HOME JOURNALS CONTACT

Journal of Applied Sciences

Year: 2013 | Volume: 13 | Issue: 10 | Page No.: 1817-1822
DOI: 10.3923/jas.2013.1817.1822
Dynamic Relationship between Trust and Formal Control in Chinese Construction Projects
Ling Yang

Abstract: The purpose of this research is to analyze the interaction between trust and formal control from a dynamic perspective. Based on the existing literature, the paper proposed a spiral development model of owners’ trust, formal control, contractors’ trust and reciprocation from the angle of trust reciprocity. The model tested by questionnaire survey, vis-à-vis interview, structural equation modeling and a case study in China. The empirical results suggested that the development between owners’ trust, formal control, contractors’ trust and reciprocation takes on a form of helix. The findings provide a new view and new way of thinking for construction firms to implement Customer Relationship Management (CRM).

Fulltext PDF

How to cite this article
Ling Yang , 2013. Dynamic Relationship between Trust and Formal Control in Chinese Construction Projects. Journal of Applied Sciences, 13: 1817-1822.

Keywords: construction project, dynamic, formal control, Trust, china and structural equation model

REFERENCES

  • Berg, J., J. Dickhaut and K. McCabe, 1995. Trust, reciprocity and social history. Games Econ. Behav., 10: 122-142.


  • Bubshait, A.A. and S.A. Almohawis, 1994. Evaluating the general conditions of a construction contract. Int. J. Project Manage., 12: 133-136.
    CrossRef    Direct Link    


  • Cannon, J.P., R.S. Achrol and G.T. Gundlach, 2000. Contracts, norms and plural form governance. J. Acad. Marketing Sci., 54: 42-58.
    CrossRef    Direct Link    


  • Cardinal, L.B., S.B. Sitkin and C.P. Long, 2004. Balancing and rebalancing in the creation and evolution of organizational control. Org. Sci., 15: 411-431.
    CrossRef    Direct Link    


  • Das, T.K. and B.S. Teng, 1998. Between trust and control: Developing confidence in partner cooperation in alliances. Acad. Manage. Rev., 23: 491-512.
    Direct Link    


  • Das, T.K. and B.S. Teng, 2001. Trust, control and risk in strategic alliances: An integrated framework. Org. Stud., 22: 251-283.
    CrossRef    Direct Link    


  • De Man, A.P. and N. Rojiakkers, 2009. Alliance governance: Balancing control and trust in dealing with risk. Long Range Planning, 42: 75-95.
    CrossRef    Direct Link    


  • Ding, Z.K. and F.F. Ng, 2007. Reliability and validity of the Chinese version of McAllister’s trust scale. Constr. Manage. Econ., 25: 1107-1117.
    CrossRef    Direct Link    


  • Dyer, J.H., 1997. Effective interim collaboration: How firms minimize transaction costs and maximise transaction value. Strategic Manage. J., 18: 535-556.
    CrossRef    Direct Link    


  • Dyer, J.H. and H. Singh, 1998. The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Acad. Manage. Rev., 23: 660-679.
    Direct Link    


  • Ghoshal, S. and P. Moran, 1996. Bad for practice: A critique of the transaction cost theory. Acad. Manage. Rev., 21: 13-47.
    CrossRef    Direct Link    


  • Goold, M. and J.J. Quinn, 1990. The paradox of strategic controls. Strategic Manage. J., 11: 43-57.
    CrossRef    Direct Link    


  • Gulati, R., 2007. Managing Network Resources: Alliances, Affiliations and other Relational Assets. Oxford University Press, New York, USA


  • Hartman, F., 2002. The Role of Trust in Project Management. Project Management Institute, Newtown Square, PA., USA


  • Istvan, T., T.G. Katalin and B. Zsolt, 2012. The role of trust in cooperation between farmers-The outcomes of a survey in Bekes county. Applied Stud. Agribusiness, 6: 813-840.


  • Khodyakov, D.M., 2007. The complexity of trust-control relationships in creative organizations: Insights from a qualitative analysis of a conductorless orchestra. Soc. Forces, 86: 1-22.
    CrossRef    Direct Link    


  • Kreps, D.M., 1990. Corporate Culture and Economic Theory. In: Firms Organizations and Contracts Cambridge, Buckley, P.J. and J. Michie (Eds.). Cambridge University Press, UK


  • Li, W.M. and Y.C. Liang, 2002. Special trust and general trust: The structure and characteristics of Chinese trust. Sociol. Stud., 3: 11-22.


  • Liang, Y.K. and J. Yuan, 2009. Measurement and present status of contract governance in construction projects: Based on the questionnaire in industry and case study. Constr. Econ., 12: 24-27.


  • Luo, Y., 2002. Contract, cooperation and performance in international joint ventures. Strategic Manage. J., 23: 903-919.
    CrossRef    Direct Link    


  • Mayer, K.J. and N.S. Argyres, 2004. Learning to contract: Evidence from the personal computer industry. Org. Sci., 15: 394-410.
    CrossRef    Direct Link    


  • Pinto, J.K., D.P. Slevin and B. English, 2009. Trust in projects: An empirical assessment of owner/contractor relationships. Int. J. Project Manage., 27: 638-648.
    CrossRef    Direct Link    


  • Poppo, L. and T. Zenger, 2002. Do formal contracts and relational governance function as substitutes or complements? Strategic Manage. J., 23: 707-725.
    CrossRef    Direct Link    


  • Ryall, D.M. and R.C. Sampson, 2009. Formal contracts in the presence of relational enforcement mechanisms: Evidence from technology development projects. Manage. Sci., 55: 906-925.


  • Wright, A. and I. Ehnert, 2010. Making Sense of Trust Across Cultural Contexts. In: Organizational Trust: A Cultural Perspective, Saunders, M.N.K., D. Skinner, G. Dietz, N. Gillespie and R.J. Lewicki (Eds.). Cambridge University Press, Cambridge, UK

  • © Science Alert. All Rights Reserved