Luo, M; Hwang, B G; Zhao, X and Deng, X (2025) Investigating the mechanism of international contractors' fraud from a moral perspective: Evidence from Chinese international contractors. Engineering, Construction and Architectural Management, 32(4), pp. 2105-2127. ISSN 0969-9988
Abstract
Purpose: This study aims to clarify the psychological mechanism of international contractors' fraud by linking performance pressure to fraudulent intention through the displacement of responsibility and addressing the moderating role of moral intensity. Design/methodology/approach: Based on moral disengagement theory, performance pressure was hypothesized to be positively associated with fraudulent intention by mediating the displacement of responsibility. Drawing on the issue-contingent theory, moral intensity was hypothesized to inhibit the relationship between performance pressure and displacement of responsibility in three aspects: magnitude of consequences (MC), probability of effect (PE) and social consensus (SC). The scenario-based questionnaire was conducted to collect information from contractors spread across 50 countries. The partial least squares structural equation modeling was employed to assess the proposed model. Findings: The results demonstrated that performance pressure was positively associated with the fraudulent intention, and displacement of responsibility exerted a positive partial mediating impact between performance pressure and fraudulent intention. Regarding moral intensity in the moderating analysis, the negative moderating role of MC and PE was significant, while that of SC was insignificant. Practical implications: This study provides international construction practitioners with a deep understanding of the formation mechanism of fraud at the psychological level. Originality/value: It clarifies the psychological mechanism from performance pressure to fraudulent intention by integrating a mediation impact from the displacement of responsibility and a moderation effect from MC and PE. It contributes to the sparse research on how situational factors shape individuals' fraudulent intentions in the international context. It provides a fresh perspective on fraud by constructing a formation model from moral psychological theories.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | displacement of responsibility; fraudulent intention; international constructor; magnitude of consequences; moral intensity; performance pressure; probability of effect; social consensus |
| Index terms: | practitioner, evidence, questionnaire, methodology, partial least square, mediation, fraud, drawing, structural equation modelling, international construction |
| Subjects: | statistical analysis, technical documentation, data collection methods, dispute resolution, professional ethics, research methods, evaluation and assessment methods, strategic management, practitioner |
| Topics: | Legal Issues, International Construction, Design Practice, Research Practice, Roles and Professions |
| Descriptive scope: | 4 PCTA |
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