The Influence of Institutional Regulation on Megaproject Social Responsibility: The Moderating Effect of Political Connection

Institutional regulation is a crucial factor to improve megaproject social responsibility (MSR) and promote the sustainability of these megaprojects. However, the current stream of literature has rarely explored the impact of institutional regulation on MSR. This study examines how various factors of institutional regulation in megaprojects affect MSR behavior based on institutional theory. Using 217 survey data from China, the relationship between institutional regulation and MSR behavior was analyzed. The empirical results reveal that four types of government regulatory factors, namely institutional completeness, regulatory normality, institutional constraints, and policy incentives, significantly positive influence MSR behaviors, with institutional constraint having the most significant influence. It also finds that political connection positively moderates the influence of institutional regulation factors on MSR. Following new perspectives of MSR governance, these findings provide practical suggestions for both policymakers and managers on the implementation and governance of megaprojects.