A Review of Contractual Governance Selection and Its Impact on Project Performance

Abstract

The definitions of the concepts about project governance are vaguely and difference. The research conclusions are also inconsistent. These differences are not conducive to the development of project contractual governance. Following the analytical framework of "transactional attributes-governance mechanism-economic efficiency" of TCE (Transaction Cost Economics), this paper discusses the existing literatures from three perspectives. The first one is the meaning and measures of contract forms. The second is that how the asset specificity, uncertainty and complexity effect the selection of the contract form. The third is that whether the contract selection can improve the project performance or save the transaction cost of the project based on TCE. In the last part of this paper, the implications for the future research are put forwarded.