Dynamic changes of governance mechanisms in mega construction projects in China: The mediating role of opportunism

Wang, D; Fang, S and Li, K (2019) Dynamic changes of governance mechanisms in mega construction projects in China: The mediating role of opportunism. Engineering, Construction and Architectural Management, 26(4), pp. 723-735. ISSN 0969-9988

Abstract

Purpose: The purpose of this paper is to study the mechanisms governing dynamic changes in relational and contractual governance at different stages of government-funded mega construction projects (MCPs) by studying their different effects on project performance and participants' opportunism. Design/methodology/approach: Partial least squares structural equation modeling was used to test eight hypotheses based on data collected from 147 respondents in different participating organizations in Chinese MCPs. Findings: First, contractual governance has a stronger positive impact on project performance than relational governance in the early stage of MCPs, while relational governance exerts more positive effects on project performance than contractual governance in the middle and late stages. Second, opportunism is a mediator variable between governance mechanisms and project performance, and relational governance is more effective than contractual governance in restricting opportunism. Originality/value: In contrast to a static analysis of project governance mechanisms, this study examines dynamic changes in the governance mechanisms of MCPs in the Chinese context by considering the mediating role of opportunism as well as guanxi as an element of relational governance, thus filling in gaps in the literature on MCP governance and contributing to the development of MCP management theory.

Item Type: Article
Uncontrolled Keywords: management; project management; strategic management
Index terms: structural equation modelling, opportunism, China, partial least square, management theory, strategic management, construction project, methodology, governance, mediator, project management, Guanxi, project performance
Subjects: dispute resolution, business, production management, Geography, project management theory and practice, management, research methods, statistical analysis, sociology
Topics: Business Strategy, Research Practice, Geographical Context, Project Management, Governance, Urban Studies, Legal Issues, Organizational Design
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