The Impact of External Risks on International Construction Project Success: Evidence from Commonwealth Caribbean Islands

Abstract

Because risks on international construction show region to region variation, the present study investigates the impact of external risks on international construction project (ICP) success and the relationships between them, from the perspective of construction professionals working in the Commonwealth Caribbean Island (CCI) states. After a literature review, a survey questionnaire was designed with the input of a small group of experts. An instrument was tested and then sent to construction professionals working in the CCI. Seventy valid surveys collected were processed using the structural equation model (SEM). The results suggest CCI be an attractive region for construction enterprises looking into developing countries because they do not support a direct impact of external risks on project success, contrary to findings in other studies on developing regions. The SEM confirmed that global risks influence economic risks, economic risks influence legal risks, and economic risks influence social risks in this region. Results obtained help address a knowledge gap for ICP risks for the Caribbean region. The study will help firms and professionals looking to venture into the CCI, or other regions with similar characteristics, to create their risk management plan.