The role of trust, opportunism and adaptation in coordination and contract cooperation: evidence from construction projects

Muhammad Zaheer Hashim, Liu Chao, Chao Wang and Sabir Hussain Awan

Journal of Economic and Administrative Sciences, 2022, vol. 41, issue 1, 50-69

Abstract: Purpose - The purpose of this paper is to examine the influence of clients' trust, opportunism and adaptation on contractual (non)cooperation with a mediating role of coordination in the construction industry. Design/methodology/approach - A questionnaire was used to collect data from employees of the Pakistani construction industry. Smart partial least square (SmartPLS) has been used for analyzing the data of 270 respondents from construction projects. Findings - The results of the SmartPLS indicate that (1) Trust and contract coordination positively while opportunism negatively influence contractor's contractual cooperation. (2) Contract adaptation and contract coordination positively influence the noncontractual cooperation of the contractor. (3) Moreover, contract coordination positively mediates the relationship between trust and noncontractual cooperation, but negatively mediates the relationship between opportunism and contract adaptation and noncontractual cooperation. Practical implications - The findings of this research suggest several policy implications for administrative authorities, project managers and policymakers. These authorities need to focus on clients' trust, opportunism and adaptation because these factors significantly influence contract coordination and cooperation in the construction industry. Emphasizing these factors will enable project managers to gain economies of scale and mitigate project failure. Originality/value - To the best of the authors’ search and knowledge, they did not find any study examining the mediating role of coordination between trust, opportunism, adaptation and cooperation in the construction industry. Hence, the present study advances their understanding in the field of project management and construction business.

Keywords: Trust; Opportunism; Adaptation; Contractual cooperation; Noncontractual cooperation; Coordination; Construction industry (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jeaspp:jeas-01-2022-0008

DOI: 10.1108/JEAS-01-2022-0008

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