IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i19p5332-d271237.html
   My bibliography  Save this article

Enhancing Risk Management by Partnering in International EPC Projects: Perspective from Evolutionary Game in Chinese Construction Companies

Author

Listed:
  • Yujing Yang

    (Department of Civil Engineering, Shanxi University, Taiyuan 030006, China
    Institute of Project Management and Construction Technology, State Key Laboratory of Hydroscience and Engineering, Tsinghua University, Beijing 10084, China)

  • Wenzhe Tang

    (Institute of Project Management and Construction Technology, State Key Laboratory of Hydroscience and Engineering, Tsinghua University, Beijing 10084, China)

  • Wenxin Shen

    (Institute of Project Management and Construction Technology, State Key Laboratory of Hydroscience and Engineering, Tsinghua University, Beijing 10084, China)

  • Tengfei Wang

    (Institute of Project Management and Construction Technology, State Key Laboratory of Hydroscience and Engineering, Tsinghua University, Beijing 10084, China)

Abstract

Research on risk management in Engineering–Procurement–Construction (EPC) projects has received increasing attention. It is essential to integrate the resources of all participants into the risk management process optimally from the perspective of evolutionary games. The conceptual risk management model in the delivery of international EPC projects is developed in the study. Based on the data from an industry survey, the model has been validated. The path analysis shows that partnering not only directly contributes to interface management and risk management, thereby improving project outcomes, but also has a positive impact on risk management through enhanced interface management. The case study illustrates how partnering has a close linkage with interface management and risk management to achieve superior project performance, confirming the analysis of evolutionary game. The results suggest that contractors’ success in applying partnership can play an exemplary role for other contractors, and governments can create a favorable environment to stimulate participants using win–win philosophy for better infrastructure development.

Suggested Citation

  • Yujing Yang & Wenzhe Tang & Wenxin Shen & Tengfei Wang, 2019. "Enhancing Risk Management by Partnering in International EPC Projects: Perspective from Evolutionary Game in Chinese Construction Companies," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:19:p:5332-:d:271237
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/19/5332/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/19/5332/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Corkin, Lucy, 2012. "Chinese construction companies in Angola: A local linkages perspective," Resources Policy, Elsevier, vol. 37(4), pages 475-483.
    2. Stefan Christoffer Gottlieb & Kim Haugb?lle, 2013. "Contradictions and collaboration: partnering in-between systems of production, values and interests," Construction Management and Economics, Taylor & Francis Journals, vol. 31(2), pages 119-134, February.
    3. Chen Chen & Garud Iyengar & Ciamac C. Moallemi, 2013. "An Axiomatic Approach to Systemic Risk," Management Science, INFORMS, vol. 59(6), pages 1373-1388, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammad Ajmal Nikjow & Li Liang & Xijing Qi & Samad Sepasgozar, 2021. "Engineering Procurement Construction in the Context of Belt and Road Infrastructure Projects in West Asia: A SWOT Analysis," JRFM, MDPI, vol. 14(3), pages 1-17, February.
    2. Carlos Araújo-Rey & Miguel A. Sebastián, 2021. "An Approach to the Analysis of Causes of Delays in Industrial Construction Projects through Planning and Statistical Computing," Sustainability, MDPI, vol. 13(7), pages 1-21, April.
    3. Ole Jonny Klakegg & Julien Pollack & Lynn Crawford, 2020. "Preparing for Successful Collaborative Contracts," Sustainability, MDPI, vol. 13(1), pages 1-18, December.
    4. Hui-Ping Tserng & I-Cheng Cho & Chun-Hung Chen & Yu-Fan Liu, 2021. "Developing a Risk Management Process for Infrastructure Projects Using IDEF0," Sustainability, MDPI, vol. 13(12), pages 1-22, June.
    5. Jiabao Jing & Xiaomei Deng & Rashid Maqbool & Yahya Rashid & Saleha Ashfaq, 2020. "Default Behaviors of Contractors under Surety Bond in Construction Industry Based on Evolutionary Game Model," Sustainability, MDPI, vol. 12(21), pages 1-28, November.
    6. Ahmad Soltanzadeh & Mohsen Mahdinia & Alireza Omidi Oskouei & Ehsan Jafarinia & Esmaeil Zarei & Mohsen Sadeghi-Yarandi, 2022. "Analyzing Health, Safety, and Environmental Risks of Construction Projects Using the Fuzzy Analytic Hierarchy Process: A Field Study Based on a Project Management Body of Knowledge," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    7. Jarosław Górecki & Manuel Díaz-Madroñero, 2020. "Who Risks and Wins?—Simulated Cost Variance in Sustainable Construction Projects," Sustainability, MDPI, vol. 12(8), pages 1-31, April.
    8. Manman Xia & Lemeng Zhao & Li Zhao, 2022. "A Comprehensive Risk-Assessment Method for Prefabricated Buildings Using EPC: A Case Study from China," Sustainability, MDPI, vol. 14(3), pages 1-28, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Huiting Duan & Jinghu Yu & Linxiao Wei, 2024. "Measurement and Forecasting of Systemic Risk: A Vine Copula Grouped-CoES Approach," Mathematics, MDPI, vol. 12(8), pages 1-18, April.
    2. Xu, Jiajun & Ru, Xinshun & Song, Pengcheng, 2021. "Can a new model of infrastructure financing mitigate credit rationing in poorly governed countries?," Economic Modelling, Elsevier, vol. 95(C), pages 111-120.
    3. Denisa Banulescu-Radu & Christophe Hurlin & Jérémy Leymarie & Olivier Scaillet, 2021. "Backtesting Marginal Expected Shortfall and Related Systemic Risk Measures," Management Science, INFORMS, vol. 67(9), pages 5730-5754, September.
    4. c{C}au{g}{i}n Ararat & Birgit Rudloff, 2016. "Dual representations for systemic risk measures," Papers 1607.03430, arXiv.org, revised Jul 2019.
    5. Wang, Wei & Xu, Huifu & Ma, Tiejun, 2023. "Optimal scenario-dependent multivariate shortfall risk measure and its application in risk capital allocation," European Journal of Operational Research, Elsevier, vol. 306(1), pages 322-347.
    6. Wegenast, Tim & Krauser, Mario & Strüver, Georg & Giesen, Juliane, 2019. "At Africa’s expense? Disaggregating the employment effects of Chinese mining operations in sub-Saharan Africa," World Development, Elsevier, vol. 118(C), pages 39-51.
    7. Francesca Biagini & Andrea Mazzon & Thilo Meyer-Brandis, 2018. "Financial asset bubbles in banking networks," Papers 1806.01728, arXiv.org.
    8. Hougaard, Jens Leth & Smilgins, Aleksandrs, 2016. "Risk capital allocation with autonomous subunits: The Lorenz set," Insurance: Mathematics and Economics, Elsevier, vol. 67(C), pages 151-157.
    9. Mohammad Ajmal Nikjow & Li Liang & Xijing Qi & Samad Sepasgozar, 2021. "Engineering Procurement Construction in the Context of Belt and Road Infrastructure Projects in West Asia: A SWOT Analysis," JRFM, MDPI, vol. 14(3), pages 1-17, February.
    10. Christian Kubitza, 2021. "Tackling the Volatility Paradox: Spillover Persistence and Systemic Risk," ECONtribute Discussion Papers Series 079, University of Bonn and University of Cologne, Germany.
    11. Oliver Kley & Claudia Kluppelberg, 2015. "Bounds for randomly shared risk of heavy-tailed loss factors," Papers 1503.03726, arXiv.org, revised Apr 2016.
    12. Aigner, Philipp & Schlütter, Sebastian, 2023. "Enhancing gradient capital allocation with orthogonal convexity scenarios," ICIR Working Paper Series 47/23, Goethe University Frankfurt, International Center for Insurance Regulation (ICIR).
    13. Li, Ying & Shou, Yongyi & Ding, Ronggui & Sun, Tao & Zhou, Qing, 2019. "Governing local sourcing practices of overseas projects for the Belt and Road Initiative: A framework and evaluation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 212-226.
    14. Wegenast, Tim & Strüver, Georg & Giesen, Juliane & Krauser, Mario, 2017. "At Africa's Expense? Disaggregating the Social Impact of Chinese Mining Operations," GIGA Working Papers 308, GIGA German Institute of Global and Area Studies.
    15. Yann Braouezec & Lakshithe Wagalath, 2018. "Risk-Based Capital Requirements and Optimal Liquidation in a Stress Scenario [Testing macroprudential stress tests: the risk of regulatory risk weights]," Review of Finance, European Finance Association, vol. 22(2), pages 747-782.
    16. Oluwasegun Oluwaseyi Seriki, 2020. "Looking through the African lenses: a critical exploration of the CSR activities of Chinese International Construction Companies (CICCs) in Africa," International Journal of Corporate Social Responsibility, Springer, vol. 5(1), pages 1-9, December.
    17. Albizuri, M.J. & Díez, H. & Sarachu, A., 2014. "Monotonicity and the Aumann–Shapley cost-sharing method in the discrete case," European Journal of Operational Research, Elsevier, vol. 238(2), pages 560-565.
    18. Giansante, Simone & Manfredi, Sabato & Markose, Sheri, 2023. "Fair immunization and network topology of complex financial ecosystems," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 612(C).
    19. Hans Buhl, 2013. "IT as Curse and Blessing," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 5(6), pages 377-381, December.
    20. Cosimo Munari & Stefan Weber & Lutz Wilhelmy, 2023. "Capital requirements and claims recovery: A new perspective on solvency regulation," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 90(2), pages 329-380, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:19:p:5332-:d:271237. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.