Critical factors influencing the failure of joint ventures in the South African construction industry: a confirmatory factor analysis approach
Engineering, Construction and Architectural Management
ISSN: 0969-9988
Article publication date: 13 December 2022
Issue publication date: 2 April 2024
Abstract
Purpose
Joint ventures (JVs) serve as a viable tool in mitigating some of the challenges posed to the effective delivery of construction projects. However, JVs are highly susceptible to failure in most developing countries. Therefore, this study seeks to unravel the critical factors influencing the failure of JVs in the South African construction industry.
Design/methodology/approach
A quantitative approach was adopted for the study using a well-structured questionnaire as the instrument for data collection. Respondents for the study were built environment professionals in Gauteng province in South Africa. Data elicited from respondents were analyzed using a four-pronged process which included descriptive statistics, one sample t-test, exploratory factor analysis and confirmatory factor analysis.
Findings
Resulting from the analysis conducted, four critical components emerged as the major factors influencing the failure of JVs in the South African construction industry, which are inefficient financial framework, divergent organizational culture, poor project governance and inadequacies from project stakeholders.
Practical implications
The outcome of this study presents a roadmap for stakeholders in the construction industry with the requisite knowledge of the critical factors leading to the failure of JVs, consequently providing a clear path for the successful delivery of JV mandates.
Originality/value
Evidence from literature suggests that several studies have been conducted on the various aspects of JVs in the South African construction industry; however, none has focused on the leading factors attributed to the failure of JVs. Also, the findings of this study cultivate a good theoretical platform for future studies on JVs.
Keywords
Citation
Ikuabe, M.O., Aigbavboa, C.O., Thwala, W.D., Chiyangwa, D. and Oke, A.E. (2024), "Critical factors influencing the failure of joint ventures in the South African construction industry: a confirmatory factor analysis approach", Engineering, Construction and Architectural Management, Vol. 31 No. 4, pp. 1678-1695. https://doi.org/10.1108/ECAM-04-2022-0298
Publisher
:Emerald Publishing Limited
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