Saf Health Work.  2018 Mar;9(1):115-124. 10.1016/j.shaw.2017.05.004.

The Influence of Organizational External Factors on Construction Risk Management among Nigerian Construction Companies

Affiliations
  • 1Faculty of Industrial Management, Universiti Malaysia Pahang, Malaysia. adekunle@ump.edu.my
  • 2School of Technology Management and Logistics, Universiti Utara Malaysia, Malaysia.
  • 3Quantity Surveying Programme, School of Built Environment, University College of Technology Sarawak, Sibu, Malaysia.
  • 4Faculty of Engineering, Computing and Science, Swinburne University of Technology, Sarawak, Malaysia. jibril1717@yahoo.com
  • 5Department of Marketing, School of Business Management, Universiti Utara Malaysia, Malaysia.

Abstract

BACKGROUND
Substantial empirical research has shown conflicting results regarding the influence of organizational external factors on construction risk management, suggesting the necessity to introduce a moderator into the study. The present research confirmed whether rules and regulations matter on the relationships between organizational external factors and construction risk management.
METHODS
Based on discouragement and organizational control theory, this research examined the effects of organizational external factors and rules and regulations on construction risk management among 238 employees operating in construction companies in Abuja and Lagos, Nigeria. A personally administered questionnaire was used to acquire the data. The data were analyzed using partial least squares structural equation modeling.
RESULTS
A significant positive relationship between organizational external factors and construction risk management was asserted. This study also found a significant positive relationship between rules and regulations and construction risk management. As anticipated, rules and regulations were found to moderate the relationship between organizational external factors and construction risk management, with a significant positive result. Similarly, a significant interaction effect was also found between rules and regulations and organizational external factors. Implications of the research from a Nigerian point of view have also been discussed.
CONCLUSION
Political, economy, and technology factors helped the construction companies to reduce the chance of risk occurrence during the construction activities. Rules and regulations also helped to lessen the rate of accidents involving construction workers as well as the duration of the projects. Similarly, the influence of the organizational external factors with rules and regulations on construction risk management has proven that most of the construction companies that implement the aforementioned factors have the chance to deliver their projects within the stipulated time, cost, and qualities, which can be used as a yardstick to measure a good project.

Keyword

construction risk management; Nigeria; organizational control theory; organizational external factors; rules and regulations
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