Mitigating the aftermath of relationship conflict between the owners and contractors: a contract enforcement approach
Engineering, Construction and Architectural Management
ISSN: 0969-9988
Article publication date: 7 June 2024
Abstract
Purpose
Relationship conflict between the owners and contractors is inevitable, which could induce negative consequences. Yet, the existing literature mostly focused on its direct effects on project performance and ignored the process by which relationship conflict gradually deteriorates cooperation as well as corresponding managerial approaches. Given the fact that relationship conflict originates from interdependent tasks, the proposed theoretical model is intended to measure relational behavior as an instant outcome of relationship conflict, and explore the buffering role of contract enforcement approach.
Design/methodology/approach
This paper develops the conceptual model based on the literature review. Then the questionnaire survey was conducted. The dyadic data obtained from 168 Chinese construction project professionals were analyzed by the Partial Least squares Structural Equation Modeling (PLS-SEM) technique.
Findings
The results show that relational behavior partially mediates the link between relationship conflict and project performance. Besides, three types of contract enforcement approaches are found to differentially change the negative link between relationship conflict and relational behavior. Rigid contract enforcement can worsen the adverse effects of relationship conflict on relational behavior, whereas flexible contract enforcement can alleviate these negative effects. The level of mitigation hinges on whether compromising behaviors or obliging behaviors are chosen.
Originality/value
The study extends the knowledge of conflict theory and contract theory in the construction field. Based on the proposed conceptual model and PLS-SEM results, this study contributes to the understanding of relationship conflict’s consequences between the owners and contractors and enriches conflict management approaches in the construction field.
Keywords
Acknowledgements
The authors thank the National Natural Science Foundation of China (No. 72371190) and the Cities Research Institute in Australia. We gratefully acknowledge Rokeen Zhao, the director of the PT China State Construction Overseas Development Shanghai, he helped us contact many executives of construction projects. Special thanks are also given to the respondents for their generous contributions during the survey.
Citation
Gan, X., Jia, J., Le, Y., Liu, T. and Xue, Y. (2024), "Mitigating the aftermath of relationship conflict between the owners and contractors: a contract enforcement approach", Engineering, Construction and Architectural Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ECAM-02-2024-0208
Publisher
:Emerald Publishing Limited
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