Business Continuity Management in Construction

538 Pages·2018·10.656 MB·English

by  Leni Sagita Riantini Supriadi,Low Sui Pheng (auth.)

Management in the Built Environment
Series Editor: Low Sui Pheng
Leni Sagita Riantini Supriadi
Low Sui Pheng
Business Continuity
Management
in Construction
Management in the Built Environment
Serieseditor
LowSuiPheng
DepartmentofBuilding,NationalUniversityofSingapore,Singapore,Singapur
Singapore
The aim of this book series is to provide a platform to build and consolidate a
rigorousandsignificantrepositoryofacademic,practiceandresearchpublications
that contribute to further knowledge relating to management in the built environ-
ment.Itsobjectivesareto:
(1)Disseminatenewandcontemporaryknowledgerelatingtoresearchandpractice
inthebuiltenvironment
(2) Promote synergy across different research and practice domains in the built
environmentand
(3)Advancecutting-edgeresearchandbestpracticeinthebuiltenvironment.
Thescopeofthisbookseriesisnotlimitedto“management”issuespersebecause
thisthenbegsthequestionofwhatexactlyarewemanaginginthebuiltenvironment.
While the primary focus is on management issues in the building and construction
industry, its scope has been extended upstreamto the design managementphase and
downstream to the post-occupancy facilities management phase. Management in the
builtenvironmentalsoinvolvesothercloselyallieddisciplinesintheareasofeconomics,
environment,legalandtechnology.Hence,thestartingpointofthisbookserieslieswith
projectmanagement,extendsintoconstructionandendswithfacilitiesmanagement.In
between this spectrum, there are also other management-related issues that are allied
withorrelevanttothebuiltenvironment.Thesecaninclude,forexamplecostmanage-
ment,disastermanagement,contractmanagementandmanagementoftechnology.
Thisbookseriesservestoengageandencouragethegenerationofnewknowledge
in these areas and to offer a publishing platform within which different strands of
managementinthebuilt environment canbepositioned to promote synergistic col-
laborationattheirinterfaces.Thisbookseriesalsoprovidesaplatformforotherauthors
tobenchmarktheirthoughtstoidentifyinnovativeideasthattheycanfurtherbuildon
tofurtheradvancecutting-edgeresearchandbestpracticeinthebuiltenvironment.
EditorialAdvisoryBoard:
AbdulRashidBinAbdulAziz(UniversityScienceMalaysia,Malaysia)
AnMin(SalfordUniversity,UK)
AzlanShahAli(UniversityofMalaya,Malaysia)
FaisalM.Arain(NiagaraCollege,Canada)
FangDongping(TsinghuaUniversity,China)
GaoShang(UniversityofMelbourne,Australia)
GeorgeOfori(LondonSouthBankUniversity,UK)
HamzahA.Rahman(UniversityofMalaya,Malaysia)
JavierCuervo(UniversityofMacau,China)
LiuJunying(TianjinUniversity,China)
OluwayomiBabatunde(UniversityoftheWitwatersrand,SouthAfrica)
OswaldChong(ArizonaStateUniversity,US)
Ifyouareinterestedinsubmittingaproposalforthisseries,pleasekindlycontact
theSeriesEditororthePublishingEditoratSpringer:
LowSuiPheng([email protected])or
RameshPremnath([email protected])
Moreinformationaboutthisseriesathttp://www.springer.com/series/15765
Leni Sagita Riantini Supriadi • Low Sui Pheng
Business Continuity
Management in Construction
LeniSagitaRiantiniSupriadi LowSuiPheng
DepartmentofBuilding DepartmentofBuilding
NationalUniversityofSingapore NationalUniversityofSingapore
Singapore,Singapore Singapore,Singapore
ISSN2522-0047 ISSN2522-0055 (electronic)
ManagementintheBuiltEnvironment
ISBN978-981-10-5486-0 ISBN978-981-10-5487-7 (eBook)
DOI10.1007/978-981-10-5487-7
LibraryofCongressControlNumber:2017945380
©SpringerNatureSingaporePteLtd.2018
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Contents
1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1.1 BCMOverview. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1.2 ToolsforDecisionMakingProcessDuringCrises. . . . 3
1.2 MotivationforResearch. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.3 ResearchProblems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.3.1 KnowledgeGap. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.3.2 ResearchQuestions. . . . . . . . . . . . . . . . . . . . . . . . . 9
1.4 Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.5 Scope. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.6 ResearchProcess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.7 ResearchSignificance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.8 StructureoftheBook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2 TheManagementofCrisis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.2 Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.3 OrganizationalManagement. . . . . . . . . . . . . . . . . . . . . . . . . 18
2.3.1 OrganizationOverview. . . . . . . . . . . . . . . . . . . . . . . 18
2.3.2 TraditionalOrganizationalTheories. . . . . . . . . . . . . 19
2.3.3 SystemsTheory. . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.3.4 ContingencyTheory. . . . . . . . . . . . . . . . . . . . . . . . . 24
2.3.5 ComplexityTheoryinOrganizations. . . . . . . . . . . . . 25
2.3.6 ChangeinOrganization. . . . . . . . . . . . . . . . . . . . . . 27
2.4 CrisisManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.4.1 DefinitionofCrisis. . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.4.2 HistoryofDevelopment. . . . . . . . . . . . . . . . . . . . . . 31
2.4.3 MainConceptofCrisisManagement. . . . . . . . . . . . . 32
2.5 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
v
vi Contents
3 BusinessContinuityManagement(BCM). . . . . . . . . . . . . . . . . . . 41
3.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
3.2 Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
3.2.1 BCMDefinitionandDevelopment. . . . . . . . . . . . . . 41
3.2.2 BCMandOtherRelatedConcepts. . . . . . . . . . . . . . . 44
3.3 BCMasaManagementSystem. . . . . . . . . . . . . . . . . . . . . . . 47
3.4 MainPrinciplesofBCM. . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
3.5 BusinessContinuityPlanning(BCP). . . . . . . . . . . . . . . . . . . 52
3.6 BCMImplementation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
3.6.1 LegislationandStandardsRelatingtoBCM. . . . . . . . 55
3.6.2 BCMLevelofPreparedness. . . . . . . . . . . . . . . . . . . 57
3.7 ReviewsofBCPlan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.7.1 BCPlanfromFinancialServicesSector. . . . . . . . . . 62
3.7.2 BCPlanfromEducationInstitutions:ACaseStudy. . . . 64
3.7.3 BCPlanforInfluenzaPandemic:AReview. . . . . . . . 66
3.8 TheNeedforBCM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
3.8.1 BenefitsofBCM. . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.8.2 ChallengesinBCM. . . . . . . . . . . . . . . . . . . . . . . . . 70
3.9 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
4 OrganizationalCultureandInstitutionalForces. . . . . . . . . . . . . . 75
4.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
4.2 CultureinOrganization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
4.2.1 CultureOverview. . . . . . . . . . . . . . . . . . . . . . . . . . . 75
4.2.2 DefinitionsofCulture. . . . . . . . . . . . . . . . . . . . . . . . 76
4.2.3 OrganizationalCultureDimensions. . . . . . . . . . . . . . 77
4.2.4 ManagingOrganizationalCulture. . . . . . . . . . . . . . . 93
4.2.5 BenefitsofIdentifyingOrganizationalCulture. . . . . . 94
4.3 InstitutionalTheory. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 94
4.3.1 DefiningInstitutions. . . . . . . . . . . . . . . . . . . . . . . . . 95
4.3.2 ThreePillarsofInstitutions. . . . . . . . . . . . . . . . . . . . 96
4.4 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
5 MainstreamTheories:ImplementationbyContractors. . . . . . . . 101
5.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
5.2 MainstreamTheoriesforImplementationbyContractors. . . . 101
5.3 OrganizationalManagementinContractors. . . . . . . . . . . . . . 102
5.4 TraditionalOrganizationalTheories. . . . . . . . . . . . . . . . . . . . 104
5.4.1 SystemsTheory. . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
5.4.2 ContingencyTheory. . . . . . . . . . . . . . . . . . . . . . . . . 108
5.4.3 ComplexityTheory. . . . . . . . . . . . . . . . . . . . . . . . . 108
5.4.4 ChangeinOrganization. . . . . . . . . . . . . . . . . . . . . . 109
5.5 CrisisManagementImplementationbyContractors. . . . . . . . 110
5.6 BCMinConstructionFirms. . . . . . . .. . . . . . .. . . . . . .. . . . 111
5.7 CultureinOrganization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Contents vii
5.8 InstitutionalTheory. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 115
5.9 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
6 TheIndonesianConstructionIndustry. . . . . . . . . . . . . . . . . . . . . 117
6.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
6.2 ProfileofIndonesia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
6.2.1 Geography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
6.2.2 DemographyandResources. . . . . . . . . . . . . . . . . . . 118
6.2.3 FormofState. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
6.2.4 Economy. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 119
6.3 TheIndonesianConstructionIndustry. . . . . . . . . . . . . . . . . . 127
6.3.1 ConstructionActivitiesandNationalContribution. . . . 127
6.3.2 RoleofConstructionAdministrationbyGovernment... 130
6.3.3 RoleofConstructionIndustryAssociations. . . . . . . . 131
6.3.4 RegulationandManagementSystemsofConstruction
Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
6.3.5 Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
6.3.6 ResearchandDevelopment. . . . . . . . . . . . . . . . . . . . 137
6.3.7 LessonsLearnedandFutureDevelopments. . . . . . . . 138
6.4 IndonesianConstructionFirms. . .. . .. . . .. . . .. . . .. . . .. . 139
6.4.1 TypesofFirms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
6.4.2 Firms’Characteristics. . . . . . . . . . . . . . . . . . . . . . . . 140
6.4.3 IndonesianContractors. . . . . . . . . . . . . . . . . . . . . . . 142
6.4.4 BusinessActivitiesofContractors. . . . . . . . . . . . . . . 143
6.5 ReviewofCrisesFacedbyIndonesianContractors. . . . . . . . . 145
6.5.1 CrisisOverview. . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
6.5.2 PossibleCrisesFacedbyContractors. . . . . . . . . . . . 146
6.5.3 CrisesExperiencedbyIndonesianContractors. . . . . . 148
6.5.4 CurrentFindings. . . . . . . . . . . . . . . . . . . . . . . . . . . 152
6.6 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
7 KnowledgeBasedDecisionSupportSystem(KBDSS). . . . . . . . . . 155
7.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
7.2 DecisionMakingProcess. . . . . . . . . . . . . . . . . . . . . . . . . . . 155
7.3 DecisionMakingTools. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
7.3.1 DecisionMakingToolsUsingFuzzyApproach. . . . . 157
7.4 DecisionSupportSystem(DSS)Overview. . . . . . . . . . . . . . . 158
7.4.1 DefinitionandDevelopmentofDSS. . . . . . . . . . . . . 159
7.4.2 DSSImplementation. . . . . . . . . . . . . . . . . . . . . . . . 160
7.5 KBDSSOverview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
7.5.1 KBDSSConcept. . . . . . . . . . . . . . . . . . . . . . . . . . . 164
7.5.2 ReviewofKBDSSImplementation. . . . . . . . . . . . . . 166
7.6 KBDSSDevelopment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
7.6.1 Formulation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
7.6.2 SystemDevelopment. . . . . . . . . . . . . . . . . . . . . . . . 168
viii Contents
7.6.3 Validation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
7.7 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
8 ConceptualFramework. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 175
8.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
8.2 IndonesianContractor’sKnowledgeAboutBCM. . . . . . . . . . 175
8.3 RelationshipsBetweenBCM,OrganizationalCultureand
InstitutionalForces. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
8.3.1 DefiningOrganizationalCultureDimensions. . . . . . . 176
8.3.2 RelationshipsBetweenOCDimensionsandBCM
Principles.. . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . 179
8.3.3 DefiningInstitutionalForcesAttributes. . . . . . . . . . . 186
8.3.4 RelationshipsBetweenIFAttributesandBCM
Principles.. . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . 187
8.3.5 TheImportanceofOrganizationalCultureand
InstitutionalForcesinAdoptingBCM. . . . . . . . . . . . 188
8.4 DevelopingBCMforIndonesianContractors. . . . . . . . . . . . . 193
8.5 DevelopmentofKBDSSforBCM. . . . . . . . . . . . . . . . . . . . . 199
8.5.1 BenefitsofKBDSSforManagementProcessand
Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
8.5.2 TheApplicationofKBDSSforBCM. . . . . . . . . . . . 201
8.6 ConceptualFramework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
8.7 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
9 ResearchDesignandMethodology. . . . . . . . . . . . . . . . . . . . . . . . 209
9.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
9.2 ResearchFramework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
9.2.1 ResearchQuestionsandHypotheses. . . . . . . . . . . . . 210
9.3 ResearchDesign. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 212
9.3.1 ResearchDesignfortheStudy. . . . . . . . . . . . . . . . . 212
9.3.2 Sampling. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 213
9.4 MethodsofDataCollection. . . . . . . . . . . . . . . . . . . . . . . . . . 215
9.4.1 MethodsofCollectingData. . . . . . . . . . . . . . . . . . . 216
9.5 MethodsofDataAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . 217
9.6 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
10 DataAnalysis:Surveys. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
10.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
10.2 PilotStudy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
10.3 QuestionnaireSurvey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
10.3.1 CrisesResponse. . . . . .. . . . . . . . . . . . . . . . . . . . . . 225
10.3.2 BCMGeneralKnowledge. . . . . . . . . . . . . . . . . . . . . 227
10.3.3 BCMPrinciples. . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
10.3.4 InstitutionalForces(IF)thatSupportBCMPrinciples
Implementation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
Contents ix
10.3.5 OrganizationalCultureAttributes(OC)Implementedfor
BCMPrinciples. . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
10.3.6 PerceivedImportanceandImplementedforOC
Attributes. .. . . . .. . . .. . . . .. . . . .. . . .. . . . .. . . 240
10.3.7 SurveyValidation. . . . . . . . . . . . . . . . . . . . . . . . . . 240
10.4 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252
11 DataAnalysis:CaseStudies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
11.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
11.2 CaseStudies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
11.2.1 CaseStudy1:FirmA. . . . . . . . . . . . . . . . . . . . . . . . 253
11.2.2 CaseStudy2:FirmB. . . . . . . . . . . . . . . . . . . . . . . . 265
11.2.3 BCMPreparedness. . . . . . . . . . . . . . . . . . . . . . . . . . 275
11.3 InterviewswithExpertsonBCMImplementation. . . . . . . . . . 283
11.3.1 TheBenefitsofImplementingBCMfor
Contractors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
11.3.2 TheDrawbacksofImplementingBCMfor
Contractors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284
11.3.3 TheNeedforBCMinContractors’Firms. . . . . . . . . 285
11.3.4 BCMCertification. . . . . . . . . . . . . . . . . . . . . . . . . . 286
11.3.5 ImportantElements(BUs,CBFs,MBCOs,and
SignificantCriseswithHighImpacts)inContracting
FirmsthatRelatesMostlywithBCM. . . . . . . . . . . . 287
11.3.6 AdditionalRecommendationsforBCMImplementation
byIndonesianContractors. . . . . . . . . . . . . . . . . . . . 288
11.4 BCMImplementationGuidelinesDevelopment. . . . . . . . . . . 291
11.4.1 BCMImplementationGuidelinesFramework. . . . . . 291
11.4.2 LevelsofPreparednessDevelopment. . . . . . . . . . . . 291
11.4.3 AssessmentPhase. . . . . . . . . . . . . . . . . . . . . . . . . . 292
11.4.4 ActionPlansperBCMLevelofPreparedness. . . . . . 298
11.5 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299
12 DataAnalysis:BCM-KBDSSDevelopment. . . . . . . . . . . . . . . . . . 301
12.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301
12.2 BCM-KBDSSDevelopment. . . . . . . . . . . . . . . . . . . . . . . . . 301
12.2.1 KnowledgeBase(KB)Development. . . . . . . . . . . . . 301
12.2.2 RulesandLogicsforBCM-KBDSS. . . . . . . . . . . . . 302
12.2.3 DesignUserInterfaceandBCM-KBDSS
Compilation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
12.2.4 BCM-KBDSSPrototype. . . . . . . . . . . . . . . . . . . . . . 311
12.3 KBDSSValidation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314
12.3.1 BCM-KBDSSValidationResults. . . . . . . . . . . . . . . 322
12.4 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328