Influence of initial trust on control from client perspective: construction industry in China

Abstract

Purpose The purpose of this paper is to investigate the effects of initial trust on control in the construction projects from the perspective of the client. The results are a good resource in managing the relationship between trust and control in the construction industry in China, and formulating a good working relationship with contractors. Design/methodology/approach Using a set of questionnaire, data were collected from project managers of the clients, who are responsible for the overall project management and have face-to-face interaction with the contractors. The data were analyzed by structural equation modeling to identify the effects of initial trust on control for the contractors. Findings Trust is examined in the construction industry in China through calculative and relational trust. Their effects are examined on three modes of inter-organizational control: outcome control, behavior control and social control. The results show that the calculative trust has strong effects on outcome-based and behavior control, while the relational trust, on social control. Research limitations/implications First, the conclusion of this research is based on the construction industry in China. It may not be suitable for other industries or other countries. Second, there may be other factors that influence the relationship between trust and control, such as the characteristics of the client and organizational culture, which are not taken into consideration in this research. Practical implications The effects of initial trust on control have been testified in the study. For the client, it is wise to take suitable control measures to face with the contractors with the consideration of initial trust. The contractors would apply the rule in the relationship between initial trust and control, and set up good relationship with the client. Originality/value This research has certain originality and value in theory and practice. First, this research analyzes the relationship between trust and control in a dynamical way, which has innovative significance to some extent. Second, research on inter-organization supplies a new perspective about project control. Finally, this research would offer a perspective to improve the present situation of the construction industry in China. If the clients use the trust and control measures appropriately, the harmonious relation can be achieved and projects performance can be improved.