Title: Influence of organisational structure on risk management of Malaysian construction companies

Authors: Manal Suliman Omer; A.Q. Adeleke

Addresses: Faculty of Industrial Management, University Malaysia Pahang, Lebuhraya Tun Razak, 26300 Gambang, Darul Makmur Kuantan, Pahang, Malaysia ' Faculty of Industrial Management, University Malaysia Pahang, Lebuhraya Tun Razak, 26300 Gambang, Darul Makmur Kuantan, Pahang, Malaysia

Abstract: The construction sector plays a significant role in contributing to a country's economy. But a very important aspect which has been overlooked over the years in project planning is risk assessment. This attitude has been leading to the poor performance and productivity of construction companies. This situation therefore, calls for an empirical search regarding the role that coercive pressure plays in the connection between the structure of an organisation and the management of risk among construction companies in Malaysia. As established in this study's model, data was gathered from 180 G7 contractors operating in Peninsular Malaysia, using a quantitative approach. One hundred and sixty-five copies of the questionnaire were returned and analysed. Smart PLS 3.2.8 was the analytical tool employed for the analysis of the data. The results revealed significant support of all hypotheses. The obtained results showed significant positive relationship between formalisation, centralisation and construction risk management. Similarly, the results indicated a significant positive relationship between coercive pressure and construction risk management. Furthermore, coercive pressure played a moderating role in the connection between formalisation, centralisation and management of risk. The study was investigated in Peninsular Malaysia. Future study may include other states such as Sabah and Sarawak.

Keywords: organisational structure; construction risk management; CRM; coercive pressure; Malaysia.

DOI: 10.1504/IJPSPM.2024.138768

International Journal of Public Sector Performance Management, 2024 Vol.13 No.4, pp.550 - 573

Received: 05 Oct 2020
Accepted: 23 Nov 2020
Published online: 31 May 2024 *

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