Investigating the Relationship of the Integrity Climate of a Public Organization with Corruption in Construction Projects

Abstract

Public construction projects are exposed to corruption vulnerabilities at various stages, which can be manipulated by corrupt actors. Effective management of public resources requires holistic anticipation and mitigation of corruption along the entire project cycle. This study examines the role of the organizational integrity climate in influencing project corruption risks. Twenty-two critical integrity climate measures (ICMs) and 30 major project corruption risks (PCRs) are identified from an extensive literature review and parallel discussions with practitioners. A total of one hundred and ninety-three practitioners in large public organizations in India evaluated the ICMs and PCRs through a questionnaire survey. Exploratory factor analysis extracted four integrity climate factors and five project corruption risk factors which were used to build a hypothesized model of their relationship. Partial least squares structural equation modeling (PLS-SEM) used to test the model shows a significant mitigating effect of integrity climate on project corruption. Key process management, control and oversight, commitment to integrity, and system accessibility and stakeholders’ engagement are the critical integrity climate factors that inhibit corruption. The study underpins the role of the organizational integrity climate in addressing corruption in public construction projects and thus enriches the literature on anti-corruption management. The rich insights offered will enable policymakers and practitioners to develop a control environment in public organizations with a focus on integrity.