Skip to main content

2021 | OriginalPaper | Buchkapitel

Will Construction Contract Compensation Induce Incentive Failure?—A Moderation Model Based on Reference Point Effect of Contract

verfasst von : Jiandong Tang, Jie Li, Ling Yan

Erschienen in: Proceedings of the 24th International Symposium on Advancement of Construction Management and Real Estate

Verlag: Springer Singapore

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config
loading …

Abstract

Contract compensation is an important means of post-incentive. However, “incentive failure” phenomenon often occurs and reduces the performance efficiency of the contract. Based on the contract reference point theory, the contractor’s choice of performance behaviors will take the key clause in the initial contract as a reference point. However, the existing studies ignore the impact of contract compensation on initial contract reference point effect. A mediated moderation model of contract reference point effect is constructed. Using questionnaire survey to tests the model. The results show that: (1) without considering the compensation after the contract, the risk liability clause in the initial contract positively promotes the contractor’s performance behaviors through the intermediary of fairness perception; (2) considering the contract compensation, the contract compensation will take the fairness perception as the intermediary to negatively adjust the relationship between the contract risk liability clauses and the contractor’s performance behaviors, leading to the incentive failure of the construction contract compensation. The research shows that the reference point effect should be solidified in the design of construction contract. At the same time, the execution of construction project contract should ensure that the contract compensation is consistent with the expectation. The research provides a theoretical reference for reducing transaction cost and improving the efficiency of contract ex-post performance.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 390 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Maschinenbau + Werkstoffe




 

Jetzt Wissensvorsprung sichern!

Literatur
1.
Zurück zum Zitat Luo, Y. (2006). Opportunism in inter-firm exchanges in emerging markets. Management & Organization Review, 2, 121–147.CrossRef Luo, Y. (2006). Opportunism in inter-firm exchanges in emerging markets. Management & Organization Review, 2, 121–147.CrossRef
2.
Zurück zum Zitat Baeza, M. D. L. Á., & Vassallo, J. M. (2010). Private concession contracts for toll roads in Spain: Analysis and recommendations. Public Money & Management, 30, 299–304.CrossRef Baeza, M. D. L. Á., & Vassallo, J. M. (2010). Private concession contracts for toll roads in Spain: Analysis and recommendations. Public Money & Management, 30, 299–304.CrossRef
3.
Zurück zum Zitat Mills, A. (2001). A systematic approach to risk management for construction. Structural Survey, 19, 245–252.CrossRef Mills, A. (2001). A systematic approach to risk management for construction. Structural Survey, 19, 245–252.CrossRef
4.
Zurück zum Zitat Susarla, A. (2012). Contractual flexibility, rent seeking, and renegotiation design: An empirical analysis of information technology outsourcing contracts. Management Science, 58, 1388–1407.CrossRef Susarla, A. (2012). Contractual flexibility, rent seeking, and renegotiation design: An empirical analysis of information technology outsourcing contracts. Management Science, 58, 1388–1407.CrossRef
5.
Zurück zum Zitat Tadelis, S. (2012). Public procurement design: Lessons from the private sector. International Journal of Industrial Organization, 30, 297–302. Tadelis, S. (2012). Public procurement design: Lessons from the private sector. International Journal of Industrial Organization, 30, 297–302.
6.
Zurück zum Zitat Shan, L., Garvin, M. J., & Kumar, R. (2010). Collar options to manage revenue risks in real toll public-private partnership transportation project. Construction Management & Economics, 28, 1057–1069.CrossRef Shan, L., Garvin, M. J., & Kumar, R. (2010). Collar options to manage revenue risks in real toll public-private partnership transportation project. Construction Management & Economics, 28, 1057–1069.CrossRef
7.
Zurück zum Zitat Hart, O., & Moore, J. (2008). Contracts as reference points. Quarterly Journal of Economics, 123, 1–48.CrossRef Hart, O., & Moore, J. (2008). Contracts as reference points. Quarterly Journal of Economics, 123, 1–48.CrossRef
9.
Zurück zum Zitat Schepker, D. J., Oh, W. Y., Martynov, A., & Poppo, L. (2014). The many futures of contracts: Moving beyond structure and safeguarding to coordination and adaptation. Journal of Management, 40, 193–225. Schepker, D. J., Oh, W. Y., Martynov, A., & Poppo, L. (2014). The many futures of contracts: Moving beyond structure and safeguarding to coordination and adaptation. Journal of Management, 40, 193–225.
10.
Zurück zum Zitat Lessard, D., Sakhrani, V., & Miller, R. (2014). House of project complexity-understanding complexity in large infrastructure projects. Engineering Project Organization Journal, 4, 170–192.CrossRef Lessard, D., Sakhrani, V., & Miller, R. (2014). House of project complexity-understanding complexity in large infrastructure projects. Engineering Project Organization Journal, 4, 170–192.CrossRef
11.
Zurück zum Zitat Du, Y. (2016). Development and verification of contractor’s fairness perception scale in Chinese context. Journal of Systems Management, 25, 165–174. Du, Y. (2016). Development and verification of contractor’s fairness perception scale in Chinese context. Journal of Systems Management, 25, 165–174.
12.
Zurück zum Zitat Yan, L., Zhudong, Z., Min, Y., et al. (2017). Research on fairness concerns of contractor in construction projects based on contractual reference point effect——The case study of metro projects. Chinese Journal of Management, 14, 1561–1569. Yan, L., Zhudong, Z., Min, Y., et al. (2017). Research on fairness concerns of contractor in construction projects based on contractual reference point effect——The case study of metro projects. Chinese Journal of Management, 14, 1561–1569.
13.
Zurück zum Zitat Falk, A., Fehr, E., & Zehnder, C. (2006). Fairness perceptions and reservation wages—The behavioral effects of minimum wage laws. Quarterly Journal of Economics, 121, 1347–1381. Falk, A., Fehr, E., & Zehnder, C. (2006). Fairness perceptions and reservation wages—The behavioral effects of minimum wage laws. Quarterly Journal of Economics, 121, 1347–1381.
14.
Zurück zum Zitat Xueqing, W., Shusheng, X., & Zhichao, X. (2017). The influence of the employer’s risk sharing on the contractor’s behavior in the project organization—The parallel intermediary function of the contractor’s trust and the sense of being trusted. Management Review, 29, 131–142. Xueqing, W., Shusheng, X., & Zhichao, X. (2017). The influence of the employer’s risk sharing on the contractor’s behavior in the project organization—The parallel intermediary function of the contractor’s trust and the sense of being trusted. Management Review, 29, 131–142.
15.
Zurück zum Zitat Nasirzadeh, F., Khanzadi, M., & Rezaie, M. (2014). Dynamic modeling of the quantitative risk allocation in construction projects. International Journal of Project Management, 32, 442–451.CrossRef Nasirzadeh, F., Khanzadi, M., & Rezaie, M. (2014). Dynamic modeling of the quantitative risk allocation in construction projects. International Journal of Project Management, 32, 442–451.CrossRef
16.
Zurück zum Zitat Zhang, S., Zhang, S., & Gao, Y. (2016). Contractual governance: Effects of risk allocation on contractors’ cooperative behavior in construction projects. Journal of Construction Engineering & Management, 142, 401–6005. Zhang, S., Zhang, S., & Gao, Y. (2016). Contractual governance: Effects of risk allocation on contractors’ cooperative behavior in construction projects. Journal of Construction Engineering & Management, 142, 401–6005.
17.
Zurück zum Zitat Ling, F. Y., Ong, S. Y., & Ke, Y. (2014). Drivers and barriers to adopting relational contracting practices in public projects: Comparative study of Beijing and Sydney. International Journal of Project Management, 32, 275–285.CrossRef Ling, F. Y., Ong, S. Y., & Ke, Y. (2014). Drivers and barriers to adopting relational contracting practices in public projects: Comparative study of Beijing and Sydney. International Journal of Project Management, 32, 275–285.CrossRef
18.
Zurück zum Zitat Bartling, B., & Schmidt, K. M. (2015). Reference points, social norms, and fairness in contract renegotiations. Journal of the European Economics Association, 13, 98–129.CrossRef Bartling, B., & Schmidt, K. M. (2015). Reference points, social norms, and fairness in contract renegotiations. Journal of the European Economics Association, 13, 98–129.CrossRef
19.
Zurück zum Zitat Yaling, D., Huiling, L., & Hong, K. (2014). Study on the influence of owner’s initial trust on cooperation in engineering projects: Mediating effect of contractor’s perception of fairness. Journal of Management, 10, 1542–1551. Yaling, D., Huiling, L., & Hong, K. (2014). Study on the influence of owner’s initial trust on cooperation in engineering projects: Mediating effect of contractor’s perception of fairness. Journal of Management, 10, 1542–1551.
20.
Zurück zum Zitat Lv, Wenxue, Li, Zhi, & Wang, Siqi. (2017). The role of justice for cooperation and contract’s moderating effect in construction dispute. Negotiation, Engineering, Construction and Architectural Management, 24, 133–153.CrossRef Lv, Wenxue, Li, Zhi, & Wang, Siqi. (2017). The role of justice for cooperation and contract’s moderating effect in construction dispute. Negotiation, Engineering, Construction and Architectural Management, 24, 133–153.CrossRef
21.
Zurück zum Zitat Wenjing, L., David, M., & Adam, W. (2018). The impact of dynamic bundling on price fairness perceptions. Journal of Retailing and Consumer Services, 40, 204–212.CrossRef Wenjing, L., David, M., & Adam, W. (2018). The impact of dynamic bundling on price fairness perceptions. Journal of Retailing and Consumer Services, 40, 204–212.CrossRef
22.
Zurück zum Zitat Heide, J. B., & Miner, A. S. (1992). The shadow of the future: Effects of anticipated interaction and frequency of contact on buyer-seller cooperation. Academy of Management Journal, 35, 265–291. Heide, J. B., & Miner, A. S. (1992). The shadow of the future: Effects of anticipated interaction and frequency of contact on buyer-seller cooperation. Academy of Management Journal, 35, 265–291.
23.
Zurück zum Zitat Lim, B. T. H., & Loosemore, M. (2017). The effect of inter-organizational justice perceptions on organizational citizenship behaviors in construction projects. International Journal of Project Management, 35, 95–106.CrossRef Lim, B. T. H., & Loosemore, M. (2017). The effect of inter-organizational justice perceptions on organizational citizenship behaviors in construction projects. International Journal of Project Management, 35, 95–106.CrossRef
24.
Zurück zum Zitat Mathias, E., Christian, R., Liang, G., et al. (2016). Contracts as reference points—The role of reciprocity effects and signaling effects. Journal of Economic Behavior & Organization, 127, 133–145. Mathias, E., Christian, R., Liang, G., et al. (2016). Contracts as reference points—The role of reciprocity effects and signaling effects. Journal of Economic Behavior & Organization, 127, 133–145.
25.
Zurück zum Zitat Domen, M., Damijan, M., & Aleksandra, P. (2016). Exploring price fairness perceptions and their influence on consumer behavior. Journal of Business Research, 69, 3693–3697.CrossRef Domen, M., Damijan, M., & Aleksandra, P. (2016). Exploring price fairness perceptions and their influence on consumer behavior. Journal of Business Research, 69, 3693–3697.CrossRef
26.
Zurück zum Zitat Yan, L., Jing, J., Liang, G., et al. (2018). An empirical study on the impact of fairness perception on contractor performance in contract compensation. Journal of Management, 15, 660–668. Yan, L., Jing, J., Liang, G., et al. (2018). An empirical study on the impact of fairness perception on contractor performance in contract compensation. Journal of Management, 15, 660–668.
27.
Zurück zum Zitat Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51, 1173–1182.CrossRef Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51, 1173–1182.CrossRef
28.
Zurück zum Zitat Muller, D., Judd, C. M., & Yzerbyt, V. Y. (2005). When moderation is mediated and mediation is moderated. Journal of Personality and Social Psychology, 89, 852–863.CrossRef Muller, D., Judd, C. M., & Yzerbyt, V. Y. (2005). When moderation is mediated and mediation is moderated. Journal of Personality and Social Psychology, 89, 852–863.CrossRef
29.
Zurück zum Zitat Lui, S. S., & Ngo, H. (2004). The role of trust and contractual safeguards on cooperation in non-equity alliances. Journal of Management, 30, 471–485.CrossRef Lui, S. S., & Ngo, H. (2004). The role of trust and contractual safeguards on cooperation in non-equity alliances. Journal of Management, 30, 471–485.CrossRef
30.
Zurück zum Zitat Nadiri, H., & Tanova, C. (2010). An investigation of the role of justice in turnover intentions, job satisfaction, and organizational citizenship behavior in hospitality industry. International Journal of Hospitality Management, 29, 33–41.CrossRef Nadiri, H., & Tanova, C. (2010). An investigation of the role of justice in turnover intentions, job satisfaction, and organizational citizenship behavior in hospitality industry. International Journal of Hospitality Management, 29, 33–41.CrossRef
Metadaten
Titel
Will Construction Contract Compensation Induce Incentive Failure?—A Moderation Model Based on Reference Point Effect of Contract
verfasst von
Jiandong Tang
Jie Li
Ling Yan
Copyright-Jahr
2021
Verlag
Springer Singapore
DOI
https://doi.org/10.1007/978-981-15-8892-1_56

Premium Partner