Technical Papers
Nov 2, 2023

Investigating the Relationship of the Integrity Climate of a Public Organization with Corruption in Construction Projects

Publication: Journal of Management in Engineering
Volume 40, Issue 1

Abstract

Public construction projects are exposed to corruption vulnerabilities at various stages, which can be manipulated by corrupt actors. Effective management of public resources requires holistic anticipation and mitigation of corruption along the entire project cycle. This study examines the role of the organizational integrity climate in influencing project corruption risks. Twenty-two critical integrity climate measures (ICMs) and 30 major project corruption risks (PCRs) are identified from an extensive literature review and parallel discussions with practitioners. A total of one hundred and ninety-three practitioners in large public organizations in India evaluated the ICMs and PCRs through a questionnaire survey. Exploratory factor analysis extracted four integrity climate factors and five project corruption risk factors which were used to build a hypothesized model of their relationship. Partial least squares structural equation modeling (PLS-SEM) used to test the model shows a significant mitigating effect of integrity climate on project corruption. Key process management, control and oversight, commitment to integrity, and system accessibility and stakeholders’ engagement are the critical integrity climate factors that inhibit corruption. The study underpins the role of the organizational integrity climate in addressing corruption in public construction projects and thus enriches the literature on anti-corruption management. The rich insights offered will enable policymakers and practitioners to develop a control environment in public organizations with a focus on integrity.

Get full access to this article

View all available purchase options and get full access to this article.

Data Availability Statement

Some or all data, models, or code that support the findings of this study are available from the corresponding author upon reasonable request.

References

Ameyaw, E. E., E. Pärn, A. P. C. Chan, D.-G. Owusu-Manu, D. J. Edwards, and A. Darko. 2017. “Corrupt practices in the construction industry: Survey of Ghanaian experience.” J. Manage. Eng. 33 (6): 05017006. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000555.
Anderson, R. D., W. E. Kovacic, and A. C. Müller. 2011. “Ensuring integrity and competition in public procurement markets: A dual challenge for good governance.” In The WTO Regime on Government procurement: Challenge and reform, edited by S. Arrowsmith and R. D. Anderson, 681–718. Cambridge: Cambridge University Press.
Beth, E. 2009. OECD principles for integrity in public procurement. Paris: Organisation for Economic Cooperation and Development.
Bhagat, G., and K. N. Jha. 2023a. “Stage-wise evaluation of integrity risks in public works procurement in India.” Int. J. Constr. Manage. 23 (16): 2818–2829. https://doi.org/10.1080/15623599.2022.2100623.
Bhagat, G., and K. N. Jha. 2023b. “Corruption risks in public construction.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 15 (2): 04522062. https://doi.org/10.1061/JLADAH.LADR-936.
Bhandari, S., and M. R. Hallowell. 2021. “Identifying and controlling biases in expert-opinion research: Guidelines for variations of Delphi, nominal group technique, and focus groups.” J. Manage. Eng. 37 (3): 04021015. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000909.
Bowen, P. A., P. J. Edwards, and K. Cattell. 2012. “Corruption in the South African construction industry: A thematic analysis of verbatim comments from survey participants.” Construct. Manage. Econ. 30 (10): 885–901. https://doi.org/10.1080/01446193.2012.711909.
Brown, J., and M. Loosemore. 2015. “Behavioral factors influencing corrupt action in the Australian construction industry.” Eng. Constr. Archit. Manage. 22 (4): 372–389. https://doi.org/10.1108/ECAM-03-2015-0034.
CTEO (Chief Technical Examiner Office). 2002. “Problem areas of corruption in construction.” Accessed January 28, 2022. https://wwwcrib.sd.com/doc/94580583/Problem-Areas-of-Corruption-in-Construction.
CVC (Central Vigilance Commission). 2019. “Booklet on preventive vigilance.” Accessed January 19, 2022. https://cvc.gov.in/sites/default/files/booklet%20on%20preventive%20vigilance%20.pdf.
Deep, S., T. Gajendran, and M. Jefferies. 2020. “Factors influencing power and dependence for collaboration among construction project participants.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 12 (2): 06520001. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000362.
de Jong, M., W. P. Henry, and N. Stansbury. 2009. “Eliminating corruption in our engineering/construction industry.” Leadersh. Manage. Eng. 9 (3): 105–111. https://doi.org/10.1061/(ASCE)1532-6748(2009)9:3(105).
Ferwerda, J., I. Deleanu, and B. Unger. 2017. “Corruption in public procurement: Finding the right indicators.” Eur. J. Criminal Policy Res. 23 (2): 245–267. https://doi.org/10.1007/s10610-016-9312-3.
Fornell, C., and D. F. Larcker. 1981. “Structural equation models with unobservable variables and measurement error: Algebra and statistics.” J. Market. Res. 18 (3): 382. https://doi.org/10.1177/002224378101800313.
Georgiev, V. 2013. “Methods and techniques for assessment of corruption risks in defence and security.” J. Defence Manage. s3: e002.
Ghazali, M. Z., M. S. Rahim, A. Ali, and S. Abidin. 2014. “A preliminary study on fraud prevention and detection at the state and local government entities in Malaysia.” Procedia Soc. Behav. Sci. 164 (Aug): 437–444. https://doi.org/10.1016/j.sbspro.2014.11.100.
GIACC (Global Infrastructure Anti-Corruption Center). 2021. “Anti-corruption programme for organizations.” Accessed April 12, 2022. http://www.giaccentre.org/project_companies.php.
GII (Ghana Integrity Initiative). 2019. “Corruption risk assessment.” Accessed November 28, 2022. https://www.tighana.org/dmsdocument/117.
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., W. C. Black, B. J. Babin, and R. E. Anderson. 2014. Multivariate data analysis. London: Pearson.
Hair, J. F., G. T. M. Hult, C. M. Ringle, and M. Sarstedt. 2022. A primer on partial least squares structural equation modeling (PLS-SEM). Los Angeles, CA: SAGE.
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.” Admin. 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.
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.
Kenny, C., and M. Musatova. 2010. “Red flags of corruption.” In World Bank projects: An analysis of infrastructure contracts. Policy research working papers. Washington, DC: The World Bank.
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 Sector Manage. 23 (7): 596–612. https://doi.org/10.1108/09513551011078879.
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. 2014a. “Investigating the causal relationships between causes of and vulnerabilities to corruption in the Chinese public construction sector.” J. Constr. Eng. Manage. 140 (9): 05014007. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000886.
Le, Y., M. Shan, A. P. C. Chan, and Y. Hu. 2014b. “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.
Liu, J., Q. Xie, B. Xia, and A. J. Bridge. 2017. “Impact of design risk on the performance of design-build projects.” J. Constr. Eng. Manage. 143 (6): 04017010. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001299.
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.
Loosemore, M., R. Y. Sunindijo, and S. Zhang. 2020. “Comparative analysis of safety climate in the Chinese, Australian, and Indonesian construction industries.” J. Constr. Eng. Manage. 146 (12): 04020129. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001934.
Mohamed, S. 2002. “Safety climate in construction site environments.” J. Constr. Eng. Manage. 128 (5): 375–384. https://doi.org/10.1061/(ASCE)0733-9364(2002)128:5(375).
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.
Munianday, P., A. R. Radzi, M. Esa, and R. A. Rahman. 2022. “Optimal strategies for improving organizational BIM capabilities: PLS-SEM approach.” J. Manage. Eng. 38 (3): 04022015. https://doi.org/10.1061/(ASCE)ME.1943-5479.0001038.
OECD (Organization for Economic Cooperation and Development). 2007. Bribery in public procurement: Methods, actors and counter-measures. Paris: OECD.
OECD (Organization for Economic Cooperation and Development). 2009. Principles for integrity in public procurement. Paris: OECD.
OECD (Organization for Economic Cooperation and Development). 2016. Preventing corruption in public procurement. Paris: OECD.
Owusu, E. K., and A. P. C. Chan. 2019. “Barriers affecting effective application of anti-corruption measures in infrastructure projects: Disparities between developed and developing countries.” J. Manage. Eng. 35 (1): 04018056. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000667.
Owusu, E. K., A. P. C. Chan, E. E. Ameyaw, and O.-K. Robert. 2020. “Evaluating the effectiveness of strategies for extirpating corrupt practices in infrastructure project procurement.” J. Infrastruct. Syst. 26 (2): 04020004. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000531.
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., A. P. C. Chan, and M. Shan. 2019b. “Causal factors of corruption in construction project management: An overview.” Sci. Eng. Ethics 25 (1): 1–31. https://doi.org/10.1007/s11948-017-0002-4.
Raithel, S., M. Sarstedt, S. Scharf, and M. Schwaiger. 2012. “On the value relevance of customer satisfaction: Multiple drivers and multiple markets.” J. Acad. Market. Sci. 40 (4): 509–525. https://doi.org/10.1007/s11747-011-0247-4.
Rasli, M. R., H. A. Manaf, and M. Ismail. 2020. “Examining the integrity behavior challenges of enforcement officers in Malaysian local government.” Prob. Perspect. Manage. 18 (1): 263–277. https://doi.org/10.21511/ppm.18(1).2020.23.
Shan, M., A. P. C. Chan, Y. Le, and Y. Hu. 2015. “Investigating the effectiveness of response strategies for vulnerabilities to corruption in the Chinese public construction sector.” Sci. Eng. Ethics 21 (3): 683–705. https://doi.org/10.1007/s11948-014-9560-x.
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.
Sharma, S. K., A. Sengupta, and S. C. Panja. 2019. “Mapping corruption risks in public procurement: Uncovering improvement opportunities and strengthening controls.” Public Perform. Manage. Rev. 42 (4): 947–975. https://doi.org/10.1080/15309576.2018.1535984.
Sichombo, B., M. Muya, W. Shakantu, and C. Kaliba. 2009. “The need for technical auditing in the Zambian construction industry.” Int. J. Project Manage. 27 (8): 821–832. https://doi.org/10.1016/j.ijproman.2009.02.001.
Sohail, M., and S. Cavill. 2008. “Accountability to prevent corruption in construction projects.” J. Constr. Eng. Manage. 134 (9): 729–738. https://doi.org/10.1061/(ASCE)0733-9364(2008)134:9(729).
Søreide, T., and CMI (Chr. Michelsen Institute). 2002. Corruption in public procurement: Causes, consequences and cures. Bergen, Norway: CMI.
Stansbury, N. 2005. “Exposing the foundations of corruption in construction.” In Global corruption report (2005) special focus: Corruption in construction and post conflict reconstruction. London: Pluto Press.
Tabish, S. Z. S., and K. N. Jha. 2011. “Identification and evaluation of success factors for public construction projects.” Construct. Manage. Econ. 29 (8): 809–823. https://doi.org/10.1080/01446193.2011.611152.
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.
Tezel, A., P. Febrero, E. Papadonikolaki, and I. Yitmen. 2021. “Insights into blockchain implementation in construction: Models for supply chain management.” J. Manage. Eng. 37 (4): 04021038. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000939.
Transparency International. 2006. “Handbook for curbing corruption in public procurement. Transparency International.” Accessed February 10, 2022. https://www.transparency.org/en/publications/handbook-for-curbing-corruption-in-public-procurement.
UNODC (United Nations Office on Drugs and Crime). 2004. “United Nations Convention against Corruption.” Accessed February 14, 2023. https://www.unodc.org/documents/brussels/UN_Convention_Against_Corruption.pdf.
UN (United Nations). 2019. World public sector report 2019: Sustainable development goal 16: Focus on public institutions. New York: UN.
Vee, C., and C. M. Skitmore. 2003. “Professional ethics in the construction industry.” Eng. Constr. Archit. Manage. 10 (2): 117–127. https://doi.org/10.1108/09699980310466596.
Victor, B., and J. B. Cullen. 1988. “The organizational bases of ethical work climates.” Admin. Sci. Q. 33 (1): 101. https://doi.org/10.2307/2392857.
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.
Wang, Y., H. W. Lee, W. Tang, J. Whittington, and M. Qiang. 2021. “Structural equation modeling for the determinants of international infrastructure investment: Evidence from Chinese contractors.” J. Manage. Eng. 37 (4): 04021033. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000933.
World Bank. 2007. Good practices in Latin America and the Caribbean. Corruption warning signs: Is your project at risk? Washington, DC: World Bank.
Yap, J. B. H., K. Y. Lee, T. Rose, and M. Skitmore. 2022. “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.
Yevu, S. K., A. T. W. Yu, A. Darko, and M. N. Addy. 2021. “Evaluation model for influences of driving forces for electronic procurement systems application in Ghanaian construction projects.” J. Constr. Eng. Manage. 147 (8): 04021076. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002107.
Yu, Y., I. Martek, M. R. Hosseini, and C. Chen. 2019. “Demographic variables of corruption in the Chinese construction industry: Association rule analysis of conviction records.” Sci. Eng. Ethics 25 (4): 1147–1165. https://doi.org/10.1007/s11948-018-0024-6.
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.
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.
Zhang, B., Y. Le, B. Xia, and M. Skitmore. 2017. “Causes of business-to-government corruption in the tendering process in China.” J. Manage. Eng. 33 (2): 05016022. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000479.
Zou, P. X. 2006. “Strategies for minimizing corruption in the construction industry in China.” J. Constr. Dev. Countries 11 (2): 15–29.

Information & Authors

Information

Published In

Go to Journal of Management in Engineering
Journal of Management in Engineering
Volume 40Issue 1January 2024

History

Received: Feb 11, 2023
Accepted: Aug 29, 2023
Published online: Nov 2, 2023
Published in print: Jan 1, 2024
Discussion open until: Apr 2, 2024

Permissions

Request permissions for this article.

ASCE Technical Topics:

Authors

Affiliations

Ph.D. Candidate, Dept. of Civil Engineering, Indian Institute of Technology Delhi, New Delhi 110016, India (corresponding author). ORCID: https://orcid.org/0000-0002-8892-7999. Email: [email protected]
Kumar Neeraj Jha, Ph.D. [email protected]
Professor, Dept. of Civil Engineering, Indian Institute of Technology Delhi, New Delhi 110016, India. Email: [email protected]

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.

View Options

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Media

Figures

Other

Tables

Share

Share

Copy the content Link

Share with email

Email a colleague

Share