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Article
Publication date: 15 July 2024

Li Feng, Junying Liu, Zhixiu Wang and Yanyan Hong

The regulatory landscape surrounding international construction projects presents significant challenges, and contractors are still struggling to pay a painful price for their…

Abstract

Purpose

The regulatory landscape surrounding international construction projects presents significant challenges, and contractors are still struggling to pay a painful price for their performance in the project. While existing research has identified various causes of contractor compliance, the intricate interplay of these factors and their impact on compliance remain largely elusive. The motivation-opportunity-ability (MOA) framework may hold the key to determining what factors can foster induced contractor compliance in international projects.

Design/methodology/approach

This study collected 124 valid data samples from practitioners involved in large-scale international contracting projects through expert interviews and questionnaire surveys. Fuzzy-set qualitative comparative analysis (fsQCA) was employed to analyze the diverse combinations of contractor compliance factors.

Findings

The study identifies seven key factors that contribute to compliance behavior among international construction contractors: economic motivation, social motivation, normative motivation, legal completeness, deterrent sanctions, organizational learning and compliance management ability. The interplay of these factors promotes compliance in the following ways: When international construction contractors are influenced by both social and normative motivations, they exhibit a higher level of compliance. In situations where regulatory systems are relatively weak, the ability to manage compliance becomes the primary driver of compliance behavior for businesses. A comprehensive legal framework creates a conducive environment for contractors to improve their compliance through organizational learning.

Research limitations/implications

The findings offer guidance for international construction contractors in enhancing compliance by considering factors such as motivations, legal frameworks, organizational learning and compliance management. This can lead to improved risk management and performance in international projects.

Social implications

This research enhances fair and ethical practices in international construction by identifying compliance drivers, fostering positive social impact, mitigating negative consequences and empowering local communities. It informs legal and regulatory reform, encourages improved business practices and contributes to knowledge advancement in the field. Overall, the findings have the potential to positively impact the social fabric of international construction projects.

Originality/value

This study has made an important contribution to the field of compliance theory by integrating theories from multiple disciplinary domains and constructing a new theoretical framework from the perspectives of motivation, opportunity and capability. By elucidating how these factors interact and influence compliance behavior among international construction contractors, this research aids in understanding the complex dynamics of contractor compliance behavior and provides theoretical reference for compliance governance within the construction industry.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 13 January 2023

Stephen Akunyumu, Frank Fugar and Emmanuel Adinyira

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…

Abstract

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.

Details

Journal of Engineering, Design and Technology, vol. 22 no. 6
Type: Research Article
ISSN: 1726-0531

Keywords

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