Critical External Risks in International Joint Ventures for Construction Industry in Pakistan

International joint ventures (IJVs) are both advantageous and challenging due to differing technical abilities, economic and political environments, and cultural and legal frameworks. This study identifies the external risks particularly political, economic, legal, social and environmental in IJVs carrying out construction projects in Pakistan. It further analyzes the impact of these risks on the project success criteria of time, cost and quality. Data are collected using questionnaire-based survey and with the help of factor analysis, 16 critical external risks are identified. The top most critical risks are fluctuation in exchange rate, weather systems, political instability and delay in approval. Analytical Hierarchy Process is applied to prioritize critical external risks discretely for project success criteria. As a result, time is found to be the most influenced project criterion by the critical external risks, followed by cost and quality. The results are of importance for local practitioners in the form of recommendations for better management of IJV risks. Future research can benefit from incorporation of more dimensions of project success.