Effect of justice on contractor's relational behavior: Moderating role of owner's asset specificity

Lu, W; Guo, W and Zhu, Q (2020) Effect of justice on contractor's relational behavior: Moderating role of owner's asset specificity. Journal of Construction Engineering and Management, 146(4): 04020020, ISSN 0733-9364

Abstract

It is critical to the successful implementation of construction projects that the behavior of both the owner and the contractor meet common expectations. In the transaction, the economic results and the impact of justice on relational behavior should not be ignored. Our study on the perspective of contractors explores whether and how different dimensions of interorganizational justice affect relational behavior in construction projects and the moderating role of owner's asset specificity. On the basis of survey data from the construction industry, the empirical results reveal that if contractors perceive higher procedural justice or interactional justice, the contractor's relational behavior conforms to relational norms more. Furthermore, the owner's asset specificity dilutes the positive impact of interactional justice on the contractor's relational behavior. The findings contribute to strengthening the understanding of project management and interorganizational justice while guiding owners to pay more attention to the process of contract execution in practice and the appropriate investment of specific assets in projects to improve the contractor's relational behavior.

Item Type: Article
Uncontrolled Keywords: asset specificity; contractor; interorganizational justice; relational behavior
Index terms: project management, dimension, construction industry, implementation, asset specificity, owner, interorganizational, norms, strengthening, construction project, survey, justice
Subjects: sociology, industry analysis, structural engineering, project management theory and practice, economic concepts, production management, health monitoring assessment and metrics, contractual arrangements, legal systems, business, data collection methods
Topics: Legal Issues, Procurement, Stakeholder Management, Engineering Principles, Research Practice, Project Management, Health and Safety, Business Strategy
Descriptive scope: 4 PCTE

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here