How does the embeddedness of relational behaviours in contractual relations influence inter-organisational trust in construction projects?

Abstract

PurposeThis paper aims to explore the relationship between the embeddedness of relational behaviours in contractual relations and the development of inter-organisational trust between contracting parties in construction projects.Design/methodology/approachA questionnaire survey was undertaken to collect data from 310 experienced project practitioners. Hierarchical regression and curvilinear regression were mainly used to test the hypotheses.FindingsThe results validated the role of relational behaviours in boosting trust expectation, with the contractual context dampening the positive effect only slightly. However, the impact of the embedded relational behaviours on trust intention was found contingent on the equality of outcome: relational behaviours make an impact on trust intention opposite to what the equality of outcome makes; the combination of relational behaviours and the equality of outcome finally has a positive impact on trust intention. As such, the relational behaviours embedded in contractual relations would help reduce particular distrust or improve trust when the outcome is perceived equal.Research limitations/implicationsThe conclusions are derived from the Chinese cultural background and may apply to a certain geographical scope. The nonprobability sampling method also limits the generalization of some conclusions. Besides, the results may present the contractor's view better than the owner's view.Practical implicationsThis research would help the practitioners to find a balance between relational behaviours and contractual behaviours in managing inter-organisational relationship. It would also supply effective ways for contracting parties to reduce particular distrust or cultivate particular trust in construction projects.Originality/valuePrevious studies have investigated the unique impact of relational behaviours and contractual behaviours on trust. However, few of them have checked how the mixture of both kinds of behaviours influences trust. This paper contributes to this knowledge by investigating how the embeddedness of relational behaviours in contractual relations influences the trust between contracting parties.