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Austin Byrne
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Programme
1
ARC7054
Module Title
40193294
Msc Construction & Project Management
Strategic management
construction
and
International
Assignment
Title:
The Management of an organisational culture for an international construction project
Module
Lecturer/ Tutor:
Danny Ó Cléirigh Ó hÁgáin
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Austin Byrne
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Date Submitted:
19th April 2018
2018
Title:
Managing an organisatonal culture
within an international construction project
ARC7054: Strategic Management and International
Construction
Student Number: 40193294
Queens University Belfast
19/04/2018
Abstract
The research in this report will look at the various themes that are associated with
culture in International Construction and how they are managed in a shared
organised structure.
An interview was conducted in order to obtain relevant data and information from a
participant who has experience in the International Construction sector. The aim of
the interview was to gather data from the participants in relation to their own
experiences associated with the leadership and organisation in the International
Construction Sector. The findings from this method would determine if there were
similar findings presented in the literature reviewed.
From the findings Innovation, Communication, Organisational Culture and Creativity
were the four main influences relating to Culture in International Construction, which
was consistent with the literature reviewed for this research. The results from this
report highlight the fact that the culture and the management thereof directly
influence the success of a project in International Construction. The report has
identified the importance of the management of culture and the role of the Project
Manager to focus on strong communication skills with sustainable and innovative
measures to achieve success.
Contents
Abstract ................................................................................................................................................... 3
1.0 Introduction ...................................................................................................................................... 5
2.0 Literature Review .............................................................................................................................. 6
2.1Organisational Culture explained and its role within organisations.............................................. 6
Cultural factors and differences.......................................................................................................... 7
2.2 Innovation and Creativity for organisations ................................................................................. 8
2.3 Effects of organisational culture on performance ........................................................................ 9
References ............................................................................................................................................ 19
1.0 Introduction
Globalisation has created an environment where construction co panies partake in
projects all over the globe. With this there is need to understand the impact of
cultural differences
(Comu, Unsal, and Taylor 2011). This rise in international
construction has led to the involvement of individuals from many different legal,
economic and cultural backgrounds.
The strategic approach to achieve success within the international construction
sector requires knowledge and expertise over and above that required for the
domestic sector. Several research initiatives have been undertaken by academics to
identify how negative impacts can be addressed such as social, economic, political
and cultural factors (Javernick-Will and Levitt 2009; Miller et al. 2000). It is
recognised that developments in technology and industrialisation are major factors
that will impact upon employment within construction. With the focus on conservation
to determine strategies within the global market, the impact of policies on
international business and how this impacts on different cultures working together
becomes more relevant. Disputes can arise within international construction when
different cultures are working together with different approaches as to how things
should be done.
The social values and the culture will determine how business is conducted. This will
impact upon all aspects of human behaviour and will influence relationships with
business associates and employees as well as attitudes to change. Based on the
literature review which was carried out, it was evident that the best results would be
achieved by carrying out an interview with a manager who had international work
experience. A number of objectives were identified from the literature review with a
fundamental aim to create an organisational culture for the project team to share. The
objective is to compare the results of the literature review with the interview carried out
with a volunteer who has work experience within the international construction
industry. In order to draw comparisons, the qualitative program “Decision Explorer” will
be used to develop a cognitive map and establish comparisons with the response from
the interviewee.
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2.0 Literature Review
This literature review will look at the management of construction cultures within an
international construction project and the impact of these cultures on the
management of the project. Organisational culture will determine the manner in
which business is conducted therefore the aim is to align those within the
organisation with a mutual understanding of the end goal (Marcoulides & Heck,1993;
93;
Schein, 1992). This is critical to the success of any project as it impacts upon human
behaviour, relationships with associates and attitude to new ideas and to change.
Cultural risks on international projects are similar to those experienced on local
projects however the root cause of the cultural risk and the resultant impact on the
success of the project is very different.
This can result in disputes over how tasks should be performed and stem from
issues such as sustainability, health and safety, gender bias and religious
background. The overall success of a project will be determined by how it is
managed and the measures that are put in place to address cultural differences.
2.1Organisational Culture explained and its role within organisations
The word culture and its meaning is one of the most complicated in the English
language
as it introduces so
many alternative
subjects and
processes.
Organisational culture is defined as assumptions that are mostly unconscious and
therefore form a pattern that is taken for granted through values and beliefs that
members of an organisation share (Kotter and Heskett, 1992; Schein, 2004). Or
quite simply, how things are done here (Lundy and Cowling, 1996).
The ability to manage cultural diversity in construction, particularly in international
projects, is crucial to the success of the project. In order to manage cultural
differences, it is necessary to understand what the issues are. Effective
communication is most important particularly where there is a language barrier.
Since language is the most important medium of communication and is often used to
distinguish one culture from another (Walker et al. 2003), differences in language
can be a major source of communication problems (Loosemore and Al Muslmani
1999). Language barriers can adversely affect business processes and reduce
productivity. The ability to accept cultural differences and overcome the barrier
6|Page
between different cultures due to inexperience and lack of understanding and the
variation in working mannerisms are also common issues.
Walker et al. 2003 identified
that in today’s constantly
changing
global
business
environment, cultural issues
and understanding cultures
have become essential and
a prerequisite for business
success. Chan et al (2003)
highlights the difficulties that
can arise when there is a contractual dispute. Negotiation is one of the most difficult
and important tasks that international managers; face in their businesses (Fatehi
1996). Due to cultural differences, negotiations can become a difficult activity since
many of the rules used in one country may not apply elsewhere (Gulbro and Herbig
1999). The success of international construction projects is dependent on the ability
of the Project manager to understand and manage cultural differences. Failure to
manage effectively can result in a waste of resources and delay in the project, good
management skills can provide advantages. Kivrak et al (2008) identified advantages
of working with other cultures including better team innovativeness, willingness to
solve problems and create a competitive advantage.
Cultural factors and differences
Multiple studies have been undertaken on diverse cultures. An international
conference on multi-national construction projects took place in Shanghai, China in
November, 2008. It investigated the effects of cultural differences in construction
projects and looked at the opinions of managers who had work experience in
international projects. The results showed that one of the main advantages of
working with different cultures was the exchange of knowledge. One of the key
elements that contributed to project success was the effective management of
cultural differences.
Research carried out by Chan et al (2003) found that
international construction projects are more likely to encounter a dispute that local
construction projects, with culture being the main contributory factor.
He also
highlighted the benefits of gaining a better understanding of influential cultural
projects to help manage and reduce conflicts in international construction projects.
7|Page
(Chan et al, 2003, p376). Broster endorsed this in 1976, “without understanding
there can be no friendship. If one wishes to understand a people one must identify
oneself with them. One must study their language, custom and culture ….and they
will be one’s friends”.
2.2 Relationship of Innovation and Creativity with Organisational Culture
Some definitions of creativity focus on the ability of individuals to use their personal
characteristics and abilities, whilst others focus on the product and how this can
come from the outcome of creative efforts (Arad et al., 1997). Creativity varies from
one group or organisation to another, whilst also changing over a period of time.
Therefore the gauging of creativity should be judged at the level of the organisation,
profession or broader (Ford, 1995).
The definition varies according to the level of analysis which is used. West and Farr
(1990) describe innovation as “the intentional introduction and application within a
role, group or organization of ideas, processes, products or procedures, new to the
relevant unit of adoption, designed to significantly benefit the individual, the group
organization
or
wider
society”.
There seems to be an indication
that how an idea or product is
portrayed governs if it can be
regarded as innovative for that
particular context (Matins, 2000).
An organisation which has the
ability to absorb innovation into its
management and organisational
culture will have successful traits
(Tushman and O’Reilly, 1997).
The
standard
organisational
values
influence
and
on
principles
culture
beliefs)
of
(shared
have
innovation
creativity in two behaviours:
an
and
MARTINS 2003
8|Page
1. The
social
aspects
of
the
organisation,
employees
gain
a
better
understanding of acceptable behaviours and how ativities should be
undertaken. From this standard practices are taken on board and shared by
individuals. Assumptions will then be taken from this as to whether creative or
innovatie behaviour is part of the organisations operations (Tesluk et al,
1997).
2. Standard values and beliefs which become customary forms of activity and
are therefore reflected through policies and procedures. These have a direct
reflection on creativity in the workplace, for example by investing in resource
support for the development of a new idea (Tesluk et al, 1997).
An organisational culture which supports creativity will also encourage innovative
ways to present issues and find solutions, this regards creativity to both desirable
and customary whilst favouring innovators as a concept that should be emulated
(Lock and Kirkpatrick, 1995).
http://www.arcom.ac.uk/-docs/proceedings/ar2005-1215-1224_Asad_et_al.pdf
2.3 Effects of organisational culture on performance
The term performance can include the productivity, consistency and quality with
which a service is provided. The use of organisational culture could possibly
enhance the performance of an employee’s job gratification and the sense that there
is a greater ability to solve problems (Kotter, 2012). Undeniably a company’s
performance is result of the return from which a strong culture for the organisations
structures allows it to complete its practices. An organisational culture that is
incongruent with that of the altering expectations of stakeholders can possibly
become less effective as experienced with some organisations (Ernst, 2001).
Therefore there is clearly a relationship between organisational culture and overall
performance (Kopelman, Brief, & Guzzo, 1990), although studies have revealed that
the relationship between cultural characteristics and performance have not been
consistent over time (Sorenson, 2002).
9|Page
Research Methodology
This study was undertaken using three different steps:
1) Literature Review
2) Qualitative research
3) Decision Explorer
To begin research into the topic the relevant literature was studied from peerreviewed journals for organisational culture within the construction industry. The
literature reviewed was from key academic and professional journals, these included
Emerald Insight, ASCE Library and Taylor & Francis. Some of the literature studied
was unrelated to construction but as the topic has such a wide and varied range of
meaning it is important to take all significant literature into consideration. Granting
the review is not totally exhaustive, it provides a solid basis to gather an
understanding of organisational culture and how it impacts upon the construction
industry.
Another method of research that will be implemented is the use of qualitative data,
this can be collected in a few different formats mainly interviews, observations and
surveys. This report will use an interview undertaken with an experienced manager
within the international construction industry to gather their opinion on operational
leadership. It uses social science research to gather and check the non-numerical
data to understand and record the actions, considerations and inspirations of others.
The interview will be done on a one-on-one setting, this allows the interviewer to
evolve the conversation as they see fit. A one-on-one interview will also allow a
greater ability to control the format of the conversation as it progresses, it also allows
for there to be a lot less external distractions because of the allocated meeting time.
The use of qualitative analysis allows for a brief and informative review of the
findings from the interview. By implementing an assessment from the interview there
is an ability to give the relevant information for the human side of an issue; this will
often provide contradictory performances, attitudes and relationships of individuals
therefore justifying its use. These methods will also assist in identifying the relevant
intangible factors. The advantage of this qualitative research is the ability to leave
the questions open ended and gives the interview participants the ability to answer
the questions with an open minded mentality, rather than making them use fixed
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responses. This induces a response that is relatively unexpected in nature and
provides feedback that is important and descriptive in nature.
To analyse the data collected from the qualitative research decision explorer will be
used. Decision explorer is designed to analyse the data collected from the interview
and discover any relationships that there are amongst opinions of topics (Brightman,
J., 2002). The software enables the user to practice varying types of data analysis,
for example domain, central and cluster analysis. By using decision explorer the user
is able to identify any relationships there may be between diverse ideas and
viewpoints. Once a visual representation has been completed from the thinking, this
will allow the user to complete a debate and reflection of the interview. The value of
this is that the user works with the ideas to understand how they link with each other
and what influences they may have on one another, whilst generating new ideas.
Upon creating a network it is obvious to realise the connections between concepts,
therefore making it simple to utilise the tools of decision explorer to remove
additional information. This allows for an in-depth discussion and conclusion from the
resulting data achieved.
Qualitative Results and Analysis
The first part of the qualitative analysis is the development of the cognitive map. This
cognitive map is a direct representation of the data that was collated from the
interview with the industry professional; this is then relayed into a controlled mind
map. By completing this map the researcher is able to format and organise the data
in such manner that it acts as a forerunner for several different analysis techniques.
From the data collated on the map, four main topics are identified: Innovation,
sustainability, communication and organisational culture.
Through Decision Explorer there is the ability to use the analysis tools in order to
understand greater what concepts have the most significant impact on the model.
The two tools that have been used in this instance are central and domain analysis.
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Domain analysis was first created in 1979 by James Spradley, he explained it as the
search for a greater unit of cultural knowledge (Spradley, 1979 p94). In order to
complete a domain analysis, there must first be a semantic relationship, this is done
by choosing a number of informal statements, then reviewing it for words and
phrases that generate portions of a category then from this creating organisational
questions for each field.
The domain analysis highlights the complexity of the links between the ideas
imputed. It will identify the most significant issues that feature (displayed by the most
common factors) resulting in a high domain outcome. This outcome endorses
knowledge management and helps to identify patterns within knowledge and cultural
behaviour based on the information supplied by the interviewee.
This tool also
allows for the semantic relationships that have been identified in the study to be
investigated. Hammersly et al (2007) referred to this method of collecting data
through various sources to resolve issues that are the subject of an enquiry. The
information for this report is solely based on one source of data.
The outcome of the interview highlights the importance of communication between
the parties to achieve success in an international project. After “communication”
which was the most relevant concept was “Organisational culture” with 6 links
feeding in including “belief in systems” and “drive for results” concepts. Project
success is heavily dependant on shared culture according to the findings of the
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domain analysis. “Sustainability” was the third most influential concept with five
associated links including “ environmental impact” and “ leads the way for future
generations”. The concept with least links was “Innovation” which had four links
including “focus on environmental impact” and “new design methods”. Although the
domain analysis showed sustainability and innovation to be the least influential of the
concepts, their relevance should not be overlooked. The remaining domain analysis
concepts with few links are not significant to the overall outcome.
Central analysis is a tool used to demonstrate the impact the concept has on the
model in the wider perspective. Central analysis is described by Decision Explorer as
being complementary to domain analysis as it reflects upon the intricacy of the direct
links as opposed to their presence. The top domain analysis results are not
necessarily the concepts with the highest scores forming part of a range of complex
links. Central analysis acknowledges this and endorses the concept that central
analysis supports domain analysis.
The central analysis tool showed that “Organisational Culture” concept had the top
result. This is similar to the domain analysis where it was second to communication
with a top result of ten out of fifteen concepts. The central analysis endorses the
results of the domain analysis. The second highest scoring concept identified in the
central analysis was “communication” with a score of nine from fourteen concepts.
The next concept “Eliminates Prejudices” is contrary to the domain analysis result
with a central score of eight from fifteen concepts. The fourth most influential concept
from the central analysis was “various backgrounds work together” whereas this had
an insignificant result on the domain analysis with only two links. This was followed
by the “sustainability” concept with a central score of six from nine concepts. There
may be variation between the order of the results, however the overall validates the
appreciation that the domain analysis is complemented by the central analysis. It
also shows that the most significant concepts feature high up on the lists for both
analyses.
Discussion
The qualitative data, which was collated from the interview, has association with the
findings in the literature review. The interviewee’s responses identified that strong
communication and organisational culture have a positive influence on an
international project. Research found that the lack of communication was a major
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factor in the failure of projects and it also highlighted the need for a culture within the
organisation that embraced a shared vision. The interviewee’s responses identified
the need for a shared culture to achieve sustainability for any project as well as
establishing foundations for the future and better working relations with people from
other backgrounds. It was evident from the literature that sustainability may be an
issue in developing countries, however it is a necessary component of modern
construction. In order to achieve sustainability there may be a requirement to draw
upon other measures such as the support of government bodies or stakeholders as
well as environmental and economic influences. The interviewee made reference to
the relevance of innovation in international construction. It was apparent that
innovative approaches were being introduced to enhance projects in an effort to
increase the profit, reduce the impact on the environment or improve design
techniques. The literature review highlighted the need to focus on positive
management of the cultures in order for innovative ideas to succeed. The responses
received from the interviewee confirm that their experience of project management of
the cultures had been positive. A distinct similarity was found between the literature
and the qualitative research. The main concepts identified from the domain and
central analysis were communication, organisational culture or shared culture,
sustainability and innovation, these were also the main themes which were found in
the literature review. These outcomes fail to identify new ideas as to how culture may
affect an international project. The issue of dealing with different cultures in
international construction remains unresolved and will continue to impact upon
project outcomes. The qualitative data could be enhanced by conducting interviews
with several international construction workers who have more experience in this
field and by asking more in depth questions.
Conclusion
Collation of the results gathered from the qualitative program “Decision Explorer”
together with the literature review of culture within the construction industry
highlighted some key observations. Firstly, in order to devise questions for the
qualitative analysis, it was necessary to carry out a review of previous investigations
into culture and how it impacts upon international construction. Matinaro et al (2016)
identified that “organisational culture can significantly increase organisational
innovativeness” which supports the idea that the introduction of organisational
culture within international construction would help to bring different cultures together
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with agreed goals and objectives. In order to carry out the qualitative analysis, a
face-to-face interview was undertaken with one volunteer who had experience within
international construction. This approach limited the analysis as it only considered to
results of one person and was not representative of the wider international
construction community. In order to justify the analysis, it would ne necessary to
conduct further interviews to obtain a truer result. By selecting a range of people
from different backgrounds in international construction who had experience of
working in various countries to participate in a construction project would provide a
more generalised perception within the network. This methodology would provide an
opinion on the concepts influencing project leadership from a sample workforce. The
accuracy of the results could be improved upon by including more participants with a
larger database therefore allowing a more in depth analysis to be carried out. This
would also illustrate the views and opinions of the workforce within international
construction. A cognitive map was developed by inputting the data that was collected
from the participant into Decision Explorer. The domain analysis and central analysis
were completed on the dataset from the cognitive map. The domain analysis showed
that the four most influential factors from the data were communication,
organisational culture and shared culture, sustainability and innovation. The results
from both sets of analyses were consistent therefore we can conclude that the two
forms of analysis complemented each other identifying the most significant concepts
in relation to culture in international construction. The report identifies the importance
of the role of project manager within any international project to create a culture
within the organisation where communication, sustainability and innovation are key
factors towards achieving success.
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Research Methodology
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Interview Questions
What is your role in his company?
Project Manager
With which sector does your company work and how long have you worked in international
construction?
The company works within the Civil Engineering sector of the construction industry, I have been
involved in these projects for 13 years. My experience to date has been primarily in France and
Spain.
Give me an outline of your career experience during the time you were working on these projects.
My work involved large infrastructure projects, mainly roads and bridges.
What is your definition of Organisational Culture in an international project?
Organisational Culture is a key ingredient to a successful and harmonious working relationship. I
believe there is a need to share values and beliefs to manage cultural diversity and establish
common principles for the team to get behind. The project would encounter difficulties in the
absence of a shared sense of culture with a lack of enthusiasm to succeed.
Would you support the introduction of an organisational culture for each international project?
I would be in favour of this approach as an organisational culture encourages people from various
backgrounds to work towards common goals to complete the project. It also helps to alleviate
possible problems further down the line.
How important is it to familiarise yourself with a new culture at the outset of any project?
It is important to become familiar with the culture of any new country so that you can empathise
with their beliefs and also to avoid any offence. It establishes better working relationships and leads
to a harmonious approach to achieving common goals. By having some background information on
the history of the country can also help to understand cultural beliefs. This approach helps to gain
mutual respect and reduces the incidence of misunderstanding.
From your experience do you believe training is required to understand a different culture?
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It is important to understand the basics and principles of another culture prior to an employee going
to another country; this will give them the education required to recognise and appreciate different
customs and behaviours.
In your opinion what are the advantages of different cultures working together?
I believe the use of alternative cultures in the construction industry leads to a more open minded
attitude of how construction processes can be completed, this will also help lead to a less
predisposition that either side may have had. By working cooperatively with other cultures I think
that future generations will benefit, therefore works will be completed more successfully.
What do you believe are the disadvantages of working within wide ranging cultures?
Due to religious beliefs and backgrounds I have experienced situations where a female working in
the construction industry has sometimes been deemed unacceptable.
It can also generate tension when individuals has opposing religious beliefs or a past history
between cultures, this creates a difficult work place and can sometimes lead to problems in the
project team.
Do you think that sustainability has an important role in international construction projects?
The importance of sustainability has become more of a major factor now than I have previously
experienced, I would say this is no different internationally than it is throughout the UK and Ireland.
The use of modern construction methods to limit the environmental impact is a shared cultural
approach and it has been adapted by most countries in today’s society.
What significance did innovation have on the international projects you have worked on?
As with all construction projects innovation plays a valuable part to try and find new processes that
complete the project with greater value engineering, from experience this is due to creating a
financial saving or to limiting the environmental impact on the local area.
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