Critical success factors for enterprise risk management in Chinese construction companies

Construction Management and Economics

Volumn 31, Issue 12, 2013, Pages 1199-1214

  Zhao, Xianbo ^a   Hwang, Bon Gang ^a   Low, Sui Pheng ^a  

^a NATIONAL UNIVERSITY OF SINGAPORE   (Singapore)

Author keywords

Construction companies; critical success factors; enterprise risk management; factor analysis; structural equation modelling

Indexed keywords

CONSTRUCTION BUSINESS; CONSTRUCTION COMPANIES; CRITICAL SUCCESS FACTOR; ENTERPRISE RISK MANAGEMENT; IN-DEPTH UNDERSTANDING; LITERATURE REVIEWS; RISK IDENTIFICATION; STRUCTURAL EQUATION MODELLING;

COMMUNICATION; CONSTRUCTION; FACTOR ANALYSIS; INTEGRATION; RISK ASSESSMENT; RISK MANAGEMENT; SURVEYS;

CONSTRUCTION INDUSTRY;

CONSTRUCTION INDUSTRY; EQUATION; INDUSTRIAL ENTERPRISE; RISK ASSESSMENT;

CHINA;

EID: 84903363360     PISSN: 01446193     EISSN: 1466433X     Source Type: Journal    
DOI: 10.1080/01446193.2013.867521     Document Type: Review

References (101)

1. Aabo, T., Fraser, J.R.S. and Simkins, B.J. (2005) The rise and evolution of the chief risk officer: enterprise risk management at Hydro One. Journal of Applied Corporate Finance, 17(3), 62-75.
2. Aibinu, A.A., Ling, F.Y.Y. and Ofori, G. (2011) Structural equation modelling of organizational justice and cooperative behaviour in the construction project claims process: contractors' perspectives. Construction Management and Economics, 29(5), 463-81.
3. AON (2010) Global Risk Management Survey 2010, AON plc, Chicago, IL.
4. Banham, R. (2004) Enterprising views of risk management. Journal of Accountancy, 197(6), 65-71.
5. Barton, T.L., Shenkir, W.G. and Walker, P.L. (2002) Making Enterprise Risk Management Pay Off, Financial Times/Prentice Hall, Upper Saddle River, NJ.
6. Beasley, M.S., Clune, R. and Hermanson, D.R. (2005) Enterprise risk management: an empirical analysis of factors associated with the extent of implementation. Journal of Accounting and Public Policy, 24(6), 521-31.
7. Beasley, M.S., Branson, B.C. and Hancock, B.V. (2010) Developing Key Risk Indicators to Strengthen Enterprise Risk Management. ERM Initiative at North Carolina State University and the Committee of Sponsoring Organizations of the Treadway Commission, Raleigh, NC.
8. Bowling, D.M. and Rieger, L.A. (2005) Success factors for implementing enterprise risk management. Bank Accounting & Finance, 18(3), 21-6.
9. Brooks, D.W. (2010) Creating a risk-aware culture, in Fraser, J. and Simkins, B.J. (eds.) Enterprise Risk Management, John Wiley & Sons, Hoboken, NJ, pp. 87-96.
10. Cendrowski, H. and Mair, W.C. (2009) Enterprise Risk Management and COSO: A Guide for Directors, Executives, and Practitioners, John Wiley & Sons, Hoboken, NJ.
11. Chan, A.P.C., Chan, D.W.M., Chiang, Y., Tang, B., Chan, E.H.W. and Ho, K.S.K. (2004) Exploring critical success factors for partnering in construction projects. Journal of Construction Engineering and Management, 130(2), 188-98.
12. Chan, A.P.C., Lam, P.T.I., Chan, D.W.M., Cheung, E. and Ke, Y. (2010) Critical success factors for PPPs in infrastructure developments: Chinese perspective, Journal of Construction Engineering and Management, 136(5), 484-94.
13. Chapman, R. (2006) Simple Tools and Techniques for Enterprise Risk Management. John Wiley & Sons, Chichester.
14. Chen, W.T. and Chen, T.T. (2007) Critical success factors for construction partnering in Taiwan. International Journal of Project Management, 25(5), 475-84.
15. Chin, W.W. (1998) The partial least squares approach to structural equation modeling, in Marcoulides, G.A. (ed.) Modern Methods for Business Research, Lawrence Erlbaum Associates, Mahwah, NJ, pp. 295-335.
16. Chitakornkijsil, P. (2010) Enterprise risk management, International Journal of Organizational Innovation, 3(2), 309-37.
17. Collier, P.M. (2009) Fundamentals of Risk Management for Accountants and Managers. Butterworth-Heinemann, Oxford.
18. Committee of Sponsoring Organizations of the Treadway Commission (2004) Enterprise Risk Management: Integrated Framework: Executive Summary & Framework, COSO, Jersey City, NJ.
19. Comrey, A.L. (1973) A First Course in Factor Analysis, Academic Press, New York.
20. Culp, C.L. (2002) The revolution in corporate risk management: a decade in innovations in process and products. Journal of Applied Corporate Finance, 14(4), 8-26.
21. Cumming, C. and Hirtle, B. (2001) The challenges of risk management in diversified financial companies. FRBNY Economic Policy Review, 7(1), 1-17.
22. Dafikpaku, E. (2011) The strategic implications of enterprise risk management: a framework. Paper presented at the 2011 Enterprise Risk Management Symposium, Chicago, IL, 14-16 March.
23. Davison, A.C. and Hinkley, D.V. (1997) Bootstrap Methods and Their Application, Cambridge University Press, Cambridge.
24. DiStefano, C., Zhu, M. and Mindrila, D. (2009) Understanding and using factor scores: considerations for the applied researcher. Practical Assessment, Research & Evaluation, 14(20), 1-11.
25. Doloi, H., Sawhney, A. and Iyer, K. (2012) Structural equation model for investigating factors affecting delay in Indian construction projects. Construction Management and Economics, 30(10), 869-84.
26. Duckert, G.H. (2011) Practical Enterprise Risk Management: A Business Process Approach, John Wiley & Sons, Hoboken, NJ.
27. Economist Intelligence Unit (2007) Best Practice in Risk Management, EIU, London.
28. Efron, B. (1987) Better bootstrap confidence intervals. Journal of the American Statistical Association, 82(397), 171-85.
29. Espersen, D. (2007) The language of risk. Internal Auditor, 64(3), 69-73.
30. Eybpoosh, M., Dikmen, I. and Birgonul, M.T. (2011) Identification of risk paths in international construction projects using structural equation modeling. Journal of Construction Engineering and Management, 137(12), 1164-75.
31. Fornell, C. and Bookstein, F.L. (1982) Two structural equation models: LISREL and PLS applied to consumer exit-voice theory. Journal of Marketing Research, 19(4), 440-52.
32. Fornell, C. and Larcker, D.F. (1981) Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
33. Garvey, P.R. (2008) Analytical Methods for Risk Management. CRC Press, Boca Raton, FL.
34. Gates, S. (2006) Incorporating strategic risk into enterprise risk management: a survey of current corporate practice. Journal of Applied Corporate Finance, 18(4), 81-90.
35. Gordon, L.A., Loeb, M.P. and Tseng, C.Y. (2009) Enterprise risk management and firm performance: a contingency perspective. Journal of Accounting and Public Policy, 28(4), 301-27.
36. Gorsuch, R.L. (1983) Factor Analysis, 2nd edn, Erlbaum, Hillsdale, NJ.
37. Gupta, P.K. (2011) Risk management in Indian companies: EWRM concerns and issues. Journal of Risk Finance, 12(2), 121-39.
38. Hair, J.F., Anderson, R.E., Tatham, R.L. and Black, W.C. (1998) Multivariate Data Analysis with Readings, International edn, Prentice Hall, Englewood Cliffs, NJ.
39. Hair, J.F., Ringle, C.M. and Sarstedt, M. (2011) PLS-SEM: indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-51.
40. Hair, J.F., Sarstedt, M., Pieper, T.M. and Ringle, C.M. (2012) The use of partial least squares structural equation modeling in strategic management research: a review of past practices and recommendations for future applications. Long Range Planning, 45(5-6), 320-40.
41. Hallowell, M.R., Molenaar, K.R. and Fortunato, B.R. (2013) Enterprise risk management strategies for state departments of transportation. Journal of Management in Engineering, 29(2), 114-21.
42. Hetzel, R.D. (1996) A primer on factor analysis with comments on patterns of practice and reporting, in Thompson, B. (ed.) Advances in Social Science Methodology, Vol. 4, JAI, Greenwich, CT, pp. 175-206.
43. Hopkin, P. (2010) Fundamentals of Risk Management, Kogan Page, London.
44. Hopkinson, M. (2011) The Project Risk Maturity Model: Measuring and Improving Risk Management Capability, Gower, Burlington, VT.
45. Hoyt, R.E. and Liebenberg, A.P. (2011) The value of enterprise risk management. Journal of Risk and Insurance, 78(4), 795-822.
46. Hwang, B.G. and Lim, E.S.J. (2013) Critical success factors for key project players and objectives: case study of Singapore. Journal of Construction Engineering and Management, 139(2), 204-15.
47. Hwang, B.G., Zhao, X. and Gay, M.J.S. (2013) Public private partnership projects in Singapore: factors, critical risks and preferred risk allocation from the perspective of contractors. International Journal of Project Management, 31(3), 424-33.
48. Hwang, S. (2010) Identifying and communicating key risk indicators, in Fraser, J.R.S. and Simkins, B.J. (eds.) Enterprise Risk Management, John Wiley & Sons, Hoboken, NJ, pp. 125-40.
49. Ika, L.A., Diallo, A. and Thuillier, D. (2012) Critical success factors for World Bank projects: an empirical investigation. International Journal of Project Management, 30(1), 105-16.
50. Institute of Management Accountants (2006) Enterprise Risk Management: Frameworks, Elements, and Integration, IMA, Montvale, NJ.
51. International Organization for Standardization (2009) Guide 73:2009 Risk Management: Vocabulary, ISO, Geneva.
52. International Organization for Standardization (2009) ISO 31000:2009 Risk Management: Principles and Guidelines, ISO, Geneva.
53. Kleffner, A.E., Lee, R.B. and McGannon, B. (2003) The effect of corporate governance on the use of enterprise risk management: evidence from Canada. Risk Management and Insurance Review, 6(1), 53-73.
54. KPMG (2010) Charting a Safe and Sustainable Growth Journey: Singapore Enterprise Risk Management Survey 2010, KPMG in Singapore, Singapore.
55. Kulatunga, U., Amaratunga, D. and Haigh, R. (2009) Critical success factors of construction research and development. Construction Management and Economics, 27(9), 891-900.
56. Lam, E.W., Chan, A.P. and Chan, D.W. (2008) Determinants of successful design-build projects. Journal of Construction Engineering and Management, 134(5), 333-41.
57. Lee, G.K. and Chan, E.H. (2008) Factors affecting urban renewal in high-density city: case study of Hong Kong. Journal of Urban Planning and Development, 134(3), 140-8.
58. Li, B., Akintoye, A., Edwards, P.J. and Hardcastle, C. (2005) Critical success factors for PPP/PFI projects in the UK construction industry. Construction Management and Economics, 23(5), 459-71.
59. Liebenberg, A.P. and Hoyt, R.E. (2003) The determinants of enterprise risk management: evidence from the appointment of chief risk officers. Risk Management and Insurance Review, 6(1), 37-52.
60. Lim, B.T.H., Ling, F.Y.Y., Ibbs, C.W., Raphael, B. and Ofori, G. (2011) Empirical analysis of the determinants of organizational flexibility in the construction business. Journal of Construction Engineering and Management, 137(3), 225-37.
61. Lim, B.T.H., Ling, F.Y.Y., Ibbs, C.W., Raphael, B. and Ofori, G. (2012) Mathematical models for predicting organizational flexibility of construction firms in Singapore. Journal of Construction Engineering and Management, 138(3), 361-75.
62. Ling, F.Y.Y., Li, S., Low, S.P. and Ofori, G. (2012) Mathematical models for predicting Chinese A/E/C firms' competitiveness. Automation in Construction, 24, 40-51.
63. Liu, J.Y., Low, S.P. and He, X. (2011) Current practices and challenges of implementing enterprise risk management (ERM) in Chinese construction enterprises. International Journal of Construction Management, 11(4), 49-63.
64. Liu, J.Y., Zou, P.X.W. and Gong, W. (2013) Managing project risk at enterprise level: exploratory case studies in China. Journal of Construction Engineering and Management, 139(9), 1268-74.
65. Low, S.P. and Jiang, H. (2006) Analysing ownership, locational and internalization advantages of Chinese construction MNCs using rough sets analysis. Construction Management and Economics, 24(11), 1149-65.
66. Low, S.P., Liu, J.Y., Ng, S.H.M. and Liu, X. (2013) Enterprise risk management and the performance of local contractors in Singapore. International Journal of Construction Management, 13(2), 27-41.
67. Malhotra, N.K. (2006) Marketing Research: An Applied Orientation, 5th edn, Pearson/Prentice Hall, Upper Saddle River, NJ.
68. Matsunaga, M. (2010) How to factor-analyze your data right: do's, don'ts, and how-to's. International Journal of Psychological Research, 3(1), 97-110.
69. Meulbroek, L. (2002) A senior manager's guide to integrated risk management. Journal of Applied Corporate Finance, 14(4), 56-70.
70. Muralidhar, K. (2010) Enterprise risk management in the Middle East oil industry: an empirical investigation across GCC countries. International Journal of Energy Sector Management, 4(1), 59-86.
71. National Bureau of Statistics of China (2012) China Statistical Yearbook 2012, China Statistics Press, Beijing.
72. Norusis, M.J. (1992) SPSS for Windows, Professional Statistics, Release 5.0, IL, Chicago.
73. Nunnally, J.C. (1978) Psychometric Theory, 2nd edn, McGraw-Hill, New York.
74. Olson, D.L. and Wu, D. (2008) Enterprise Risk Management, World Scientific Publishing, Singapore.
75. Pagach, D.P. and Warr, R.S. (2010) The effects of enterprise risk management on firm performance, Working Paper, North Carolina State University, Raleigh, NC.
76. Pagach, D.P. and Warr, R.S. (2011) The characteristics of firms that hire chief risk officers. Journal of Risk and Insurance, 78(1), 185-211.
77. Patton, M.Q. (2001) Qualitative Research & Evaluation Components, 3rd edn, Sage, Thousand Oaks, CA.
78. Pett, M.A., Lackey, N.R. and Sullivan, J.J. (2003) Making Sense of Factor Analysis: The Use of Factor Analysis for Instrument Development in Health Care Research, Sage, Thousand Oaks, CA.
79. Professional Risk Managers' International Association (2008) Enterprise Risk Management (ERM): A Status Check on Global Best Practices, PRMIA, Northfield, MN.
80. Project Management Institute (2008) A Guide to the Project Management Body of Knowledge, PMI, Newtown Square, PA.
81. Protiviti (2006) Guide to Enterprise Risk Management, Protiviti Inc, Menlo Park, CA.
82. Risk and Insurance Management Society (2008) RIMS State of ERM Report 2008, RIMS, New York.
83. Rockart, J.F. (1982) The changing role of the information systems executive: a critical success factors perspective. Sloan Management Review, 24(1), 3-13.
84. Sanchez, H., Robert, B., Bourgault, M. and Pellerin, R. (2009) Risk management applied to projects, programs, and portfolios. International Journal of Managing Projects in Business, 2(1), 14-35.
85. Segal, S. (2011) Corporate Value of Enterprise Risk Management, John Wiley & Sons, Hoboken, NJ.
86. Sharman, R. (2002) Enterprise risk management: the KPMG approach. British Journal of Administrative Management, 31, 26-8.
87. Shortreed, J. (2010) ERM framework, in Fraser, J. and Simkins, B.J. (eds.) Enterprise Risk Management, John Wiley & Sons, Hoboken, NJ, pp. 97-123.
88. State-owned Assets Supervision and Administration Commission of the State Council of China (2006) Guidance to Enterprise Risk Management for Central Enterprises, SASAC, Beijing.
89. Stroh, P.J. (2005) Enterprise risk management at United Healthcare. Strategic Finance, 87(1), 26-35.
90. Tabish, S.Z.S. and Jha, K.N. (2011) Identification and evaluation of success factors for public construction projects. Construction Management and Economics, 29(8), 809-23.
91. Tang, L.C., Atkinson, B. and Zou, R.R. (2012) An entropy-based SWOT evaluation process of critical success factors for international market entry: a case study of a medium-sized consulting company. Construction Management and Economics, 30(10), 821-34.
92. Thompson, B. (2003) Exploratory and Confirmatory Factor Analysis: Understanding Concepts and Applications, American Psychological Association, Washington, DC.
93. Ward, J. (2006) ERM: Evolving, Resonating, and Maturing Down Under, Standard & Poor's, New York.
94. Ward, S. and Chapman, C. (2003) Transforming project risk management into project uncertainty management. International Journal of Project Management, 21(2), 97-105.
95. Wilkins, J.R. (2011) Construction workers' perceptions of health and safety training programmes. Construction Management and Economics, 29(10), 1017-26.
96. Wu, D. and Olson, D.L. (2008) Enterprise risk management: financial and accounting perspectives, in Olson, D.L. and Wu, D. (eds.) New Frontiers in Enterprise Risk Management, Springer, Heidelberg, pp. 25-38.
97. Yang, J., Shen, G.Q., Ho, M., Drew, D.S. and Chan, A.P.C. (2009) Exploring critical success factors for stakeholder management in construction projects. Journal of Civil Engineering and Management, 15(4), 337-48.
98. Yang, J., Shen, G.Q., Drew, D.S. and Ho, M. (2010) Critical success factors for stakeholder management: construction practitioners' perspectives. Journal of Construction Engineering and Management, 136(7), 778-86.
99. Zhao, X., Hwang, B.G. and Low, S.P. (2012) Implementing enterprise risk management in a Chinese construction firm based in Singapore, in Senaratne, S. and Sandanayake, Y.G. (eds) Proceedings of World Construction Conference 2012, Colombo, Sri Lanka, 28-30 June, Ceylon Institute of Builders, pp. 434-44.
100. Zhao, X., Hwang, B.G. and Low, S.P. (2013) Developing fuzzy enterprise risk management maturity model for construction firms. Journal of Construction Engineering and Management, 139(9), 1179-89.
101. Zou, P.X.W., Zhang, G. and Wang, J. (2007) Understanding the key risks in construction projects in China. International Journal of Project Management, 25(6), 601-14.