Vu, H A; Cu, V H; Min, L X and Wang, J Q (2017) Risk analysis of schedule delays in international highway projects in Vietnam using a structural equation model. Engineering, Construction and Architectural Management, 24(6), pp. 1018-1039. ISSN 0969-9988
Abstract
Purpose As in other developing countries, increased highway development in Vietnam provides enormous opportunities for international construction companies (ICCs). However, a prolonged schedule delay (SD) can have an extremely detrimental impact on a project’s efficiency, cost and investment reputation. The purpose of this paper is to identify potential SD risk factors in international highway projects (IHPs) in Vietnam, and to explore the effects of and influences on such factors. A specific risk management framework is proposed as a useful tool for ICCs. Design/methodology/approach A system of SD risk indicators is presented for IHPs in Vietnam through a questionnaire survey. The system comprises 50 indicators that are grouped into 12 main factors. A structural equation model (SEM) is then used to assess the influences and mechanisms of these factors. Based on the obtained results, corresponding suggestions for preventing SD risks are presented and discussed. Findings First, among the 12 aforementioned major factors, the authors identify eight facors that have significant effects on IHP SDs. Second, the SEM analysis reveals that policy flaws and the fiscal ability of the owner play the most important roles, on account of their direct and indirect influences on SDs. Originality/value Considering stakeholders and external environmental effects, a system of indicators is introduced to explore SD risks to IHPs. In particular, an SEM is used to assess the effects of potential SD factors and characterize their interacting influences. This study could help ICCs to avoid or mitigate project delays and cost overruns in Vietnam, and also provide valuable lessons for other developing countries.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction; engineering; risk management; methodology; project management; construction planning |
| Index terms: | questionnaire, methodology, project delay, risk analysis, developing country, Vietnam, survey, international construction, risk management, risk factor, structural equation model, highway construction, project management, construction planning, environmental effect, schedule delay, efficiency, cost overrun, owner |
| Subjects: | statistical analysis, environmental hazards, project controls, sociology, Geography, project management theory and practice, development economics, civil engineering, performance management, research methods, construction planning, financial and cost management, environmental impact, risk assessment, strategic management, data collection methods |
| Topics: | Site Management, Time Control, International Construction, Quality Management, Stakeholder Management, Risk Management, Sustainability, Cost Management, Engineering Principles, Geographical Context, Project Management, Research Practice |
| 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