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communication roles of the key executives, Figure 1 Four basic types of construction network
while the latter highlights the channels for
communication.
Effective communication is a fundamental
factor that construction alliances must
implement for project success. There
remains, however, a paucity of literature
describing ways to improve communication
within the construction industry. In
contributing to the normative literature, this
paper proposes a communication mechanism
by considering two important aspects of
communication, which are:
(1) clarification of the roles of
communication ± identifying the pre-
requisites of the communication process;
and
(2) improvement of the productiveness of
communication ± ensuring that an
effective and efficient delivery mechanism
the independent parties together through
is adopted.
contracts that force them to contribute
resources and organise activities.
Communication bridges the parties to
Alliances in construction undertake the activities for fulfilling the
contract terms and conditions. Such
The construction industry is considered to be
relationships are considered impersonal and
divisive and fragmented, where construction
hierarchical, with information diffusion being
parties pay attention to conforming to
restricted and flowing insufficiently.
contractual requirements. Since these parties
Secondly, the key parties may form a joint
represent different professions including
venture specifically for the project. Once the
architecture, structural engineering, quantity
project is completed, the joint venture will
surveying, civil engineering, project
then be dissolved. This project joint venture is
management, building surveying, etc., their
multidisciplinary skills limit the scope of a central element, through which the key
co-operation between them. The significant parties control the work of other parties by
reason for this lies with problems in using the necessary communication conduits
communication. Some common examples are that attach to it. Clearly, the co-ordination
not having open lines of communication structure remains hierarchical. Thirdly, the
(protocols), inappropriate communication parties may establish a partnership, which is
channels (inefficient and/or ineffective), and different from a joint venture. A partnership is
unexpected communication breakdown. expected to include more joint parties and
Because of these factors, there has been a may extend beyond a single project. The
surge in the formation of construction partnership organisation acts as a central
networks. Such network structures support operational unit to serve all project parties
improvements in communication and that create communication conduits with it.
interaction between project partners. This Finally, the parties may choose to form an
then results in the establishment of a web of informal alliance. While joint ventures and
communication, which in turn seeks to partnerships are ``real'' and legitimate
facilitate the operations of the construction organisations with a solid state structure, a
parties. construction alliance has a virtual and
After a review of the existing literature, this dynamic structure that facilitates the
study proposes that there are four basic types exchange and sharing of information, since all
of construction network (as shown in involved parties are co-ordinated horizontally
Figure 1). These network structures represent and personally. This informal relationship
the links of organisations for different supplements the formal contractual
purposes. First, contractual relationships tie obligation. It is worth noting that these four
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Network communication in the construction industry Corporate Communications: An International Journal
Eddie W.L. Cheng, Heng Li, Peter E.D. Love and Zahir Irani Volume 6 . Number 2 . 2001 . 61±70
network structures are not mutually exclusive developed. As the construction industry is
but may exist as a combination in a project. dominated by one-off projects, Matthews et
The traditional mode of operation in al. (1996) suggest that short-term alliances
construction, that is the fulfilment of are likely to take the leading role in promoting
contracts, has been criticised for its stagnation a closer relationship in construction projects.
toward improvement. Such parties realised Long-term alliance refers to a co-operative
that they were self-sufficient and did not relationship between at least two
expect the pros of joint problem solving. organisations, which is established for
Breakdowns in communication disturb a achieving long-term goals and objectives for
construction project, and as a result it has the purpose of achieving a competitive
become very adversarial in nature (Cheng et advantage. More specifically, long-term
al., 2000). Although a construction alliance is alliances are a manifestation of inter-
an informal, voluntary body, it injects the organisational co-operative strategies, and
parties with flexibility, responsiveness, and entail the pooling of skills through the
self-governance. To obtain such benefits, co-operation of organisations aiming to
construction parties must form effective and achieve common goals (Love et al., 1999).
open communication chains and links, which Ketelhom (1993) states that the co-operative
act as enablers for a construction alliance. nature of alliances can create a competitive
Suggesting the formation of alliance in advantage. According to Currie (2000), there
construction can be traced back to almost a are three major forces motivating
decade ago, when researchers raised the need organisations to form alliances in the supply
for vertical integration within construction chains: globalisation, deregulation and
parties (Krippaehne et al., 1992). Within the consolidation. Ellison and Miller (1995) used
construction industry, the term ``alliance'' and the term synergy to explain such a long-term
``partnering'' are used interchangeably. intimate relationship that ultimately results
According to Holt et al. (2000), there are from such alliances. A synergistic relationship
collaborative strategic alliance and is to develop core competence in pursuing
co-operative strategic alliance. This corporate and business strategies.
classification is a progression of earlier work Organisations that rely on co-operation have
by Bronder and Pritzl (1992) and Hamel been found to obtain lower costs for as long as
(1989). Instead of using collaborative and co- they maintain trust internally among
operative strategic alliance, the terms project employees, and externally among members of
partnering and strategic partnering have been their network (Ketelholm, 1993).
adopted respectively (e.g. Barlow et al., Although the two terms described represent
1997). However, the most obvious distinction different types of alliance, they have a
between the two kinds of alliance is whether common premise that an inter-organisational
the alliance is formed for a single project (i.e. relationship is enhanced to facilitate the
short term) or more than one project (i.e. long exchange of resources and to solve problems
term). The authors of this paper then refer to and conflicts. With this in mind, Gunasekaran
alliances as short term and long term. (1999) suggests that alliances are becoming
Short-term alliances are collaborative and an effective strategy to improve the
established between two or more parties, production process. Especially in the case of
which strive for short-term project-related construction, communication is crucial to
benefits. It is a method of transforming integrate the parties in a design and
contractual relationships into a cohesive construction process.
project team that complies with a common set
of goals. It is important that clear procedures
for resolving disputes in a timely and effective Communication in construction alliances
manner are laid down (Cowan et al., 1992).
Usually, parties of short-term alliances have Communication simply refers to the
clear alliance objectives, these being project- transmission of resources (e.g. information
or business-specific. However, as these and other meanings including ideas,
objectives may not be compatible (perhaps knowledge, specific skills and technology)
even conflicting) with each individual party's from one party to another through the use of
internal organisational objectives, mutual shared symbols and media. Resources have
trust and commitment cannot be easily been regarded as a major component in a
63
Network communication in the construction industry Corporate Communications: An International Journal
Eddie W.L. Cheng, Heng Li, Peter E.D. Love and Zahir Irani Volume 6 . Number 2 . 2001 . 61±70
65
Network communication in the construction industry Corporate Communications: An International Journal
Eddie W.L. Cheng, Heng Li, Peter E.D. Love and Zahir Irani Volume 6 . Number 2 . 2001 . 61±70
are no interactions of the top and functional represent their own organisations to act in
levels of management between organisations the alliance team, they are the one who
since the alliance team is formed for inter- express the organisation's standpoints to
organisational communication. Only the other members and receive others' points
alliance representatives (i.e. partnering level of view. In addition, a clear role for
management) are responsible for the overall alliance's communication can reduce
running of the alliance team. They should be misunderstanding, misinterpretation, and
sensitive in communicating with other team misleading information when the
members. Moreover, they should pay communication parties are restricted to
attention to the behaviour of other team those alliance representatives.
members (i.e. conception of meaning), . Communication can take place through
whether or not these members behave in a different media. During the meetings of
co-operative way and/or are putting in the the alliance team, members are
necessary effort, and should provide communicating with each other face to
appropriate action and feedback. Thus they face. In other events, they can use e-mail,
are concerned with coding and decoding (i.e. telephone, fax, letter, and personal visit to
producing and interpreting) moral meanings effect the communication. For sharing of
from other members, which form the inter- intangible resources (such as vision,
organisational communication. ideas, opinions), understanding of
On the other hand, the other two levels meanings is key to effective
within the organisational hierarchy exert communication.
influence on the partnering representatives . To improve the speed of transmission,
when the latter delivers their organisational members should use more direct and
meanings in the partnering team. Kumar and instant communication such as face-to-
Andersen (2000) assumed that there is a face contact, telephone, instant e-mail
process of reciprocal influence where the message, etc. They can clarify meanings
three levels may not be equally influential and from others immediately, reducing the
the patterns of influence will vary across delay that may cause detrimental
organisations. These postulates are important influence on the project or the
to outline the format for intra-organisational relationship of the alliance team.
communication.
In summary, this communication
mechanism has several major characteristics Intra- and inter-organisational
(as shown in Figure 4): communication
. The alliance team takes the role of
communication between the alliance Alliance parties have to communicate not
parties. Since the team members only with other parties but also within the
66
Network communication in the construction industry Corporate Communications: An International Journal
Eddie W.L. Cheng, Heng Li, Peter E.D. Love and Zahir Irani Volume 6 . Number 2 . 2001 . 61±70
organisation. These are known as inter- and Meetings or workshops are set up to promote
intra-organisational communication real and direct contact between parties, while
respectively. computerisation would be the ``panacea'' to
Intra-organisational communication is expand the interaction of parties at a distance.
required to carry out the normal practices of There is no single preferred communication
individual organisations. It is independent of the style nor the use of one specific channel. A
requirement for direct correspondence with combination of several channels is
members of the alliance. This system preserves appropriate in many circumstances, especially
all kinds of business and management activities for important or complicated messages. In
within individual organisations. In terms of fact, the choice of channels depends on four
information, it helps to maintain the internal major criteria:
management information system, the planning (1) Amount of information required. Different
and control system, and decision-making communication channels convey different
processes. Moreover, it supports the reiteration amounts of information. This is what
of the organisational information to the alliance Bateman and Snell (1999) called media
team. Eastman and Jeng (1999) suggested the richness. For example, face-to-face
parallel mapping concept to ensure that communication (such as meeting and visit)
communication (i.e. transmission of is the richest medium because it offers a
information) proceeds without distortion or loss. variety of cues including verbal and written
Inter-organisational communication, on the words, tone of voice, facial expression,
other hand, takes place at the connection body language, and other non-verbal
platform of the alliance parties and involves signals. Other media such as telephone, e-
sending and receiving of meanings, as well as mail, and memos are less rich media.
generation and interpretation of meanings. (2) Instant information required. In case that
Communication can be enhanced by means instant information has to be transmitted,
of computers to activate other functions such the most accessible and promptly
as storing and retrieving, and presenting and transmitted media are given the first
deleting. For example, if several projects are priority. Telephone and fax affords the
operating simultaneously, computers not only transmission of more instant information.
support the running of them with a large E-mail is less instant, while meeting,
storing capacity, but also restrict the dripping teleconferencing, letter, and visit are the
out of sensitive information to parties of other least instant media.
projects using security pass-code. Also, it (3) Effective communication required. Effective
speeds up the process for retrieving a piece of communication refers to the accuracy of
information from a large batch of electronic the information transmitted. It is always
folders that, if in hard copy format, may associated with terms such as misleading,
occupy a large filing room. Successful misinterpretation, and misunderstanding.
implementation of computer-based Thus, face-to-face communication is the
communication has been reported (e.g. Kahn, best as it allows more chances for the
2000). However, as Boisot (1998) suggested, receiver to clarify meanings, reducing
for a real sharing of meaning to take place, misleading, misinterpretation, and
each party of the alliance should possess misunderstanding. Two-way
appropriate capacity for effective communication has to be created for
communication. In other words, their effective communication.
computer facilities, including the operating (4) Efficient communication required. Efficient
system, processing speed, and software communication refers to the speed of
programs, must be compatible. Figure 4 transmission of messages. It is not to say
summarises the benefits of communication that using computer to transmit the
for a construction alliance. messages will be faster than using media
for close contacts. It depends on the
distance of transmission. In meetings and
Communication channels for visits, the use of verbal words should be
construction alliance the fastest way of communication when
the parties are just several inches away. At
Inter-organisational communication involves a distance, using telephone and computer
both face-to-face and distant channels. are both efficient.
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Network communication in the construction industry Corporate Communications: An International Journal
Eddie W.L. Cheng, Heng Li, Peter E.D. Love and Zahir Irani Volume 6 . Number 2 . 2001 . 61±70
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