Influence of Prior Ties on Trust in Contract Enforcement in the Construction Industry: Moderating Role of the Shadow of the Future

Journal article


Chen, Y., Yongqiang Chen, Zhaojun Liu and Hongjiang Yao (2018). Influence of Prior Ties on Trust in Contract Enforcement in the Construction Industry: Moderating Role of the Shadow of the Future. Journal of Management in Engineering. 34 (2), pp. 04017064-04017064. https://doi.org/10.1061/(asce)me.1943-5479.0000584
AuthorsChen, Y., Yongqiang Chen, Zhaojun Liu and Hongjiang Yao
Abstract

This article explores the effect of prior ties on trust in contract enforcement after contractual breaches, which is underdeveloped in the existing literature, from a multifunctional perspective. In this research, both goodwill-based and competence-based trust have been distinguished to explore their mediating effects on the influence of prior ties on contract enforcement; two diverse functions of contracts, controlling and coordination, have been differentiated. This study also examined the moderating effects of the shadow of the future on these functions. Using data gathered from a paper-based survey of 195 Chinese general parties in the construction industry, we posit that prior ties between contracting parties will improve the level of both goodwill-based and competence-based trust between them, thus negatively influencing the severity of contract enforcement. Furthermore, the inhibiting effects of competence-based trust on the severity of coordination contract enforcement will be strengthened under the circumstances of a higher likelihood of continued cooperation. This study offers a deep and nuanced understanding of contract enforcement.

This material may be downloaded for personal use only. Any other use requires prior permission of the American Society of Civil Engineers. This material may be found at https://ascelibrary.org/doi/10.1061/%28ASCE%29ME.1943-5479.0000584

Year2018
JournalJournal of Management in Engineering
Journal citation34 (2), pp. 04017064-04017064
PublisherAmerican Society of Civil Engineers (ASCE)
ISSN0742-597X
Digital Object Identifier (DOI)https://doi.org/10.1061/(asce)me.1943-5479.0000584
Web address (URL)https://ascelibrary.org/doi/10.1061/%28ASCE%29ME.1943-5479.0000584
Publication dates
PrintMar 2018
Publication process dates
Accepted17 Aug 2017
Deposited16 Mar 2020
Accepted author manuscript
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