Shen, L Y; Wu, G W C and Ng, C S K (2001) Risk assessment for construction joint ventures in China. Journal of Construction Engineering and Management, 127(1), pp. 76-81. ISSN 0733-9364
Abstract
The construction industry in China is developing toward the international procurement practice, and such development has attracted many foreign firms into the Chinese construction market through the formation of Sino-foreign joint ventures. Joint venture has become an important sector in the Chinese construction industry. However, the difference in management systems, technological practice, and cultural background among the partners within joint ventures brings difficulties to the function of joint venture. A significant degree of risk is involved in joint venture investments. Thus, foreign firms increasingly intend to spend more effort in studying proper strategies of managing risks in their joint venture businesses. Based on a survey, this paper establishes a risk significance index to show the relative significance among the risks associated with the joint ventures in the Chinese construction procurement practice. Real cases are examined to show the risk environment faced by joint ventures. The paper also investigates practical applications of risk management in the business of joint ventures.
| Item Type: | Article |
|---|---|
| Index terms: | construction industry, construction market, risk assessment, risk management, construction procurement, joint venture, foreign firm, China, strategy, survey, management system |
| Subjects: | industry analysis, market analysis, Geography, financial risk, management, contractual arrangements, risk assessment, strategic management, data collection methods, business |
| Topics: | Geographical Context, Research Practice, Cost Management, Business Strategy, Procurement, Risk Management, International Construction, Organizational Design |
| Descriptive scope: | 4 PCTE |
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