Developing a Mediated Framework of Construction Corruption and Project Performance: A Validation Roadmap for the Malaysian Construction Industry

Abstract

Corruption remains a persistent governance challenge in the Malaysian construction industry, where complex procurement arrangements, fragmented supply chains, and discretionary decision-making create structural opportunities for misconduct. Prior studies associate construction corruption to cost escalation, schedule delays, compromised quality, and declining stakeholder trust. Despite growing attention to either corruption determinants or anti-corruption interventions, research remains fragmented and provides limited explanation of how governance mechanisms translate (or disrupt) the effects of corruption drivers on project performance. This paper develops a theoretically grounded mediated framework that integrates Construction Corruption Causes (CCC), Corruption Countermeasures (CCM), and Construction Project Performance (CPP) within a balanced 4–4–4 higher-order construct structure. CCC is conceptualised across industry structure, management, regulation, and personal factors; CCM comprises management, regulatory, probing/enforcement, and promotional/integrity-building mechanisms; and CPP is captured through cost, time, quality, and trust/institutional outcomes. Anchored in an institutional perspective, the framework conceptualises CCM as a mediating governance mechanism hypothesised to weaken the transmission of systemic corruption vulnerabilities into performance deterioration. To support future empirical testing, the paper proposes a transparent validation roadmap using Partial Least Squares Structural Equation Modelling (PLS-SEM), including hierarchical construct modelling, measurement validation, structural path testing, and bootstrapped mediation analysis. The framework offers an integrated platform for advancing corruption-governance scholarship and informing governance strengthening in Malaysia’s construction sector.