Critical success factors for rail infrastructure joint ventures

Abstract

Due to their myriad socioeconomic and environmental benefits, Joint Ventures (JVs) between construction contractors are considered a highly effective commercial strategy for delivering construction projects. This is especially true in the rail infrastructure industry. While rail infrastructure JVs (RIJVs) between several contractors may not always run smoothly, there have also been cases of successful implementation; nevertheless, the factors contributing to their success have not been comprehensively explored. It is crucial to thoroughly understand the critical success factors (CSFs) for RIJVs, as their success depends on the combination of various key factors during their implementation. This study aims to evaluate the CSFs for RIJVs. Through a comprehensive literature review, 20 CSFs for RIJVs were identified, and an expert survey was conducted with 40 UK-based RIJV professionals. The data were analysed using the relative importance index and Spearman’s rank correlation analysis. The top five perceived CSFs were communication, compatibility of partner objectives, suitable JV partner selection, trust, and effective planning. This suggests the level of importance attached to these CSFs by the professionals working in and managing RIJVs. Spearman’s rank correlation analysis revealed significant interdependencies among CSFs, such as the combination of trust with communication and the intent to learn with the level of participation and involvement, suggesting that these CSFs often go hand in hand. Further analysis of challenges encountered on RIJVs revealed four key themes: information management and IT systems integration, alignment, congruency and synergy, inter-organisational dynamics, and strategic management. Solutions proposed for these challenges also fell into four primary themes: strategic management and leadership, collaboration and communication, risk management and conflict resolution, and operational efficiency and resource optimisation. The findings showed a comprehensive evaluation of CSFs for RIJVs, highlighting pathways to effective JV execution. This study makes a valuable contribution to the existing body of knowledge on RIJV by analysing the CSFs. It also offers practical insights that can enhance the successful implementation of RIJV projects and provide guidance for top team managers in allocating strategic resources to key areas.