Key issues and challenges of risk management and insurance in China's construction industry: An empirical study (original) (raw)

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[ Junying Liu ](/insight/search?q=Junying Liu) (School of Management, Tianjin University, Tianjin City, China)

[ Bingguang Li ](/insight/search?q=Bingguang Li) (Harry F. Byrd, Jr School of Business, Shenandoah University, Winchester, Virginia, USA)

[ Binshan Lin ](/insight/search?q=Binshan Lin) (Department of Management and Marketing, Louisiana State University, Shreveport, Louisiana, USA)

[ Vanthuan Nguyen ](/insight/search?q=Vanthuan Nguyen) (Silberman College of Business, Fairleigh Dickinson University, Madison, New Jersey, USA)

Abstract

Purpose

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The purpose of this study is to investigate the key issues and challenges in risk management and insurance in the Chinese construction industry and propose solutions to improve risk management.

Design/methodology/approach

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The study is based on surveys which target people who have direct or relevant experience of risk management and construction insurance in China. Surveys were conducted by e‐mail, mail and fax to selected clients, contractors (project director, project managers, and contract managers/administrators), insurers, brokers, consultants, claim advisors, and academics; and e‐mails to Chinese researchers in the construction management field. Descriptive analysis is used for data analysis.

Findings

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It is found that cultural considerations inhibit proper implementation of risk management in China's construction industry. It is also found that the perception and attitude of contractors play an important role in developing risk management. Accordingly, an organizational learning of a risk management model is designed and proposed as an organizational learning process through collaborative teamwork to improve risk management and create a learning organization.

Research limitations/implications

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The major limitation is the sample size. A much larger sample size allows comparisons among different groups of contractors, regions, etc.

Originality/value

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This empirical research identifies the real challenge of application of risk management in China's construction industry. It proposes a realistic organizational learning model through collaborative teamwork which could help Chinese contractors to improve their risk management.

Keywords

Citation

[Liu, J.](/insight/search?q=Junying Liu "Junying Liu"), [Li, B.](/insight/search?q=Bingguang Li "Bingguang Li"), [Lin, B.](/insight/search?q=Binshan Lin "Binshan Lin") and [Nguyen, V.](/insight/search?q=Vanthuan Nguyen "Vanthuan Nguyen") (2007), "Key issues and challenges of risk management and insurance in China's construction industry: An empirical study", Industrial Management & Data Systems, Vol. 107 No. 3, pp. 382-396. https://doi.org/10.1108/02635570710734280

Publisher

Emerald Group Publishing Limited