerging Market Z-score Model in the Case of Listed Banks in Ghana

The primary goal of the research is how to put into operation the emerging market (EM) Z-score model in predicting corporate failure and to evaluate financial performance through the analysis of the annual audited report of four quoted banks in Ghana. More so this research introduces the Z-score model in this sector as a tool for possible diagnostic behind financial performance and deterioration. The method used in this research is primarily based on the EM Z-score model developed by Altman. The approach used in this research is in line with previous research that upholds the Z-score model with 80 percent prediction accuracy. These previous researchers confirm that it is a robust instrument that helps in predicting and assessing the overall performance of companies financially and possible distress of corporate organizations given that it consists of numerous ratios financially which can be utilized to predict business liquidation, financial distress, and corporate failure. The method set up in this research is to study the annual report of banks quoted on the Ghana Stock Market by computing their Altman emerging market Z-score ratio for three years that is from 2016 to 2019 and comparing it with 2019 which is the current year emerging market Z-score ratio to evaluate the whole performance of the banks financially as well as the possibility of liquidation of banks quoted on the Ghana Stock Market. The research establishes that banks in Ghana should work hard on enhancing the Z-score ratios which are dragging the emerging market Z-score down to better comprehend the earlier period performance and to realize their current situation in the sector; the Z-score can be adopted by banks in Ghana as an effective and efficient assessment approach towards the financing the possible long joint venture projects encompassing Small and Medium businesses enterprises. This model was adopted by banks in Ghana as an autonomous credit hazard examination approach to appraising the financial strength and competencies of potential projects. It was ascertained from this research that the Altman emerging market Z-score ratio model is an applicable model for measuring the performance of quoted banks in Ghana. Limitation including the Ghanaian banking sector is still considered to be a small size that may have negative consequences on the maximum result of the research. Future research should be conducted towards updating coefficient value associated with every ratio in the Altman emerging market Z-score ratio model as per the inputs from the banks in Ghana

ADNOC’s New CTO Shares Innovation Philosophy

Alan Nelson is 1 year into his new job as the chief technology officer of the Abu Dhabi National Oil Company (ADNOC). It is a new job for ADNOC too. He is the first person to ever hold the title of CTO at the almost 50-year-old oil and gas producer, a fact he said reflects “a new mandate” to further invest in science and technology. The fruits of the approach are funneled into the organization via three core areas: innovation (i.e., research and development), the digital transformation, and sustainability. “One of the key reasons why sustainability reports into the CTO is of course that this will require new technologies,” said Nelson. “Some technologies that we can see today, that we could scale up and implement. Other technologies that are yet to be developed but that we need to develop in order to continue to be a sustainable company.” And like many of the integrated oil companies, the last downturn sparked a drive within the organization to seek out or develop emerging technologies to bring a new order of automation and lower operating costs. Under Nelson’s brief tenure, ADNOC has already made several big moves toward this goal including a partnership with Saudi Aramco to open a research center in the UK that will focus on creating nonmetallic technologies to limit the industry’s exposure to costly corrosion issues. This was accompanied by a raft of other partnerships and joint-venture projects that aim to create new artificial intelligence programs. The biggest of them is a 10-year contract with Honeywell which was selected to deploy its predictive maintenance platform across the company’s upstream and downstream assets. One of the other major initiatives Nelson oversees today is known as the Panorama Digital Command Center. Panorama leverages advanced computing tools such as artificial intelligence and digital twins to make the company’s oil fields accessible remotely. Earlier this month, ADNOC reported that the center delivered over $1 billion in value since it was launched 3 years ago. Nelson spoke about how the project prepared his company for the highly disruptive consequences of a global pandemic in an interview with SPE Live. “Through our Panoramic Digital Command Center we have real-time data at our fingertips - this is data that is updated second by second. So we can track the performance of our assets in real time, and by that we keep our people as safe as we possibly can,” said Nelson. Below are some of the highlights from the interview. What Modernization Means at ADNOC “For us, it means staying relevant, it means staying ahead of the curve. The world is changing, and we all know that we’re going through that now - whether it’s the current pandemic situation that we’re all having to work through and navigate, or whether it’s the current oil and gas price.” Nelson elaborated on the elements he considers necessary to achieving relevancy. “First and foremost is culture. In order for the company to maintain that bleeding edge on science and technology, you have to have innovation as a part of company culture.

Simulation analysis of incentives on employees' acceptance of foreign joint venture management practices: a case study

PurposeCultural differences between employees of different nationalities are hindering the development of some transnational joint ventures. Describing and modelling the positive (or negative) factors that cause joint venture employees to accept (or reject) joint management business practices is of great value to all corporations operating abroad with locally sourced employees.Design/methodology/approachThis study uses a Sino-Japan construction joint venture project as a representative case study. First, structural equation modelling is used to identify the factors influencing Chinese employees' acceptance of joint venture management practices. Then, a system dynamics model is adopted to simulate the time-dependent effects of the incentives.FindingsThe study results (1) indicate which incentives strongly affect employee acceptance of joint venture management practices; (2) identify inefficient management practices in cross-cultural joint ventures; and (3) provide evidence that the employees' perceptions of clear purpose, good working relationships and helpful mechanisms positively and directly also support their acceptance of joint management practices.Originality/value–A dynamic simulation method is used to analyse the influence of various incentive factors on employee acceptance of joint management. This provides unprecedented information regarding how these factors interact with each other, hence how their effectiveness varies (both positively and negatively) over time. Further findings also provide new ideas for joint venture managers to adopt more effective management methods.

Editorial and News

Editorial and News

Knowledge Creation: A Case Study of International Construction Joint Venture Projects in Thailand

Knowledge Creation: A Case Study of International Construction Joint Venture Projects in Thailand

Chinese Resource-for-Infrastructure (RFI) Investments in Sub-Saharan Africa and the Future of the "Rules-Based" Framework for Sovereign Finance: The Sicomines Case Study

China has emerged as sub-Saharan Africa’s largest development financier over the past two decades. While commentators have observed novel, sui generis transactional structures in China’s financing arrangements, legal analysis of those contractual forms and their relationships to incumbent international economic governance regimes remains scant. This note addresses those scholarly lacunae, taking as its case study the 2008 Sicomines Agreement—a multi-billion USD investment financing agreement between the Democratic Republic of the Congo and various Chinese corporate entities that merges infrastructure investment with a mineral extraction joint-venture project. It demonstrates that the Sicomines Agreement selectively draws on and integrates pre-existing modes of sovereign development finance, but in ways that subvert the extant legal and customary frameworks those modes have depended on. Legal issues arising under the Sicomines Agreement fall under two analytical categories: (1) areas of the Sicomines Agreement that the extant, “rules-based” framework governing sovereign development finance adequately captures; and (2) elements of the transaction that subvert that framework, confounding existing rules. This note concludes by considering what broader implications Chinese-origin development finance may have on the legal regimes and institutions governing the international financial system as a whole.