Amaechi, C V; Ullah, S; Deng, X; Beddu, S B; Ja'e, I A; Mohamed, D B and Syamsir, A (2026) Utilising factor analysis on political risks including strategies of managing firm-specific risk factors for multinational construction projects in Pakistan. Engineering, Construction and Architectural Management, 33(1), pp. 1-27. ISSN 0969-9988
Abstract
Purpose – The purpose of this article is to investigate the influence that firm-specific characteristics, such as organisational capabilities, risk management methods and stakeholder relationships, have on political risks (PRs) that are associated with multinational construction projects in Pakistan. Design/methodology/approach – The methodology employed in this investigation involved the acquisition of data through the use of questionnaires administered to experts in the construction industry. The research applied a quantitative method, and the sources of the data are from the Pakistani stakeholders. One hundred questionnaires were used for the data collection during field visits. Based on the data, it has been ensured that the valid questionnaires were utilised, and the data were tested for validity and reliability. The analysis tool utilised was SPSS software. For the questionnaire, a total of 15 firm-specific factors were considered in order to design the survey, which specifically targeted the identified features. The factors identified as risks were investigated using quantitative method to determine firm-specific risks. Findings – It was found that when stakeholders have a better grasp of these dynamics, they are better able to strengthen their resilience and efficacy in managing PRs, which ultimately increases the likelihood that the project will be successful. Research limitations/implications – International construction projects (ICPs) in emerging countries are substantially impacted by PRs, which can have a considerable impact on their success and sustainability. The study is localised and not generic as it is limited to Pakistan, and the risk factors considered are firm-specific but related to PRs. Practical implications – By identifying key risk factors, these firms can develop targeted risk management strategies, leading to enhanced decision-making and more efficient resource allocation. Effective strategies include diversification, local partnerships and comprehensive risk assessments tailored to the unique challenges faced by international contracting firms in Pakistan. Social implications – ICPs in emerging countries like Pakistan face critical problems, which include the presence of PRs. Although the larger political environment plays a significant part, the manner in which businesses navigate and mitigate PRs is also influenced by firm-specific elements. Originality/value – The study is novel in terms of the factors looked at, the data, the conceptual framework and the findings of the study. The dynamic political scene, which is characterised by instability, policy changes, corruption and geopolitical conflicts, poses significant dangers to the timeliness of projects, the expenses of such projects and the investments that are made in those projects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | firm-specific; international construction enterprise; political risk; project management; risk management; risk mitigation |
| Index terms: | survey, face, strategy, international construction project, risk mitigation, conceptual framework, corruption, quantitative method, questionnaire, methodology, decision-making, Pakistan, construction project, acquisition, validity, partnership, resource allocation, emerging country, project management, construction industry, risk factor, presence, factor analysis, international construction, investigation, risk management, diversification, dynamics, risk assessment |
| Subjects: | environmental science, psychology, evaluation and assessment methods, strategic management, environmental hazards, professional ethics, market analysis, development economics, financial risk, production management, Geography, research methods, theoretical framing, resource management, data analysis and analytics, business, data collection methods, risk assessment, statistical analysis, systems engineering, industry analysis, decision analysis, partnership management, project management theory and practice, management |
| Topics: | Cost Management, Business Strategy, Research Practice, Stakeholder Management, International Construction, Organizational Design, Site Management, Geographical Context, Project Management, Engineering Principles, Risk Management, Sustainability, Legal Issues |
| 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