Effect of contractual functions on contractors’ consummate performance behaviors in construction projects

Abstract

Purpose

The contractors’ consummate performance behavior is the key to achieving the project’s value added, but existing research has paid little attention to how to stimulate this behavior. Based on contractual functions and regulatory focus theory, this study examined how the allocation of contractual functions and the contractors’ regulatory focus affect their consummate performance behaviors. At the same time, considering the important position of guanxi between owner and contractor, this study also examined the moderating effect of guanxi on the relationship between the contractors’ regulatory focus and consummate performance behaviors.

Design/methodology/approach

This study first constructs a conceptual model that incorporates contractual functions (control, coordination and adaptation), contractors’ regulatory focus (promotion focus, prevention focus) and the effect of guanxi on contractors’ consummate performance behavior. Next, partial least squares structural equation modeling is used to analyze the survey data of 297 Chinese construction project professionals.

Findings

This study has the following four findings. First, contractual control has a negative effect on contractors’ promotion focus but a positive effect on their prevention focus. Contractual coordination and adaptation have a positive effect on contractors’ promotion focus but a negative effect on their prevention focus. Second, contractors’ promotion focus has a positive effect on their consummate performance behaviors, while their prevention focus has a negative effect on such behaviors. Third, both of contractors’ promotion focus and prevention focus play a mediating role in the relationship between contractual functions and their consummate performance behaviors. Finally, guanxi plays a moderating role in the relationship between contractors’ regulatory focus and their consummate performance behaviors.

Originality/value

Theoretically, this study enriches the research on the antecedents of contractors’ regulatory focus and extends the literature on contractual and guanxi management in construction projects. In practice, this study can provide guidance for improving contractors’ consummate performance behaviors and reasonable allocation of contractual functions.

Citation

Lu, Y., Ma, L. and Yao, H. (2024), "Effect of contractual functions on contractors’ consummate performance behaviors in construction projects", Engineering, Construction and Architectural Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ECAM-02-2024-0250