Organisational Culture of Construction Joint Ventures: Case Studies in Hong Kong

CIB W112Includes bibliographical references.Culture can be regarded as a system of shared meanings that organises values into mental programmes which guide the behaviours of people within communities – notably, nations and organisations. Organisational culture involves cognition, affect and behaviour and reflects customary thinking, feeling and acting that are attributed to a particular group of people as they learn to cope with their environment. Largely, behaviours of organisations depend on the decisions and business strategies of top management and are greatly influenced by culture. There is a close relationship between the characteristics of organisational culture in a joint venture (JV) organisation and the parent companies; often, the organisational culture of the (most) powerful parent company dominates. That reflection relates to the top management’s strategy and the allocation of authority among JV partners. The two case studies investigate the organisational culture of international JV projects in Hong Kong that pool resources from parents with different cultural backgrounds. One of the case studies compares the JV organizational culture with the parent companies from UK, Hong Kong and mainland China. The organizational cultures of the parent companies are consistent with their own national cultural characteristics but, in the JV where more than one national culture is involved, the JV organizational culture is highly influenced by the dominant national culture of the management team. In the second case study, the project director is seconded from the dominant parent company. That JV exhibits cultural characteristics which show a synergy of elements from the founding parents but with emphasis on the culture of the dominant partner in the JV

Addressing Issues across Organisational Boundaries in Construction Projects

Includes bibliographical references.The extensive and increasing specialisation in all sectors of the construction industry has prompted much criticism due to the common absence of sufficient coordination and collaboration of the separate organisations culminating in accusations that such fragmentation leads to poor performance.This paper focuses on the managerial issues which emerge due to the diversity of individual organisations which must be assembled to execute engineering construction projects. Managing any organisational interface is notoriously problematic and has prompted the generation oftheories concerning management of boundaries – including boundary spanning and boundary objects. This paper examines the theory, research perspectives and findings to date and relates them to the management of engineering construction projects. It is concluded that recognition of performance interdependence amongst project participants is an essential underpinning of cooperationand development and use of appropriate boundary management through boundary spanning and boundary objects can foster interaction and coordination even with participants‟ retention of their individual goals

Directional interaction of organizational culture and structure through information processing theory

A new theoretical model has been developed to explain the interaction of organizational culture and organizational structure, which, together, influence the effectiveness of the organization under a Stimulus-Organism-Response paradigm. It is found that through a loop of 'People-Behaviour-Performance- Organizational Structure-People', culture affects the organizational structure and through another 'Goals-Organizational Structure-Output- Organizational Culture-Gaols' loop, the structure of an organization modifies the organizational culture. Furthermore, with the support of Information Processing Theory, it is able to explain the direction of the interaction of organizational culture and organizational structure. It is found that if the information-processing requirement of an organization dominated by a specific culture fits the information-processing capacity of a particular structure of the organization, the effectiveness of the organization increases. The model is applied in a case study of public healthcare institution. This paper presents both the model and its analysis in application.postprintThe 24th Annual Conference of Association of Researchers in Construction Management (ARCOM 2008), Cardiff, U.K., 1-3 September 2008. In Proceedings of the 24th Annual Conference of Association of Researchers in Construction Management (ARCOM 2008), 2008, v. 1, p. 465-47

Application of Information Processing Theory on the inter-relationship of organizational culture and organizational structure

Conference Theme: Securing high Performance through Cultural awareness and Dispute AvoidanceA conceptual model of the inter-relationship between organizational culture and organizational structure has been formulated. However, it is still unable to explain the direction of interaction of organizational culture and organizational structure in real day-to-day operation. This paper explains this relationship through the application of Information-Processing Theory. It has been established that, on one hand, organizational structure modifies organizational culture and, on the other hand, organizational culture determines organizational structure. Based on the Information-Processing Theory, it is hypothesized that a good fit between organizational structure and organizational culture, has a positive relationship with the effectiveness of the organization. This model is illustrated by an empirical study of the Facilities Management Unit (FMU) of a public health care institution. The information-processing requirements of organizational culture and information-processing capacities of organizational structure of FMU are measured through a questionnaire adopted from the Competing Values Model and a self-administered questionnaire respectively. Preliminary results show that the information-processing requirement of the FMU is high as the organizational culture is dominated by clan. However, the information-processing capacity of the FMU is low as the organizational structure is highly formalized and centralized while the level of integration is only medium. The organizational culture of the FMU is not fitted by its organizational structure.postprin

Culture dynamics of information and communication technology (ICT) adoption in construction companies

Innovation is essential in enhancing organizational efficiency and performance, particularly in a rapidly globalizing market. Substantial hidden innovations exist in the construction sector, such as information and communication technology (ICT), which has been identified as a key to enhance information processing in construction. However, technology does not necessarily bring success to an organization. Innovation adoption processes are embedded in organizational culture, which varies from organization to organization. Due to the dual nature of technology and the dynamic nature of culture, the relationship between technology and culture is bidirectional. The technology interacts with organizational culture when an individual attempts to perform their tasks by adopting the technology. This sheds light on the importance of investigating the fit between technology, culture, person and task in ICT adoption in construction. Based on the literature review, a conceptual framework is developed for the interaction between technology, culture, task and person. The framework includes two levels: organizational level and individual level. The organizational level interaction is technology centered, focusing on the fit between the values embedded in organizational culture and in the technology. The individual level interaction is task centered, which focuses on the fit between the technology and task requirements, and the fit between competency of an individual and the task requirements. The various key constructs are also identified: i) culture–technology fit, ii) task–technology fit, iii) person–task fit, iv) person–culture fit and v) information behavior. Based on the study, a subset of empirical framework is developed for further analyses, and two propositions are put forward based on the framework: i) Technology-culture fit at organizational level is associated with task-technology fit at individual level, and ii) Individual value preference, information behavior and person-task fit influence task-technology fit.published_or_final_versio

Procurement innovation for public construction projects: a study of agent-construction system and public-private partnership in China

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Competency and empowerment of project managers in China

The Agent Construction Management (ACM) system is one of the new measures adopted in government funded projects in China. The main characteristic of the ACM system is the introduction of an independent professional project management firm into the project management process. The ACM system is still in its trial stage in China and there is no unified qualification assessment system for agent construction organizations. While the importance of the project manager’s competence is recognized, previous research also shows that project manager’s empowerment is conducive to project performance. The definition of competency is confusing as several terms such as competency/competencies, competence/competences, capability and ability are used interchangeably and inconsistently. Competence is the state or quality of being adequately qualified -- the ability to perform a specific role (e.g. PMI’s project manager’s competency development framework). While empowerment can be viewed as a relational construct and considered within a more general concept of power, it is also a motivational (or psychological) construct. These two perspectives of empowerment are not independent and motivational empowerment may be an outcome of relational empowerment. This research aims to analyze the relationships of motivational empowerment and competency on job performance of the project managers in the ACM organisations. Regression modelling is adopted to analyze the data collected from 203 project managers involved in projects adopting ACM system. Findings support the relationships of competency and empowerment and their effect on project manager’s job performance.postprin

Competency and empowerment of project managers in China

The Agent Construction Management (ACM) system is one of the new measures adopted in government funded projects in China. The main characteristic of the ACM system is the introduction of an independent professional project management firm into the project management process. The ACM system is still in its trial stage in China and there is no unified qualification assessment system for agent construction organizations. While the importance of the project manager’s competence is recognized, previous research also shows that project manager’s empowerment is conducive to project performance. The definition of competency is confusing as several terms such as competency/competencies, competence/competences, capability and ability are used interchangeably and inconsistently. Competence is the state or quality of being adequately qualified -- the ability to perform a specific role (e.g. PMI’s project manager’s competency development framework). While empowerment can be viewed as a relational construct and considered within a more general concept of power, it is also a motivational (or psychological) construct. These two perspectives of empowerment are not independent and motivational empowerment may be an outcome of relational empowerment. This research aims to analyze the relationships of motivational empowerment and competency on job performance of the project managers in the ACM organisations. Regression modelling is adopted to analyze the data collected from 203 project managers involved in projects adopting ACM system. Findings support the relationships of competency and empowerment and their effect on project manager’s job performance.postprin

Procurement innovation: perspectives from Chinese international construction companies

The international construction business is witnessing a trend that companies deliver projects through the adoption of innovative procurement systems (e.g. Building Operate Transfer, Public Private Partnership). By devising innovative procurement systems, it is possible to realise construction projects that are difficult for traditional procurement methods, to develop competitive advantages for companies, and ultimately, to deliver value to the society. Notably, Chinese companies are making impressive inroads into the international construction market through enhancing their competitiveness. However, little we know about how Chinese international construction companies (CICCs) perceive procurement innovation and how it relates to their recent success. This research aims to capture their perspectives towards procurement innovation by interviewing nine key decision-makers of CICCs and experts in this area. It is found that CICCs are gradually adopting procurement innovation as a competitive strategy. Unlike the traditional life-or-death competition, competing through procurement innovation can make more projects possible; the emergence of CICCs, in particular their strengths, can be encouraged to deliver more projects and value in the international construction market. This research not only provides CICCs with insights into the procurement innovations in the construction sector, but also enables other companies to know CICCs with which they might compete or collaborate in the near future.published_or_final_versio

Sharpening Competitive Edge through Procurement Innovation: Perspectives from Chinese International Construction Companies

The international construction business is witnessing a trend towards the delivery of projects through the adoption of innovative procurement systems, which allow companies to gain competitive advantages and to potentially deliver enhanced value to society. Notably, Chinese companies are making steady inroads into the international construction market by enhancing competitiveness. However, we know little about the extent to which Chinese international construction companies (CICCs) perceive procurement innovation and how this factor may relate to their recent success. This research aims to fill the void based on interviews with nine CICC key decision‐makers and experts in this area, and the capturing of their perspectives. It is found that CICCs are gradually adopting procurement innovation as a competitive strategy. Although procurement innovation is conducive to competitive advantage in the long run, CICCs have to pay the cost of entering the new market. Thus a “wait‐and‐see” attitude exists in respect of a long term vision. Unlike the traditional win‐lose competitive bidding system, competing through procurement innovation can lead to larger, more suitable market presence. By succinctly describing the CICC story in the international market this research not only provides CICCs themselves with insights into current procurement innovations existing within the construction sector, but also enables other companies to understand the nature of CICCs with which they might compete or collaborate in the near future.postprin