Lin, Y H and Ho, S P (2013) Impacts of governance structure strategies on the performance of construction joint ventures. Journal of Construction Engineering and Management, 139(3), pp. 304-311. ISSN 0733-9364
Abstract
In the construction industry, construction joint ventures (CJVs) have become one of the major organizational forms utilized in large-scale projects. However, because of the complexity of CJVs, the management of CJVs is much more difficult than that of usual projects undertaken by a single construction firm. Ineffective management and cooperation in JVs usually lead to poor performance. This study aims to investigate the performance impacts of governance structure strategies. In particular, this paper addresses two issues by empirically examining (1) the relationships between governance structure fit and CJV performance, and (2) whether jointly managed JVs (JMJs) and separately managed JVs (SMJs) perform equally well while holding the same level of governance structure fit. First, it is confirmed that governance structure fit has significant positive impacts on CJV performance. Second, it is found that JMJs perform slightly better than SMJs, all else being equal. Strategy implications based on the empirical results are also proposed and discussed in this paper. This paper contributes to the construction management literature by providing empirical evidence on the importance of governance structure fit and on the relative performance impacts of JMJs and SMJs. The results may also help practitioners by providing the guidance for organizational governance choices in CJVs.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | governance structure; joint ventures; jointly managed; organization; separately managed; strategy |
| Index terms: | strategy, construction firm, cooperation, complexity, practitioner, evidence, joint venture, governance, construction industry |
| Subjects: | industry analysis, systems engineering, management, psychology, evaluation and assessment methods, business, organization, practitioner |
| Topics: | Organizational Design, Research Practice, Engineering Principles, Business Strategy, Governance, Roles and Professions |
| Descriptive scope: | 4 PCTA |
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