Yomi Babatunde Sui Pheng Low Cross-Cultural Management and Quality Performance Chinese Construction Firms in Nigeria Springer
Contents 1 Introduction 1 1.1 Background 1 1.2 Research Problem 3 1.3 Knowledge Gap 4 1.4 Research Aim and Objectives 5 1.4.1 Research Hypotheses 5 1.4.2 Research Scope 7 1.4.3 Research Methodologies 7 1.5 Research Significance 8 1.5.1 Book Structure 8 2 Review of Literature on TQM and National Culture 11 2.1 International Construction 11 2.2 Quality Management and Quality Management System 12 2.2.1 Quality Management 12 2.2.2 Total Quality Management (TQM) 12 2.2.3 ISO 9000 and TQM 13 2.2.4 The Future of TQM 14 2.3 Culture, National Culture, and National Cultural Dimensions... 15 2.3.1 Culture 15 2.3.2 Forms of Culture 15 2.3.3 National Cultural Dimensions 16 2.3.4 Hofstede's Sixth National Cultural Dimension 18 2.4 Culture as a Source of Conflict in International Construction... 19 2.4.1 Managing Culture in International Construction 19 2.4.2 Cultural Misunderstandings in International Construction 20 2.4.3 Interaction Between Culture, Perceptions, and Conflict 21 2.4.4 Conflict Intensities 22 2.4.5 Conflict-handling Modes 24 vii
viii Contents 2.5 National Culture and TQM 25 2.5.1 Influenae of National Culture on TQM Implementation 25 2.5.2 National Culture and TQM Implementation 25 2.5.3 Case Studies of TQM Implementation 26 2.5.4 Future Directions of TQM 29 2.6 Summary 29 3 Construction Industry in China 31 3.1 Introduction 31 3.2 Overview of China 31 3.2.1 International Relations 32 3.2.2 Demographics 32 3.2.3 Climate and Resources 33 3.2.4 Legal System 33 3.3 Development of the Construction Industry in China 34 3.3.1 Overview of China's Construction Industry 34 3.3.2 Domestic and International Markets 34 3.3.3 Major Players in China's Construction Industry 35 3.3.4 Challenges in China's Construction Industry 35 3.3.5 Project Management in China's Construction Industry 36 3.4 Foreign Investments in China's Construction Industry 37 3.4.1 Key Drivers for Foreign Investments 37 3.4.2 The Chinese Market and Considerations for the Future 37 3.4.3 Strengths, Weaknesses, Opportunities, and Threats (SWOT) of China's Market 38 3.5 Chinese Firms' Development and Strategies in Overseas Market 39 3.5.1 China's Export of Construction Services 39 3.5.2 Chinese Overseas Business Strategies 41 3.5.3 Chinese Special Economic Zones Strategy 42 3.5.4 Chinese Differentiation Strategy from Other Foreign Firms Overseas 42 3.6 Summary 43 4 Construction Industry in Nigeria 45 4.1 Introduction 45 4.2 Overview of Nigeria 45 4.2.1 International Relations 46 4.2.2 Demographics 46 4.2.3 Climate and Resources 47 4.2.4 Legal System 48
Contents ix 4.3 Development of the Construction Industry in Nigeria 48 4.3.1 Overview of Nigeria's Construction Industry 48 4.3.2 Domestic and International Markets 49 4.3.3 Major Players in Nigeria's Construction Industry 50 4.3.4 Challenges in the Nigerian Construction Industry 51 4.3.5 Project Management in Nigeria 52 4.4 Foreign Investments in Nigeria's Construction Industry 53 4.4.1 Key Drivers for Foreign Investments 53 4.4.2 Nigeria's Market and Considerations for the Future... 53 4.4.3 Strengths, Weaknesses, Opportunities, and Threats (SWOT) of the Nigerian Market 54 4.5 Nigeria's Export of Construction Services 55 4.5.1 Nigeria's Globalization Tendencies and Construction Services 55 4.6 Summary 57 5 Appraisal of the Relationships Between the Chinese and the Nigerian Construction Industries 59 5.1 Brief Comparison of the Chinese and Nigerian Markets 59 5.2 Historical Development of Relationships Between China and Nigeria 60 5.3 Diplomatie and Economic Relations Between China and Nigeria 61 5.4 Foreign Direct Investments of Chinese Firms in Nigeria 61 5.5 Operations of Chinese Firms in Nigeria 62 5.6 Quality of Services by the Chinese Firms in Nigeria 64 5.7 Cross-Cultural Differences Between the Chinese and the Nigerians 65 5.8 Summary 66 6 Conceptual Approach 67 6.1 Culture-quality Conflict Model 67 6.2 Quality Dynamics 68 6.2.1 Organizations Defining Quality 68 6.2.2 Customers Defining Quality 69 6.2.3 Establishing Standards for Quality The International Organization for Standardization (ISO) Approach 70 6.2.4 Establishing Standards for Quality ISO and TQM... 71 6.2.5 Proposed Quality Dynamics Model 72 6.3 Cross-cultural Influences on Quality 73 6.3.1 Introduction 73 6.3.2 Conflicts Within a TQM Organization 73
x Contents 6.4 Cross-cultural Quality Implementation Model 75 6.4.1 A Firm's Competitiveness 75 6.4.2 Porter's Diamond Theory 75 6.4.3 Applicability of Porter's Theory 76 6.4.4 Global Competitiveness 77 6.4.5 Competitiveness, Productivity, and Quality 77 6.4.6 Quality and Productivity in the Construction and Non-construction Industries 78 6.4.7 Implications for International Construction and Proposed Cross-cultural Quality Implementation Model 78 6.5 Proposed Quality Management Assessment Matrix 81 6.5.1 TQM and National Culture Between Two International Firms 81 6.5.2 Identifying Significant TQM Principles and National Cultural Dimensions 82 6.6 Summary 92 7 Research Design and Methodology 93 7.1 Introduction 93 7.2 Research Design 93 7.2.1 Common Research Designs 95 7.2.2 Adopted Research Designs 95 7.3 Data Type, Source, Location, and Accessibility 97 7.3.1 Primary Data and Secondary Data 97 7.3.2 Adopted Data Type, Source, Location, and Accessibility 100 7.4 Unit of Analysis and Selection of Study Elements 100 7.4.1 Sampling 101 7.4.2 Adopted Unit of Analysis and Selection of Study Elements 102 7.5 Data Collection Method 104 7.5.1 Variables and Measurements 104 7.5.2 Methods of Data Collection 105 7.5.3 Adopted Methods of Data Collection 106 7.6 Data Collection Instrument 107 7.6.1 Data Collection Instrument and Pilot Testing 107 7.6.2 Survey Questionnaires 108 7.6.3 Delphi Survey Questionnaires 110 7.6.4 Round 3 Delphi Survey Questionnaire 111 7.6.5 Case Study Interview Questionnaires 112 7.7 Summary 113
Contents xi 8 Results and Discussions 115 8.1 Introduction 115 8.2 Characteristics of the Chinese Respondents 115 8.3 Characteristics of the Nigerian Respondents 117 8.4 Comparison of the Chinese and the Nigerian Respondents 120 8.5 Important TQM Principles and Attributes 121 8.5.1 Ranking of TQM Principles Among the Chinese and the Nigerian Respondents 123 8.5.2 Important TQM Attributes Among the Chinese and the Nigerian Respondents 124 8.6 Important National Cultural Dimensions and Attributes 131 8.6.1 Ranking of NCDs Among the Chinese and the Nigerian Respondents 132 8.6.2 Important NCD Attributes Among the Chinese and the Nigerian Respondents 133 8.7 Discussions on the Important TQM Principles and NCDs and Their Attributes 138 8.7.1 Statistical Testing for Hypothesis 1 139 8.7.2 Statistical Testing for Hypothesis 2 143 8.7.3 Comparison of Findings: Round 1 of the Survey and Round 1 of the Delphi 145 8.7.4 Statistical Testing for Hypothesis 3 (Survey and Delphi) 150 8.7.5 Round 2 of the Delphi: Assessments of Matrices 1A and 2A 162 8.7.6 Round 3 of the Delphi: Assessment of Matrix 3 165 8.8 Case Studies 169 8.8.1 Case Study 1 (CS1) 170 8.8.2 Case Study 2 (CS2) 173 8.8.3 Case Study 3 (CS3) 176 8.8.4 Case Study 4 (CS4) 179 8.8.5 Discussion of the Results from the Four Case Studies 183 8.9 Validation 192 8.9.1 Quality Management Assessment Model (QMAM) for the Chinese Firms in Nigeria 193 8.9.2 Applying the QMAM 198 8.9.3 Optimizing the QMAM 200 8.9.4 Verification and Validation of the QMAM Developed for the Chinese Firms in Nigeria 201 8.9.5 Optimizing the Proposed Model as a CBR System 204 8.10 Summary 206
xii Contents 9 Summary and Conclusions 207 9.1 Summary 207 9.2 Summary of Rindings and Validation of Hypotheses 209 9.3 Recommendations 211 9.3.1 Recommendations for the Chinese 214 9.3.2 Recommendations for the Nigerians 215 9.3.3 Recommendations for the Nigerian Government 216 9.4 Contributions to Theoiy and Knowledge 216 9.5 Contributions to Practice 217 9.6 Limitations of the Research 218 9.7 Conclusion 219 9.8 Recommendations for Future Research 220 Appendix 1: Sampling Frame for the Chinese Firms in Nigeria 221 Appendix 2: Survey Request Form and Round-One Survey Questionnaire Package for the Chinese 223 Appendix 3: Survey Request Form and Round-One Survey Questionnaire Package for the Nigerians 235 Appendix 4: Round-Two Survey Questionnaire for the Chinese 247 Appendix 5: Round-Two Survey Questionnaire for the Nigerians... 253 Appendix 6: Delphi Request and Round-One Questionnaire 259 Appendix 7: Round-Two Delphi Questionnaire (for Chinese) 263 Appendix 8: Round-Two Delphi Questionnaire (for Nigerians) 267 Appendix 9: Round-Three Delphi Questionnaire (Combined Results) 271 Appendix 10: Interview Request Form and Questionnaire for HCl and HC2 Chinese Firms 275 Appendix 11: Interview Request Form and Questionnaire for TC1 Chinese Firms 285 Appendix 12: Detailed Characteristics of the Chinese Respondents... 289
Contents xiii Appendix 13: Detailed Characteristics of the Nigerian Respondents... 291 Appendix 14: Ranking of TQM Principles to Quality Among the Chinese (n = 48) 295 Appendix 15: Ranking of TQM Principles to Quality Among the Nigerians (ra = 80) 301 Appendix 16: Rating of TQM Attributes to Quality Among the Chinese (n = 48) 307 Appendix 17: Rating of TQM Attributes to Quality Among the Nigerians (ji = 80) 311 Appendix 18: Ranking of NCDs to Quality Among the Chinese (w = 48) 315 Appendix 19: Ranking of NCDs to Quality Among the Nigerians (n = 80) 319 Appendix 20: Rating of NCD Attributes to Quality Among the Chinese Respondents («= 48) 323 Appendix 21: Rating of NCD Attributes to Quality Among the Nigerians (n = 80) 327 Appendix 22: Friedman Test TQM Principles' Influence on Quality Among the Chinese and the Nigerians 329 Appendix 23: Friedman Test NCDs' Influence on Quality Among the Chinese and the Nigerians 331 Appendix 24: Wilcoxon Rank Sum Test Differences in TQM Principles' Influence on Quality Between the Chinese and Nigerians 333 Appendix 25: Wilcoxon Rank Sum Test Differences in NCDs' Influence on Quality Between the Chinese and Nigerians 335 Appendix 26: Spearman Correlation China National Culture's Influence on Quality Perceptions Among the Chinese 337
xiv Contents Appendix 27: Spearman Correlation China National Culture's Influence on Quality Perceptions of the Chinese for the Nigerians 339 Appendix 28: Spearman Correlation Nigeria National Culture's Influence on Quality Perceptions of the Nigerians 341 Appendix 29: Spearman Correlation Nigeria National Culture's Influence on Quality Perceptions of the Nigerians for the Chinese 343 Appendix 30: Spearman Correlation Association Between the Chinese and the Nigerians' Rankings of NCDs on Quality in their Own Firms 345 Appendix 31: Spearman Correlation Association Between the Chinese and the Nigerians' Rankings of NCDs on Quality for Each Other 347 Appendix 32: Profile of the Delphi Experts 349 Appendix 33: Fleiss' Kappa Experts' Agreement on TQM Principles' Influence on Quality Among the Chinese (ra = 12 Experts, N = 8 Cases, and k = 8 Ranking Categories) 351 Appendix 34: Fleiss' Kappa Experts' Agreement on TQM Principles' Influence on Quality Among the Nigerians (n = 12 Experts, N = 8 Cases, and k = 8 Ranking Categories) 353 Appendix 35: Fleiss' Kappa Experts' Agreement on NCDs' Influence on Quality Among the Chinese (n ~ 12 Experts, N = 5 Cases, and k = 5 Ranking Categories) 355 Appendix 36: Fleiss' Kappa Experts' Agreement NCDs' Influence on Quality Among the Nigerians (n = 12 Experts, N = 5 Cases, and k = 5 Ranking Categories) 357 Appendix 37: Presentation of the Ratings for Matrix 1 and Matrix 2 359
Contents xv Appendix 38: Important 30 Pairs of TQM and NCD Attributes Among the Chinese (Matrix 1A) 373 Appendix 39: Important 30 Pairs of TQM and NCD Attributes Among the Nigerians (Matrix 2A) 377 Appendix 40: Developing Matrix 3 from Matrices 1A and 2A 381 Appendix 41: Matrix 3 Percentage Agreement and Cohen's Kappa for the Chinese and the Nigerians 389 Appendix 42: Matrix 1A Fleiss' Kappa of the Agreement Among the Experts (n = 12 Experts, N = 30 Cases, and k = 5 Rating Categories) 391 Appendix 43: Matrix 2A Fleiss' Kappa for the Experts' Agreement («= 12 Experts, V = 30 Cases, and k = 5 Rating Categories) 393 Appendix 44: Matrix 3 Fleiss' Kappa for the Experts' Agreement (n = 12 Experts, N = 18 Cases, and k = 5 Rating Categories) 395 Appendix 45: Matrix 1A Case Study l's Ranking (Matrix Bl) 397 Appendix 46: Matrix 3 Case Study l's Ranking 401 Appendix 47: Matrix 1A Case Study 2's Ranking (Matrix B2) 405 Appendix 48: Matrix 3 Case Study 2's Ranking 409 Appendix 49: Matrix 1A Case Study 3's Ranking (Matrix B3) 413 Appendix 50: Matrix 3 Case Study 3's Ranking 417 Appendix 51: Matrix 1A Case Study 4's Ranking (Matrix B4) 421 Appendix 52: Matrix 3 Case Study 4's Ranking 425 Appendix 53: Matrix 1A Percentage Agreement of Matrices Bl to B4 Using the Survey Result of the Chinese as the Base 429
xvi Contents Appendix 54: Matrix 3 Percentage Agreement of Matrices B1 to B4 with Respect to the Survey (the Chinese and the Nigerians) and the Delphi Results 431 Appendix 55: Matrix 1A Cohen's Kappa for Agreement Between CS1 and CS2 and CS1 and CS4 433 References 435