Impacts Of Inter-organizational Conflicts On Chinese Construction Projects’ Added Value

Status of construction contracts

A common construction project includes different task members, for example, the proprietor, the contractual worker, the sub-temporary worker, the expert and the manager. These project members function in a dynamic framework with an arrangement of interrelated connections which demands skills and energy to organize schedule, assets and data (Harmon, 2003). Amid the execution of projects, project members are associated with resource trade, exchange of knoweledge and data correspondence. The shared objective of project members is to convey an effective task as per the plans within the time and financial costs, initially foreseen. However, it is important to note that variations of these associations unavoidably prompt different conflicts (De Dreu & Weingart, 2003). If the conflicts are not resolved at the right time, they could affect the task advance, in addition to the relationship between the various project members. In view of these contentions, the construction ventures are tormented by an undeniably antagonistic connection between the members, especially between the proprietor and the temporary worker (Chen et al., 2014). Such conflict laden association makes it hard to accomplish project targets, resulting in increased time and cost (Hwang et al., 2013; Jelodar et al., 2015). Consequently, more consideration should be paid to reveal the basic elements of project conflicts and its related instrument.

The status of construction contracts is generally incomplete (Demirel et al., 2016). This can be attributed to the features of construction projects, for example, complications and dynamicity, and vulnerability all through the project life cycle, the novel attributes of construction by-products, the conceivable human faults and the trouble in foreseeing the task execution. With progressively complicated and dynamic construction strategies and momentous industry divisions, endeavours have been channelled to accomplish project added value. Project added value, which begins from the value chain, has concrete and delicate estimations, including project value, client value and member value (Cheng & Huang, 2008). In the meantime, irregularity in goals and advantages has brought about regular contentions among project members (Mele, 2011). Lately, inter-organizational conflicts have turned out to be progressively confounded and exhibit variations in construction projects because of the developing project scale and multifaceted nature. The effects of inter-organizational conflicts on construction projects’ added value could be dangerous or valuable, contingent upon various factors, for example, conflict management methodologies, the mentalities of project members and the features of the contentions (Wu, 2013). Accordingly, it is fundamental to examine the impacts of inter-organizational conflicts on construction projects’ added value. This diminishes broad losses of significant worth and to help maintain a strategic distance from contentions.

Conflict and Conflict Types

The aim of this examination is to research the impacts of inter-organizational conflicts on Chinese construction projects’ added value. A few examinations have been conducted to explore the conflict among project members and its effects on added value (Wu et al., 2017). However, not many of these investigations used a multi-level approach pertinent to the management levels, low, medium and high to examine inter-organizational conflicts on the value of projects. To fulfil this gap, this examination aims to add to the existing literature on project and conflict management by proposing a logical framework.

The outcomes of the research aim to significantly contribute to conflict management and project management literature and specifically three primary stakeholders, the top management support, project managers (negotiators) and the contract managers. The aims of conducting a study on inter-organizational conflict management are to essentially tackle either clear or subdued conflicts and to mitigate the onset, dispersion and altercation of conflicts. The consequences of the examination will allow reasonable channels and methods for adopting diverse procedures, organizing the thoughts of all members in project execution, identifying project issues in a timely manner and gathering satisfactory data to make high-quality decisions. Additionally, the result of the investigation will empower the stakeholders to discover and tackle the current yet hidden conflict in a timely and effective manner, thus mitigating the conceivable conflict drivers and guaranteeing the accomplishment of project added value. Along these lines, the investigation will focus on the way project members should endeavour more efforts in managing conduct issues, contractual issues and technical issues, specific to construction project management. In China, absence of equality is not unordinary within project members, where conflicts are imperative. Thus, the study will focus on the specific cases in relation to low, middle and top management to provide necessary strategies across each level to enhance communication and effectuate mutual trust and reduce conflicts and enhance project value add.

Conflict and Conflict Types

Wang et al. (2012) recommended that conflict was a condition, for example, discordant episode of antagonistic activity, or a condition of confrontation in comprehension or feeling. The conventional perspective of conflict accentuates objective restriction in contentious circumstances and expects that conflict starts from inverse advantageous association including assets allocation and irregularity in objectives, and the discernment that accomplishment of somebody’s goal might be detrimental to the other (Jehn, 1995). Among groups with shared objectives, in any case, conflict may in any case emerge despite the absence of genuine logical contradiction (De Dreu, 2007). Consequently, as indicated by the consistency in aims and objectives, conflicts can be segregated into two categories, shared conflict with shared objectives and competitive clash with genuine logical contradiction (Hemple et al., 2009). Most contentions in the construction projects are akin to shared conflict that has a genuine impact on the project added value. The internal conflict is normally identified with members’ conduct and is nearly connected with project added value. With shared objectives, project members are inclined to be associated with each other, which may prompt conflicts.

Components of conflict in construction projects

From a construction projects’ perspective, conflict can be characterized as common associations between project members because of alternate points of view on project targets (for instance, quality, time, finances, security) (Wu, 2013), which is a type of inter-organizational conflict. Inter-organizational conflict, in which the free interests and objectives produce the synergy among project members, more often is evident among project members and represents distinctive attributes at various phases of the project life cycle (Yiu & Cheung, 2006). The commanding conflict detonates in the construction phase, and the fundamental members included are the proprietor and contractual worker, representing 74.82 percent of aggregate contentions (Ding, 2012). Inter-organizational conflict in construction projects is a comprehensive procedure because of restriction or intrigue disparity in project goals among the proprietor, contractual worker and other task members. In this manner, inter-organizational conflicts in construction projects are characterized into conflicts identified with conduct issues, contractual issues and technical issues.

As indicated in the past examinations (studies such as that of Chen et al., 2014), conflict because of conduct issues is a consciousness of relational incongruence that incorporates affective aspects, for example, sentiments of strain and friction. Further, task conflict presents an attention to contrasts in perspectives and conclusions relating to a group task; process conflict mirrors an awareness of contention about how unique factors of a task will be proficient, for example, designation of obligations and assets. Nevertheless, the task-conflict centres around various perspectives on project substance and objectives. Contrarily, the process-conflict features process variations all through the task achievement. Distinctive scales and kinds of conflicts have interactional and entwined connections and can complete the change under specific conditions. Huang (2010) examined the connection between task contentions, relationship issues and group objectives by reviewing 529 staffs from 120 research and development (R&D) groups. The examination presumed that group objective and a conflict resolution strategy directed the task-conflict-relationship issues connection. Mele (2011) suggested that distinctive types of contentions can be changed and differently influence the network value of projects.

Pazos (2012) contended that the conflicts intervened the connections between commitment towards goals and group outcomes. Chen et al. (2014) segregated conflict into relationship based issues, process based issues and task based issues to assess their consequences for project execution and uncovered that the three types of contentions are emphatically related. Al-Sibaie et al. (2014) recommended that conflict was a noteworthy reason of unproductivity and constrained execution of construction ventures. Hu et al. (2017) analysed the impacts of task and relationship conflicts on group creativity and found that conflict has a negative association with group creativity, while task issues have an inverted U-formed association with group creativity. As indicated by Wu et al. (2017), unique types of conflicts played a helpful or detrimental role on added value. Their examination found that process related conflicts and relationship conflicts were contrarily identified with added value, though task conflict decidedly added to added value.    

Considering the past examinations (such as studies by Wu et al., 2017), eight basic components of conflict in construction projects can be distinguished and additionally classified into three groups:

i.   the components identified with characteristics of employees in a project;
ii.  the components identified with negotiation characteristics of the participants in a project; and
iii. the components identified with the technical process and procedures in a project.

With the improvement of the Chinese construction industry, numerous companies have used value-based methodologies to accomplish project added value. There are primarily three methodologies to execute project added value. The main methodology is to increase the value of construction projects, which is focused on the accomplishment of control goals. The second methodology is to add value to the general population who specifically participated in a construction venture, to upgrade their capacity, repute and helpful relationship and the conceivable participation in the future. The third is to add value to the clients who influence utilization of the construction project. Based on the Wu, Zhao and Zuo’s (2017) recent study and considering intrinsic qualities of construction projects, this paper characterizes project added value from two aspects: the transient measurement and project participant measurement. From the transient measurement perspective, project added value incorporates the entire project life cycle from decision-making and execution to project activity and culmination. Furthermore, this paper is centred around the inter-organizational conflicts on construction projects’ added value, with specific focus on project execution and functional stages.

Research question(s) and objectives

The research aims to specifically address the question – what are the characteristics of conflicts and their impact on project added value in the context of construction projects in China? Accordingly, the following objectives can be outlined:

1. To assess the extent of variation in the conflict types across the three management levels, low, medium and high in the Chinese construction industry.
2. To assess the relationship between each of the three conflict types, conflicts related to conduct issues, contractual issues and technical issues, and project added value across the three management levels in the Chinese construction industry.
3. To outline suitable conflict management solutions to address the most prominent conflict type in the Chinese construction industry.

Research Approach

The current study is based on employees’ perception of conflicts and its impact on the project added value in the Chinese construction industry. The epistemological assumption is exceptionally subjective and deciphered during the process of data collection and analysis (Saunders et al. 2012). Likewise, the axiological assumption of the exploration depends on researcher’s translation of the employees’ perception of conflicts, which constitutes as researcher’s knowledge. The researcher is integrated within the phenomenon and the data accumulation and investigation procedures depend on small sample size. Considering these aspects, interpretivism has been considered as the adept rationality for the present examination (Saunders et al. 2012) and the examination strategy is qualitative in nature, and the case-study design is suitable for the present investigation.

The motivation behind the current qualitative, multiple case-study is to investigate employees’ perception of conflicts and its impact on the project added value across the three levels of management, low, medium and high. Qualitative approach empowers in investigating the phenomenon in an in-depth manner without subjective investigation of information gathered as numbers. Since conflicts are qualitative and subjective viewpoints, the unobtrusive subtleties of the perceptions of employees cannot be characterized or measured through numbers as in the case of quantitative approach (Neuman, 2013; Creswell, 2013; Creamer & Tendhar, 2016). Undoubtedly, quantitative methods related to conflicts and project added value have been applied (for instance, study by Wu, Zhao & Zuo, 2017).  To add value to the literature, the research method in the current study is based on qualitative approach.   

In addition, since the researcher is submitted broadly to gather information from employees from time and effort perspective, participate in the intricate and dynamic procedure of information accumulation and examination, compose long sections and have faith in the developing idea of speculations instead of predefined assumptions considering past investigations (Creswell, 2013), qualitative strategy is suitable for the investigation. Likewise, as characterized by Saunders et al. (2012) the philosophical assumptions in qualitative approach are subjective and the strategy to accomplish the objectives is inductive in nature.

Data collection methods and analysis

Data in the present examination will be gathered utilizing primary and secondary data accumulation techniques. Data accumulation process in the proposed study includes personal interviews and audiotape recording of each employee who participates in the study. Informal responses to the interview questions constitutes as the essential qualitative information in the present examination. The information registered in each audiotape amid the meetings will be correctly and professionally interpreted.

Semi-structured interviews, which are favoured in most of the qualitative investigations will be utilized, since it provides the employees with the opportunity and flexibility to offer extra information and knowledge, and offer significant information of their own perspectives (Yin, 2014). In line with the thought-process of Miller and Glassner (2016), the researcher can direct the exploration with a set of questions, yet, incite for additional data, when an interesting angle is put forward by the employees.

Since representatives in the Chinese construction industry comprises of a large population, collecting opinions of each employee in the low, middle and top management is exceptionally unrealistic. A sample is chosen to lead the investigation, in view of which the outcomes can be generalized across the Chinese construction industry. The study sample for the study comprises of low, middle and top management of two Chinese construction companies. The proposed qualitative multiple-case study research is exploratory in nature; along these lines, the sampling method which is appropriate in the present examination is purposive nonprobability-based sampling strategy. The utilization of purposive sampling in qualitative studies, particularly case studies, is viewed as indispensable strategy for getting information from the employees (Robinson, 2014). Through the sampling method, the inclusion of predefined employees (two employees each from low management level, medium management level and high management level for each of the two companies with a tenure of minimum six months) for collecting data can be achieved. The adoption of the purposive sampling method is crucial while selecting the employees in the Chinese construction industry. The proposed study comprises of around twelve employees. The number of interviews for the case-study research will be decided upon the saturation of data. The point of saturation can be characterized as accomplishment of threshold of data collection. Once the data is collected, it is subjected to data analysis.

Data analysis is known to be the deliberate procedure and techniques that features the relationship and highlights of connections of factors correlated to the research phenomenon (Grbich, 2013). One of the upsides of the qualitative research approach amid data analysis is the capacity to recognize the result of an emerging examination data design in an ongoing research (Miller & Glassner, 2016). Content analysis is utilized as a part of the present investigation to analyse the subjective information. The proposed study will take after Grbich’s (2013) four-phase data analysis approach where the researcher, in the underlying stage, will read the whole transcript carefully and possibly a few times. In the second phase, the researcher will change the transcript into developing themes. In the third phase, the researcher will carefully evaluate the developing themes and gather them together to plan hypothetical connections. In the last phase, the researcher will create a chart of topics that exhibits the design of fundamental subjects and sub-points and conducts a CCA to accomplish relevant outcomes. In this way, considering the inductive rationale of developing a hypothesis, the outcome of the study is the development of a model that outlines necessary steps to support the policy and decision makers to develop specific strategies to manage conflicts and enhance project added value.

This examination is a complimentary assignment to finish Master of Project Management program at the Central Queensland University. The purpose of this research is to analyse the characteristics of conflict management in the context of construction projects in China. In the present investigation, according to University’s endorsement and approval of including human subjects and project proposal acknowledgment, informed consent will be obtained from the employees. In addition, ethical guidelines outlined by Creswell (2013) will enable the researcher to comprehend the significance of protection of privacy and confidentiality of the employees participating in the study. Accordingly, informed consent will be primarily obtained and the employees will be assured about their individual and company’s privacy. Anonymity will be ensured. The names of employees or the companies will not be published in this paper. The employees will be guaranteed of ‘voluntary participation’ and ‘right to withdraw’ from the examination at any given period of the investigation. There is no hazard related with participation in this study. Thus, as part of research ethics, the confidentiality, integrity and privacy of participants will be always ensured.

In this section, necessary project management information such as project exclusions, risk analysis and response strategies, including stakeholder analysis and data management is provided.

Project exclusions

In terms of geographical delimitation, the study is delimited to conflict management in the construction industry, involving two different construction firms only in China. Regarding the methodology, the study is delimited to the interview method of data collection, since the researcher aims at collecting and understanding the subtle nuances involved in conflict management. In addition, the study is delimited in the implications, since it is focused towards understanding the conflict management process, rather than outlining suitable strategies. The identified delimitations can be minimized by projecting the study as a cultural analysis of understanding the opinions of employees in Chinese construction companies. In addition, involving about 12-15 interviews and CCA will avoid researcher bias. Finally, a small recommendation section can include various strategies to mitigate the conflicts in the construction industry.

Risk register including analysis and response strategy

Table 1

Ten negative risks that I may encounter during conducting the project activities and my plausible response strategy to counter each negative risk

Stakeholder analysis

Table 2

Stakeholder analysis of five stakeholders who can influence the changes or may be impacted by the project, in addition to the information needed and the desired outcome of the project

The primary data collected in the form of recordings, will be transcribed and stored in a personal computer (PC) with relevant data encryption. The researcher will ensure that the recordings are transcribed in a closed and secure environment. The data will be reviewed multiple times to identify suitable themes and conduct appropriate comparison and analysis. The secondary data collected to support and validate the theoretical constructs of the study, will be organized using refworks, a citation software. Since the data used in the current study has been collected through hard work and after gaining trust and building rapport with the participants, it will be safeguarded and protected from unauthorised use through an encryption password on the data folder in the PC, apart from the PC’s password. Only the researcher will have access to the data files and the data files will be shared with the academic management support upon request in the form of a link, which only the researcher and higher education authorities will have access to.

References List

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