Lin, Y H; Niu, D; Guo, Y and Zeng, N (2024) The effects of project uncertainty on guanxi governance and contractual governance. Engineering, Construction and Architectural Management, 31(12), pp. 4726-4753. ISSN 0969-9988
Abstract
Purpose: This study examines how project uncertainties (environmental uncertainty and participant uncertainty) affect guanxi and contractual governance and assesses the mediating role of guanxi governance between project uncertainty and contractual governance. Design/methodology/approach: Data were collected in two stages from Chinese contractors. First, in-depth interviews were conducted with nine construction engineering project practitioners in different contracts as a pilot for questionnaire designing. Second, a cross-sectional questionnaire survey was conducted with professionals and practitioners of construction enterprises to collect primary data. Partial least squares structural equation modeling (PLS-SEM) was used to test seven hypotheses based on data collected from 198 respondents. Findings: Project environmental uncertainty promotes the use of guanxi governance, while project participant uncertainty hinders it; the relationship between both types of uncertainty and contractual governance is the same as with guanxi governance. Furthermore, guanxi governance promotes contractual governance and partially mediates project environmental uncertainty and contractual governance and a complete mediating role between project participant uncertainty and contractual governance. Research limitations/implications: As the interviewed samples are mainly from China, the study should be replicated using large representative samples from East Asian countries, such as Japan and South Korea, to gain a more comprehensive understanding of the influence of guanxi governance. Further, while the internal consistency reliability and convergent validity of the questionnaire data in this study align with the standards, a larger sample size would improve the reliability and validity of the research results and better represent the overall work situation of contractors, owners and public policymakers. Originality/value: The results provide insights into project governance research and have implications for construction practitioners in deploying governance-related resources.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | contractual governance; environmental uncertainty; Guanxi governance; mediating effect; participant uncertainty; questionnaire survey |
| Index terms: | construction engineering, environmental uncertainty, Guanxi, governance, sample size, owner, South Korea, validity, methodology, questionnaire, practitioner, partial least square, China, interview, project uncertainty, structural equation modelling, construction practitioner, Japan, survey |
| Subjects: | research methods, Geography, financial risk, evaluation and assessment methods, practitioner, engineering methods, professional development, project management theory and practice, sociology, statistical analysis, data collection methods, business, research design and methodology |
| Topics: | Geographical Context, Project Management, Engineering Principles, Governance, Roles and Professions, Stakeholder Management, Research Practice, Information Management, Cost Management, Urban Studies |
| Descriptive scope: | 5 PCTEA |
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