Gad, G M (2012) Effect of culture, risk, and trust on the selection of dispute resolution methods in international construction contracts. PhD thesis, Iowa State University, USA.
Abstract
International construction projects provide opportunities for developing countries to advance in the global economy, and for international firms to increase their profit and market share. Despite the attractive opportunities that international construction offers, there are many challenges and difficulties when moving into international markets. These include the many risks associated with differences in culture, economic conditions, specifications/standards, legal frameworks, exchange rates regulations, and productivity levels. All these aspects affect the way contract clauses are drafted, including the dispute resolution clause. Since many risks are associated with international construction, whether external or project-specific risks, the different cultures the company needs to deal with and manage, and the level of trust the international parties share, it becomes necessary to choose an appropriate dispute resolution method (DRM), depending on the conditions for each project. The objectives of this study are to identify factors that have an effect on the choice of DRMs in international construction contracts and to recommend specific DRMs to contractors based in English-speaking countries, who plan to operate in the Middle East or Asia. In this research, a concurrent mixed-method design is employed. Factors affecting the choice of DRMs and the effect of culture, risk, and trust on the current choice of DRMs are investigated, using a quantitative method--surveys. In addition, a Delphi technique is used to obtain the views of experts on factors to consider when choosing a DRM in an international contract and on the effects of culture, risk, and trust. Results from this study show the first two factors affecting the choice of DRMs from both industry and experts' perspectives are related to the country of operation and culture. Both culture and risk, do not have a statistically significant effect on choice of DRMs, while trust does. Arbitration is the most recommended DRM in all project conditions, except in projects with high trust between contracting parties where negotiation is the most recommended. Non-amicable DRMs, such as litigation, mini-trial, and summary jury trial are the least recommended methods. From the results obtained, a DRM-Culture Risk Trust (DRM-CRT) model is developed to assist international contractors from English speaking countries planning to operate in the Middle East or Asia in the choice of the appropriate DRMs during contract formation; given identified culture characteristics, trust levels, and risk factors.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Thesis advisor: | Shane, J S |
| Uncontrolled Keywords: | culture; market; trust; construction project; international firms; specifications; standards; arbitration; contract formation; developing countries; dispute resolution; international construction project; litigation; markets; negotiation; productivity; regulation; Middle East; Delphi technique |
| Index terms: | markets, litigation, quantitative method, specification, international firm, international construction project, economic condition, productivity, dispute, regulation, construction project, contracting party, market share, international market, profit, arbitration, risk factor, international construction, survey, contract formation, developing country, Middle East, negotiation, Delphi technique, Asia, resolution |
| Subjects: | practitioner, dispute resolution, data collection methods, data analysis and analytics, conflict resolution, strategic management, political science, physical geography and landforms, environmental hazards, contractual condition, contract formation, market analysis, production management, regions and continents, management, development economics, economic analysis |
| Topics: | Research Practice, Sustainability, Legal Issues, Business Strategy, Contract Administration, Roles and Professions, Stakeholder Management, International Construction, Project Management, Governance, Geographical Context |
| 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