Irem Dikmen

Comparing the performance of traditional cluster analysis, self-organizing maps and fuzzy C-means method for strategic grouping

Strategic group analysis comprises of clustering of firms within an industry according to their similarities with respect to a set of strategic dimensions and investigating the performance implications of strategic group membership. One of the challenges of strategic group analysis is the selection of the clustering method. In this study, the results of the strategic group analysis of Turkish contractors are presented to compare the performances of traditional cluster analysis techniques, self-organizing maps (SOM) and fuzzy C-means method (FCM) for strategic grouping. Findings reveal that traditional cluster analysis methods cannot disclose the overlapping strategic group structure and position of companies within the same strategic group. It is concluded that SOM and FCM can reveal the typology of the strategic groups better than traditional cluster analysis and they are more likely to provide useful information about the real strategic group structure.

Identification of Risk Paths in International Construction Projects Using Structural Equation Modeling

The major aim of this research is to demonstrate that causal relationships exist among various risk factors that necessitate identification of risk paths, rather than individual risk factors, during risk assessment of construction projects. International construction projects have more complex risk-emergence patterns because they are affected by global and foreign country conditions and project-related factors. Identification of a network of interactive risk paths, each of which initiated from diverse vulnerabilities of the project system, is considered to be a better reflection of the real conditions of construction projects than the use of generic risk checklists. In this study, using the data from 166 projects carried out by Turkish contractors in international markets and utilizing structural equation modeling (SEM) techniques, 36 interrelated risk paths were identified and the total effects of each vulnerability factor and risk path on cost overrun were assessed. SEM findings demonstrate that every r...

Performance of International Joint Ventures in Construction

International joint ventures (IJVs) have become popular because of their importance as a strategic alternative in global competition. The measurement of the performance of IJVs has been an important research topic for a few decades, however there is no consensus on an appropriate definition and measurement of IJV performance. In this study, a model is proposed to assess IJV performance in construction. The validity of the proposed drivers and measures of performance is investigated and relationships between them are analyzed. The effects of interpartner fit/relations, structural IJV characteristics, host country factors, and project-related factors on IJV performance are examined through a questionnaire survey. IJV performance is defined by a four-dimensional construct that considers the performance of the project, the IJV partners, the IJV organization itself, and the perceptions of the IJV partners. The results point out the significance of the interpartner fit and the quality of partner relations for a successful IJV operation. The findings of the study also suggest that project-related factors have a moderate influence on IJV performance. In a properly designed IJV structure, partners with compatible skills, resources, and cultures are found to maintain good relations and are expected to achieve greater IJV success.

RISK ASSESSMENT OF INTERNATIONAL CONSTRUCTION PROJECTS USING THE ANALYTIC NETWORK PROCESS

In this study, an analytic network process (ANP), which can handle the interrelations between risk related factors, is proposed as a reliable technique for measuring the level of risk associated with international construction projects. Within this context, ANP is used to derive the relative priorities of risk factors as an input to a decision support tool, which can be utilized during bidding decisions. The decision support tool may help a decision maker to estimate the level of risk so that alternative projects may be ranked with respect to their risk levels and appropriate contingency values may be defined after a bid decision is given. The tool has a database in which risk information of the rated projects can be stored for future use. The reliability of the tool was tested on eight real cases and satisfactory results were achieved in estimating the risk level.

Ontology for Relating Risk and Vulnerability to Cost Overrun in International Projects

Risk management is about identifying risks, assessing their impacts, and developing mitigation strategies to ensure project success. The difference between the expected and actual project outcomes is usually attributed to risk events and how they are managed throughout the project. Although there are several reference frameworks that explain how risks can be managed in construction projects, a major bottleneck is the lack of a common vocabulary for risk-related concepts. Poor definition of risk and patterns of risk propagation in a project decrease the reliability of risk models that are constructed to simulate project outcomes under different risk occurrence scenarios. This study aims to extend previous studies in risk management by presenting an ontology for relating risk-related concepts to cost overrun. The major idea is that cost overrun depends on causal relations between various risk sources (namely, risk paths) and sources of vulnerability that interfere with these paths. Ontology is used to develop a database system that represents risk event histories of international construction projects and to construct a model for estimation of cost overrun. It will form the basis of a multiagent system that can be used to simulate the negotiation process among project participants about sharing of costs considering the risk allocation clauses in the contract, sources of vulnerability, and causal relations between risk events and their impacts. The ontology is constructed by interaction with Turkish contractors working in international markets and extensive literature review on risk-related concepts. The validation test results provide evidence that the ontology is fairly effective to help Turkish contractors to assess cost overrun by considering sources of vulnerability and risk in international construction projects.

Using analytic network process to assess business failure risks of construction firms

Purpose – The paper seeks to identify the determinants of business failure in construction and to predict the failure likelihood of construction companies by assessing their current situation based on both company‐specific and external factors.Design/methodology/approach – A conceptual model is designed based on an extensive literature survey. The analytical network process together with the Delphi method is utilised to compute the importance weights of variables on business failure through interviews and discussions with experts. The applicability of the proposed model is tested on five companies to estimate their failure likelihood by using the findings derived from the analysis.Findings – The results suggest the importance of organisational and managerial factors, including the efficiency of the value chain at the corporate level, the appropriateness of organisational decisions, and the availability of intangible resources for the survival of construction companies.Research limitations/implications – T...

Organizational memory formation and its use in construction

As knowledge becomes a source of competitive advantage, knowledge-management activities have become critical for success. Construction firms can effectively use their organizational memory to enhance their decision-making abilities. A framework was constructed to model the organizational memory formation process in construction companies. Based on this model, an interview study was conducted to investigate both the organizational memory formation and the role of organizational memory in strategic decision-making within the construction industry. Eight Turkish contractors were assessed. The results suggest that construction companies make use of several knowledge sources and mechanisms to acquire knowledge. Although construction companies are successful at the collection and storage of knowledge, they are weak in the exploitation of organizational memory, especially at the strategic decision-making stage. In addition, they cannot increase their organizational learning competence due to some company- and industry-specific barriers.

A review of international construction research: Ranko Bon's contribution

Literature on international construction is rich in adopting conceptual frameworks to investigate levels of international competitiveness and making inter‐country comparisons about sources of national competitive advantage. However, there are limited studies that result from collaborative work between different country researchers about development of custom frameworks to investigate complexities of international construction business, experience‐based generic libraries applicable to international construction projects and forecasting models. Ranko Bons contribution to the international construction literature is invaluable as he has dealt with broad trends and dominant patterns of change in the global construction market by referring to judgments of experts from all over the world and helped dissemination of this practical information which may be used by policy makers and construction professionals seeking jobs in the global market.

Toward a Multidimensional Performance Measure for International Joint Ventures in Construction

Measuring the performance of joint ventures has been an important research topic for a few decades. No consensus on an appropriate definition and measurement of performance of international joint ventures (IJVs) has yet emerged, and the validity of the underlying measures is still questionable. In this study, the construct validity of measures that define IJV performance in construction is evaluated using data obtained through a questionnaire survey. A second-order performance construct is proposed, which is measured by means of project performance, partner performance, performance of IJV management, and perceived satisfaction with IJV. The validity of the performance measures is evaluated by means of tests that assess content validity, reliability, and convergent and discriminant validity. The findings reveal that all proposed indicators are valid measures of IJV performance and that they correspond to different dimensions of performance. This research is expected to trigger further work on developing a multidimensional performance measure for IJVs in construction. In addition, the findings can help practitioners reflect on how they operate and measure the success of their IJVs.

Preparing Civil Engineers for International Collaboration in Construction Management

Economic globalization is increasingly affecting both the construction industry and academia. It is changing the traditional roles of civil engineers and construction managers. Cross-cultural collaboration and communication skills, multinational team management skills, the ability to overcome the social challenges of geographically distributed teams, and familiarity with construction materials, standards, and methods of foreign countries are vital for modern construction professionals. However, the traditional skills and education style of engineers and construction managers do not equip them to successfully deal with such issues. This paper describes the experiences of a university course International Collaborative Construction Management that was developed to educate the next generation of civil engineers to be more internationally savvy. Throughout the three years that the course has been conducted to date, students in Turkey, the United States, Israel, and Brazil were grouped in multinational teams. ...