Compliance Risk Formation and Evolution Mechanisms of the International Operations of Construction Enterprises

Compliance management is the highest stage of enterprise internationalization. However, there is currently a lack of exploration in academia regarding the specific formation and evolution mechanisms of compliance risk in the international operations of construction enterprises. This paper is guided by vulnerability theory and uses the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) method to select 41 key papers, from which five influencing factors and 23 variables of compliance risk are identified. Partial least-squares structural equation modeling (PLS-SEM) analysis was conducted on data provided by 223 respondents to examine the 10 causal paths between influencing factors and compliance risk, revealing the formation mechanism of compliance risk in the international operations of construction enterprises. The fuzzy cognitive map (FCM) method is introduced to overcome the limitations of PLS-SEM’s static and vague nature. The dynamic evolution trend of compliance risk in the international operations of construction enterprises is explored from the perspectives of predictive analysis, diagnostic analysis, and hybrid analysis. The results showed that the path effect sizes between institutional environment, business pressure, organizational climate, individual traits, enterprise capability, and compliance risk range from 0.193 to 0.413. Interventions targeting organizational climate and enterprise capability can quickly mitigate the formation and development of compliance risk. In contrast, interventions aimed at business pressure and institutional environment are essential for the sustainable and long-term control of compliance risk. The main contribution of this study to the knowledge system lies in revealing the specific formation and evolution mechanisms of compliance risk in the international operations of construction enterprises, providing theoretical guidance for the management of compliance risk.