The underestimation of cultural risk in the execution of megaprojects

Walker, P; Walsh, AJ; Ellis, M

Abstract

There is a real danger that both practitioners and
researchers considering risks associated with megaprojects ignore or
underestimate the impacts of cultural risk. The paper investigates the
potential impacts of a failure to achieve cultural unity between the
principal actors executing a megaproject. The principle relationships
include the relationships between the principle Contractors and the
project stakeholders or the project stakeholders and their principle
advisors, Western Consultants. This study confirms that cultural
dissonance between these parties can delay or disrupt the
megaproject execution and examines why cultural issues should be
prioritized as a significant risk factor in megaproject delivery. This
paper addresses the practical impacts and potential mitigation
measures, which may reduce cultural dissonance for a megaproject's
delivery. This information is retrieved from on-going case studies in
live infrastructure megaprojects in Europe and the Middle East's
GCC states, from Western Consultants' perspective. The
collaborating researchers each have at least 30 years of construction
experience and are engaged in architecture, project management and
contracts management, dealing with megaprojects in Europe or the
GCC. After examining the cultural interfaces they have observed
during the execution of megaprojects, they conclude that globally,
culture significantly influences their efficient delivery. The study
finds that cultural risk is ever-present, where different nationalities
co-manage megaprojects and that cultural conflict poses a real threat
to the timely delivery of megaprojects. The study indicates that the
higher the cultural distance between the principal actors, the more
pronounced the risk, with the risk of cultural dissonance more
prominent in GCC megaprojects. The findings support a more
culturally aware and cohesive team approach and recommend crosscultural training to mitigate the effects of cultural disparity.
Keywords—Cultural risk underestimation, cultural distance,
megaproject characteristics, megaproject execution.

Citation

Walker, P., Walsh, A., & Ellis, M. (2021). The underestimation of cultural risk in the execution of megaprojects. International Journal of Civil and Environmental Engineering, 15(1), 34-40

• Journal Article Type: Article
• Acceptance Date: Jan 19, 2020
• Publication Date: Jan 1, 2021
• Deposit Date: Jan 20, 2021
• Publicly Available Date: Jan 20, 2021
• Journal: International Journal of Civil and Environmental Engineering
• Print ISSN: 2010-3883
• Publisher: World Academy of Science, Engineering and Technology
• Volume: 15
• Issue: 1
• Pages: 34-40
• Publisher URL: http://waset.org/publications/10011774/the-underestimation-of-cultural-risk-in-the-execution-of-megaprojects
• Related Public URLs: https://panel.waset.org/journal/Civil