Hatamleh, M T; Moynihan, G P; Batson, R G; Alzarrad, A and Ogunrinde, O (2023) Risk assessment and ranking in the developing countries' construction industry: The case of Jordan. Engineering, Construction and Architectural Management, 30(4), pp. 1344-1364. ISSN 0969-9988
Abstract
Purpose: Risk impedes the success of construction projects in developing countries due to planning in an unpredictable and poorly resourced environment. Hence, the literature suggests that practitioners are not fully aware of how important the risk identification process is. Some of the prior studies identified risks in developing countries without highlighting how they can be beneficial to the practitioners in the industry. Therefore, this study highlights this process and identifies the key risks that affect the Jordanian construction industry. Design/methodology/approach: This study adopted an exploratory sequential mixed approach, two rounds of face-to-face interviews that were conducted in Jordan among 12 experts followed by a questionnaire randomly distributed to 122 practitioners. This study utilized the relative importance index, coefficient of variation, and Mann–Whitney (U) to analyze the data. Also, the factor analysis technique was used to identify and regroup the risk factors to further understand the correlation among the risks. Findings: The result revealed an agreement among contractors' and consultants' responses toward allocating risks. Furthermore, several risks can be traced back to the project communication management process, highlighting a deficiency in the process. Also, four-factor groups were established, the first group includes the risk of defective design, late decisions making by other project participants and poor coordination with the subcontractor. The second group has only the risk of corruption, including bribery at sites. The third group includes stakeholders' financial instability and inadequate distribution of responsibilities and risks. The fourth group includes adverse weather conditions and the use of illegal foreign labor. Originality/value: Some of the prior studies identified risks in developing countries without highlighting how they can be beneficial to the practitioners in the industry.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | corruption; exploratory sequential mixed approach; questionnaire; risk management |
| Index terms: | relative importance index, face, risk identification, developing country, interview, project communication, foreign labour, subcontractor, weather, variation, methodology, construction project, practitioner, corruption, questionnaire, construction industry, Jordan, coordination, risk assessment, risk factor, risk management, factor analysis |
| Subjects: | environmental hazards, statistical analysis, professional ethics, industry analysis, research methods, management, development economics, professional development, financial risk, production management, contractual condition, Geography, psychology, air quality, business, data collection methods, risk assessment, practitioner |
| Topics: | Organizational Design, Contract Administration, Legal Issues, International Construction, Roles and Professions, Risk Management, Sustainability, Cost Management, Geographical Context, Project Management, Research Practice, Information Management |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here