IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i9p3158-d167699.html
   My bibliography  Save this article

Critical Behavioral Risk Factors among Principal Participants in the Chinese Construction Industry

Author

Listed:
  • Pengcheng Xiang

    (School of Construction Management and Real Estate, Chongqing University, Chongqing 400045, China
    Construction Economics and Management Research Center, Chongqing University, Chongqing 400045, China
    International Research Center for Sustainable Built Environment, Chongqing University, Chongqing 400045, China)

  • Fuyuan Jia

    (School of Construction Management and Real Estate, Chongqing University, Chongqing 400045, China)

  • Xiaohui Li

    (School of Construction Management and Real Estate, Chongqing University, Chongqing 400045, China)

Abstract

The main participants in construction projects are the client, contractors, material suppliers, and consultants such as the project supervisor. They play the most important roles in implementing construction projects, and their behavior has a significant impact on the project’s performance. Because each participant has their own particular interests, by virtue of proprietary information advantage, each individual participant is driven to achieve maximum benefit, which can result in improper behavior with respect to each other. The risk of this resulting in moral hazard and adverse selection based on information asymmetry is called behavioral risk among principal construction participants. Behavior is affected by various risk factors; successful implementation of construction projects depends on effective management of the key risk factors. This paper identifies and ranks the critical behavioral risk factors from the perspective of principal construction participants in the Chinese construction industry. The data used for analysis is based on an interview and questionnaire survey. Factor analysis is conducted with the assistance of SPSS17.0. Forty-one potential behavioral risk factors are identified, with 30 of those being critical, including “client changes project objective or investment direction”, “designer uses technological capability advantage to obtain profit”, and others. These findings contribute to the understanding of risk management in the construction industry in China. They also serve as a useful reference for further studies on the subject.

Suggested Citation

  • Pengcheng Xiang & Fuyuan Jia & Xiaohui Li, 2018. "Critical Behavioral Risk Factors among Principal Participants in the Chinese Construction Industry," Sustainability, MDPI, vol. 10(9), pages 1-22, September.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:9:p:3158-:d:167699
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/9/3158/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/9/3158/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhengrong Liu & Wendan Jiang & Yuzhe Wu & Yi Peng, 2016. "Risk Factors of Building Apartments for University Talent through the Agent Construction Mode in China: Interrelationship and Prioritization," Sustainability, MDPI, vol. 8(4), pages 1-13, March.
    2. Ling-Hin Li, 2017. "Balancing Rural and Urban Development: Applying Coordinated Urban–Rural Development (CURD) Strategy to Achieve Sustainable Urbanisation in China," Sustainability, MDPI, vol. 9(11), pages 1-15, October.
    3. Bon-Gang Hwang & Ming Shan & Helena Phua & Seokho Chi, 2017. "An Exploratory Analysis of Risks in Green Residential Building Construction Projects: The Case of Singapore," Sustainability, MDPI, vol. 9(7), pages 1-21, June.
    4. Bo Xiong & Martin Skitmore & Bo Xia, 2015. "Exploring and validating the internal dimensions of occupational stress: evidence from construction cost estimators in China," Construction Management and Economics, Taylor & Francis Journals, vol. 33(5-6), pages 495-507, June.
    5. Xu, Yelin & Chan, Albert P.C. & Xia, Bo & Qian, Queena K. & Liu, Yong & Peng, Yi, 2015. "Critical risk factors affecting the implementation of PPP waste-to-energy projects in China," Applied Energy, Elsevier, vol. 158(C), pages 403-411.
    6. Sukran Seker & Edmundas Kazimieras Zavadskas, 2017. "Application of Fuzzy DEMATEL Method for Analyzing Occupational Risks on Construction Sites," Sustainability, MDPI, vol. 9(11), pages 1-19, November.
    7. F. Gerard Adams & Jean C. Bedard & Karla M. Johnstone, 2005. "Information Asymmetry and Competitive Bidding in Auditing," Economic Inquiry, Western Economic Association International, vol. 43(2), pages 417-425, April.
    8. Peter, J Paul & Churchill, Gilbert A, Jr & Brown, Tom J, 1993. "Caution in the Use of Difference Scores in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(4), pages 655-662, March.
    9. C. M. Tam & Ivan Fung & Albert Chan, 2001. "Study of attitude changes in people after the implementation of a new safety management system: the supervision plan," Construction Management and Economics, Taylor & Francis Journals, vol. 19(4), pages 393-403.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yutong Xue & Pengcheng Xiang, 2020. "The Social Risk of High-Speed Rail Projects in China: A Bayesian Network Analysis," Sustainability, MDPI, vol. 12(5), pages 1-23, March.
    2. Ji-Myong Kim & Junseo Bae & Seunghyun Son & Kiyoung Son & Sang-Guk Yum, 2021. "Development of Model to Predict Natural Disaster-Induced Financial Losses for Construction Projects Using Deep Learning Techniques," Sustainability, MDPI, vol. 13(9), pages 1-12, May.
    3. Ji-Myong Kim & Kag-Cheon Ha & Sungjin Ahn & Seunghyun Son & Kiyoung Son, 2020. "Quantifying the Third-Party Loss in Building Construction Sites Utilizing Claims Payouts: A Case Study in South Korea," Sustainability, MDPI, vol. 12(23), pages 1-13, December.
    4. Sungjin Ahn & Taehui Kim & Ji-Myong Kim, 2020. "Sustainable Risk Assessment through the Analysis of Financial Losses from Third-Party Damage in Bridge Construction," Sustainability, MDPI, vol. 12(8), pages 1-15, April.
    5. Ivona Ivić & Anita Cerić, 2023. "Risks Caused by Information Asymmetry in Construction Projects: A Systematic Literature Review," Sustainability, MDPI, vol. 15(13), pages 1-25, June.
    6. Hadi Sarvari & Alireza Valipour & Nordin Yahya & Norhazilan MD Noor & Michael Beer & Nerija Banaitiene, 2019. "Approaches to Risk Identification in Public–Private Partnership Projects: Malaysian Private Partners’ Overview," Administrative Sciences, MDPI, vol. 9(1), pages 1-18, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sellers, R. Drew & Fogarty, Timothy J. & Jadallah, Jadallah, 2020. "Has the new world order taught the big four to manage client portfolio risk? Examining extreme loss occurrences before and after Sarbanes Oxley," Advances in accounting, Elsevier, vol. 51(C).
    2. Son K. Lam & Thomas E. DeCarlo & Ashish Sharma, 2019. "Salesperson ambidexterity in customer engagement: do customer base characteristics matter?," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 659-680, July.
    3. Ming Shan & Yu-Shan Li & Bon-Gang Hwang & Jia-En Chua, 2021. "Productivity Metrics and Its Implementations in Construction Projects: A Case Study of Singapore," Sustainability, MDPI, vol. 13(21), pages 1-19, November.
    4. Svana Helen Björnsdóttir & Pall Jensson & Saemundur E. Thorsteinsson & Ioannis M. Dokas & Helgi Thor Ingason, 2023. "Aligning Stakeholders and Actors: A New Safety and Security-Based Design Approach for Major National Infrastructures," Sustainability, MDPI, vol. 16(1), pages 1-44, December.
    5. Sang-June Park & Youjae Yi, 2016. "Performance-only measures vs. performance-expectation measures of service quality," The Service Industries Journal, Taylor & Francis Journals, vol. 36(15-16), pages 741-756, December.
    6. Antonella Lomoro & Giorgio Mossa & Roberta Pellegrino & Luigi Ranieri, 2020. "Optimizing Risk Allocation in Public-Private Partnership Projects by Project Finance Contracts. The Case of Put-or-Pay Contract for Stranded Posidonia Disposal in the Municipality of Bari," Sustainability, MDPI, vol. 12(3), pages 1-18, January.
    7. Taron, Avinandan & Majumder, A. & Bodach, Susanne & Agbefu, Dzifa, 2023. "Public-private partnerships for the circular bio-economy in the Global South: lessons learned," IWMI Reports 339137, International Water Management Institute.
    8. Binay Prakash Pandey & Devi Prasad Mishra, 2023. "Developing an Alternate Mineral Transportation System by Evaluating Risk of Truck Accidents in the Mining Industry—A Critical Fuzzy DEMATEL Approach," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    9. Söderlund, Magnus & Sagfossen, Sofie, 2017. "The consumer experience: The impact of supplier effort and consumer effort on customer satisfaction," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 219-229.
    10. Gul Shah Sabary & Lukáš Durda & Arif Ibne Asad & Aleksandr Kljuènikov, 2023. "Key motivational factors behind Asian immigrant entrepreneurship: A causal relationship analysis employing the DEMATEL approach for Germany," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 18(1), pages 287-318, March.
    11. Alaa Khadra & Mårten Hugosson & Jan Akander & Jonn Are Myhren, 2020. "Development of a Weight Factor Method for Sustainability Decisions in Building Renovation. Case Study Using Renobuild," Sustainability, MDPI, vol. 12(17), pages 1-15, September.
    12. Han, Qingye & Zhu, Yuming & Ke, Ginger Y. & Hipel, Keith W., 2019. "Public private partnership in brownfield remediation projects in China: Identification and structure analysis of risks," Land Use Policy, Elsevier, vol. 84(C), pages 87-104.
    13. Ajayi Babatunde Oluwaseun & Chinda Thanwadee, 2022. "Dynamics of Pertinent Project Delay Variables in the Thai Construction Sector: Mathematical Analysis," Engineering Management in Production and Services, Sciendo, vol. 14(2), pages 26-45, June.
    14. Valmohammadi, Changiz & Khaki, Masoud Mirahmadi, 2019. "Determinants for selection of projects for exploitation of mines in Iran," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    15. Anwar, Ahsan & Sharif, Arshian & Fatima, Saba & Ahmad, Paiman & Sinha, Avik & Khan, Syed Abdul Rehman & Jermsittiparsert, Kittisak, 2021. "The asymmetric effect of public private partnership investment on transport CO2 emission in China: Evidence from quantile ARDL approach," MPRA Paper 108160, University Library of Munich, Germany, revised 2021.
    16. Huihua Chen & Hujun Li & Yige Wang & Baoquan Cheng, 2020. "A Comprehensive Assessment Approach for Water-Soil Environmental Risk during Railway Construction in Ecological Fragile Region Based on AHP and MEA," Sustainability, MDPI, vol. 12(19), pages 1-17, September.
    17. Davern, Michael J. & Wilkin, Carla L., 2010. "Towards an integrated view of IT value measurement," International Journal of Accounting Information Systems, Elsevier, vol. 11(1), pages 42-60.
    18. Manel Elmsalmi & Wafik Hachicha & Awad M. Aljuaid, 2021. "Prioritization of the Best Sustainable Supply Chain Risk Management Practices Using a Structural Analysis Based-Approach," Sustainability, MDPI, vol. 13(9), pages 1-15, April.
    19. Guoxian Cao & Chaoyang Guo & Hezhong Li, 2022. "Risk Analysis of Public–Private Partnership Waste-to-Energy Incineration Projects from the Perspective of Rural Revitalization," Sustainability, MDPI, vol. 14(13), pages 1-19, July.
    20. Elibal, Kerem & Özceylan, Eren, 2022. "Comparing industry 4.0 maturity models in the perspective of TQM principles using Fuzzy MCDM methods," Technological Forecasting and Social Change, Elsevier, vol. 175(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:9:p:3158-:d:167699. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.