Johansen, A (2021) Influence of risk assessment on perceptions of contract negotiation and fraud prevention. DBA thesis, Capella University, USA.
Abstract
As fraudulent schemes continue to impact small businesses, increased awareness of fraud is needed to identify areas of weakness where prevention measures are appropriate. This study added to the understanding of fraud in small businesses by exploring risk assessment perceptions in the planning cycle of a project within the construction industry. The research focused on these perceptions and how they influence contract negotiation procedures and fraud prevention measures. Exploring the perceptions of owners and managers added to the understanding of fraud risks within this group. Risk assessment identifies areas of weakness where internal controls are needed to prevent fraudulent schemes. In circumstances where strategic planning is essential, such as contract negotiations, it is crucial to ensure owners and managers carried out risk assessments to minimize fraud. This study addresses the literature gap by exploring perceptions of individuals in small to medium-sized enterprises where internal controls are limited. This phenomenological qualitative research method examined 12 owners' and managers' perceptions to contribute knowledge concerning the research questions: What are owners’ and managers’ perceptions of and attitudes toward fraud prevention? How does risk assessment influence small to medium sized enterprises (SMEs) contract negotiation procedures? How does risk assessment influence SMEs' fraud prevention measures? Data was collected through semi-structured, face-to-face interviews and analyzed by identifying themes from participant responses. Four themes were identified from participant responses and included governance, strategic planning, fraud prevention, and policies and procedures. The study's results identified a lack of risk assessment in the planning stage of a project cycle and reliance on previous experience in the field. The study contributes to the literature on fraud prevention and avenues for owners and managers to apply risk assessment to increase internal controls.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Thesis advisor: | Baqai, H |
| Uncontrolled Keywords: | SMEs; fraud; governance; negotiation; qualitative research; risk assessment; strategic planning |
| Index terms: | governance, owner, contract negotiation, strategic planning, risk assessment, prevention, construction industry, negotiation, manager, interview, fraud, qualitative research method, face, small business, qualitative research |
| Subjects: | psychology, practitioner, organization, professional ethics, contract management, financial risk, research design and methodology, business, data collection methods, industry analysis, sociology, conflict resolution, management |
| Topics: | Legal Issues, Research Practice, Business Strategy, Cost Management, Governance, Roles and Professions, Stakeholder Management, Organizational Design, Contract Administration |
| 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