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

Abstract

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.

Citation

Thilakarathne, N., Rathnasinghe, A.P., Kulatunga, U., Thurairajah, N. and Weerasinghe, L. (2023), "An investigation of the conflict management strategies in international construction joint ventures of Sri Lanka", Journal of Financial Management of Property and Construction, Vol. 28 No. 3, pp. 273-292. https://doi.org/10.1108/JFMPC-03-2022-0018