Influence of Prior Ties on Trust in Contract Enforcement in the Construction Industry: Moderating Role of the Shadow of the Future

Chen, Yuting; Chen, Yongqiang; Liu, Zhaojun; Yao, Hongjiang

doi:10.1061/(asce)me.1943-5479.0000584

Cited by 39 publications

(41 citation statements)

References 89 publications

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“…Compared with multiple regression analysis, SEM makes it more convenient to conduct regression analysis of a model with many dependent variables and perform better in reducing measurement error. More and more studies in construction research use SEM [95,96,97], which reveals the applicability of SEM in this field. Data was analyzed through structural equation modeling (SEM) by using Smart-PLS 3 (Joe F. Hair, University of South Alabama, South Alabama, USA).…”

Section: Data Analysis and Resultsmentioning

confidence: 99%

Role Stress, Job Burnout, and Job Performance in Construction Project Managers: The Moderating Role of Career Calling

Zhi-bin

Zheng

2019

IJERPH

136

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This study aims to explore the influence of role stress (role ambiguity and role conflict) on job burnout and job performance in construction project managers in the Chinese construction industry. Based on the JD-R (Job Demands Resources) model, this study introduces career calling as the moderating variable, in order to develop a theoretical model. The theoretical model is then tested with structural equation modeling. This work uses data from 191 owners, contractors, subcontractors, and supervisors in the Chinese construction industry. The results indicate that: (i) role ambiguity has a negative and significant effect on job burnout and job performance; (ii) role conflict has a negative effect on job burnout, but has a non-significant influence on job performance; (iii) job burnout has a negative impact on job performance; (iv) career calling negatively moderates the relationship between role ambiguity and job burnout, and positively moderates the relationship between role conflict and job performance. Furthermore, the results also show that career calling can positively moderate the effect of role conflict on job burnout. This study expands the existing body of knowledge by reasonably controlling role stress and appropriately introducing career calling. In addition, the study provides some suggestions relevant to construction project management.

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Section: Data Analysis and Resultsmentioning

confidence: 99%

Role Stress, Job Burnout, and Job Performance in Construction Project Managers: The Moderating Role of Career Calling

Zhi-bin

Zheng

2019

IJERPH

136

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“…Economic theories always assume that a contract is executed mechanically once it is signed (Crocker and Masten 1991). However, in many cases, contract enforcement, based on the terms of the contract, can be applied to the other party's contract violation, but the violated party may not impose such severe contract enforcement, especially in China (Chen et al 2018). There are two reasons for this seemingly "irrational" phenomenon.…”

Section: Contract Enforcementmentioning

confidence: 99%

“…Contracts are of great importance in conducting a project and maintaining relationships between parties (Cao and Lumineau 2015;Lu et al 2015;Zwikael and Smyrk 2014). However, contract violations have become common in construction projects, which, compared with those in other industries, are characterized by higher uncertainty and complexity, no matter how well the contracts are designed (Chen et al 2018). Furthermore, inappropriate responses to contract violations have been significant impediments to relationships between parties.…”

Section: Introductionmentioning

confidence: 99%

Mediating Role of Risk Perception of Trust and Contract Enforcement in the Construction Industry

Yao

Chen

et al. 2019

J. Constr. Eng. Manage.

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Contract violations have become common problems in construction projects, yet little of the construction contract literature addresses the questions of responses to contract violations (i.e., contract enforcement). This research investigates the effects of trust on contract enforcement in a principal-agent relationship, and it explores the mediating role of risk perception in the effects. The authors distributed 429 electronic questionnaires and received 280 responses. After deleting responses completed in under 100 seconds and non-manager responses, we narrowed the total to 253 valid responses from professionals in the Chinese construction industry. Hierarchical regression analyses were conducted to test the hypotheses in this study, and the findings revealed that goodwill-based trust 11 diminishes the severity of contract enforcement, while perceived relational risk and perceived performance risk increase the severity of contract enforcement. Mediation analyses also support the mediating role of perceived relational risk in the effect of goodwill-based trust on contract enforcement. The findings contribute to contract theory by providing a thorough understanding of contract enforcement and developing a conceptual framework consisting of trust, perceived risk, and contract enforcement. Managers from violating parties may benefit from this article through understanding the role of trust and perceived risk in dealing with a contract violation and following the strategies recommended for diminishing the severity of contract enforcement.

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“…the role of contracts when problems occur, has received less attention. Falling into this reactive stream, Chen et al (2018) put their attention on how prior ties affect parties' severity of contract enforcement after contract breaches. Current literature has yet to identify the drivers of contract application in dealing with disputed claims.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Third, drivers of contract application in problem situations have been investigated in other industries, such as supply chain management and strategy management (e.g., Faems et al, 2008;Johnson and Sohi, 2016). Specific to the construction industry, Chen et al (2018) revealed the impact of prior ties on a party's general level of severity of contract enforcement in a project after the other party's contract violations. Unlike their research, this study is limited to contractors' responses to one particular problem.…”

Section: Theoretical and Practical Contributionsmentioning

confidence: 99%

To insist or to concede? Contractors’ behavioural strategies when handling disputed claims

Zhang

Fenn

2019

ECAM

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Purpose The purpose of this paper is to identify and analyse factors that affect contractors’ behavioural strategies in resolving disputed claims. Design/methodology/approach Factors were explored by a literature review and an open-ended questionnaire survey. In total, 9 hypotheses involving 12 factors were developed accordingly. Then a structured questionnaire survey was conducted, and 248 valid questionnaires were received from Chinese contractors. Partial least squares structural equation modelling was employed to test the hypotheses. Findings Factors that have the largest impacts on the contractual approach and the relational approach regarding obliging and compromising are favourability of evidence, time pressure and reputation, respectively. Unexpected results show that obliging behaviours are negatively correlated with procedural fairness but positively correlated with occurrence time of the dispute. Research limitations/implications The results are based on correlation, although the research design improves the internal validity. Furthermore, this study belongs to single-level research. In the future, researchers can conduct multilevel research to enrich theories. Practical implications The findings not only enhance practitioners’ understanding of the factors influencing contractors’ behavioural strategies when dealing with disputed claims, but also offer insights into both parties’ ex ante focus of attention on specific factors to facilitate the subsequent dispute resolution. Originality/value This study furnishes a nuanced picture of multiple factors’ impacts on contractors’ behavioural strategies of claim-related dispute resolution, and thus supplements the relevant construction dispute management literature. From the perspective of contractual governance, it is one of those exploring drivers of contract application in problem situations. It extends the body of knowledge on this topic and hopefully will encourage more research on contractual governance from the reactive perspective.

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Influence of Prior Ties on Trust in Contract Enforcement in the Construction Industry: Moderating Role of the Shadow of the Future

Cited by 39 publications

References 89 publications

Role Stress, Job Burnout, and Job Performance in Construction Project Managers: The Moderating Role of Career Calling

Role Stress, Job Burnout, and Job Performance in Construction Project Managers: The Moderating Role of Career Calling

Mediating Role of Risk Perception of Trust and Contract Enforcement in the Construction Industry

To insist or to concede? Contractors’ behavioural strategies when handling disputed claims

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