A factorial analysis of international construction joint venture performance measures: A case of Ghana

Samuel Twum-Ampofo (Kwame Nkrumah University of Science and Technology)
Gabriel Nani (Kwame Nkrumah University of Science and Technology)
Mershack Opoku Tetteh (Kwame Nkrumah University of Science and Technology)
Benjamin Kwaku Ababio (Kwame Nkrumah University of Science and Technology)

Abstract


Little study on performance measurement has been conducted within sub-Saharan Africa, where international construction joint ventures (ICJV) have become an emerging trend in construction. Consequently, the reliability and comparability of existing performance measures in such a new region are unknown. This paper adds to the existing knowledge by identifying the relevant joint venture (JV) performance measures within the Ghanaian construction industry. Using a self-administered data obtained through a questionnaire survey by purposive and snowball sampling, respondents rated their perceptions of 20 performance measures identified from the literature. Factor analysis established the variables measuring aspects of the same underlying dimensions. A total of four key performance measures were identified and explained in terms of a cooperative relationship, financial measures, strategic and learning measures. The findings would enlighten JV stakeholders of the reasons underlying the choice of performance metrics, while in a broader picture assist in choosing the right measures to evaluate the extent to which the objectives of the newly formed JV have been achieved.


Keywords


Construction; Joint Venture; Performance Measures.

Full Text:

PDF

References


[1] Abdel-Maksoud, A., Asada, T., and Nakagawa, M. (2008) “Performance measures, managerial practices and manufacturing technologies in Japanese manufacturing firms: state -of-the-art”. International Journal of Business Performance Management 10: 1-16.

[2] Acquaah, M. (2009) “International joint venture partner origin, strategic choice, and performance: A comparative analysis in an emerging economy in Africa”. Journal of International Management 15: 46-60.

[3] Ahadzie, D. K. (2007). A Model for Predicting the Performance of Project Managers in Mass House Building Projects in Ghana, PhD Thesis (Unpublished), University of Wolverhampton, UK.

[4] Autio, E., Hameri, A. P., and Vuola, O. (2004) “A framework of industrial knowledge spillovers in big-science centers”. Research Policy 33: 107-126.

[5] Bamford, J., Ernst, D., and Fubini, D. G. (2004). Launching a world-class joint venture.

[6] Harvard business review, 82(2), 90-100.

[7] Baur, D., and Schmitz, H. P. (2011). Corporations and NGOs: when accountability leads to co-optation. Journal of Business Ethics, 106 (1), 9-21.

[8] Berens, G., and Van Riel, C. (2004). Corporate associations in the academic literature: three main streams of thought in the reputation measurement literature. Corporate Reputation Review, 7 (2), 161–178.

[9] Boateng, A., and Glaister, K. W. (2000). Foreign direct investment in Ghana: Patterns of activity, distribution and the role of government policy. Journal of Euromarketing, 8(4), 51-74.

[10] Boateng, A., and Glaister, K. W. (2002) “Performance of international joint ventures:

[11] Evidence for West Africa”. International Business Review 11: 523-541.

[12] Chen, C., and Messner, J. I. (2010) “Permanent versus mobile entry decisions in international construction markets: Influence of home country–and firm-related factors”. Journal of Management in Engineering 27: 2-12.

[13] Child, J., and Yan, Y. (2003) “Predicting the performance of international joint

[14] ventures: An investigation in China”. Journal of Management Studies 40: 283-320.

[15] Chong, H. G. (2009) “Measuring performance of Chinese joint ventures”. Advances in Accounting 25: 81-88.

[16] Contractor, F., and Lorange, P. (2004) “Why should firms cooperate? The strategy and economics basis for cooperative ventures” In: REUER, JJ Strategic Alliances: theory and evidence.

[17] Costello, Anna B. and Jason Osborne (2005). Best practices in exploratory factor analysis: four recommendations for getting the most from your analysis. Practical Assessment Research & Evaluation, 10(7).

[18] DeCoster J. 1998. Overview of Factor Analysis. 21(12):1–4. Available from: http://www.stat-help.com/notes.html [Accessed on 1 July, 2015].

[19] Dlungwana, W. S., and Rwelamila, P. D. (2004) “Contractor development models that meet the challenges of globalization-a case for developing management capability of local contractors”. Globalization and Construction 347.

[20] Feldman, P. M., Bahamonde, R. A. and Velasquez Bellido, I. (2014). A new approach for measuring corporate reputation. Revista de Administração de Empresas, 54(1), 53 -66.

[21] Ghana Business Directory (2011-2016) Worldwide Press Limited, Accra.

[22] Ghana Investment Promotion Centre, (2011-2016) “Database of approved investment projects”, Accra, Ghana.

[23] Hardcastle C, Edwards P, Akintoye A, Bing L. 2005. Critical success factors for PPP/PFI projects in the UK construction industry: a factor analysis approach. Construction Management and Economics. 23(5):459–71.

[24] Hauck, A. J., Walker, D. H., Hampson, K. D., and Peters, R. J. (2004) “Project alliancing at national museum of Australia—collaborative process”. Journal of Construction Engineering and Management 130: 143-152.

[25] Helfert, E. A. (2001). Financial analysis: Tools and techniques a guide for managers.

[26] McGraw-Hil.

[27] Hong, Y. (2014) “An empirical study of partners' collaboration in construction joint venture (CJV) projects and its impacts on project performance in Hong Kong” (Doctoral dissertation, The Hong Kong Polytechnic University).

[28] Julian, C. C. (2005) “International Joint Venture (IJV) marketing performance: alternative approaches to performance measurement”. International Journal of Business Performance Management 7: 334-348.

[29] Jusoh, R., Ibrahim, D. N., and Zainuddin, Y. (2008) “Selection approach to assessing the alignment between business strategy and use of multiple performance measures in Malaysian manufacturing firms”. Asian Journal of Business and Accounting 1: 67-92.

[30] Kaiser, H.F. (1974). An index of factorial simplicity. Psychometrika, 39, 31-36.

[31] Kale, P., and Singh, H. (2007) “Building firm capabilities through learning: the role of

[32] the alliance learning process in alliance capability and firm‐level alliance

[33] success”.Strategic Management Journal 28: 981-1000.

[34] Larimo, J., Le Nguyen, H., and Ali, T. (2016) “Performance measurement choices in international joint ventures: What factors drive them”? Journal of Business Research 69: 877-887.

[35] Li, J., Qian, G., Lam, K., and Wang, D. (2000) “Breaking into China: Strategic

[36] considerations for multinational corporations”. Long Range Planning 33: 673-687.

[37] Likierman, A. (2009). The five traps of performance measurement. Harvard business review, 87(10), 96-101.

[38] Mohamed, S. (2003) “Performance in international construction joint ventures: Modeling

[39] perspective”. Journal of Construction Engineering and Management 129: 619-626.

[40] Mohr, A. T., and Puck, J. F. (2005) “Managing functional diversity to improve the performance of international joint ventures”. Long Range Planning 38: 163-182.

[41] Nunnally, C. Jum. (1978). Psychometric Theory. New York: McGraw Hill Book Co.

[42] Ochieng, E. G., Price, A. D., Ruan, X., Egbu, C. O., and Moore, D. (2013) “The effect of cross-cultural uncertainty and complexity within multicultural construction teams”. Engineering, Construction and Architectural Management 20: 307-324.

[43] Osei-Kyei R, Dansoh A, Ofori-Kuragu JK. 2014. Reasons for adopting Public-Private Partnership (PPP) for construction projects in Ghana. Int J Constr Manag. 14:227– 238.

[44] Ozorhon, B., Arditi, D., Dikmen, I., and Birgonul, M. T. (2010) “Toward a multidimensional performance measure for international joint ventures in construction”. Journal of construction engineering and management 137: 403-411.

[45] Pallant J. 2010. SPSS survival manual: A step by step to data analysis using the SPSS program. 4th ed. Queensland, Aus-tralia: McGraw-Hill.

[46] Sim, A. B., and Ali, M. Y. (2001) “Joint Ventures of Asian and Western Multinational

[47] Enterprises: A comparative analysis of western, Japanese, NIC and LDC firms”. Asia

[48] pacific business review 8: 42-62

[49] Talman, J. (2009) “Management control in joint ventures: an analysis based on transaction cost economics and game theory”.

[50] Yan, A and Luo, Y (2001) International Joint Ventures: Theory and Practice. Armonk, NY: M.E. Sharpe.

[51] Zhang, G., and Zou, P. X. (2007) “Fuzzy analytical hierarchy process risk assessment approach for joint venture construction projects in China”. Journal of Construction Engineering and Management 133: 771-779.



DOI: https://doi.org/10.30564/jaeser.v2i1.498

Refbacks

  • There are currently no refbacks.
Copyright © 2019 Samuel Twum-Ampofo, Gabriel Nani, Mershack Opoku Tetteh, Benjamin Kwaku Ababio


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.