bluuebunny/crossref_metadata_2025 huggingface dataset:
An application of the construction management framework in highways major maintenance
Authors: Ansell Mary , Evans Rees , Holmes Mike , Price Andrew , Pasquire Christine
Published: January 2010

Purpose

This paper describes the use of the construction management framework (CMF) in the Highways Agency's (HA) Areas 9 and 10, two of the HA's 14 areas within England, defined by geographical boundaries. It examines: how the CMF has adapted itself to the changing needs of the client; how it has captured and used innovation and lessons learnt; and how the number of companies involved has impacted on the effectiveness of the framework.

Design/methodology/approach

The research compares the advantages and disadvantage of frameworks as reported in literature with the case study of the HA's CMF. The framework is examined in terms of: how well it met the client's changes/expectations; how it can be used to anticipate those changes; how it used innovations and lessons learnt to achieve competitive advantage; and how the number of parties involved in the framework can affect the effectiveness of this arrangement.

Findings

The CMF in Areas 9 and 10 has formed its own “Community” and established joint processes, including procedures and measures that have been put in place following changes in HA policy. The innovations process used in the CMF shows that savings of 6.3 per cent on average can be made with clear benefits resulting from the lessons learnt. Finally, it is recommended that the selection of specialisms in the framework should be considered carefully, taking into account the likely workload over the anticipated life of the framework in terms of continuity and percentage share of construction works for each specialism.

Practical implications

This research provides a model of the CMF that can be used in other HA areas. Presenting the CMF model will: allow better informed decisions to be made on whether or not to adopt the CMF; help identify how many specialist contractors are to be included; and raise awareness of some of the potential pitfalls.

Originality/value

This paper presents a review of an application of the HA's CMF, an innovative long‐term collaborative working arrangement. The CMF is an option for delivering highways major maintenance and renewal schemes which is expected to be extended to other HA areas. This paper also helps to identify how this option can be best implemented.
Pre‐project peer reviews in GMP/lump sum contracts
Authors: Kaplanogu S.B. , Arditi D.
Published: January 2010

Purpose

A “pre‐project peer review” (PPPR) is conducted by a construction company or CM‐at‐risk firm to mitigate or reduce project risks prior to committing to a guaranteed maximum price (GMP) or lump sum. The purpose of this paper is to find out the common PPPR practices that may affect the outcome of a GMP/lump sum contract and to provide guidelines to the construction industry for PPPR implementation.

Design/methodology/approach

A survey was administered to the top 400 construction companies listed by Engineering New‐Record that also includes the top 100 construction management firms. The closed survey method was used. Respondents were asked to select from multiple answers to each question. The survey preparers worked on the predetermined answers carefully to ensure that respondents are comfortable with their selections. For some questions, respondents were allowed to provide their own answers in addition to the selection.

Findings

Even though conducting formal PPPRs is not common practice in the industry, the results confirm the necessity and importance of this process in GMP or lump sum contracts. The other findings provide information about the current practices related to PPPR implementation. For example, more companies prefer conducting PPPRs on an informal basis; the PPPR team in most companies is composed of professionals in the local office with day‐to‐day responsibilities; the cost of PPPRs is included in the budget as part of overhead; and finally, a follow up process to PPPRs is conducted by many companies and is considered to be a critical by even those companies that do not conduct PPPRs.

Originality/value

A literature survey indicates that there are no published studies related to PPPRs. The study reported in this paper fills this gap.
Role of knowledge in managing construction project change
Authors: Senaratne S. , Sexton M.G.
Published: January 2010

Purpose

Unplanned changes in construction projects are common and lead to disruptive effects such as project delays, cost overruns and quality deviations. Rework due to unplanned changes can cost 10‐15 per cent of contract value. By managing these changes more effectively, these disruptive effects can be minimised. Previous research has approached this problem from an information‐processing view. In this knowledge age, the purpose of this paper is to argue that effective change management can be brought about by better understanding the significant role of knowledge during change situations.

Design/methodology/approach

Within this knowledge‐based context, the question of how construction project teams manage knowledge during unplanned change in the construction phase within collaborative team settings is investigated through a selected case study sample within the UK construction industry.

Findings

Case study findings conclude that different forms of knowledge are created and shared between project team members during change events which is very much socially constructed and centred on tacit knowledge and experience of project personnel.

Originality/value

Building on the case study findings the paper finally offers a model that represents the role of knowledge during managing project change.
Enhancing the logistics of construction materials through activity‐based simulation approach
Authors: Ng S. Thomas , Shi Jonathan , Fang Yuan
Published: January 2010

Purpose

Many planners and managers prefer to maintain more than enough construction materials on site to avoid valuable labour and plant resources staying idle. Despite the fact that minimising the buffer stock would improve the productivity of a construction project, no one likes to take this risk especially when the consequences are not totally clear. This paper aims to identify the possible savings in time and cost due to different amounts of buffer stock on site, by introducing an activity‐based simulation model.

Design/methodology/approach

In this research, details and data of a residential project involving substantial amounts of pre‐cast components are collected. The project participants are asked to unveil the constraints on site and throughout the material delivery and storage processes. Finally, the collected data are fed into the activity‐based construction simulation tool for analysis.

Findings

The results indicate that simulation could help quantify the productivity of resources so as to establish the most suitable strategy for improving the logistics of materials handling in a construction project.

Originality/value

The paper helps construction planners and managers to streamline the flow of construction materials and determine optimal buffer stocks rather than relying on subjective judgement.
Construction process improvement through cognitive power under team generative learning
Authors: Keeble Kululanga Grant
Published: January 2010

Purpose

The purpose of this paper is to report a study that explores the means through which cognitive power under team learning is exploited for generative learning in order to remain competitive in the challenging business environment and to examine the extent to which various types of teams are used for purposes of generative learning by construction contractors.

Design/methodology/approach

To ascertain the significance of cognitive power through various types of teams, a study was undertaken in Malawi, one of the countries in the Sub‐Saharan region. A questionnaire survey was employed to elicit data on the constructs of cognitive power from various types of business teams that were employed by construction contractors.

Findings

Using cognitive power under team application as an analytical lens, the research shows that construction contractors displayed low cognitive, social and physical competences in the various types of teams as critical determinants for generative learning. Innovative behaviour of construction contractors correlated positively to the overall physical, social and cognitive competences.

Research limitations/implications

A comparative study of the three preconditions for team generative learning in other developing and developed construction business environments is recommended whose results could further enrich the industry with tools for enhancing innovative behaviour of construction contractors.

Practical implications

The primary implication of the research findings is that construction executives have an additional role of harnessing and managing cognitive power where mission‐pertinent learning and knowledge activities should be nurtured. In practice, it means that the objectives of utilizing various business teams need to be re‐conceptualized.

Originality/value

The article should be valuable to the leader of any construction organisation that is attempting to sustain superior competitive performance in the knowledge economy through effective engagement and utilization of business teams.
Integrating numerical tools in underground construction process
Authors: Attar Ahmed , Amine Boudjakdji Mohamed , Bhuiyan Nadia , Grine Khaled , Kenai Said , Aoubed Ali
Published: January 2010

Purpose

The purpose of this paper is to show how the time frame for the execution of a construction project in Algeria is rarely respected because of organizational problems and uncertainties encountered while the execution is underway.

Design/methodology/approach

A case study on the construction of a metro station is used as a pilot project to show the effectiveness of replacing traditional construction processes by more innovative procedures. Concurrent engineering (CE) is applied to optimize the execution time of the underground structure. A numerical simulation is integrated into the construction process in order to update design parameters with real site conditions observed during the construction process.

Findings

The results show that the implementation of CE is efficient in reducing the completion time, with an 18 per cent reduction observed in this case study. A cost reduction of 20 per cent on the steel frame support and a total cost reduction of 3 per cent were obtained.

Research limitations/implications

The study demonstrates that the application of CE methods can be quite valuable in large, complex construction projects. Vulgarizing it as “the solution” to adjust time frame delay, control quality and cost, might be an issue for local construction enterprises in Algeria.

Originality/value

Using the concept of CE by overlapping different activities involved in a construction project and making use of simulation tools in the process at different stages of the execution have resulted in modifying the excavation method and hence reducing the completion times.
Enhancing visualization of 4D CAD model compared to conventional methods
Authors: Benjaoran Vacharapoom , Bhokha Sdhabhon
Published: January 2010

Purpose

The 4D CAD model has been accepted for better conceptualizing and comprehending the sequences and spatial constraints in a construction schedule. The purpose of this paper is to identify the deficiencies of the visualization of the 4D CAD model and to propose improvements.

Design/methodology/approach

The presentation abilities of the existing 4D CAD model are analyzed and compared with the other conventional methods, namely Gantt chart, network diagram, and the calendar. Four aspects of the visualization are addressed, namely the overview of a schedule, the duration of an activity, the relationship of an activity, and the project progress tracking. The proposed improvements employed different visual properties of 3D CAD objects such as color, line weight, and line type to represent the different activities' performing statuses. A prototype of the 4D CAD model with enhanced visualization was developed on a construction project case.

Findings

The model evaluation showed that this development could enhance the visualization of the 4D CAD model and provide a more informative construction schedule.

Original/value

It is anticipated that the 4D CAD model with these enhancements can substitute for conventional presentation methods of construction schedules.
Using public‐private partnerships (PPPs) to procure social infrastructure in Australia
Authors: Jefferies Marcus , McGeorge W.D.
Published: January 2010

Purpose

Owing to increasing demands for new infrastructure and a reduction in public sector investment, Australian governments are increasingly turning to the private sector to form partnerships in the design, construction, ownership and operation of public sector projects. This paper aims to focus on the use of public‐private partnerships (PPPs) to procure “social infrastructure projects”, such as schools, hospitals and prisons. The research seeks to map the current extent of PPPs and to present some preliminary findings on the cost of bidding.

Design/methodology/approach

The research traces the origins of social infrastructure PPPs in Australia and gives an up‐to‐date account by mapping projects that are either completed to date or in the pipeline. The research also describes preliminary findings on additional costs likely to be incurred in bidding for social infrastructure PPPs. A semi‐structured interview process involving senior managers from private sector PPP stakeholders was used in conjunction with a review of project documentation.

Findings

Social infrastructure projects are characterised as generally being smaller in scale than economic infrastructure projects (motorways, bridges, tunnels, etc.) and, by their very nature, also tend to be complex, particularly in terms of ongoing involvement with the community. Thus, private‐sector bidders for social infrastructure PPP projects are often presented with a situation where the financial rewards are less and the operational demands are more complex than for hard economic PPP projects. The private sector would welcome increased risk transfer from the public sector and subsequently greater involvement in the operational stages of social infrastructure PPPs.

Originality/value

The outcome of the research project is of assistance to decision takers in both the public and private sectors by making explicit factors which are currently accepted as being implicit in PPP bidding and project evaluation. Ongoing research into PPPs is vital to ensure the development of sustainable procurements methods, the continued funding of a nation's infrastructure, successful operational viability, fair risk distribution and subsequent financial success and that greater rewards are provided for all stakeholders, particularly the community at large.
Data acquisition from construction sites for tracking purposes
Authors: El‐Omari Samir , Moselhi Osama
Published: January 2010

Purpose

The objective of this paper is to develop a tracking and control system that automates the process of data collection from construction sites for fast and accurate measurement of work progress.

Design/methodology/approach

The proposed system integrates different data acquisition hardware and software technologies including barcoding, radio frequency identification (RFID), laser distance and ranging (LADAR), digital images, and a tablet PC as integrating media.

Findings

The paper briefly highlights the advantages and limitations associated with each technology, and presents a methodology that best utilizes these technologies in an integrated system. At the core of the developed system is its database, which is designed to organize and store data collected from construction sites in a way that supports the developed methodology in progress reporting.

Practical implications

The accuracy and timeliness of these reports are crucial for management teams to take corrective actions, if needed, so as to assist in delivering projects on time and within budget.

Originality/value

The paper presents the layout of an IT platform designed to facilitate automated data acquisition from construction sites to support efficient time and cost tracking and control of construction projects. The system presented is capable of capturing text, numerical and graphical data to report efficiently on the progress of a project.
Evaluation of key practices under the Local Improvement Finance Trust (LIFT) initiative for UK healthcare facilities
Authors: Ibrahim A.D. , Price A.D.F. , Dainty A.R.J.
Published: January 2010

Purpose

This paper aims to examine whether the UK Local Improvement Finance Trust (LIFT) procurement strategy supports the delivery of facilities for improved primary and social care services that meet local needs while providing value for money.

Design/methodology/approach

The research employed a qualitative approach (case study), involving semi‐structured interviews with senior managers involved in three LIFT schemes.

Findings

The investigations revealed significant differences in the maturity levels of the schemes evaluated in terms of systems, processes and structures used in the planning and implementation of the schemes. Although there is potential for further improvements, the pattern of progress made generally confirmed an evolving system, with considerable evidence of performance improvement from project‐to‐project.

Research limitations/implications

This evaluation involved only three LIFT schemes and thus utmost caution should be taken in generalising the results. In addition, the evaluations were limited to project management perspectives related to the built environment component and did not delve into clinical aspects.

Practical implications

The paper identified both good practices (that could be transferred across schemes and between projects) and poor practices (that require improvements) from the schemes evaluated.

Originality/value

Although potential ways for securing further long‐term improvements and sustained value for money were highlighted, this paper provides prima facie evidence that the LIFT initiative is delivering the expected economies of scale in providing modern facilities for the provision of integrated primary and social care services.
Commercial reviews in the tender process of contractors
Authors: Laryea Samuel , Hughes Will
Published: January 2010

Purpose

The purpose of this paper is to show the extent to which clients amend standard form contracts in practice, the locus of the amendments, and how contractors respond to the amendments when putting together a bid.

Design/methodology/approach

Four live observational case studies were carried out in two of the top 20 UK construction firms. The whole process used to review the proposed terms and conditions of the contract was shadowed using participant observation, interview and documentary analysis.

Findings

All four cases showed strong evidence of amendments relating mostly to payment and contractual aspects: 83 amendments in Case Study 1 (CS1), 80 in CS2, 15 in CS3 and 29 in CS4. This comprised clauses that were modified (37 per cent), substituted (23 per cent), deleted (7 per cent) and new additions (33 per cent). Risks inherent in the amendments were mostly addressed through contractual rather than price mechanisms, to reflect commercial imperatives. “Qualifications” and “clarifications” were included in the tender submissions for post‐tender negotiations. Thus, the amendments did not necessarily influence price. There was no evidence of a “standard‐form contract“ being used as such, although clients may draw on published “standard‐form contracts” to derive the forms of contract actually used in practice.

Practical implications

Contractors should pay attention to clauses relating to contractual and financial aspects when reviewing tender documents. Clients should draft equitable payment and contractual terms and conditions to reduce risk of dispute. Indeed, it is prudent for clients not to pass on inestimable risks.

Originality/value

A better understanding of the extent and locus of amendments in standard form contracts, and how contractors respond, is provided.
A macroeconomic regression analysis of the European construction industry
Authors: Pellicer Teresa M. , Pellicer Eugenio , Eaton David
Published: January 2010

Purpose

The purpose of this paper is to analyse the international construction sector from a macroeconomic point of view through production functions. The aim is to contribute additional knowledge on the European construction sector, highlighting differences in the industry among European countries

Design/methodology/approach

In order to analyse the sector panel, data from 1996‐2005 for nine European countries were used. Raw data were obtained from Eurostat (Bach Project). Variables for the production functions were chosen after a correlation analysis. Annual turnover was taken as the dependent variable, whereas total assets and personnel costs were the independent variables. The econometric regression models considered were linear (bivariate and multivariate) and logarithmic (Cobb‐Douglas).

Findings

In spite of the limitations stated, there are some factors that can explain the results obtained, such as the diverse preponderance of small and medium enterprises and the different roles played by informal economy, migration and subcontracting in each of the countries.

Research limitations/implications

Data collected by Eurostat are provided by the enterprises voluntarily. This implies a bias in the representativeness of the data. Thus, the discrepancies and inconsistencies in the results obtained are a direct consequence of the data limitations. Furthermore, the regression models obtained should be tested using future data to predict the behaviour of the construction industry in each one of the countries.

Originality/value

The use of production functions in the construction industry is a novel approach that should be further developed to gather more precise information on the behaviour of the sector.
Road testing a health and safety worker engagement tool‐kit in the construction industry
Authors: Meldrum A. , Hare B. , Cameron Iain
Published: January 2010

Purpose

Worker engagement in health and safety (H & S) is a means to reduce risks in construction projects. A measure for worker engagement in H & S is a first step in ensuring improvement and maintenance of worker engagement in the construction industry. The purpose of this paper is to explore the nature of worker engagement in construction by testing a management instrument (WISH) developed to measure it during a construction project.

Design/methodology/approach

A stratified sample of workers in a construction project organisation was studied to test the effectiveness of a site‐wide engagement programme (IIF) run by the main contractor. The measurement was repeated 13 months after the first phase to check engagement at that stage of the project and to reduce bias in scoring.

Findings

Four key factors emerged as the independent variables on which worker engagement depends. These are: knowledge and capability to engage, perceptions, attitudes and behaviours and actual involvement in H & S risk management. The IIF gave a check on the validity (face, construct and content) of the instrument as a measure of worker engagement. Reliability of the measure was tested by peer scoring at the second measurement phase. The Spearman‐Brown R showed a high degree of inter‐rater reliability in scores, supporting the reliability of the WISH measure.

Originality/value

The study provides a valid and reliable measure of worker engagement in H & S management for construction. The use of this instrument within the construction industry should help managements to improve the effectiveness of their worker engagement programmes.
What empowers individuals and teams in project settings? A critical incident analysis
Authors: Morgan Tuuli Martin , Rowlinson Steve
Published: January 2010

Purpose

Empowerment is a concept that means different things to different individuals. The factors that engender feelings of empowerment are thus multifarious. The purpose of this paper is to focus on to the factors that empower individuals and teams in projects settings.

Design/methodology/approach

Using the critical incident technique (CIT), 122 critical incidents comprising 69 empowering and 53 disempowering experiences of 30 purposively selected construction professionals are elicited and analysed.

Findings

Adopting a broad frame of reference on the premise that empowerment of individuals and teams in project settings is associated with drivers and barriers related to: the individual; the team context; the organisation; and the project – mutually exclusive and exhaustive contextual influences within each frame of reference are identified. At the individual‐level, cultural values and factors related to the quality of relationships with leaders and colleagues emerged. At the team‐level, team context and leadership style are the key factors. At the organisation‐level, factors related to structure and culture emerged. At the project‐level, project characteristics, organisation, environment and technology‐related factors impacted the empowerment of individuals and teams.

Practical implications

Practically, the paper provides targets of concrete interventions by leaders and organisations desirous of fostering empowerment in project teams.

Originality/value

This paper adds to previous research in demonstrating the practicality of the CIT in construction specific research and the credibility and trustworthiness checks employed are exemplary of measures researchers using qualitative methodologies can take to assert the credibility of their findings and conclusions.
Innovations from the Halcrow‐Cardiff University strategic collaboration
Authors: Martin J.C. , Akande K. , Falconer R.A.
Published: January 2010

Purpose

Innovation process may be characterised by three separate actions: the creation of ideas; their development; and subsequent application for the benefit of industry and society. In water engineering consultancy, the processes that stimulate and manage innovation are not well established. Other organisations are capable of establishing dedicated product or commodity facilities, but the make‐up of the construction industry and its consultancy service organisations, requires a different approach. Conventional models tend to focus on product innovation in a manufacturing environment but it is also necessary to consider innovation from the perspective of the service industries. This paper aims to address this issue.

Design/methodology/approach

This paper describes the case of Halcrow, an international civil and environmental engineering consultancy. In 2001, Halcrow Group Ltd and Cardiff University cooperated with each other to research and innovate via a strategic collaboration which involved the sponsorship of a chair and a research team in the School of Engineering. The collaboration, whose aim is to underpin a strategic relationship between university research in various aspects of water engineering and management consultancy, is structured around five related topics, which when combined provide a collaborative framework that promotes innovation and exploitation of industry relevant research. The topics are: networking, research exploitation, skills development, knowledge transfer and dissemination. Through the collaboration, a number of activities have been promoted and these have resulted in a number of innovations, valuable in developing business. Insights from the Halcrow‐Cardiff collaboration activities and highlights of the resulting innovations are described in this paper.

Findings

The paper highlights the contribution that research work through the collaboration has made to the water industry and the anticipated benefits to society in the long term. The paper in turn describes how it has been possible to accommodate variations related to the likes of climate change and renewable energy efficiency, looking ahead to the medium and long terms.

Originality/value

The paper provides insight into an innovative partnership providing a framework for the creation of ideas.
Study of light‐multi‐layered façades
Authors: Ruiz Letzai , Gómez Eva , García Santos Alfonso , Vega Sergio
Published: January 2010

Purpose

Traditional façade systems are at the point where the minimum comfort guarantees have peaked, showing hygrothermic performance deficiencies which result in higher heating consumption, which is why it is necessary to make improvements in design and building construction, especially in envelopes, for which efficient building enclosures should be used, generating notable benefits. For these reasons, the study of new façade construction systems is essential, particularly light multi‐layers, which offer favorable characteristics for energy consumption savings. With this background, the main aim of this study is to generate knowledge to find out to what extent light multi‐layered façades are better, determining which façades are the most efficient and guarantee the comfort conditions of a building, contributing in this way to energy consumption savings.

Design/methodology/approach

To carry out this study, a methodology of analysis was used, signifying that in the first phase a theoretical study has been made, analyzing different configurations of the sample façades, to obtain their thermal performance, using two different methods, thermographic and thermal, obtaining in the thermographic study: surface temperatures of the façades, while in the thermal simulation, generating isotherms, heat flows, data on thermal coupling coefficients to calculate the value of the thermal transmittance and surface conditions, among others.

Findings

Using these data, the conclusion has been reached that comparing a traditional enclosure to a light multi‐layered one of equal thickness, an improvement of 65 percent can be achieved in the thermal transmittance, which signifies a saving in energy consumption, exceeding the Technical Building Code.

Originality/value

This paper demonstrates great advancement over traditional systems.
Strategies for managing innovation in UK housebuilding
Authors: Pan Wei
Published: January 2010

Purpose

The UK Government's housing agenda, coupled with the current market conditions, has provided the housebuilding industry with a challenge to build more new homes while improving business efficiency to survive. Although innovation has been claimed as the key to meeting the challenge, the level of its usage has been reported low. This paper aims to reveal an insight into the success, inertia and failure of innovations and improve innovation management for housebuilding firms.

Design/methodology/approach

The paper reports on a two‐year case study of a large UK housebuilding company. It investigates the lifecycle of two product innovations, i.e. photovoltaic and air source heat pumps, and two process innovations, i.e. development efficiency plan and glossary of terms.

Findings

Five key stages of managing innovation are identified which represent the thematic consistency among the innovation processes, i.e. the creation of ideas, development of innovation, utilisation, review and improvement or abandonment. The organisational construct of the company for managing innovation is complicated and appeared difficult to manipulate, which constitutes a cultural and administrative obstacle. Whilst the adoption of the innovations from the market seems more straightforward than those created and developed in the company, the success or failure of innovation is driven by the combination of external and internal contextual issues. Strategies are developed which should improve the effectiveness of managing innovation in housebuilding and contribute to relevant future debate.

Originality/value

The paper provides insight into managing innovation in UK housebuilding.
Board leadership: balancing entrepreneurship and strategy with accountability and control
Authors: Taylor Bernard
Published: January 2010

Argues that effective board leadership requires directors to achieve a balance between entrepreneurship (i.e. paying attention to strategy, corporate renewal and innovation on the one hand) and corporate governance. Posits that medium sized firms have a dilemma in knowing how to expand their businesses in a rapid fashion. Highlights how companies manage this type of move from a corporate type of governance to a more corporate entrepreneurship.
Hands on reward for hands on management
Authors: Pay Research Group Top
Published: January 2010

A paper presented at Henley Management College focusing on the issue of appropriate pay schemes and financial incentives for executives in the 21st century.
Corporate values and corporate governance
Authors: Thomsen Steen
Published: January 2010

There is growing interest in corporate values but where do they come from? What factors determine corporate values? This paper argues that they are determined by corporate governance in a broad sense of the word. Three governance mechanisms are emphasized: ownership structure, board composition and stakeholder influence. In smaller companies founder‐owners often play a pivotal role in shaping corporate value systems that influence companies for years to come. In larger companies that separate ownership and control, managers and boards come to play a powerful role. In both cases repeated interaction with customers, employees and other stakeholders shape corporate values by way of corporate reputation and corporate culture.
Board composition, CEO duality and performance among Malaysian listed companies
Authors: Nahar Abdullah Shamsul
Published: January 2010

This study investigates the roles of board independence and CEO duality on a firm’s performance relying on financial ratios, namely ROA, ROE, EPS and profit margin. This paper argues that if boards and leadership structure are well in place and conform to the practices in other developed countries, the long‐term shareholder value is expected to increase and shareholder interests are also well protected. To test the roles of board independence and CEO duality, data from the KLSE Main Board companies for the 1994‐1996 financial years were used. The 1994‐1996 financial years were chosen because, during this period, the issue of corporate governance in Malaysia was not as prominent as it was during, and after, the 1997/1998 financial crisis. Thus, this period could be considered as the period during which guidelines on the structure of the board of directors were not yet available in Malaysia. The findings, generally, suggest that neither board independence, leadership structure nor the joint effects of these two showed any relations with firm performance. Findings of this study, nonetheless, showed that Malaysian companies’ boards were generally dominated by outside directors and the majority of the companies in the study practiced non‐dual leadership structures. Thus, this evidence suggests that the structure of the boards of directors in Malaysia is largely independent of management and the absence of any dominant personality.
Financing and investing considerations for REITs
Authors: Scherrer Phillip S.
Published: January 2010

As equity markets decline, bonds and REITs (Real Estate Investment Trusts) become more appealing to investors. Although REITs stocks are equity based their continual return is more bond‐like in nature. This article addresses the analyses process for investing in real estate based equities.
Why corporate governance in the Russian oil and gas industry is improving
Authors: Heinrich Andreas
Published: January 2010

Purpose

This research paper aims to examine global factors influencing business behaviour in the Russian oil and natural gas sector. The aspect of corporate governance will serve as an indicator for the business behaviour processes under review. It will be investigated whether global factors in the form of internationalization result in the adoption of international norms, standards and business practices, thereby bringing about a change in a company's corporate governance.

Design/methodology/approach

Two indices were developed to measure the degree of internationalization and the quality of corporate governance in the individual companies. The correlation between these two factors was tested statistically.

Findings

The study indicates that in 1997 there was no statistical correlation between the degree of internationalization and the quality of corporate governance. In 1999 and 2001, however, there was a statistical correlation of 0.75 and 0.90 respectively between both variables, corroborating the hypothesis that since 1999, i.e. since the financial crises, the extent of a company's internationalization has heavily influenced its corporate governance.

Research limitations/implications

This study should encourage future research on this topic. A comparative international research project on global and national factors influencing business behaviour is already planned to test and extend the hypotheses in a broader context.

Originality/value

The main contribution of this paper is the linkage of global influences to firm‐level corporate governance. It can be concluded that global influences affect the business behaviour, i.e. the quality of corporate governance, of Russian oil and gas companies. The greater the extent of a company's internationalization, the greater the pressure to adopt international standards. Thus a high level of internationalization will result in corporate governance conforming with international standards.
Corporate governance as a determinant of corporate values
Authors: Thomsen Steen
Published: January 2010

Purpose

This paper aims to test the impact of corporate governance structure on corporate values.

Design/methodology/approach

The paper employs factor analysis and three‐stage least squares to identify and explain variance in corporate values.

Findings

In accordance with the proposed theoretical framework ownership, board and stakeholder structure are found to influence corporate values. When value determinants are taken into account there is no significant relationship between values and profitability.

Research limitations/implications

This is a pilot study of 71 Danish firms. Further research needs to address measurement of corporate values and to test hypotheses on larger datasets.

Practical implications

One practical implication is that corporate values should be grounded in the company's ownership, board and stakeholder structure. Real changes in corporate values may require real changes in governance structure.

Originality/value

The paper tests a new approach to the study of corporate values which connects values to governance. It thereby establishes empirical foundations for current discussions about corporate values. This should be important both to practical work on company missions, values and responsibilities and to academics who search for an operational approach to the study of corporate values.
Corporate social responsibility and corporate performance: the case of Italian SMEs
Authors: Longo Mariolina , Mura Matteo , Bonoli Alessandra
Published: January 2010

Purpose

The research has the following objectives: to contribute to a clear understanding of the present social commitment of small and medium‐sized enterprises (SMEs), analyzing the characteristics of CSR in them; making it easier to identify, develop and spread the instruments suitable to the SME specific demands in the creation of social value.

Design/methodology/approach

Surveys a set of SMEs, belonging to different industrial fields and operating on the Italian territory in the region Emilia Romagna.

Findings

On the basis of the analysis carried out in the paper, it has been possible to identify the principal managerial instruments used by the companies for the creation of social value and to identify those companies (approximately 63 percent of the reference sample) that adopt an integrated social responsibility approach. The majority of SMEs analysed have therefore perceived the social responsibility concept and welcome it, not only because they have moral or ethical reasons for doing so, but also because they maintain that this contributes to the growth of the company's own value.

Practical implications

As there is no integrated approach, there exists no model in the literature that summarises the expectations of the stakeholders and the associated categories of value for these expectations. The “grid of values” developed in the present study constitutes a first level of such a model and a useful reference for the development of future research.

Originality/value

In the opinion of the authors, two aspects characterize the contribution of the present research methodology: the integrated approach towards all the interlocutors; and the analysis and development of “value classes” to measure the creation of social value.
The relationship of ethical climate to deviant workplace behaviour
Authors: Appelbaum Steven H. , Deguire Kyle J. , Lay Mathieu
Published: January 2010

Purpose

The purpose of this article is to perform a literature review of the existing body of empirically‐based studies relating to the causes and implications of how the ethical climate of a company ultimately affects the incidence of workplace deviance.

Design/methodology/approach

The article examines the issue of ethical contexts and climates within organizations, as measured by the Ethical Climate Questionnaire developed in 1987 by Victor and Cullen , and their implications in the daily work lives of participants. The causes of unethical behaviour, including the presence of counter norms, the environment in which a firm operates, and organizational commitment, as well as the manifestation of this behaviour in the form of workplace deviance, are reviewed. Finally, current trends in preventing workplace deviance are investigated, including promoting a strong culture of ethics, and the use of “toxic handlers”, individuals who take it upon themselves to handle the frustrations of fellow employees.

Findings

Clearly, unethical and deviant behaviour problems are of great concern to organizations, which must take steps to solve them, at the same time as fostering strong positive ethical cultures. Feels that further studies are needed using more definitive and qualitative measurements to learn more about these behaviours.

Originality/value

This article would be useful to those who wish to obtain an overview of the current literature, specifically readers who do not specialize in the subject area.
Corporate social responsibility in Portugal: empirical evidence of corporate behaviour
Authors: Abreu Rute , David Fátima , Crowther David
Published: January 2010

Purpose

The purpose of this research is to explore corporate social responsibility (CSR) evidence and, especially, the experience and practice of enterprises in Portugal.

Design/methodology/approach

As a generally accepted principle, the corporate social report is a communication and measurement object. But there are limitations concerning availability and accuracy of the data that could create constraints and diminish the scope of this report. Thus, the methodology for this paper is subdivided into two different aspects of research: First, an individual perspective about each enterprise studied and second, a general perspective applied to CSR in Portugal. The sample used was based on the survey developed by the Instituto ETHOS, applied to a sample of enterprises carried out in Portugal, during the year 2002. It was published by Exame in a special edition – “The guide of socially responsible enterprises”. So, the authors analyze and present the results that are of interest in the area of CSR activity. In order to do so the authors develop a principal component analysis to sort and group the original data.

Findings

The preliminary analysis generated three components of CSR: the external influence (CSR external), the market influence (CSR market) and the operative influence (CSR operative) of the enterprises in Portugal.

Originality/value

This research shows cultural differences and helps to highlight the importance of more research in this area in the newly expanded European Community. It also highlights the relationship between CSR activity and corporate image and performance.
The enactment of corporate governance guidelines: an empirical examination
Authors: Rubach Michael , Picou Armand
Published: January 2010

Purpose

The purpose of this paper is to examine the stock price reaction to the first announcement in SEC filings of the enactment of corporate governance guidelines. Agency and management theories suggest the enactment of guidelines should create value for the owners.

Design/methodology/approach

The paper uses an event study methodology on a sample of 141 firms.

Findings

The research finds only a few firms exhibited a significant reaction. Overall, the data were not significant. Searching for first‐ or late‐mover advantages was also unsuccessful. However, the increased enactment of guidelines (bandwagon effect) supports first order imitation possibly due to the board interlocks found. The results indicate two possible explanations. First, SEC filings may not be a strong signal for the overall market resulting in a potentially unrealized stock value transferred to those few who act on the signal. Second, the value of the guidelines may be unclear to investors. In either case, more public disclosure (i.e. greater transparency) for the adoption of corporate governance guidelines may resolve the issue.

Originality/value

This paper provides valuable information on the value of corporate governance guidelines.
Stakeholder relationships: the dialogue of engagement
Authors: Foster David , Jonker Jan
Published: January 2010

Purpose

This paper seeks to analyse the nature of the communication process involving stakeholders in a working relationship with organisations. While most research has been undertaken to identify who or what these stakeholders are and what the patterns of relationships look like, very little attention has been given to the ways in which the organisation actually engages with them.

Design/methodology/approach

The paper draws on qualitative research conducted into a controversial issue concerning protected area management in Victoria, Australia, which was conducted within a framework built around Habermas' concept of communicative action.

Findings

The lessons learned from what Stake would call an “instrumental” case study, provided the insight to clarify what form organisational communication with stakeholders should take if it is to result in significant and positive outcomes. It is argued that the basis of any constructive engagement between an organisation and its stakeholders should be communication that is linked to mutual understanding as the basis of agreeable action. Finally the challenges of these findings for modern organisations are addressed.

Originality/value

This paper provides useful information on the nature of the communication process involving stakeholders in a working relationship with organisations.