The Impact of Local Partner Control Mechanisms on Performance Measures in International Construction Joint Ventures (ICJVs) in Ghana

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The collaborative relationship between foreign-local firms in the form of international construction joint ventures (ICJVs) has been widely adopted in the construction industry over the past decades as a strategic means of providing new large-scale, technically complex building and infrastructure projects. Notwithstanding, industrial practices have also recorded ICJVs as a problematic organizational form in terms of performance. From the international business literature and industrial advocate, the control exercised by partners act as a significant determinant factor of performance. This research study aims to investigate the effect of local partner control mechanisms on performance measures in international construction joint ventures (ICJVs) in Ghana. The study sort to identify the control mechanisms employed by the local partner, and criteria for assessing performance in ICJVs. Purely quantitative research method was adopted in this study. Using questionnaire survey by purposive sampling technique, a total of 83 completed questionnaires formed the basis of the analysis. Local professionals (senior executives e.g. project managers, architects, engineers, quantity surveyors, etc.) in construction joint ventures with foreign construction firms in Ghana were identified as valid respondents for this study. Using descriptive statistics and PLS-SEM analysis, with objective one, four grouped factors of control mechanisms containing 14 observed variables were obtained using confirmatory factor analysis. The means and normalized values were derived after the confirmatory analysis. Training and learning opportunities appeared first, followed by key functional and operational areas, top management staffing and support in policy and planning process. With the objective two, some key performance indicators were obtained from literature and ranked to determine their significance level. A structural equation model was generated for assessing the relationships between control mechanisms with four distinct performance measures. Among the ten (10) hypotheses that was proposed, eight (8) were supported. Generally, personnel control mechanisms represent a vehicle to influence performance at the project, company and centralized level. However, there was a strong correlation to partner performance through the deployment of local partners in key functional and operational areas. Further, policy control mechanisms highly correlate with performance at the project and centralized level. The present study has enriched the existing knowledge base of ICJVs in providing an in-depth understanding that through the adoption of multiple performance measurements, there is a greater understanding of the implications of control of different aspects of an ICJV. Further, employing control mechanisms that improves the performance goal of partners can provide support during the creation and negotiation process in ICJVs.
A Thesis submitted to the Department of Building Technology, College of Art and Built Environment In partial fulfilment of the requirement for the degree of MASTER OF PHILOSOPHY