Project System Vulnerability to Political Risks in International Construction Projects: The Case of Chinese Contractors

2014 ◽  
Vol 45 (2) ◽  
pp. 20-33 ◽  
Author(s):  
Xiaopeng Deng ◽  
Low Sui Pheng ◽  
Xianbo Zhao
Keyword(s):  
Construction Projects ◽  
International Construction ◽  
System Vulnerability ◽  
Political Risks

scholarly journals Identifying Political Risk Management Strategies in International Construction Projects

2018 ◽  
Vol 2018 ◽  
pp. 1-11 ◽  
Author(s):  
Tengyuan Chang ◽  
Bon-Gang Hwang ◽  
Xiaopeng Deng ◽  
Xianbo Zhao
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Management Strategies ◽  
Political Risk ◽  
Implementation Phase ◽  
Construction Enterprises ◽  
International Construction ◽  
Political Risks ◽  
Risk Management Strategies ◽  
International Experts

International construction projects are plagued with political risk, and international construction enterprises (ICEs) must manage this risk to survive. However, little attention has been devoted to political risk management strategies in international construction projects. To fill this research gap, a total of 27 possible strategies were identified through a comprehensive literature review and validated by a pilot survey with 10 international experts. Appraisals of these 27 strategies by relevant professionals were collected using questionnaires, 155 of which were returned. Exploratory factor analysis was conducted to explore the interrelationships among these 27 strategies. The results show that all of the 27 strategies are important for political risk management in international construction projects. Moreover, these 27 strategies were clustered into six components, namely, (1) making correct decisions, (2) conducting favorable negotiations, (3) completing full preparations, (4) shaping a good environment, (5) reducing unnecessary mistakes, and (6) obtaining a reasonable response. The 6 components can be regarded as 6 typical management techniques that contribute to political risk management in the preproject phase, project implementation phase, and postevent phases. The findings may help practitioners gain an in-depth understanding of political risk management strategies in international construction projects and provide a useful reference for ICEs to manage political risks when venturing outside their home countries.

scholarly journals Political Risk Paths in International Construction Projects: Case Study from Chinese Construction Enterprises

2018 ◽  
Vol 2018 ◽  
pp. 1-11 ◽  
Author(s):  
Tengyuan Chang ◽  
Xiaopeng Deng ◽  
Bon-Gang Hwang ◽  
Xiaojing Zhao
Keyword(s):  
Construction Projects ◽  
Political Risk ◽  
Global Market ◽  
The Political ◽  
Construction Enterprises ◽  
International Construction ◽  
Political Risks ◽  
International Environment ◽  
Negative Effect ◽  
Low Exposure

International construction enterprises (ICEs) have been plagued with political risks in the global market. To ensure the success of political risk management, it is necessary to comprehend the political risks in international construction projects. This study aims at exploring the political risk paths in international construction projects. The preliminary political risk factors and paths were proposed from the literature review. A survey questionnaire was developed to collect political risk cases faced by Chinese construction enterprises (CCEs) performing international construction projects, and 264 valid cases were received and analyzed for this study. Adopting the confirmatory factor analysis (CFA) method, 6 macrofactors (“sociopolitical stability” (A), “legal and regulatory” (B), “social safety” (C), “economy performance” (D), “attitude towards foreigners” (E), and “international environment” (F)) and 2 microfactors (“low exposure” (G) and “capability of enterprises” (H)) were identified. Moreover, the results of path analysis illustrated that 7 factors (A, B, C, D, E, G, and H) had the significant direct negative effect on “risk consequences” and 3 factors (A, D, and F) had the indirect negative effect on “risk consequences.” The findings from this study help practitioners gain an in-depth understanding of political risks in international construction projects and provide a useful reference for ICEs to manage political risks when venturing outside their home countries.

Identifying micro variables contributing to political risks in international construction projects

2018 ◽  
Vol 25 (3) ◽  
pp. 317-334 ◽  
Author(s):  
Xiaopeng Deng ◽  
Sui Pheng Low ◽  
Xianbo Zhao ◽  
Tengyuan Chang
Keyword(s):  
Construction Projects ◽  
Rank Correlation ◽  
Content Type ◽  
Construction Enterprises ◽  
International Construction ◽  
Political Risks ◽  
Significant Disagreement ◽  
Micro Level ◽  
Individual Variables ◽  
The Impact

Purpose The purpose of this paper is to explore the micro-level variables contributing to political risks in international construction projects. Design/methodology/approach A total of 25 micro-level variables were identified from the literature review, and a questionnaire survey was performed with 138 professionals from both academia and industry. Then, the Spearman rank correlation was used to test whether there was agreement on ranking between the two respondent groups. Furthermore, the 25 variables were grouped into six underlying factors through the exploratory factor analysis. Findings The results indicated that the most critical variables were “project desirability to the host country,” “relationship with governments,” “misconduct of contractors,” “public opposition to the project,” “experiential knowledge of political risks” and “advantageous conditions of contract.” In addition, the opinions within each group were consistent and there was no significant disagreement on the rankings of variables between academics and practitioners. However, the academic and practitioner groups held different opinions on some individual variables. The impact direction of the variables was associated with confusion among the respondents. Originality/value The findings presented in this paper can help international construction enterprises effectively manage political risks in international construction projects.

scholarly journals FUZZY MULTI-CRITERIA DECISION MAKING MODEL FOR SUBCONTRACTOR SELECTION IN INTERNATIONAL CONSTRUCTION PROJECTS

2015 ◽  
Vol 22 (2) ◽  
pp. 210-234 ◽  
Author(s):  
Serdar ULUBEYLI ◽  
Aynur KAZAZ
Keyword(s):  
Construction Projects ◽  
Decision Criterion ◽  
Practical Application ◽  
Human Judgment ◽  
Qualitative And Quantitative ◽  
International Construction ◽  
Weak Points ◽  
Initial Idea ◽  
Decision Making Model ◽  
Selection Of

A general contractor’s ability to select proper subcontractors in foreign projects is a key competitive advantage. Toward this aim, a subcontractor selection model (CoSMo) was developed in this study. As a computational approach, the fuzzy sets method was employed because it can model human judgment by means of linguistic values, combining qualitative and quantitative decision criteria into an aggregate measure. Although the algorithm may be complex for easy acceptance by industrial practitioners, this disadvantage was minimized through a computer-supported system. In order to gain a better understanding of the current practice of CoSMo, a real world construction project was conducted. As a result, it was observed that CoSMo has high practical application and can be used as an advisory system by satisfying principal contractor’s requirements to reduce the risk involved in the selection of a subcontractor. Moreover, it gives an initial idea of how subcontractors perform on each decision criterion and allows the main contractor to understand the picture on the strong and weak points of each bidder and thereby to take conscious decisions.

scholarly journals SIMILARITY ASSESSMENT OF COUNTRIES TO FACILITATE LEARNING FROM INTERNATIONAL CONSTRUCTION PROJECTS

2017 ◽  
Vol 4 (1) ◽  
Author(s):  
Beste Ozyurt ◽  
Gozde Bilgin ◽  
Irem Dikmen ◽  
M. Talat Birgonul
Keyword(s):  
Construction Projects ◽  
Online Questionnaire ◽  
Political Condition ◽  
Similarity Assessment ◽  
International Construction ◽  
Related Information ◽  
Financial Condition ◽  
Governance Systems ◽  
Construction Experience ◽  
The Right

Companies’ ability to learn from projects is a source of competitive advantage in project-based industries. Learning from experiences in international markets is particularly important for global contractors so that the right bidding strategy can be developed, effective project governance systems can be established, and similar mistakes are not repeated. In this study, we assert that countries can be clustered according to their similarity so that experiences gained in these markets can be transferred and adapted to forthcoming projects. Thus, similarity factors to be used for clustering of countries can be identified, and a methodology can be developed to store, retrieve and reuse country-related information in international construction projects. In this paper, we report the factors identified for similarity assessment of countries to be used to facilitate learning from projects. As a result of literature review, interviews with experts and an online questionnaire administered to company professionals who have international construction experience, 12 factors have been identified for clustering of countries. As a result of ranking analysis; factors of “development level of and culture in the construction industry”, “political condition of the country” and “financial condition of the country” are obtained as the most important factors. The identified factors will be explained and how the clustering of countries can help companies to extract valuable information from previous experiences will be discussed.

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