Trust or fairness is more important:research on the mechanism of contract risk allocation inducing contractor to consummate performance behavior

Contractor’s consummate performance behavior (CPB) is the key to achieve consummate performance. However, the mechanism of reasonable contract risk allocation incentives for Contractor’s CPB is unknown. The objective of this study is to reveal the effective ways to encourage contractor’s CPB by cont...

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Bibliographic Details
Main Authors: Qing Lin, Ling Yan, Yilin Yin
Format: Article
Language:English
Published: Taylor & Francis Group 2023-09-01
Series:Journal of Asian Architecture and Building Engineering
Subjects:
Online Access:http://dx.doi.org/10.1080/13467581.2023.2172323
Description
Summary:Contractor’s consummate performance behavior (CPB) is the key to achieve consummate performance. However, the mechanism of reasonable contract risk allocation incentives for Contractor’s CPB is unknown. The objective of this study is to reveal the effective ways to encourage contractor’s CPB by contract risk allocation based on the contract reference point theory and selecting the contractor’s trust perception and fair perception as mediating variables. Through an empirical analysis of the valid questionnaires collected, the results are as follows: (1) Although the economic benefits generated by reasonable contract risk allocation can induce contractor’s fair perception, fair perception has no mediating effect in the relationship between contract risk allocation and contractor’s CPB; (2) The cooperative value generated by reasonable contract risk allocation can induce contractor’s trust perception, and trust perception plays a part mediating role between contract risk allocation and contractor’s CPB. The findings also provide insights into how risk allocation facilitates contractor’s CPB in the construction industry.
ISSN:1347-2852