Share:


Analyzing the factors influencing trust in a construction project: evidence from a Sino-German eco-park in China

    Dedong Wang Affiliation
    ; Kaili Li Affiliation
    ; Shaoze Fang Affiliation

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
Published in Issue
Jul 11, 2018
Abstract Views
23
PDF Downloads
26
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Akrout, H.; Diallo, M. F. 2017. Fundamental transformations of trust and its drivers: A multi-stage approach to business-to-business relationships, Industrial Marketing Management 66: 159–171. https://doi.org/10.1016/j.indmarman.2017.08.003

Alexopoulos, A. N.; Buckley, F. 2013. What trust matters when: The temporal value of professional and personal trust for effective knowledge transfer, Group and Organization Management 38(3): 361–391. https://doi.org/10.1177/1059601113488939

Aragonés-Beltrán, P.; Chaparro-González, F.; Pastor-Ferrando, J. P.; Pla-Rubio, A. 2014. An AHP (Analytic Hierarchy Process)/ANP (Analytic Network Process)-based multi-criteria decision approach for the selection of solar-thermal power plant investment projects, Energy 66(2): 222–238. http://dx.doi.org/10.1016/j.energy.2013.12.016

Aragonés-Beltrán, P.; García-Melón, M.; Montesinos-Valera, J. 2017. How to assess stakeholders’ influence in project management? A proposal based on the Analytic Network Process, International Journal of Project Management 35(3): 451–462. http://dx.doi.org/10.1016/j.ijproman.2017.01.001

Argyres, N.; Mayer, K. J. 2007. Contract design as a firm capability: An integration of learning and transaction cost perspectives, Academy of Management Review 32(4): 1060–1077. https://doi.org/10.5465/AMR.2007.26585739

Arrighetti, A.; Bachmann R.; Deakin, S. 1997. Contract law, social norms and inter-firm cooperation, Cambridge Journal of Economics 21(2): 171–195. https://doi.org/10.1093/oxfordjournals.cje.a013665

Aubert, B. A.; Kelsey, B. L. 2000. The illusion of trust and performance, Cirano Working Papers 12(3): 353–358.
Badi, S.; Wang, L.; Pryke, S. 2017. Relationship marketing in Guanxi networks: A social network analysis study of Chinese construction small and medium-sized enterprises, Industrial Marketing Management 60: 204–218. http://dx.doi.org/10.1016/j.indmarman.2016.03.014

Blau, P. M. 1965. Exchange and power in social life, American Journal of Sociology 71(3): 333–334. https://doi.org/10.1086/224096

Buvik, M. P.; Rolfsen, M. 2015. Prior ties and trust development in project teams – A case study from the construction industry, International Journal of Project Management 33(7): 1484–1494. http://dx.doi.org/10.1016/j.ijproman.2015.06.002

Campo, J. D. S. P. G.; Pardo, I. P. G.; Perlines, F. H. 2014. Influence factors of trust building in cooperation agreements, Journal of Business Research 67(5): 710–714. http://dx.doi.org/10.1016/j.jbusres.2013.11.032

Cao, Z.; Lumineau, F. 2015. Revisiting the interplay between contractual and relational governance: A qualitative and meta-analytic investigation, Journal of Operations Management 33: 15–42. http://dx.doi.org/10.1016/j.jom.2014.09.009

Cavusgil, S. T.; Deligonul, S.; Zhang, C. 2004. Curbing foreign distributor opportunism: An examination of trust, contracts, and the legal environment in international channel relationships, Journal of International Marketing 12(2): 7–27. http://dx.doi.org/10.1509/jimk.12.2.7.32902

Chen, C.; Zhu, X.; Ao, J.; Cai, L. 2013. Governance mechanisms and new venture performance in China, Systems Research and Behavioral Science 30(3): 383–397. http://dx.doi.org/10.1002/sres.2178

Chen, S. H.; Hong, T. L. 2007. Performance evaluation model for project managers using managerial practices, International Journal of Project Management 25(6): 543–551. https://doi.org/10.1016/j.ijproman.2007.03.004

Chen, Z.; Li, H.; Ren, H.; Xu, Q.; Hong, J. 2011. A total environmental risk assessment model for international hub airports, International Journal of Project Management 29(7): 856–866. https://doi.org/10.1016/j.ijproman.2011.03.004

Cheung, S. O.; Wei, K. W.; Yiu, T. W.; Pang, H. Y. 2011. Developing a trust inventory for construction contracting, International Journal of Project Management 29(2): 184–196. https://doi.org/10.1016/j.ijproman.2010.02.007

Cropanzano, R.; Mitchell, M. S. 2005. Social exchange theory: An interdisciplinary review, Journal of Management 31(6): 874–900. https://doi.org/10.1177/0149206305279602

Dawes, P. L.; Massey, G. R. 2005. Antecedents of conflict in marketing’s cross–functional relationship with sales, European Journal of Marketing 39: 1327–1344. http://dx.doi.org/10.1108/03090560510623280

Dyer, J. H.; Chu, W. 2000. The determinants of trust in supplier-automaker relationships in the US, Japan, and Korea, Journal of International Business Studies 42(1): 10–27. https://doi.org/10.1057/jibs.2010.34

Emmers-Sommer, T. M. 2004. The effect of communication quality and quantity indicators on intimacy and relational satisfaction, Journal of Social and Personal Relationships 21(3): 399–411. https://doi.org/10.1177/0265407504042839

Fan, Y. 2002. Questioning guanxi: definition, classification and implications, International Business Review 11(5): 543–561. https://doi.org/10.1016/S0969-5931(02)00036-7

Ghosh, A.; Fedorowicz, J. 2008. The role of trust in supply chain governance, Business Process Management Journal 14(4): 453–470. https://doi.org/10.1108/14637150810888019

Girmscheid, G.; Brockmann, C. 2010. Inter and intraorganizational trust in international construction joint ventures, Journal of Construction Engineering and Management 136(3): 353–360. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000142

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

Seggie, S. H.; Griffith, D. A.; Jap, S. D. 2013. Passive and active opportunism in interorganizational exchange, Journal of Marketing A Quarterly Publication of the American Marketing Association 77(7): 73–90. https://doi.org/10.1509/jm.11.0529

Styles, C.; Ambler, T. 2003. The coexistence of transaction and relational marketing: Insights from the Chinese business context, Industrial Marketing Management 32(8): 633–642. https://doi.org/10.1016/j.indmarman.2003.06.004

Sullivan, J.; Peterson, R. B. 1982. Factors associated with trust in Japanese-American joint ventures, Management International Review 22(2): 30–40. https://doi.org/10.2307/40227633

Thorgren, S.; Wincent, J. 2011. Interorganizational trust: Origins, dysfunctions and regulation of rigidities, British Journal of Management 22: 21–41. https://doi.org/10.1111/j.1467-8551.2010.00717.x

Triandis, H. C. 1989. The self and social behavior in differing cultural contexts, Psychological Review 96(3): 506–520. https://doi.org/10.1037/0033-295X.96.3.506

Tzafrir, S. S.; Harel, T. L. G. H.; Baruch, Y.; Dolan, S. L. 2004. The consequences of emerging HRM practices for employees’ trust in their managers, Personnel Review 33(6): 628–647. https://doi.org/10.1108/00483480410561529

Uzzi, B.; Lancaster, R. 2003. Relational embeddedness and learning: The case of bank loan managers and their clients, Management Science 49(4): 383–399. https://doi.org/10.1287/mnsc.49.4.383.14427

Wagner, S. M.; Bode, C. 2014. Supplier relationship-specific investments and the role of safeguards for supplier innovation sharing, Journal of Operations Management 32(3): 65–78. https://doi.org/10.1016/j.jom.2013.11.001

Wang, C. L. 2007. Guanxi vs relationship marketing: Exploring underlying differences, Industrial Marketing Management 36(1): 81–86. https://doi.org/10.1016/j.indmarman.2005.08.002

Wei, K. W.; Cheung, S. O.; Yiu, T. W.; Pang, H. Y. 2008. A framework for trust in construction contracting, International Journal of Project Management 26(8): 821–829. https://doi.org/10.1016/j.ijproman.2007.11.004

Williamson, O. E. 2000. The new institutional economics: Taking stock, looking ahead, Journal of Economic Literature 38(3): 595–613. https://doi.org/10.1257/jel.38.3.595

Yang, Z.; Zhou, C.; Jiang, L. 2011. When do formal control and trust matter? A context-based analysis of the effects on marketing channel relationships in China, Industrial Marketing Management 40(1): 86–96. https://doi.org/10.1016/j.indmarman.2010.09.013

Yuan, L.; Xie, E.; Teo, H. H.; Peng, M. W. 2010. Formal control and social control in domestic and international buyer-supplier relationships, Journal of Operations Management 28(4): 333–344. https://doi.org/10.1016/j.jom.2009.11.008

Zhou, K. Z.; Poppo, L. 2010. Exchange hazards, relational reliability, and contracts in China: The contingent role of legal enforceability, Journal of International Business Studies 41(5): 861–881. https://doi.org/10.1057/jibs.2010.7