Reducing Hindrances to Enterprise Risk Management Implementation in Construction Firms
Publication: Journal of Construction Engineering and Management
Volume 141, Issue 3
Abstract
Although enterprise risk management (ERM) has been advocated in the construction industry, its implementation is still plagued with hindrances. The objectives are to identify the critical hindrances to ERM implementation in Chinese construction firms (CCFs) and investigate the interrelationships among these critical hindrances. To achieve the objectives, 36 hindrances were identified through a literature review and a questionnaire survey was performed with 119 respondents. The results indicated that 20 hindrances were deemed critical, among which insufficient resources (e.g., time, money, and people) was ranked top. Additionally, the critical hindrances were categorized into lack of relevant resources and procedures (LRRP), lack of senior-level support and leadership (LSSL), and lack of high-quality data (LHQD). LSSL contributed to LRRP, whereas LRRP resulted in LHQD. The managerial implications drawn from these results can help the management take measures to overcome them. Although this study is focused on CCFs, other firms may use the identified hindrances and follow the method to prepare their customized list of hindrances.
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Published In
Journal of Construction Engineering and Management
Volume 141 • Issue 3 • March 2015
Copyright
© 2014 American Society of Civil Engineers.
History
Received: May 27, 2014
Accepted: Sep 30, 2014
Published online: Oct 21, 2014
Published in print: Mar 1, 2015
Discussion open until: Mar 21, 2015
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