The Resource-Based View on Project Risk Management
Publication: Journal of Construction Engineering and Management
Volume 142, Issue 9
Abstract
The benefits of conducting risk analyses in the planning of construction projects are widely acknowledged. However, the actual implementation of procedures notably differs significantly across industry segments. Even within an organization, different units represent risks differently, depending on their primary function. As a result, a holistic picture of the risk exposure is often hard to describe and even harder to manage. The objective of this paper is to provide a link between strategic planning theory, namely the resource-based view (RBV), and project risk management. The proposed resource-based approach is based on the development of a project causal network which then allows for both data-intensive and conceptual evaluation of the project risks, primarily focusing on cost impacts. The key contribution of this paper is the capacity of the developed framework to integrate with a number of methods already used in project management practices with little to no additional data requirement. These contributions are illustrated using real project data.
Get full access to this article
View all available purchase options and get full access to this article.
References
Al-Bahar, J. F., and Crandall, K. C. (1990). “Systematic risk management approach for construction projects.” J. Constr. Eng. Manage., 533–546.
Amit, R., and Schoemaker, P. J. (1993). “Strategic assets and organizational rent.” Strat. Manage. J., 14(1), 33–46.
Barney, J. (1991). “Firm resources and sustained competitive advantage.” J. Manage., 17(1), 99–120.
Choi, H.-H., and Mahadevan, S. (2008). “Construction project risk assessment using existing database and project-specific information.” J. Constr. Eng. Manage., 894–903.
Del Cano, A., and de la Cruz, M. P. (2002). “Integrated methodology for project risk management.” J. Constr. Eng. Manage., 473–485.
Department of Defense. (1968). Work breakdown structures for defense material items, Washington, DC.
Department of Defense. (2006). Risk management guide for DoD acquisition, Washington, DC.
Fenton, N., and Neil, M. (2011). “The use of Bayes and causal modelling in decision making, uncertainty and risk.” CEPIS Upgrade, 12(5), 10–21.
Garvey, P. (2009). Analytical methods for engineering risk management: A systems engineering perspective, Taylor and Francis Group, Boca Raton, FL.
Govan, P. (2014). Causal network methods for integrated project portfolio risk analysis, Texas A&M Univ., College Station, TX.
Groth, K., Wang, C., and Mosleh, A. (2010). “Hybrid causal methodology and software platform for probabilistic risk assessment and safety monitoring of socio-technical systems.” Reliab. Eng. Syst. Safety, 95(12), 1276–1285.
ISO. (2009). Risk management—Principles and guidelines, Geneva.
Mak, S., and Picken, D. (2000). “Using risk analysis to determine construction project contingencies.” J. Constr. Eng. Manage., 130–136.
Makadok, R. (2001). “Toward a synthesis of the resource-based and dynamic-capability views of rent creation.” Strat. Manage. J., 22(5), 387–401.
Neil, M., Fenton, N., and Tailor, M. (2005). “Using Bayesian networks to model expected and unexpected operational losses.” Risk Anal., 25(4), 963–972.
Okmen, O., and Oztas, A. (2008). “Construction project network evaluation with correlated schedule risk analysis model.” J. Constr. Eng. Manage., 49–63.
PMI (Project Management Institute). (2010). A guide to the project management body of knowledge, Newtown Square, PA.
Rad, P. F., and Cioffi, D. F. (2000). “Work and resource breakdown structures for formalized bottom-up estimating.” J. Cost Eng., 46.
Roed, W., Mosleh, A., Vinnem, J. E., and Aven, T. (2009). “On the use of the hybrid causal logic method in offshore risk analysis.” Reliab. Eng. Syst. Safety, 94(2), 445–455.
Shenoy, C., and Shenoy, P. P. (1999). “Bayesian network models of portfolio risk and return.” Comput. Finance, 87(1), 87.
Weber, P., Medina-Oliva, G., Simon, C., and Iung, B. (2012). “Overview on Bayesian networks applications for dependability, risk analysis and maintenance areas.” Eng. Appl. Artif. Intell., 25(4), 671–682.
Wernerfelt, B. (1984). “A resource-based view of the firm.” Strat. Manage. J., 5(2), 171–180.
Information & Authors
Information
Published In
Copyright
© 2016 American Society of Civil Engineers.
History
Received: Feb 26, 2015
Accepted: Dec 4, 2015
Published online: Mar 2, 2016
Discussion open until: Aug 2, 2016
Published in print: Sep 1, 2016
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.