Impacts of management control mechanisms on the performance of international construction joint ventures: an empirical study

Mershack Opoku Tetteh; Albert P.C. Chan; Gabriel Nani; Amos Darko; Goodenough D. Oppong

doi:10.1108/ECAM-11-2021-0998

Impacts of management control mechanisms on the performance of international construction joint ventures: an empirical study

Mershack Opoku Tetteh, Albert P.C. Chan, Gabriel Nani, Amos Darko, Goodenough D. Oppong

Research output: Contribution to journal › Article › peer-review

Abstract

Purpose: While previous studies have focused on identifying management control (MC) mechanisms in international construction joint ventures (ICJVs), the impacts of such MC mechanisms on the performance of ICJVs remain largely unknown. This study aims to investigate the impacts of MC mechanisms on the performance of ICJVs hosted in the developing country of Ghana. Design/methodology/approach: Through a comprehensive review of the literature, a theoretical model was developed, and data were collected through a questionnaire survey with 190 project managers composed of Ghanaians/locals and their foreign partners of ICJVs. The data were analyzed using partial least squares structural equation modeling. Findings: Results showed that both personnel and support and training control mechanisms have a positive and significant impact on project and company/partner performance. Surprisingly, insignificant and negative impacts exist between both mechanisms and socioenvironmental and company/partner performance from the local partners' view, respectively; the reverse is rather true from the foreign partners' perspective. Practical implications: This study contributes to the ICJV body of knowledge by analyzing the impacts of MC mechanisms on the ICJVs’ performance, enabling ICJVs frontliners (i.e. top managers) and project managers to better enhance their control structures and the ICJVs’ performance. Originality/value: This is arguably the first study to take the bipartite perspective rather than the unilateral view of studying the impacts of MC mechanisms on the performance of ICJVs.

Original language	English
Pages (from-to)	2280-2303
Number of pages	24
Journal	Engineering, Construction and Architectural Management
Volume	30
Issue number	6
Early online date	1 Mar 2022
DOIs	https://doi.org/10.1108/ECAM-11-2021-0998
Publication status	Published - 7 Jun 2023

Bibliographical note

Funding Information:
This paper forms part of a broader-scope PhD study on determinants of success for international construction joint ventures in Ghana. The authors acknowledge that this paper shares a similar background and methodology with other related papers published with different objectives and scopes. The authors wish to thank the Department of Building and Real Estate of The Hong Kong Polytechnic University for funding this research. They are also thankful to the Ghanaian partners and their foreign partners of ICJVs who participated in the questionnaire survey and to Mr. Robert Quansah-Opirim and Mr. Stephen Nana Opoku Ware for their invaluable assistance in the data gathering. Data Availability Statement : Some or all data, models or codes used during the study are available from the corresponding author by request. Declaration of competing interest : None

Publisher Copyright:
© 2022, Emerald Publishing Limited.

Keywords

Construction management
Developing countries
International construction joint ventures
Management control mechanism
Performance measures

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10.1108/ECAM-11-2021-0998

Cite this

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abstract = "Purpose: While previous studies have focused on identifying management control (MC) mechanisms in international construction joint ventures (ICJVs), the impacts of such MC mechanisms on the performance of ICJVs remain largely unknown. This study aims to investigate the impacts of MC mechanisms on the performance of ICJVs hosted in the developing country of Ghana. Design/methodology/approach: Through a comprehensive review of the literature, a theoretical model was developed, and data were collected through a questionnaire survey with 190 project managers composed of Ghanaians/locals and their foreign partners of ICJVs. The data were analyzed using partial least squares structural equation modeling. Findings: Results showed that both personnel and support and training control mechanisms have a positive and significant impact on project and company/partner performance. Surprisingly, insignificant and negative impacts exist between both mechanisms and socioenvironmental and company/partner performance from the local partners' view, respectively; the reverse is rather true from the foreign partners' perspective. Practical implications: This study contributes to the ICJV body of knowledge by analyzing the impacts of MC mechanisms on the ICJVs{\textquoteright} performance, enabling ICJVs frontliners (i.e. top managers) and project managers to better enhance their control structures and the ICJVs{\textquoteright} performance. Originality/value: This is arguably the first study to take the bipartite perspective rather than the unilateral view of studying the impacts of MC mechanisms on the performance of ICJVs.",

keywords = "Construction management, Developing countries, International construction joint ventures, Management control mechanism, Performance measures",

author = "Tetteh, {Mershack Opoku} and Chan, {Albert P.C.} and Gabriel Nani and Amos Darko and Oppong, {Goodenough D.}",

note = "Funding Information: This paper forms part of a broader-scope PhD study on determinants of success for international construction joint ventures in Ghana. The authors acknowledge that this paper shares a similar background and methodology with other related papers published with different objectives and scopes. The authors wish to thank the Department of Building and Real Estate of The Hong Kong Polytechnic University for funding this research. They are also thankful to the Ghanaian partners and their foreign partners of ICJVs who participated in the questionnaire survey and to Mr. Robert Quansah-Opirim and Mr. Stephen Nana Opoku Ware for their invaluable assistance in the data gathering. Data Availability Statement : Some or all data, models or codes used during the study are available from the corresponding author by request. Declaration of competing interest : None Publisher Copyright: {\textcopyright} 2022, Emerald Publishing Limited.",

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doi = "10.1108/ECAM-11-2021-0998",

language = "English",

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AU - Tetteh, Mershack Opoku

AU - Chan, Albert P.C.

AU - Nani, Gabriel

AU - Darko, Amos

AU - Oppong, Goodenough D.

N1 - Funding Information: This paper forms part of a broader-scope PhD study on determinants of success for international construction joint ventures in Ghana. The authors acknowledge that this paper shares a similar background and methodology with other related papers published with different objectives and scopes. The authors wish to thank the Department of Building and Real Estate of The Hong Kong Polytechnic University for funding this research. They are also thankful to the Ghanaian partners and their foreign partners of ICJVs who participated in the questionnaire survey and to Mr. Robert Quansah-Opirim and Mr. Stephen Nana Opoku Ware for their invaluable assistance in the data gathering. Data Availability Statement : Some or all data, models or codes used during the study are available from the corresponding author by request. Declaration of competing interest : None Publisher Copyright: © 2022, Emerald Publishing Limited.

PY - 2023/6/7

Y1 - 2023/6/7

N2 - Purpose: While previous studies have focused on identifying management control (MC) mechanisms in international construction joint ventures (ICJVs), the impacts of such MC mechanisms on the performance of ICJVs remain largely unknown. This study aims to investigate the impacts of MC mechanisms on the performance of ICJVs hosted in the developing country of Ghana. Design/methodology/approach: Through a comprehensive review of the literature, a theoretical model was developed, and data were collected through a questionnaire survey with 190 project managers composed of Ghanaians/locals and their foreign partners of ICJVs. The data were analyzed using partial least squares structural equation modeling. Findings: Results showed that both personnel and support and training control mechanisms have a positive and significant impact on project and company/partner performance. Surprisingly, insignificant and negative impacts exist between both mechanisms and socioenvironmental and company/partner performance from the local partners' view, respectively; the reverse is rather true from the foreign partners' perspective. Practical implications: This study contributes to the ICJV body of knowledge by analyzing the impacts of MC mechanisms on the ICJVs’ performance, enabling ICJVs frontliners (i.e. top managers) and project managers to better enhance their control structures and the ICJVs’ performance. Originality/value: This is arguably the first study to take the bipartite perspective rather than the unilateral view of studying the impacts of MC mechanisms on the performance of ICJVs.

AB - Purpose: While previous studies have focused on identifying management control (MC) mechanisms in international construction joint ventures (ICJVs), the impacts of such MC mechanisms on the performance of ICJVs remain largely unknown. This study aims to investigate the impacts of MC mechanisms on the performance of ICJVs hosted in the developing country of Ghana. Design/methodology/approach: Through a comprehensive review of the literature, a theoretical model was developed, and data were collected through a questionnaire survey with 190 project managers composed of Ghanaians/locals and their foreign partners of ICJVs. The data were analyzed using partial least squares structural equation modeling. Findings: Results showed that both personnel and support and training control mechanisms have a positive and significant impact on project and company/partner performance. Surprisingly, insignificant and negative impacts exist between both mechanisms and socioenvironmental and company/partner performance from the local partners' view, respectively; the reverse is rather true from the foreign partners' perspective. Practical implications: This study contributes to the ICJV body of knowledge by analyzing the impacts of MC mechanisms on the ICJVs’ performance, enabling ICJVs frontliners (i.e. top managers) and project managers to better enhance their control structures and the ICJVs’ performance. Originality/value: This is arguably the first study to take the bipartite perspective rather than the unilateral view of studying the impacts of MC mechanisms on the performance of ICJVs.

KW - Construction management

KW - Developing countries

KW - International construction joint ventures

KW - Management control mechanism

KW - Performance measures

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DO - 10.1108/ECAM-11-2021-0998

M3 - Article

SN - 0969-9988

VL - 30

SP - 2280

EP - 2303

JO - Engineering, Construction and Architectural Management

JF - Engineering, Construction and Architectural Management

IS - 6

ER -

Impacts of management control mechanisms on the performance of international construction joint ventures: an empirical study

Abstract

Bibliographical note

Keywords

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