Analysis of delays in Tanzanian construction industry: Transaction cost economics (TCE) and structural equation modeling (SEM) approach

• Main Authors: T.J., Deepak, Ponniah, Venishri
• Format: Article
• Published: Emerald Publishing Limited 2017
• Subjects: TH Building construction
• Online Access: http://eprints.intimal.edu.my/830/; https://doi.org/10.1108/ECAM-09-2015-0145; https://doi.org/10.1108/ECAM-09-2015-0145

Purpose The purpose of this paper is twofold: first, to develop theoretical underpinnings using TCE, and second, to run the analysis using an advanced tool such as structural equation modeling (SEM). Design/methodology/approach This study was conducted in the construction industry in Tanzania. A questionnaire-based survey method was used. A total of 308 respondents participated in the study. The relationships between the cause and effect factors were analyzed using SEM. Findings The important findings are as follows:cost overrun can be explained by consultant-related and material-related factors; disputes can be explained by cost overrun; arbitration can be explained by consultant-related, cost overrun, and dispute factors; litigation can be explained by client-related, disputes, and arbitration factors; and abandonment can be explained by consultant-related, external-related, disputes, arbitration, and litigation factors. Originality/value The main contributions of this study are theoretical development and comprehensive analyses of “cause” and “effect” factors of delays in the construction industry.