Bing, L and Tiong, R L K (1999) Risk management model for international construction joint ventures. Journal of Construction Engineering and Management, 125(5), pp. 377-384. ISSN 0733-9364
Abstract
The current Asian financial crisis has put the role of risk management in the construction business into focus. For firms engaging in the international construction business, one of the most effective means of mitigating financial risks is through a joint venture (JV) with a local partner. There are, however, risks associated with an international construction JV. Based on a study by the writers on the risk factors and their mitigating measures, the most effective risk mitigating measures were categorized into eight groups. These are partner selection, agreement, employment, control, subcontracting, engineering contract, good relationship, and renegotiation. In this paper, a risk management model incorporating these measures was proposed. Three cases of international construction JVs were analyzed from the perspectives of the execution of these measures. It is hoped that this model would help construction firms in improving their decision-making process for their overseas ventures.
| Item Type: | Article |
|---|---|
| Index terms: | joint venture, partner selection, subcontracting, employment, decision-making process, risk factor, risk management, international construction, mitigating measure, construction firm |
| Subjects: | management, financial risk, decision analysis, partnership management, environmental hazards, organization, business, strategic management, risk assessment |
| Topics: | Business Strategy, Cost Management, Sustainability, Stakeholder Management, Risk Management, International Construction, Supply Chain Management, Human Resources |
| Descriptive scope: | 2 PC |
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