Analyzing the factors influencing trust in a construction project: evidence from a Sino-German eco-park in China
Abstract
Trust is regarded as a critical feature and a central mechanism in business transactions, especially in the Chinese guanxi network. In this context, the major objective of this research is to explore the key factors influencing trust in different stages of a construction project from the perspectives of owners and consultants involved in a Sino-German eco-park in China. The analytic network process (ANP) was employed to assess which factors are most closely related to trust and to establish four models to meet the objective of this study. According to the ANP results, trust is strongly influenced by factors that are associated with the mutual interests between owners and consultants. In addition, there are certain differences in the priority of the factors influencing initial trust between owners and consultants, but these gaps gradually decrease over time. The weight of guanxi also decreases over time, and the owners’ and consultants’ guanxi transforms from out-group to in-group focused.
Keyword : trust, influence factors, guanxi, Sino-German eco-park, construction project, China, analytic network process (ANP)
How to Cite
Wang, D., Li, K., & Fang, S. (2018). Analyzing the factors influencing trust in a construction project: evidence from a Sino-German eco-park in China. Journal of Civil Engineering and Management, 24(4), 331-343. https://doi.org/10.3846/jcem.2018.3069
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Gulati, R. 1995. Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances, Academy of Management Journal 38(1): 85–112.
Hallikas, J.; Virolainen, V. M.; Tuominen, M. 2002. Risk analysis and assessment in network environments: A dyadic case study, International Journal of Production Economics 78(1): 45–55. https://doi.org/10.1016/S0925-5273(01)00098-6
Hammond, S. C.; Glenn, L. M. 2004. The ancient practice of Chinese social networking: Guanxi and social network theory, Emergence Complexity and Organization 6(1): 24–31.
Harris, S.; Dibben, M. 1999. Trust and co-operation in business relationship development: Exploring the influence of national values, Journal of Marketing Management 15(6): 463–483. http://dx.doi.org/10.1362/026725799785045851
Hwang, K. K. 1987. Face and favor: The Chinese power game, American Journal of Sociology 92(4): 944–974. https://doi.org/10.1086/228588
Jin, X. H.; Ling, F. Y. Y. 2005. Model for fostering trust and building relationships in China’s construction industry, Journal of Construction Engineering and Management 131(11): 1224–1232. https://doi.org/10.1061/(ASCE)0733–9364(2005)131:11(1224)
Joskow, P. L. 1987. Contract duration and relationship-specific investments: empirical evidence from coal markets, American Economic Review 77(1): 168–185.
Kadefors, A. 2004. Trust in project relationships – inside the black box, International Journal of Project Management 22(3): 175–182. https://doi.org/10.1016/S0263-7863(03)00031-0
Kwon, I. G.; Suh, T. 2004. Factors affecting the level of trust and commitment in supply chain relationships, Journal of Supply Chain Management 40(2): 4–14. https://doi.org/10.1111/j.1745-493X.2004.tb00165.x
Kwon, I. G.; Suh, T. 2005. Trust, commitment and relationships in supply chain management: a path analysis, Supply Chain Management 10(1): 26–33. https://doi.org/10.1108/13598540510578351
Laan, A. T.; Voordijk, J. T.; Noorderhaven, N. G.; Dewulf, G. P. M. R. 2012. Levels of interorganizational trust in construction projects: Empirical evidence, Journal of Construction Engineering and Management 138(7): 821–831. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000495
Lee, J.; Park, J. G.; Lee, S. 2015. Raising team social capital with knowledge and communication in information systems development projects, International Journal of Project Management 33(4): 797–807. https://doi.org/10.1016/j.ijproman.2014.12.001
Leung, T. K. P.; Chan, Y. K.; Lai, K. H.; Ngai, E. W. T. 2011. An examination of the influence of guanxi and xinyong (utilization of personal trust) on negotiation outcome in China: An old friend approach, Industrial Marketing Management 40(7): 1193–1205. https://doi.org/10.1016/j.indmarman.2010.12.020
Lovett, S.; Simmons, L. C.; Kali, R. 1999. Guanxi versus the market: ethics and efficiency, Journal of International Business Studies 30(2): 231–247. https://doi.org/10.1057/palgrave.jibs.8490068
Lumineau, F.; Henderson, J. E. 2012. The influence of relational experience and contractual governance on the negotiation strategy in buyer-supplier disputes, Journal of Operations Management 30(5): 382–395. https://doi.org/10.1016/j.jom.2012.03.005
Luo, Y. 1997. Guanxi: Principles, philosophies, and implications, Human Systems Management 16(1): 43–51.
Lusch, R. F.; Brown, J. R. 1996. Interdependency, contracting, and relational behavior in marketing channels, Journal of Marketing 60(4): 19–38. https://doi.org/10.2307/1251899
Maurer, I. 2010. How to build trust in inter-organizational projects: The impact of project staffing and project rewards on the formation of trust, knowledge acquisition and product innovation, International Journal of Project Management 28(7): 629–637. https://doi.org/10.1016/j.ijproman.2009.11.006
Mayer, K. J.; Argyres, N. S. 2004. Learning to contract: Evidence from the personal computer industry, Organization Science 15(4): 394–410. https://doi.org/10.1287/orsc.1040.0074
Mayer, R. C.; Davis, J. H.; Schoorman, F. D. 1995. An integrative model of organizational trust: Past, present, and future, Academy of Management Review 20(3): 709–734. https://doi.org/10.5465/amr.1995.9508080335
Mesquita, L. F.; Brush, T. H. 2008. Untangling safeguard and production coordination effects in long-term buyer-supplier relationships, Academy of Management Journal 51(4): 785–807. https://doi.org/10.5465/AMJ.2008.33665612
Park, J. G.; Lee, J. 2014. Knowledge sharing in information systems development projects: Explicating the role of dependence and trust, International Journal of Project Management 32(1): 153–165. https://doi.org/10.1016/j.ijproman.2013.02.004
Patnayakuni, R.; Rai, A.; Tiwana, A. 2007. Systems development process improvement: A knowledge integration perspective, IEEE Transactions on Engineering Management 54(2): 286–300. https://doi.org/10.1109/TEM.2007.893997
Peng, M. W.; Luo, Y. 2000. Managerial ties and firm performance in a transition economy: The nature of a micro-macro link, Academy of Management Journal 43(3): 486–501.
Poppo, L.; Zhou, K. Z.; Rhu, S. 2008. Alternative origins to interorganizational trust: An interdependence perspective on the shadow of the past and the shadow of the future, Organization Science 19(1): 39–55. https://doi.org/10.1287/orsc.1070.0281
Rezvani, A.; Chang, A.; Wiewiora, A.; Ashkanasy, N. M.; Jordan, P. J.; Zolin, R. 2016. Manager emotional intelligence and project success: The mediating role of job satisfaction and trust, International Journal of Project Management 34(7): 1112–1122. https://doi.org/10.1016/j.ijproman.2016.05.012
Saaty, T. L. 2004. Fundamentals of the analytic network process – multiple networks with benefits, costs, opportunities and risks, Journal of Systems Science and Systems Engineering 13(3): 348–379. https://doi.org/10.1007/s11518-006-0171-1–1
Saaty, T. L.; Sagir, M. 2009. Extending the measurement of tangibles to intangibles, International Journal of Information Technology and Decision Making 8(1): 7–27. https://doi.org/10.1142/S0219622009003247
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