Analysis of delays in Tanzanian construction industry: Transaction cost economics (TCE) and structural equation modeling (SEM) approach

Abstract

Purpose

The purpose of this paper is twofold: first, to develop theoretical underpinnings using TCE, and second, to run the analysis using an advanced tool such as structural equation modeling (SEM).

Design/methodology/approach

This study was conducted in the construction industry in Tanzania. A questionnaire-based survey method was used. A total of 308 respondents participated in the study. The relationships between the cause and effect factors were analyzed using SEM.

Findings

The important findings are as follows:cost overrun can be explained by consultant-related and material-related factors; disputes can be explained by cost overrun; arbitration can be explained by consultant-related, cost overrun, and dispute factors; litigation can be explained by client-related, disputes, and arbitration factors; and abandonment can be explained by consultant-related, external-related, disputes, arbitration, and litigation factors.

Originality/value

The main contributions of this study are theoretical development and comprehensive analyses of “cause” and “effect” factors of delays in the construction industry.

Citation

Sambasivan, M., Deepak, T.J., Salim, A.N. and Ponniah, V. (2017), "Analysis of delays in Tanzanian construction industry: Transaction cost economics (TCE) and structural equation modeling (SEM) approach", Engineering, Construction and Architectural Management, Vol. 24 No. 2, pp. 308-325. https://doi.org/10.1108/ECAM-09-2015-0145