The relationship between main risk with the mitigation in international construction performance: The organizational capabilities perspective

The international construction business has an excellent opportunity to increase the worldwide market to increase the company’s market and profit. However, the opportunity in international construction projects had challenges when moving into this market. Many risks that involved in the international construction business. The company is encouraged to be aware of challenges. Due to the failure in the international construction business and project performance, the company will be affected by the following: poor quality, over budget, delay, losses of projects, and client dissatisfaction. Suppose international construction companies wish to continue to take advantage of global opportunities. In that case, it was taking advantage of global opportunities. There will be a need to focus on improving risk management. This research provided a better understanding of mitigation by organizational capabilities with the main risk in international construction business practices. Hence, the objective of this study comprises three objectives; (1) To identify the main risk in international construction projects, (2) To identify and analyze to mitigate the main risk with Organization Capabilities (OC) to perform in the international construction business (3) To develop a model relationship between the main risk with mitigating the risk by Organization Capabilities to performance in the international construction business. Thus, this study was based on a questionnaire distributed to a company involved in the international construction business. The collected data from the questionnaire survey will be analyzed using SPSS (Statistical Package for Social Science) software, and the development a model using Structure Equation Modelling-Partial Least Squares (SEM-PLS). A total of 85 respondents were received to establish the relationship. This study identified the main risk involved in the international construction business. This research showed a significant and positive development model on the relationship between mitigation organizational capabilities with the main risk for company performance that can improve the management risk in this international construction business.