Viswanathan, S K; Tripathi, K K and Jha, K N (2020) Influence of risk mitigation measures on international construction project success criteria: A survey of Indian experiences. Construction Management and Economics, 38(3), pp. 207-222. ISSN 01446193
Abstract
Despite globalisation bringing diverse opportunities for construction firms from developing countries, executing international construction projects entails many risks. Several past studies illustrate the risks faced by firms in international construction projects and recommend various risk mitigation measures without revealing their effect on project success criteria. In order to fill this knowledge gap, this study aims to test the influence of identified risk mitigation measures on project success criteria. To achieve this, nine risk mitigation measures and three project success criteria—cost performance, schedule performance and firm’s performance—were identified through a literature review. After verifying the identified risk mitigation measures and project success criteria with a preliminary study, a questionnaire was administered to experts who possess adequate knowledge in international construction projects. The collected data from 105 questionnaires were analyzed, grouped and modelled using factor analysis and structural equation modelling (SEM). Application of factor analysis to identify the correlated risk mitigation measures extracted three risk mitigation factors, namely pre-project planning, local participation and contract selection. Furthermore, the influence of risk mitigation factors on project success criteria is hypothesized and tested using SEM. Amongst the identified risk mitigation factors, local participation emerges as the most influencing factor on project success criteria followed by contract selection and pre-project planning. The generated model would enable construction firms from India and similar developing countries to focus on identified risk mitigation factors to achieve improved project success criteria and project management success.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | factor analysis; international construction; questionnaire survey; risk management; risk mitigation measures; structural equation modelling |
| Index terms: | international construction, factor analysis, risk management, project management, India, project success, influencing factor, globalization, questionnaire, cost performance, international construction project, project planning, risk mitigation, schedule performance, success criteria, developing country, construction firm, survey, literature review, structural equation modelling |
| Subjects: | project controls, assessment methods, economic factors, statistical analysis, economics, Geography, development economics, project management theory and practice, financial risk, data analysis and analytics, data collection methods, risk assessment, strategic management, organization, control systems |
| Topics: | Risk Management, Business Strategy, Cost Management, Research Practice, Geographical Context, Project Management, Time Control, International Construction |
| Descriptive scope: | 4 PCEA |
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