Effect of Organizational Cultural Differences and Mutual Trust on Contract Management of Nonequity Construction Project Alliances

This study aims to examine the impact of organizational cultural difference and mutual trust on the contract management of nonequity project alliances in the construction industry. A questionnaire survey was conducted to collect the quantitative data for this study. The relationships between the var...

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Main Authors: Yanling Zhao, Yingbin Feng, Chenggang Li
Format: Article
Language:English
Published: Wiley 2018-01-01
Series:Advances in Civil Engineering
Online Access:http://dx.doi.org/10.1155/2018/3534209
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author Yanling Zhao
Yingbin Feng
Chenggang Li
author_facet Yanling Zhao
Yingbin Feng
Chenggang Li
author_sort Yanling Zhao
collection DOAJ
description This study aims to examine the impact of organizational cultural difference and mutual trust on the contract management of nonequity project alliances in the construction industry. A questionnaire survey was conducted to collect the quantitative data for this study. The relationships between the variables were analyzed using hierarchical regression analysis. It was found that the contractual complexity of nonequity project alliances was impacted by the differences in management style, differences in organizational responsiveness, mutual goodwill trust, and mutual competence trust. It was also found that the relationship between differences in organizational responsiveness and contractual complexity was moderated by mutual goodwill trust. The research may provide theoretical basis for the management when making decisions on the selection of project alliance partners and contracts. The findings imply that when the firms seek to form project alliances, they need to recognize the level of organizational cultural differences and then determine the proper contractual complexity of the project alliance. In addition, the establishment of mutual goodwill trust between alliance partners will not only reduce the costs of making contracts but also the costs of implementing the contracts.
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institution Kabale University
issn 1687-8086
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publishDate 2018-01-01
publisher Wiley
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spelling doaj-art-d47ad9ff9da14de4b9c97e7e2c68224a2025-02-03T05:51:18ZengWileyAdvances in Civil Engineering1687-80861687-80942018-01-01201810.1155/2018/35342093534209Effect of Organizational Cultural Differences and Mutual Trust on Contract Management of Nonequity Construction Project AlliancesYanling Zhao0Yingbin Feng1Chenggang Li2School of Construction Management and Real Estate, Chongqing University, Chongqing 400045, ChinaSchool of Computing, Engineering and Mathematics, Western Sydney University, Penrith, NSW 2751, AustraliaChongqing Public Resources Trading Center, Chongqing 40014, ChinaThis study aims to examine the impact of organizational cultural difference and mutual trust on the contract management of nonequity project alliances in the construction industry. A questionnaire survey was conducted to collect the quantitative data for this study. The relationships between the variables were analyzed using hierarchical regression analysis. It was found that the contractual complexity of nonequity project alliances was impacted by the differences in management style, differences in organizational responsiveness, mutual goodwill trust, and mutual competence trust. It was also found that the relationship between differences in organizational responsiveness and contractual complexity was moderated by mutual goodwill trust. The research may provide theoretical basis for the management when making decisions on the selection of project alliance partners and contracts. The findings imply that when the firms seek to form project alliances, they need to recognize the level of organizational cultural differences and then determine the proper contractual complexity of the project alliance. In addition, the establishment of mutual goodwill trust between alliance partners will not only reduce the costs of making contracts but also the costs of implementing the contracts.http://dx.doi.org/10.1155/2018/3534209
spellingShingle Yanling Zhao
Yingbin Feng
Chenggang Li
Effect of Organizational Cultural Differences and Mutual Trust on Contract Management of Nonequity Construction Project Alliances
Advances in Civil Engineering
title Effect of Organizational Cultural Differences and Mutual Trust on Contract Management of Nonequity Construction Project Alliances
title_full Effect of Organizational Cultural Differences and Mutual Trust on Contract Management of Nonequity Construction Project Alliances
title_fullStr Effect of Organizational Cultural Differences and Mutual Trust on Contract Management of Nonequity Construction Project Alliances
title_full_unstemmed Effect of Organizational Cultural Differences and Mutual Trust on Contract Management of Nonequity Construction Project Alliances
title_short Effect of Organizational Cultural Differences and Mutual Trust on Contract Management of Nonequity Construction Project Alliances
title_sort effect of organizational cultural differences and mutual trust on contract management of nonequity construction project alliances
url http://dx.doi.org/10.1155/2018/3534209
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AT yingbinfeng effectoforganizationalculturaldifferencesandmutualtrustoncontractmanagementofnonequityconstructionprojectalliances
AT chenggangli effectoforganizationalculturaldifferencesandmutualtrustoncontractmanagementofnonequityconstructionprojectalliances