A SEM ANALYSIS OF THE IMPACT OF UNETHICAL STAKEHOLDER BEHAVIORS ON CONSTRUCTION PROJECT FAILURES: AN OIL AND GAS INDUSTRY STUDY
DOI:
https://doi.org/10.11113/aej.v12.16603Keywords:
Stakeholder management, Ethics evaluation, Project failure, SEM, Stakeholder management, ethics evaluation, project failure, oil and gas, SEMAbstract
Continued unethical behavior by stakeholders within the oil and gas construction industry has a possible impact on the failure of many projects. This study therefore aims to investigate the impact of this type of behavior on the oil and gas construction industry. A conceptual framework was developed from both a literature review and interviews with 8 experts working on oil and gas construction projects in Myanmar, Malaysia and Thailand. A 31-item questionnaire was used to measure the 304 responses, from which a confirmatory factor analysis and structural equation model (SEM) were developed to investigate this impact. The results revealed that the most significant direct impact on a project’s failure was a main contractor’s unethical behavior. Furthermore, the study determined that the unethical behaviors of the consultant and designer had no direct impact on a project’s failure but that there was an impact of the owner’s unethical behavior. Ranked in order of importance, the indicators of a project failure are as follows: stakeholders' dissatisfaction; cost overrun; time overrun; negative effects on health, safety and environment; quality defects; and dispute and litigation. The results provide a guideline for developing a code of ethics to conduct unethical behavior investigations, which will help decrease future project failures
References
Mason, J. 2009. Ethics in the construction industry: the prospects for a single professional code. International Journal of Law in the Built Environment. 1(3): 194-205. DOI: http://dx.doi.org/10.1108/17561450911001252
Vongpisal, C., and Yodpijit, N. 2017. Construction accidents in Thailand: Statistical data analysis. KMUTNB International Journal of Applied Science and Technology. 10(1): 7-21. DOI: http://dx.doi.org/10.14416/j.ijast.2017.02.005
Vee, C., and Skitmore, M. 2003. Professional ethics in the construction industry. Engineering Construction and Architectural Management. 10(2): 117-127. DOI: http://dx.doi.org/10.1108/09699980310466596
PwC. 2016 [Online]. Economic crime in Thailand. Available: https://www.pwc.com/th/en/publications/2016/economic-crime-thailand2016.pdf [Accessed: June 2017].
Kang, B., Price, A.D.F., Thorpe, A., and Edum-Fotwe, F.T. 2004. Developing a systems approach for managing ethics in construction project environments. In Khosrowshahi, F. (Ed.), 20th Annual ARCOM Conference. 1-3 September 2004. 2: 1367 – 1375.
Adnan, H., Hashim, N., Mohd, N., and Yusuwan, N.A. 2012. Ethical issues in the construction industry: Contractor's perspective. Procedia - Social and Behavioral Sciences. 35: 719-727. DOI: http://dx.doi.org/10.1016/j.sbspro.2012.02.142
Ray, R.S., Hornibrook, J., and Skitmore, M. 1999. Ethics in tendering: a survey of Australian opinion and practice. Construction Management and Economics. 17(2): 139-153. DOI: http://dx.doi.org/10.1080/014461999371646
Abdul-Rahman, H., Wang, C., and Yap, X.W. 2010. How professional ethics impact construction quality: Perception and evidence in a fast developing economy. Scientific Research and Essays. 5(23): 3742-3749. DOI : http://dx.doi.org/10.5897/SRE.9000035
Suen, H., Cheung, S., and Mondejar, R. 2007. Managing ethical behaviour in construction organizations in Asia: How do the teachings of Confucianism, Taoism and Buddhism and Globalization influence ethics management. International Journal of Project Management. 25(3): 257-265. DOI: http://dx.doi.org/10.1016/j.ijproman.2006.08.001
McManus, J., and Wood-Harper, T. 2007. Understanding the sources of information systems project failure. Journal of the Management Services Institute. 51(2): 38-43.
Pinto, J.K., and Mantel, S.J. 1990. The causes of project failure. IEEE Transactions on Engineering Management. 37(4): 269-276. DOI: http://dx.doi.org/10.1109/17.62322
Maktoumi, I.S.A., Khan, F.R., and Maktoumi, A.R.S.A. 2020. Assessing the factors causing project completion delays in the construction sector of Oman using SEM-PLS. Humanities & Social Sciences Reviews. 8(3): 900-912. DOI: http://dx.doi.org/10.18510/hssr.2020.8394
Dusso, N. S., and Bayeh, T.W. 2020. The causes and effects of delay of building construction in Ethiopia, Southern nation nationalities of people region in Gurage zone (case of wolkite town). Civil and Environmental Research. 12(1): 12-21. DOI: http://dx.doi.org/10.7176/CER/12-1-02
Chan, D.W.M., and Kumaraswamy, M.M. 1997. A comparative study of causes of time overruns in Hong Kong construction projects. International Journal of Project Management. 15(1): 55-63. DOI: http://dx.doi.org/10.1016/s0263-7863(96)00039-7
Ikediashi, D.I., Ogunlana, S.O., and Alotaibi, A. 2014. Analysis of project failure factors for infrastructure projects in Saudi Arabia: A multivariate approach. Journal of Construction in Developing Countries. 19(1): 35-52.
Oyewobi, L.O., Jimoh, R., Ganiyu, B.O., and Shittu, A.A. 2016. Analysis of causes and impact of variation order on educational building projects. Journal of Facilities Management. 14(2): 139-164. DOI: http://dx.doi.org/10.1108/JFM-01-2015-0001
Toor, S., and Ogunlana, S.O. 2010. Beyond the ‘iron triangle’: Stakeholder perception of key performance indicators (KPIs) for large-scale public sector development projects.” International Journal of Project Management. 28(3): 228-236. DOI: http://dx.doi.org/10.1016/j.ijproman.2009.05.005
Venkateswaran, C.B., and Murugasan, R. 2017. Time delay and cost overrun of road over bridge (ROB) construction projects in India. Journal of Construction in Developing Countries. 22: 79-96. DOI: http://dx.doi.org/10.21315/jcdc2017.22.supp1.5
Alhajri, A.R., and Alshibani, A. 2018. Critical factors behind construction delay in petrochemical projects in Saudi Arabia. Energies. 11: 1-18. DOI: http://dx.doi.org/10.3390/en11071652
Khatib, B.A., Poh, Y.S., and El-Shafie, A. 2018. Delay factors in reconstruction projects: A case study of Mataf expansion project. Sustainability. 10: 1-18. DOI: http://dx.doi.org/10.3390/su10124772
Banobi, E.T., and Jung, W. 2019. Causes and mitigation strategies of delay in power construction projects: Gaps between owners and contractors in successful and unsuccessful projects. Sustainability. 11: 1-16. DOI: http://dx.doi.org/10.3390/su11215973
Simushi, S., and Wium, J. 2020. Time and cost overruns on large projects: Understanding the root cause. Journal of Construction in Developing Countries. 25(1): 129-146. DOI: http://dx.doi.org/10.21315/jcdc2020.25.1.7
Standing Committee on Ethics and Integrity. 1999. Standards on ethics and integrity. 1st Edition, Academy of Human Resource Development, Baton Rouge, Louisiana, United States.
Loo, R. 2002. Tackling ethical dilemmas in project management using vignettes. International Journal of Project Management. 20(7): 489-495. DOI: http://dx.doi.org/10.1016/s0263-7863(01)00056-4
Russ-Eft, D. 2004. Ethics in a global world: an oxymoron. Evaluation and Program Planning. 27(3): 349-356. DOI: http://dx.doi.org/10.1016/j.evalprogplan.2004.04.008
Aziz, R., and Abdel-Hakam, A. 2016. Exploring delay causes of road construction projects in Egypt. Alexandria Engineering Journal. 55(2): 1515-1539. DOI: http://dx.doi.org/10.1016/j.aej.2016.03.006
Ruqaishi, M., and Bashir, H. 2013. Causes of delay in construction projects in the oil and gas industry in the Gulf cooperation council countries: a case study. Journal of Management in Engineering. 31(3): 1-8. DOI: http://dx.doi.org/10.1061/(asce)me.1943-5479.0000248
Hussain, S., Zhu, F., Ali, Z., Aslam, H.D., and Hussain, A. 2018. Critical delaying factors: Public sector building projects in Gilgit-Baltistan, Pakistan. Buildings. 8: 1-16. DOI: http://dx.doi.org/10.3390/buildings8010006
Soumphonphakdy, B., Nakamura, S., Okumatsu, T., and Nishikawa, T. 2020. Causes of delays in road construction projects in Laos. Global Journal of Research In Engineering. 20(3): 1-15. DOI:
