Exploring the Impact of the Integrity Climate on Integrity Violations in Public Procurement: A Partial Least Square Structural Equation Modeling Approach
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 16, Issue 1
Abstract
The increasing volumes of public procurement have a concomitant challenge of corruption. This study widens the discussion on corruption by incorporating the various morphologies of integrity transgressions. Literature survey followed by a Delphi study with anti-corruption experts yields eight distinct types of integrity violations in the Indian public sector. Simultaneously, it generates a framework of 22 critical tools and mechanisms that describe the integrity climate of procurement. A survey across diverse public organizations in India involving 193 practitioners is undertaken to evaluate the level of implementation of the integrity climate measures and the frequency of integrity violations. Their mutual relationship is investigated by partial least square structural equation modeling using SmartPLS 4, which yields a robust model with high predictive power. The model shows a significant path with a strong negative coefficient () between the organizational integrity climate and the integrity violations, thus cogently proving the mitigating influence of the integrity climate on the integrity violations by members. This research is the maiden effort to assess the typologies of integrity violations in public organizations in India and determine their response to the organizational integrity climate. It offers practical insights to managers and policymakers that will improve project integrity outcomes while enriching the domain knowledge of integrity management in procurement.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
All data, models, or code that support the findings of this study are available from the corresponding author upon reasonable request.
References
Works Cited
Almeida, P. R. D., M. Z. Solas, A. Renz, M. M. Bühler, P. Gerbert, S. Castagnino, and C. Rothballer. 2016. Shaping the future of construction: A breakthrough in mindset and technology. Cologny: World Economic Forum. https://doi.org/10.13140/RG.2.2.21381.37605.
Ameyaw, C., and S. Mensah. 2013. “Curbing corruption in the public procurement process in Ghana.” Public Policy Administration Res. 16 (3): 44–53.
Bhagat, G., and K. N. Jha. 2022. “Stage-wise evaluation of integrity risks in public works procurement in India.” Int. J. Constr. Manage. 1–12. https://doi.org/10.1080/15623599.2022.2100623.
Bhagat, G., and K. N. Jha. 2023. “Corruption risks in public construction.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 15 (2): 04522062. https://doi.org/10.1061/JLADAH.LADR-936.
Chan, A. P. C., and E. K. Owusu. 2017. “Corruption forms in the construction industry: Literature review.” J. Constr. Eng. Manage. 143 (8): 04017057. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001353.
Cohen, J. 1988. Statistical power analysis for the behavioral sciences, 567. 2nd ed. Mahwah, NJ: Lawrence Earlbaum Associates.
de Graaf, G., L. Huberts, and T. Strüwer. 2018. “Integrity violations and corruption in western public governance: Empirical evidence and reflection from the Netherlands.” Public Integr. 20 (2): 131–149. https://doi.org/10.1080/10999922.2017.1350796.
Doloi, H. 2014. “Rationalizing the implementation of web-based project management systems in construction projects using PLS-SEM.” J. Constr. Eng. Manage. 140 (7): 04014026. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000859.
Fornell, C., and D. F. Larcker. 1981. “Structural equation models with unobservable variables and measurement error: Algebra and statistics.” J. Mark. Res. 18 (3): 382. https://doi.org/10.1177/002224378101800313.
Gunduz, M., and O. Önder. 2013. “Corruption and internal fraud in the Turkish construction industry.” Sci. Eng. Ethics 19 (2): 505–528. https://doi.org/10.1007/s11948-012-9356-9.
Hair, J. F., C. M. Ringle, and M. Sarstedt. 2011. “PLS-SEM: Indeed, a silver bullet.” J. Mark. Theory Pract. 19 (2): 139–152. https://doi.org/10.2753/MTP1069-6679190202.
Hair, J. F., J. J. Risher, M. Sarstedt, and C. M. Ringle. 2019. “When to use and how to report the results of PLS-SEM.” Eur. Bus. Rev. 31 (1): 2–24. https://doi.org/10.1108/EBR-11-2018-0203.
Hamoudah, M. M., Z. Othman, R. Abdul Rahman, N. A. Mohd Noor, and M. Alamoudi. 2021. “Ethical leadership, ethical climate and integrity violation: A comparative study in Saudi Arabia and Malaysia.” Administrative Sci. 11 (2): 43. https://doi.org/10.3390/admsci11020043.
Henseler, J., G. Hubona, and P. A. Ray. 2016. “Using PLS path modeling in new technology research: Updated guidelines.” Ind. Manage. Data Syst. 116 (1): 2–20. https://doi.org/10.1108/IMDS-09-2015-0382.
Hosseini, M. R., I. Martek, S. Banihashemi, A. P. C. Chan, A. Darko, and M. Tahmasebi. 2020. “Distinguishing characteristics of corruption risks in Iranian construction projects: A weighted correlation network analysis.” Sci. Eng. Ethics 26 (1): 205–231. https://doi.org/10.1007/s11948-019-00089-0.
Huberts, L. W. J. C. 1998. “What can be done against public corruption and fraud. Expert views on strategies to protect public integrity.” Crime Law Social Change 29 (2–3): 209–224. https://doi.org/10.1023/A:1008348803253.
Huberts, L. W. J. C. 2018. “Integrity: What it is and why it is important.” Supplement, Public Integr. 20 (sup1): S18–S32. https://doi.org/10.1080/10999922.2018.1477404.
Huberts, L. W. J. C., M. Kaptein, and K. Lasthuizen. 2007. “A study of the impact of three leadership styles on integrity violations committed by police officers.” Policing Int. J. Police Strategies Manage. 30 (4): 587–607. https://doi.org/10.1108/13639510710833884.
Kar, S., and K. N. Jha. 2021. “Exploring the critical barriers to and enablers of sustainable material management practices in the construction industry.” J. Constr. Eng. Manage. 147 (9): 04021102. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002125.
Kolthoff, E. 2016. “Integrity violations, white-collar crime, and violations of human rights: Revealing the connection.” Public Integr. 18 (4): 396–418. https://doi.org/10.1080/10999922.2016.1172933.
Kolthoff, E., R. Erakovich, and K. Lasthuizen. 2010. “Comparative analysis of ethical leadership and ethical culture in local government: The USA, The Netherlands, Montenegro and Serbia.” Int. J. Public Sect. Manage. 23 (7): 596–612. https://doi.org/10.1108/09513551011078879.
Kummer, T. F., K. Singh, and P. Best. 2015. “The effectiveness of fraud detection instruments in not-for-profit organization.” Managerial Auditing J. 30 (4/5): 435–455. https://doi.org/10.1108/MAJ-08-2014-1083.
Lam, L. W. 2012. “Impact of competitiveness on salespeople’s commitment and performance.” J. Bus. Res. 65 (9): 1328–1334. https://doi.org/10.1016/j.jbusres.2011.10.026.
Lasthuizen, K., L. Huberts, and L. Heres. 2011. “How to measure integrity violations: Towards a validated typology of unethical behavior.” Public Manage. Rev. 13 (3): 383–408. https://doi.org/10.1080/14719037.2011.553267.
Le, Y., M. Shan, A. P. C. Chan, and Y. Hu. 2014. “Overview of corruption research in construction.” J. Manage. Eng. 30 (4): 02514001. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000300.
Lehtinen, J., G. Locatelli, T. Sainati, K. Artto, and B. Evans. 2022. “The grand challenge: Effective anti-corruption measures in projects.” Int. J. Project Manage. 40 (4): 347–361. https://doi.org/10.1016/j.ijproman.2022.04.003.
Locatelli, G., G. Mariani, T. Sainati, and M. Greco. 2017. “Corruption in public projects and megaprojects: There is an elephant in the room!.” Int. J. Project Manage. 35 (3): 252–268. https://doi.org/10.1016/j.ijproman.2016.09.010.
Martin, K. D., and J. B. Cullen. 2006. “Continuities and extensions of ethical climate theory: A meta-analytic review.” J. Bus. Ethics 69 (2): 175–194. https://doi.org/10.1007/s10551-006-9084-7.
Monteiro, B. K., G. Masiero, and F. R. de Souza. 2022. “Corruption in the construction industry: A review of recent literature.” Int. J. Constr. Manage. 22 (14): 2744–2752. https://doi.org/10.1080/15623599.2020.1823588.
Naji, K. K., M. Gunduz, and M. F. Hamaidi. 2022. “Major factors affecting construction waste management in infrastructure projects using structural equation model.” J. Constr. Eng. Manage. 148 (10): 04022101. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002358.
OECD (Organization for Economic Cooperation and Development). 2016. Preventing corruption in public procurement. Paris: OECD.
OECD (Organization for Economic Cooperation and Development). 2019. Analytics for integrity. Paris: OECD.
Owusu, E. K., A. P. C. Chan, and A. Darko. 2021. “Evaluating the corruption susceptibility index of infrastructure procurement and management in the developed context: The case of Hong Kong.” J. Infrastruct. Syst. 27 (2): 05021006. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000611.
Owusu, E. K., A. P. C. Chan, O.-M. DeGraft, E. E. Ameyaw, and O.-K. Robert. 2019a. “Contemporary review of anti-corruption measures in construction project management.” Project Manage. J. 50 (1): 40–56. https://doi.org/10.1177/8756972818808983.
Owusu, E. K., P. C. A. Chan, and M. F. F. Siu. 2019b. “Dynamic assessment of corruption forms in an infrastructure procurement process: An international expert survey.” In Proc., World Building Congress. International Council for Research and Innovation in Building and Construction. Ottawa: International Council for Research and Innovation in Building and Construction.
PwC. 2014. “Fighting corruption and bribery in the construction industry.” Accessed March 28, 2023. https://www.pwc.com/gx/en/economic-crime-survey/assets/economic-crime-survey-2014-construction.pdf.
Pyman, M., and P. Heywood. 2020. The sector focus and reformulation approach (SFRA). Washington, DC: Global Integrity. https://doi.org/10.13140/RG.2.2.26478.02881.
Sajari, A., H. Haron, and I. Ismail. 2019. “Effectiveness of quality of Chief Integrity Officer, Ethical climate on the level of ethics and integrity in the Malaysian federal.” J. Governance Integr. 3 (1): 50–68. https://doi.org/10.15282/jgi.3.1.2019.5422.
Saunders, M. N. K., P. Lewis, and A. Thornhill. 2019. Research methods for business students. New York: Pearson.
Shan, M., Y. Le, K. T. W. Yiu, A. P. C. Chan, and Y. Hu. 2017. “Investigating the underlying factors of corruption in the public construction sector: Evidence from China.” Sci. Eng. Ethics 23 (6): 1643–1666. https://doi.org/10.1007/s11948-016-9865-z.
Shmueli, G., S. Ray, J. M. Velasquez Estrada, and S. B. Chatla. 2016. “The elephant in the room: Predictive performance of PLS models.” J. Bus. Res. 69 (10): 4552–4564. https://doi.org/10.1016/j.jbusres.2016.03.049.
Shmueli, G., M. Sarstedt, J. F. Hair, J.-H. Cheah, H. Ting, S. Vaithilingam, and C. M. Ringle. 2019. “Predictive model assessment in PLS-SEM: Guidelines for using PLSpredict.” Eur. J. Mark. 53 (11): 2322–2347. https://doi.org/10.1108/EJM-02-2019-0189.
Tabish, S. Z. S., and K. N. Jha. 2011. “Analyses and evaluation of irregularities in public procurement in India.” Construct. Manage. Econ. 29 (3): 261–274. https://doi.org/10.1080/01446193.2010.549138.
Tabish, S. Z. S., and K. N. Jha. 2012. “The impact of anti-corruption strategies on corruption free performance in public construction projects.” Construct. Manage. Econ. 30 (1): 21–35. https://doi.org/10.1080/01446193.2011.654128.
UNDP (United Nations Development Programme). 2017. Tackling integrity risks in government contracts: An opportunity to unlock resources for sustainable development in Asia and the Pacific. New York: Guidebook.
UNODC (United Nations Office on Drugs and Crime). 2004. “United Nations Convention against Corruption.” Accessed January 19, 2022. https://www.unodc.org/documents/brussels/UN_Convention_Against_Corruption.pdf.
Viswanathan, S. K., K. K. Tripathi, and K. N. Jha. 2020. “Influence of risk mitigation measures on international construction project success criteria—A survey of Indian experiences.” Construct. Manage. Econ. 38 (3): 207–222. https://doi.org/10.1080/01446193.2019.1577987.
von der Gracht, H. A. 2012. “Consensus measurement in Delphi studies.” Technol. Forecast. Soc. Change 79 (8): 1525–1536. https://doi.org/10.1016/j.techfore.2012.04.013.
Yap, J. B. H., K. Y. Lee, T. Rose, and M. Skitmore. 2020. “Corruption in the Malaysian construction industry: Investigating effects, causes, and preventive measures.” Int. J. Constr. Manage. 22 (8): 1525–1536. https://doi.org/10.1080/15623599.2020.1728609.
Zahari, A. I., J. Said, and R. Arshad. 2019. “Integrity climate questionnaire.” Cogent Psychol. 6 (1): 1626541. https://doi.org/10.1080/23311908.2019.1626541.
Zeng, N., Y. Liu, P. Gong, M. Hertogh, and M. König. 2021. “Do right PLS and do PLS right: A critical review of the application of PLS-SEM in construction management research.” Front. Eng. Manage. 8 (3): 356–369. https://doi.org/10.1007/s42524-021-0153-5.
Zhai, Z., M. Shan, A. Darko, and A. P. C. Chan. 2021. “Corruption in construction projects: Bibliometric analysis of global research.” Sustainability 13 (8): 4400. https://doi.org/10.3390/su13084400.
Information & Authors
Information
Published In
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 16 • Issue 1 • February 2024
Copyright
© 2023 American Society of Civil Engineers.
History
Received: Mar 8, 2023
Accepted: Jul 26, 2023
Published online: Oct 11, 2023
Published in print: Feb 1, 2024
Discussion open until: Mar 11, 2024
ASCE Technical Topics:
- Analysis (by type)
- Bibliographies
- Buildings
- Business management
- Climates
- Construction engineering
- Construction management
- Developing countries
- Engineering fundamentals
- Environmental engineering
- Facilities (by type)
- Information management
- Least squares method
- Models (by type)
- Organizations
- Practice and Profession
- Procurement
- Project management
- Public buildings
- Regression analysis
- Statistical analysis (by type)
- Structural engineering
- Structural models
- Structures (by type)
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.