The role of risk management practices in construction project success in a developing country from the perspectives of key internal stakeholders: A case study of Qatar

CHAPTER 1. INTRODUCTION

Background of the Study

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Need for the Study

 

Purpose of the Study

 

Significance of the Study

 

Research Question

 

Definition of Terms

 

Research Design

 

Assumptions and Limitations

Assumptions

 

Limitations

 

Organization of the Remainder of the Study

 

 

 

 

This is my work.  Please feel free to incorporate in this Chapter:

 

Dissertation Title

The role of risk management practices in construction project success in a developing country from the perspectives of key internal stakeholders: A case study of Qatar

 

  • Research Topic:

 

The research topic of the proposed research study will focus on the role of risk management practices in construction project success or failure in a developing country from the perspectives of key internal stakeholders.  What we know is that risk management practices in construction projects minimize project costs, help improve project outcomes, and increase performance at all project levels (Adedokun et al., 2013; Allen et al., 2015; Bowers & Khorakian, 2014; Jalal-Karim, 2013; Taylor et al., 2012; Zhao, et al., 2014).  What we also know is that the majority of recent research in this field has been limited to developed nations with more sophisticated processes and infrastructure (Allen et al., 2015; Al-Sabah, et al., 2014; Gupta & Sharma, 2015).  However, what we do not know is the role of risk management practices in construction project success or failure in developing countries (Hann et al., 2012). Therefore, in order to address this gap in scholarly literature, this proposed qualitative case study will explore the role of risk management practices in project success or failure in a construction organization in Qatar from the perspectives of key internal stakeholders (i.e., project sponsors, project managers, and project team leaders).

 

The topic of the role of risk management practices in construction project success or failure in a developing country from the perspectives of key internal stakeholders is important to the field of project management and the risk management program specialization for several reasons.  First, the topic is important because it may provide insight into the importance of objectifying risk management practices that are currently less formalized (Hwang,Zhao,See & Zhong,2015). Second, the topic is important because it may help simplify the implementation of formal risk management in construction projects in developing countries where complex and diverse risks are commonplace (Deng, Low, & Zhao, 2014; Hwang, Low, 2014, & Wu, 2015; Xia & Chan, 2012; Zhao, Zhao, 2014).

In addition, the topic is important because it may lead to the installation of best practices in developing countries where there is an absence of dedicated focus on construction project risk management practices (Adedokun, et al., 2013; Bruni et al., 2011; Chileshe et al., 2014; Mustapha & Adnan, 2015).

 

  • Research Problem

 

The research topic of the proposed research study will focus on the role of risk management practices in construction project success or failure in a developing country from the perspectives of key internal stakeholders.  What we know is that risk management practices in construction projects minimize project costs, help improve project outcomes, and increase performance at all project levels (Adedokun et al., 2013; Allen et al., 2015; Bowers & Khorakian, 2014; Jalal-Karim, 2013; Taylor et al., 2012; Zhao, et al., 2014).  What we also know is that the majority of recent research in this field has been limited to developed nations with more sophisticated processes and infrastructure (Allen et al., 2015; Al-Sabah, et al., 2014; Gupta & Sharma, 2015).  However, what we do not know is the role of risk management practices in construction project success or failure in developing countries (Hann et al., 2012). Therefore, in order to address this gap in scholarly literature, this proposed qualitative case study will explore the role of risk management practices in project success or failure in a construction organization in Qatar from the perspectives of key internal stakeholders (i.e., project sponsors, project managers, and project team leaders).

 

2.1 Research Problem Background

 

Risk management is vital for project success.  Many seminal research studies related to risk management reveal that risk management is an integral tool to project performance (Thevendran & Mawdesley, 2004; Wang & Yuan, 2011). According to Lin et al. (2012), risk management is the process that measures diverse risks factors and coordinates risk management activities to help an organization achieve its defined projects’ objectives. March and Shapira (1987) found that risk perception varies among individuals and across context, and managing this variability in perceptions and contexts is critical for successful project outcomes.  In the absence of proper risk management practices, the probability of project failure is increased (March and Shapira, 1987).

 

Risk in construction has been the object of attention because of excessive cost and time over-runs associated with construction works (Mahamid & Bruland, 2011; Xiang et al. (2012). According to Kwak (2003), the complex nature of construction projects creates many risks that need to be managed in order to avoid common drawbacks of project work. Sharma (2013) emphasized that construction project managers mostly use “ad-hoc or unscientific methods like rule of thumb” to analyze and manage risks in the absence of a formal risk management framework (p. 23). Along the same lines, Banaitiene & Banaitis (2012) stressed that formal risk analysis and management techniques are rarely used due to the lack of knowledge and doubts regarding the suitability of these techniques for construction projects. Taroun and Yang (2013) also noted a gap between theory and the practice of risk management in the construction industry. Furthermore, Allen et al. (2015) noted that there are risk management implementation “gaps within the construction industry in how to deal with risks” (p. 5). Similarly, Xiang et al. (2012) demonstrated that construction projects are facing a greater number of uncertainties and more severe risks, which could cause much bigger losses than in the past.

 

The construction market in developing countries is characterized by high levels of complications, uncertainties, and unique risks (Al-Sabah et al., 2014). Research studies on construction projects in developing countries have shown that there is a knowledge gap with respect to formal risk management techniques and best practices (Adedokun, et al., 2013; Bruni et al., 2011; Chileshe et al., 2014; Mustapha & Adnan, 2015).  Other studies also reveal that construction projects in developing countries have been plagued by complex and diverse risks (Deng, Low, & Zhao, 2014;  Hwang, Low, 2014, & Wu, 2015; Xia & Chan, 2012; Zhao, Zhao, Hwang, & Zhong, 2014).  In addition, inadequate training in risk management was identified as a significant factor impeding the adoption and implementation of formal risk management practices in the construction industry in developing nations (Albogamy & Dawood, 2015; Chileshe, 2014; Asadi, 2015).

 

2.2 Research Question

 

RQ:  What is the role of risk management practices in construction project success or failure in a developing country from the perspectives of key internal stakeholders?

 

Risk management is defined as the process of identifying, quantifying, qualifying, and managing individual risks that the organization faces in a holistic fashion (Lin et al., 2012).

 

2.3 Purpose of the Study

The purpose of the proposed study is to explore the role of risk management practices in construction project success or failure in a developing country from the perspectives of key internal stakeholders.  Specifically, this research will explore the role of risk management practices in project success or failure in a construction organization in Qatar from the perspectives of project sponsors, project managers, and project team leaders. The proposed study will utilize a qualitative case study design to address the study research question.  A field-tested, semi-structured interview guide will be used to collect the data in addition to field notes, documents, and archival data from the case organization.

 

2.4  Methodology and Basic Design

 

The proposed study will utilize a qualitative case study design to address the research question.  A field-tested, semi-structured interview guide will be used to collect the data in addition to field notes and document/archival data from the case organization.  Qualitative methodology is appropriate for the proposed study because qualitative methodology helps ensure the research problem is explored from a variety of lenses which allow multiple facets of the phenomenon to be revealed (Adedokun et al., 2013). Specifically, a qualitative case study design is aligned with the study research question because it allows the researcher to use an in-depth inquiry to examine the complexities of the case within real-world contextual conditions using multiple sources of evidence (Yin, 2013).

 

The use of a semi-structured research guide is applicable here because it allows the researcher to explore and pursue the responses in more detail (Gill et al., 2008). Key stakeholders (project sponsors, project managers, and project team leaders) from the case organization, a construction firm in Qatar, will be interviewed.  The interview guide will be reviewed by a panel of subject matter experts to enhance the reliability and validity of the instrument.  Mock interviews with role players will also be conducted as part of the field testing process.  Qualitative data analysis software will be used to analyze the data for specific patterns and themes (Fielding, et al., 2013). Triangulation based on the data from the interviews, field notes, documents, and archival data will be used in the analysis of the study findings (Bentahar & Cameron, 2015).

 

 

3.1 Advancing Scientific Knowledge

 

The research topic of the proposed research study will focus on the role of risk management practices in construction project success or failure in a developing country from the perspectives of key internal stakeholders.  What we know is that risk management practices in construction projects minimize project costs, help improve project outcomes, and increase performance at all project levels (Adedokun et al., 2013; Allen et al., 2015; Bowers & Khorakian, 2014; Jalal-Karim, 2013; Taylor et al., 2012; Zhao, et al., 2014).  What we also know is that the majority of recent research studies in this field has been limited to developed nations with more sophisticated processes and infrastructure (Allen et al., 2015; Al-Sabah, et al., 2014; Gupta & Sharma, 2015).  However, what we do not know is the role of risk management practices in construction project success or failure in developing countries (Hann et al., 2012). Therefore, in order to address this gap in scholarly literature, this proposed qualitative case study will explore the role of risk management practices in project success or failure in a construction organization in Qatar from the perspectives of key internal stakeholders (i.e., project sponsors, project managers, and project team leaders).

 

The topic of the role of risk management practices in construction project success or failure in a developing country from the perspectives of key internal stakeholders will advance the scientific knowledge in several ways.  First, the topic is important because most risk management practices in construction organizations depended on unscientific methods and subjective judgments (Hwang,Zhao,See & Zhong,2015). Second, the topic is important because construction projects in developing countries have been plagued by complex and diverse risks (Deng, Low, & Zhao, 2014; Hwang, Low, 2014, & Wu, 2015; Xia & Chan, 2012; Zhao, Zhao, 2014). In addition, the topic is important because construction projects in developing countries were adversely affected by the knowledge gap pertinent to formal risk management techniques and best practices (Adedokun, et al., 2013; Bruni et al., 2011; Chileshe et al., 2014; Mustapha & Adnan, 2015).

 

3.2 Theoretical Implications

 

The theoretical framework of the proposed study is rooted in critical success factors theory, which postulates that success factors as skills, tools, and resources are critical to project success (Karim et al., 2012). Specifically, the theory claims that there is a limited number of areas where satisfactory results will ensure successful competitive performance for the organization (Bullen & Rockart, 1981). According to Grunert & Ellegaard (1992), project success factors “can be measured by semi-structured interviews with decision-makers” (p. 18). Critical success factors theory informs the proposed study on exploring the role of risk management practices as one of the critical success factors within a construction firm in a developing country. In summary, recent research on construction projects shows that risk “is one of the major considerations in managing a project and also the contributor for project success” (Karim et al., 2012). The theoretical implications of the study for critical success factors theory are: it may help advance the theory by offering an in-depth examination and understanding of how risk management contributes to construction project’s success or failure. The study may also help advance the theory by highlighting the implications of not taking into consideration the perspectives of project stakeholders particular to project success factors.

 

3.3 Practical Implications

 

There are several practical implications of the proposed study.

First, the topic is important because it may provide insights into the importance of objectifying risk management processes that are currently less formalized (Hwang,Zhao,See & Zhong,2015). Second, the topic is important because it may help simplify the implementation of formal risk management in construction projects in developing countries where complex and diverse risks are commonplace (Deng, Low, & Zhao, 2014; Hwang, Low, 2014, & Wu, 2015; Xia & Chan, 2012; Zhao, Zhao, 2014). Additionally, the topic is important because it may lead to the installation of best practices in developing countries where there is an absence of dedicated focus on construction project risk management practices (Adedokun, et al., 2013; Bruni et al., 2011; Chileshe et al., 2014; Mustapha & Adnan, 2015).

 

4.1 Research Design

The proposed study will utilize a qualitative case study design to address the study research question.  A field-tested, semi-structured interview guide will be used to collect the data in addition to field notes, documents, and archival data from the case organization.  Qualitative methodology is appropriate for the proposed study because qualitative methodology provides sufficient insights into the problem and helps gain better understanding of the underlying reasons and opinions of the researched problem (Adedokun et al., 2013). Specifically, a qualitative case study design is aligned with the study research question because it allows the researcher to use an in-depth inquiry to examine the complexities of the case within real-world contextual conditions using multiple sources of evidence (Yin, 2013).

 

The use of a semi-structured research guide is applicable here because it allows a researcher to explore and pursue the responses in more detail (Gill et al., 2008). Key stakeholders (project sponsors, project managers, and project team leaders) from the case organization, a construction firm in Qatar, will be interviewed.  The draft interview questions will be assessed by a panel of subject matter experts (SME) to enhance the reliability and validity of the instrument and check the alignment with research questions.  Mock interviews with role players will also be conducted as part of the field testing process, however no data will be recorded or collected.  The NVivo qualitative data analysis software will be used to analyze the data for specific patterns and themes (Fielding, et al., 2013). Triangulation based on the data gathered from the interviews, field notes, documents, and archival data will be used in the analysis of the study findings (Bentahar & Cameron, 2015).

 

 

 

*Use APA style for all references

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