CHAPTER 6: SUCCESS FACTORS FOR CONSTRUCTION PARTNERING
6.3.2 Discussion on factor analysis result
6.3.2.1 Dedication
This component has explained a variance of 28.45%. It comprises of nine success factors like creativity of partnering team, acting consistent with
objectives, flexibility to change, commitment to continuous improvement,
total cost perspective, dedicated team, early implementation of the partnering process, good cultural fit, and commitment to quality. Construction project is
dynamics and intricate in nature. Even that, implementation of projects demands both artistic and scientific manner. Creativity and flexibility are important to partnering and even all types of construction projects. Creativity shows under various forms such as always think of novel ideas or like to use advanced techniques (Cheng et al., 2000). Nevertheless all actions must be consistent with the specified objectives of partnering projects. That is participants should ensure that they have synchronous goals and review their accomplishments in terms of their original goals (Chen and Chen, 2007).
The dedication to the partnership also is in the terms of commitment to quality and continuous improvement of parties in project. The commitment to quality is the continuous endeavors to achieve careful work, guarantee quality and last customer satisfaction of both sides in the partnership (Chen and Chen, 2007). The commitment to an organization-wide process of focused and on-going incremental innovation (cited in Cheng and Li, 2001).
The goal of the organization should be to reduce the total cost of the activities instead of individual activity costs. It should be less concerned with trivial cost decrease while much focus on the overall profit attitude which much
It is also necessary to build a dedicated partnering team and a good cultural fit to foster the dedication. A dedicated partnering team is a partnering team always fulfills their commitments well and on time (Tennyson, 2003). Although partnering can help to resolve many inherent problems of traditional procurement methods, it could be ruined by the culture conflict. A partnership is developed and formed on the coordination of various organizations with various distinct organizational cultures. Good cultural fit will facilitate partnering implementation and encourage the partnering members in dedication. In addition, the early implementation of the partnering process is a signs of dedication to partnering. The partnering process should be developed and started at the design stage of construction project to use the knowledge, expertise of parties to ensure the success (Beach et al. 2005).
6.3.2.2 Readiness
Readiness is vital to start and maintain a collaborative relationship. An organization is ready for partnering can promote its success. The readiness for partnering is represented through the wide acceptance of whole company/organization and the preparation of technical expertise and cultural issues. Partners must set up an effective communication system, develop and maintain the mutual trust in the partnership to reach the mutual goals. When all partners are ready for the partnership, the partnering process can be early implemented and the long-term commitment of partners is easy to obtain. In this study, the readiness component could explain 9.93% of variance of the success factors. Company highly unanimous with the partnering can safeguard the commitment to partnering. It is necessary to integrate the experienced, professional and skilled technical teams such as architects,
contractors, consultants for successfully wrapping up project (Chen and Chen, 2007). Culture is a critical factor as discussed in the aforementioned component and thus partner team personnel should be prepared for cultural fit. Developing an effective communication system can protect the smoothness of information transmission between parties to reduce and timely solve conflicts. Creating and sustaining a good mutual affection through mutual trust or shared mutual vision/goal could further the commitment of parties in fulfilling its obligation in an exchange relationship.
6.3.2.3 Coordination
Coordination is a widely recognized important factor for the success of partnering. In this study, coordination component accounts for 7.72% of variance. Achievement of effective coordination could obtain stability in an uncertain environment which can be attained by an increase in contact points between parties and sharing of information (Bayramoglu, 2001). Any unclear thing or conflict should be well informed among parties. The aim is to reduce the complaints about coordination problems such as misunderstanding or misinterpretation. The reduction of misunderstanding can be achieved through the questioning attitude that is feeling free to question any assumptions made by other parties (Black et al, 2000) directed to achieve win-win attitude. All personnel should be educated or trained about partnering before and during partnering implementation. Out of regular skills for working in partnering environment, it should focus on training about coordination. When coordination mechanism in partnering is well established, it could encourage whole members to act consistently with objectives. Participants have synchronous goals and review their
6.3.2.4 Teamwork
To obtain work success in collaborative environment, teamwork attitude is an indispensable factor that should be paid much attention to. In this study, teamwork is prominent as a critical component related to success of implementing partnering in construction in Vietnam. This component consists of four factors: joint problem solving, partnering experience, mutual
trust between parties, and mutual vision, goals/objectives. The amount of
variance explained of this component is 7.12%. According to description in Cheng and Li (2001), joint problem solving is a collective decision made by the partnering team to create alternatives for problematic issues. Joint problem solving is a productive technique of the teamwork style. Such resolution technique can create a commitment to mutually agreed solution because parties can gather together and share with each other their own views on the issues and their solving tactics (Cheng et al, 2000). Experience with partnering approach helps to speed up the partnering progress based on the knowledge, skills, tools, and practices accumulated through past events.
These experience matters consume much time for training and perceiving.
Mutual trust and shared mutual vision or goals within a team are crucial subjects for the team’s members to work together. Each member works his own task in team and to be sure that the others fulfill their obligations in an exchange relationship.
6.3.2.5 Sufficiency
The sufficiency of partnering application can be described by adequate
resources supplied, effective conflict resolution process adopted, dedicated team employed, and effective communication mechanism established. This
component explains 5.46% of variance of the success factors. Since a project requires a variety of skills and technology, each participating party must supplies required resources to share with others, which are enough to support a successful partnering (Cheng and Li, 2001). Adequate resources could facilitate problem solving by improving the capacity of organization to execute innovative ideas (Crowley and Karim, 1995). Conflict exists in all entities in which mutually interactive activities are present, especially in a partnership. If managed properly, conflict contributes to success of partnership because it is likely to lead to creative solutions, which enhance ability that partners to work together in the future (Crowley and Karim, 1995). Building a sufficient team for operating partnering organization smoothly has significant impact on achieving success. The team members should be dedicated to partnering team works with win-win attitudes. With such dedicated team, communication and conflict resolution processes have a chance to run effectively. Chen and Chen (2007) quoted that partnering requires timely communication of information and the maintenance of open, direct lines of communication among all project members. Through communication, adversarial relationships and misunderstanding between parties could be reduced.
6.3.2.6 Leading
Leading is also a critical component contributing to achieving successful performance of partnering. In this study, this component, explaining 4.8% of variance, consists of financial security, commitment from top management,
equity, long-term commitment, and effective communication. To have assured
financing is one of incentives of partnering implementation in construction
specified by the top management to join a partnership. Equity is also an important factor to be considered in launching a partnering. Equity will guarantee that all stakeholders’ interests are considered when creating and reviewing the mutual goals. When financial security and equity can be obtained from the partnering, it will enhance the commitment from top management. The full support and commitment of senior management in formulating the strategy and direction of business activities represent the commitment from top management (Cheng and Li, 2001; Black et al., 1999).
The support from senior management is always a prerequisite for successful partnering (Slater, 1998). And as a consequence of top management commitment, long-term commitment of partners in partnership will be promoted. That is the commitment of one party to maintain the current partnering relationship with other parties based on some positive aspect (Cheng and Li, 2001). Effective communication assures the transmission of information throughout the organization’s hierarchy that supports the managers in executing their leading role. Team members can get timely and correctly commands or demands from top management and, conversely, managers can receive feedbacks from their staff.
6.3.2.7 Balance
The three factors grouped into one component, namely balance, are
adequate partnering team building, commitment to quality, and empowerment of stakeholders. Balance is very important to the success of a
partnership. This component can explain 4.24% of variance of success factors. A partnering team should consist of members from all involved parties where these representatives should be key executives and possess the authority to act on behalf of their organizations (Loraine, 1994). The
consistency and appropriateness of team’s decisions are high and implementation process of these decisions could be facilitated. In addition, stakeholders must be equally empowered with the requisite decision making authority for efficient problem solving (Ng et al., 2002). The equal empowerment could promote the commitment of stakeholders to the partnering project. Moreover, it is necessary to reach a balance between quality and economic constraints. All sides in partnership present continuous improvement to achieve careful work, a guarantee of quality, and lasting customer satisfaction (Chen and Chen, 2007).
6.3.2.8 Clearness
Clearness is significant to success of all projects, especially partnering projects. The clearness will reduce misunderstanding and enhance mutual trust between parties. The ambiguous scope and objectives statement of parties is likely to raise adversarial relationship in partnership. On the other hand, having achieved clear understanding about scope and objectives of partners, the parties can then work together to make plans a reality (Crane et al, 1997). The clearness is also expressed in the form of equity. That is all stakeholders’ interests are considered in creating mutual goals and there’s a commitment to satisfy each stakeholder’s requirements to ensure project satisfaction and success (Ng et al., 2002). This component can explain 3.77%
of variance of success factors.