Liu, J; Lin, S and Feng, Y (2018) Understanding why Chinese contractors are not willing to purchase construction insurance. Engineering, Construction and Architectural Management, 25(2), pp. 257-272. ISSN 0969-9988
Abstract
Purpose: Construction insurance has been advocated as a useful financial means to transfer risks and mitigate potential project losses. However, there is a general reluctance to purchase construction insurance in China. The purpose of this paper is to develop an extended theory of planned behavior (TPB) model to understand and predict contractors' construction insurance purchasing intention. Design/methodology/approach: Quantitative data were collected through a questionnaire survey. The respondents comprise 130 project directors/managers and contract managers/administrators who were involved in or familiar with the construction insurance purchasing or managing. Data were analyzed using structural equation modeling. Findings: This study developed an extended TPB model to explain the contractors' intention formation. The results indicated that the insurance purchasing intention was mainly influenced by attitudes and subjective norm, rather than perceived behavioral control. The analyses also revealed that the added variables (risk perception and past experience) had a significant impact on the attitudes and perceived behavioral control. Originality/value: This study identified the factors leading to Chinese contractors' low willingness to purchase construction insurance by extending the TPB model to the context of construction insurance purchasing. The extended TPB model may serve as a theoretical framework and basis for the Chinese contractors, insurers, and regulators to understand the root causes of contractors' low willingness to purchase construction insurance and make joint efforts to address the risks and insurance in the construction industry.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction; organization; questionnaire survey; risk management |
| Index terms: | China, methodology, questionnaire, risk perception, structural equation modelling, survey, manager, contract manager, construction industry, subjective norm, planned behaviour, insurance, risk management, purchasing, regulator |
| Subjects: | statistical analysis, environmental hazards, behavioral psychology, procurement strategy, industry analysis, social justice, sociology, Geography, research methods, economic analysis, practitioner, risk assessment, data collection methods |
| Topics: | Business Strategy, Research Practice, Geographical Context, Risk Management, Roles and Professions, Stakeholder Management, Procurement, Sustainability, Ethics |
| 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