Antecedents of construction project coalitions: A study of the Spanish construction industry

Research into the formation of alliances, relevant in the field of strategic management and especially, in the construction industry, is often explained in terms of interdependency and complementarities (exogenous factors). In contrast, the influence of a firm's social relations networks (endogenous factors) has hardly been studied at all. Thus, a model is needed that includes both exogenous and endogenous factors as antecedents to the formation of strategic alliances in the construction industry. Cooperation in the construction sector is especially frequent, above all in public works programmes, as their scale requires coalitions of different-sized firms. Accordingly, to explore how both exogenous and endogenous factors influence the formation of alliances, a social network analytical method-Multiple Regression Quadratic Assignment Procedure (MRQAP)-was applied to cooperative project coalitions in the Spanish public works construction sector from 2001-2007. Empirical findings confirm that construction companies form coalitions, principally on the basis of past alliances. Membership of business associations and groups is also a key factor, though the influence of geographic proximity is the most debatable result. In the construction industry, the formation of alliances is conditioned, among other factors, by previous social and economic relations that can generate the necessary information and trust for the selection of whichever partner is considered the most suitable for the development of the joint project.