Akunyumu, S; Fugar, F and Adinyira, E (2024) Evaluation of risks affecting international construction joint venture (ICJV) projects in Ghana. Journal of Engineering, Design and Technology, 22(6), pp. 1797-1824. ISSN 1726-0531
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. © 2022, Emerald Publishing Limited.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | developing countries; Ghana; international construction joint venture; risk identification and evaluation |
| Index terms: | risk identification, survey, literature review, risk register, design change, developing country, approval, cash flow, complexity, questionnaire, corruption, construction project, methodology, interest rate, budget overrun, inflation, Ghana, joint venture, international construction, international market, financial distress |
| Subjects: | professional ethics, systems engineering, financial management, research methods, Geography, production management, financial risk, development economics, contractual arrangements, data analysis and analytics, economic analysis, financial and cost management, contractual role, strategic management, data collection methods, business |
| Topics: | Procurement, Research Practice, Project Management, Geographical Context, Engineering Principles, Cost Management, Business Strategy, Contract Administration, International Construction, Legal Issues |
| 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