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Advances in Civil Engineering
Volume 2018, Article ID 1016384, 11 pages
Research Article

Identifying Political Risk Management Strategies in International Construction Projects

1School of Civil Engineering, Southeast University, Si Pai Lou, Nanjing 210096, China
2Department of Building, National University of Singapore, 4 Architecture Drive, Singapore 117566
3School of Engineering and Technology, Central Queensland University, 400 Kent Street, Sydney, NSW 2000, Australia

Correspondence should be addressed to Xiaopeng Deng; nc.ude.ues@pxd

Received 19 April 2018; Accepted 20 May 2018; Published 25 June 2018

Academic Editor: Eric Lui

Copyright © 2018 Tengyuan Chang et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


International construction projects are plagued with political risk, and international construction enterprises (ICEs) must manage this risk to survive. However, little attention has been devoted to political risk management strategies in international construction projects. To fill this research gap, a total of 27 possible strategies were identified through a comprehensive literature review and validated by a pilot survey with 10 international experts. Appraisals of these 27 strategies by relevant professionals were collected using questionnaires, 155 of which were returned. Exploratory factor analysis was conducted to explore the interrelationships among these 27 strategies. The results show that all of the 27 strategies are important for political risk management in international construction projects. Moreover, these 27 strategies were clustered into six components, namely, (1) making correct decisions, (2) conducting favorable negotiations, (3) completing full preparations, (4) shaping a good environment, (5) reducing unnecessary mistakes, and (6) obtaining a reasonable response. The 6 components can be regarded as 6 typical management techniques that contribute to political risk management in the preproject phase, project implementation phase, and postevent phases. The findings may help practitioners gain an in-depth understanding of political risk management strategies in international construction projects and provide a useful reference for ICEs to manage political risks when venturing outside their home countries.