Psychological contract between contractors and owners in construction projects: The mediating role of inter-organisational teamwork

Cho, W M and Hadikusumo, B H W (2024) Psychological contract between contractors and owners in construction projects: The mediating role of inter-organisational teamwork. Engineering, Construction and Architectural Management, 31(10), pp. 4001-4015. ISSN 0969-9988

Abstract

Purpose: The objectives of this paper are to examine the impact of psychological contract on project performance in private construction projects and to investigate if the positive effect of psychological contract on project performance can be mediated by inter-organisational teamwork. Design/methodology/approach: Multiple regression analysis and mediation analysis were applied in this study to conduct the proposed hypotheses. Data were collected via questionnaire surveys from the construction professionals working for contractor firms on private construction projects. Findings: The result of the multiple regression analysis indicated that psychological contract between contractors and owners is significantly related with project performance in construction projects. This study examined five psychological contract components, but the most important element was found as trust which can influence every aspect of project performance. Fairness is another key factor that can improve project performance in terms of budget and quality. Further, the findings of the mediation analysis revealed that inter-organisational teamwork has a mediating effect on the relationship between psychological contract and project performance. Originality/value: This paper presents the important role of psychological contract between contractor and owner organizations in construction projects that can affect project performance. The study also highlights the significance of inter-organisational teamwork as a mediator to the relationship between psychological contract and project performance.

Item Type: Article
Uncontrolled Keywords: construction projects; inter-organisational teamwork; project performance; psychological contract; relational contract
Index terms: mediator, contractor firm, teamwork, owner, fairness, psychological contract, construction professional, project performance, mediation, survey, construction project, methodology, questionnaire, multiple regression analysis
Subjects: data collection methods, organization, dispute resolution, psychology, management, research methods, production management, project management theory and practice, professional development, sociology, leadership, statistical analysis
Topics: Stakeholder Management, Information Management, Research Practice, Project Management, Organizational Design, Legal Issues
Descriptive scope: 5 PCTEA

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