Coercive pressure as a moderator of organizational structure and risk management: Empirical evidence from Malaysian construction industry

Abstract

Introduction: The construction industry in Malaysia has been bedevilled by myriads of risk issues that have hampered its smooth operations in recent times. This paper is an empirical assessment that aims to examine the effect of coercive pressure on the relationship between organizational structure and construction risk management among construction industry in Malaysia.

Method: Based on the proposed model, a quantitative method was employed to obtain data from G7 construction industry operating within the peninsular Malaysia. Out of the 180 copies of questionnaire, 165 copies were properly filled, returned, and used for the analysis. PLS-SEM was used to analyze the obtained data.

Results: The findings of the study affirmed that specialization, centralization, and management of risk by the construction industry had positive correlation.

Conclusions: As anticipated, coercive pressure had positive moderating correlation with both formalization and the management of risk by the construction industry. Similarly, it was also found that in the course of carrying out construction activities, coercive pressure made significant interactive influence on formalization, specialization, and centralization. Practical Applications: Coercive pressure reduced the frequency of accidents among workers in the process of carrying out construction works.

Keywords: Coercive Pressure; Construction Risk Management; Malaysia; Organizational Structure; PLS-SEM; Partial Least Squire.