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: Journal article publicationJournal articleAcademic researchpeer-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 languageEnglish
JournalEngineering, Construction and Architectural Management
DOIs
Publication statusAccepted/In press - 2022

Keywords

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

ASJC Scopus subject areas

  • Architecture
  • Civil and Structural Engineering
  • Building and Construction
  • Business, Management and Accounting(all)

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