The incentive effects of project governance elements on agents in agent-led construction of social security housing projects
Abstract
The agent-led construction system is a construction mode that emphasizes the introduction of professional management teams instead of government departments to develop public projects in China, including social security housing. In reality, the problem in practice is that the government owners’ management system of the agent market is not sound enough, and it cannot effectively motivate the agents. Existing research has not paid enough attention to this agent construction market. To reveal the effective incentives of agent developers, using the stimulus–organism–response theory, this study constructed a structural equation model and proposed a research hypothesis about the effect of project governance elements on project performance. The study found that governance elements including internal contractual governance, external contractual governance, and relational governance, had a positive incentivizing effect on the project performance. The psychology and behavior of the construction agent played a partial mediating role. The results provide a policy implication for city government to improve the incentive system for agent construction of security housing projects.
Keyword : agent psychology, behavioral incentive, construction agent, project governance elements, security housing
How to Cite
Chen, Z., Yao, L., Zheng, M., & Zhang, L. (2024). The incentive effects of project governance elements on agents in agent-led construction of social security housing projects. International Journal of Strategic Property Management, 28(4), 248–260. https://doi.org/10.3846/ijspm.2024.21814
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Lu, W., Wu, L., Zhao, R., Li, X., & Xue, F. (2021). Blockchain technology for governmental supervision of construction work: Learning from digital currency electronic payment systems. Journal of Construction Engineering and Management, 147(10), Article 04021122. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002148
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Müller, R., Turner, J. R., Andersen, E. S., Shao, J., & Kvalnes, Ø. (2016). Governance and ethics in temporary organizations: The mediating role of corporate governance. Project Management Journal, 47(6), 7–23. https://doi.org/10.1177/875697281604700602
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Özcan, F., & Elçi, M. (2020). Employees’ perception of CSR affecting employer brand, brand image, and corporate reputation. SAGE Open, 10(4), 1–13. https://doi.org/10.1177/2158244020972372
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Rose, T., & Manley, K. (2011). Motivation toward financial incentive goals on construction projects. Journal of Business Research, 64(7), 765–773. https://doi.org/10.1016/j.jbusres.2010.07.003
Shamim, S., Zeng, J., Khan, Z., & Zia, N. U. (2020). Big data analytics capability and decision-making performance in emerging market firms: The role of contractual and relational governance mechanisms. Technological Forecasting and Social Change, 161, Article 120315. https://doi.org/10.1016/j.techfore.2020.120315
Swanson, R., & Sakhrani, V. (2020). Appropriating the value of flexibility in PPP megaproject design. Journal of Management in Engineering, 36(5), Article 05020010. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000770
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Wang, D., Fu, H., & Fang, S. (2019). The relationship between relational quality and megaproject success: The moderating role of incentives. Engineering Management Journal, 31(4), 257–269. https://doi.org/10.1080/10429247.2019.1624099
Wang, D., Wang, Y., & Lu, Y. (2020). Impact of regulatory focus on uncertainty in megaprojects: Mediating role of trust and control. Journal of Construction Engineering and Management, 146(12), Article 04020142. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001951
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Wen, Z., & Ye, B. (2014). Analyses of mediating effects: The development of methods and models. Advances in Psychological Science, 22(5), Article 731. https://doi.org/10.3724/SP.J.1042.2014.00731
Wilson, R. B. (1967). The structure of incentives for decentralization under uncertainty. Graduate School of Business, Stanford University.
Xiang, P., Huang, S., & Jiang, Q. (2017). Analysis of the influencing factors of supervision performance of PPP projects based on SEM. Construction Economy, (4), 56–62.
Yan, L., & Zhang, L. (2020). Interplay of contractual governance and trust in improving construction project performance: Dynamic perspective. Journal of Management in Engineering, 36(4), Article 04020029. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000791
Yan, M. (2016). Incentive institution design for public project agent: A perspective of key governance factors integration. Science & Technology Progress and Policy, 33(16), 147–152.
Ye, K., Zhu, W., Shan, Y., & Li, S. (2015). Effects of market competition on the sustainability performance of the construction industry: China case. Journal of Construction Engineering and Management, 141(9), Article 04015025. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000999
Yin, Z. J., & Li, Z. M. (2019). Research on risk sharing and subsidy scheme of PFI model in nursing home project. Value Engineering, 38(10), 1–4.
Zhang, S. X., Yang, Y. Y., & Wang, W. L. (2020). Research on the influence of public-private partnerships’ relational attitudes on project performance: A mediated moderator model. Journal of Chongqing University of Technology, 34(1), 263–270.
Zhao, Y. (2018). Market competition, government support and corporate innovation performance. Journal of Harbin University of Commerce, (6), 42–53.
Zheng, X., Lu, Y., & Chang, R. (2019). Governing behavioral relationships in megaprojects: Examining effect of three governance mechanisms under project uncertainties. Journal of Management in Engineering, 35(5), Article 04019016. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000701
Basinska, B. A., & Rozkwitalska, M. (2022). Psychological capital and happiness at work: The mediating role of employee thriving in multinational corporations. Current Psychology, 41(2), 549–562. https://doi.org/10.1007/s12144-019-00598-y
Benítez-Ávila, C., Hartmann, A., Dewulf, G., & Henseler, J. (2018). Interplay of relational and contractual governance in public-private partnerships: The mediating role of relational norms, trust and partners’ contribution. International Journal of Project Management, 36(3), 429–443. https://doi.org/10.1016/j.ijproman.2017.12.005
Biong, H. (2013). Choice of subcontractor in markets with asymmetric information: Reputation and price effects. Journal of Business & Industrial Marketing, 28(1), 60–71. https://doi.org/10.1108/08858621311285723
Cao, Q., Sheng, Z., Zhou, J., Liu, H., & Li, Q. (2014). Motivation and supervision mechanism of agent construction system for government investment projects based on fairness theory. China Soft Science, 10, 144–153.
Cao, X., & Wu, W. (2021). Research on the evolution game of tripartite cooperative supervision in social organizations under the context of “Internet plus”. Journal of Central China Normal University, 55(2), 317–328.
Choi, S. G., & Storr, V. H. (2019). A culture of rent seeking. Public Choice, 181, 101–126. https://doi.org/10.1007/s11127-018-0557-x
De Filippi, P., Mannan, M., & Reijers, W. (2020). Blockchain as a confidence machine: The problem of trust & challenges of governance. Technology in Society, 62, Article 101284. https://doi.org/10.1016/j.techsoc.2020.101284
Feng, H., Nie, L., & Shi, Y. (2020). The interaction between supply chain governance mechanisms and supply chain performance: Based on the mediating effects of information sharing and the moderating effects of information technology level. Chinese Journal of Management Science, 28(2), 104–114.
Garg, S., & Misra, S. (2023). Framework for estimating quality-related incentive and disincentive in construction projects. Journal of Construction Engineering and Management, 149(5), Article 04023018. https://doi.org/10.1061/JCEMD4.COENG-12259
Hou, K. T., Wen, Z. L., & Cheng, Z. J. (2004). Structural equation model and its applications. Educational Science Publication House.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. In Corporate governance (pp. 77–132). Gower. https://doi.org/10.1016/0304-405X(76)90026-X
Johari, S., & Jha, K. N. (2021). Exploring the relationship between construction workers’ communication skills and their productivity. Journal of Management in Engineering, 37(3), Article 04021009. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000904
Kamboj, S., Sarmah, B., Gupta, S., & Dwivedi, Y. (2018). Examining branding co-creation in brand communities on social media: Applying the paradigm of Stimulus-Organism-Response. International Journal of Information Management, 39, 169–185. https://doi.org/10.1016/j.ijinfomgt.2017.12.001
Kassel, D. S. (2008). Performance, accountability, and the debate over rules. Public Administration Review, 68(2), 241–252. https://doi.org/10.1111/j.1540-6210.2007.00859.x
Leon, H., Osman, H., Georgy, M., & Elsaid, M. (2018). System dynamics approach for forecasting performance of construction projects. Journal of Management in Engineering, 34(1), Article 04017049. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000575
Li, B., Gao, Y., Zhang, S., & Wang, C. (2021). Understanding the effects of trust and conflict event criticality on conflict resolution behavior in construction projects: Mediating role of social motives. Journal of Management in Engineering, 37(6), Article 04021066. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000962
Li, X., Yin, Y., & Zhang, R. (2022). Examining the impact of relationship-related and process-related factors on project success: The paradigm of stimulus-organism-response. Journal of Asian Architecture and Building Engineering, 21(1), 93–109. https://doi.org/10.1080/13467581.2020.1828090
Liao, C., Zhong, J., Luo, Y., & Hu, J. (2021). Research on the governance of agent construction project from the perspective of transaction cost theory. In ICCREM 2021 (pp. 470–478). https://doi.org/10.1061/9780784483848.053
Lin, Q. F. (2019). The research on the application of the general contract model in the construction of the social housing in Xiamen. Jiangxi Jian Cai, 11, 234–235.
Lin, S., & Cheung, S. (2022). Exploring the concept of psychological distance and its impact on intention to settle in construction dispute negotiation. Journal of Construction Engineering and Management, 148(12), Article 04022133. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002418
Lu, P., Guo, S., Qian, L., He, P., & Xu, X. (2015). The effectiveness of contractual and relational governances in construction projects in China. International Journal of Project Management, 33(1), 212–222. https://doi.org/10.1016/j.ijproman.2014.03.004
Lu, W., Wu, L., Zhao, R., Li, X., & Xue, F. (2021). Blockchain technology for governmental supervision of construction work: Learning from digital currency electronic payment systems. Journal of Construction Engineering and Management, 147(10), Article 04021122. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002148
Luthans, F., Avey, J. B., Avolio, B. J., Norman, S. M., & Combs, G. M. (2006). Psychological capital development: Toward a micro‐intervention. Journal of Organizational Behavior, 27(3), 387–393. https://doi.org/10.1002/job.373
Müller, R., Turner, J. R., Andersen, E. S., Shao, J., & Kvalnes, Ø. (2016). Governance and ethics in temporary organizations: The mediating role of corporate governance. Project Management Journal, 47(6), 7–23. https://doi.org/10.1177/875697281604700602
Olanrewaju, A., Tan, Y. Y., & Soh, S. N. (2022). Defect characterisations in the Malaysian affordable housing. International Journal of Building Pathology and Adaptation, 40(4), 539–568. https://doi.org/10.1108/IJBPA-11-2018-0095
Özcan, F., & Elçi, M. (2020). Employees’ perception of CSR affecting employer brand, brand image, and corporate reputation. SAGE Open, 10(4), 1–13. https://doi.org/10.1177/2158244020972372
Parella, K. (2022). Contractual stakeholderism. Boston University Law Review, 102, Article 865.
Prakash, C., Roy, V., & Charan, P. (2022). Mitigating interorganizational conflicts in humanitarian logistics collaboration: The roles of contractual agreements, trust and post-disaster environmental uncertainty phases. The International Journal of Logistics Management, 33(1), 28–52. https://doi.org/10.1108/IJLM-06-2021-0318
Qian, J., Lang, X., Zheng, M., & Zhang, L. (2021). Analysis and research on the current situation of agent construction system for government-invested projects in China. Project Management Journal, 10, 8–10.
Rose, T., & Manley, K. (2011). Motivation toward financial incentive goals on construction projects. Journal of Business Research, 64(7), 765–773. https://doi.org/10.1016/j.jbusres.2010.07.003
Shamim, S., Zeng, J., Khan, Z., & Zia, N. U. (2020). Big data analytics capability and decision-making performance in emerging market firms: The role of contractual and relational governance mechanisms. Technological Forecasting and Social Change, 161, Article 120315. https://doi.org/10.1016/j.techfore.2020.120315
Swanson, R., & Sakhrani, V. (2020). Appropriating the value of flexibility in PPP megaproject design. Journal of Management in Engineering, 36(5), Article 05020010. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000770
ul Musawir, A., Abd-Karim, S. B., & Mohd-Danuri, M. S. (2020). Project governance and its role in enabling organizational strategy implementation: A systematic literature review. International Journal of Project Management, 38(1), 1–16. https://doi.org/10.1016/j.ijproman.2019.09.007
Wang, D., Fu, H., & Fang, S. (2019). The relationship between relational quality and megaproject success: The moderating role of incentives. Engineering Management Journal, 31(4), 257–269. https://doi.org/10.1080/10429247.2019.1624099
Wang, D., Wang, Y., & Lu, Y. (2020). Impact of regulatory focus on uncertainty in megaprojects: Mediating role of trust and control. Journal of Construction Engineering and Management, 146(12), Article 04020142. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001951
Wang, L., & Zhang, X. (2019). Determining the value of standby letter of credit in transfer stage of a PPP project to control concessionaire’s opportunistic behavior. Journal of Management in Engineering, 35(3), Article 04019003. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000682
Wen, Z., & Ye, B. (2014). Analyses of mediating effects: The development of methods and models. Advances in Psychological Science, 22(5), Article 731. https://doi.org/10.3724/SP.J.1042.2014.00731
Wilson, R. B. (1967). The structure of incentives for decentralization under uncertainty. Graduate School of Business, Stanford University.
Xiang, P., Huang, S., & Jiang, Q. (2017). Analysis of the influencing factors of supervision performance of PPP projects based on SEM. Construction Economy, (4), 56–62.
Yan, L., & Zhang, L. (2020). Interplay of contractual governance and trust in improving construction project performance: Dynamic perspective. Journal of Management in Engineering, 36(4), Article 04020029. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000791
Yan, M. (2016). Incentive institution design for public project agent: A perspective of key governance factors integration. Science & Technology Progress and Policy, 33(16), 147–152.
Ye, K., Zhu, W., Shan, Y., & Li, S. (2015). Effects of market competition on the sustainability performance of the construction industry: China case. Journal of Construction Engineering and Management, 141(9), Article 04015025. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000999
Yin, Z. J., & Li, Z. M. (2019). Research on risk sharing and subsidy scheme of PFI model in nursing home project. Value Engineering, 38(10), 1–4.
Zhang, S. X., Yang, Y. Y., & Wang, W. L. (2020). Research on the influence of public-private partnerships’ relational attitudes on project performance: A mediated moderator model. Journal of Chongqing University of Technology, 34(1), 263–270.
Zhao, Y. (2018). Market competition, government support and corporate innovation performance. Journal of Harbin University of Commerce, (6), 42–53.
Zheng, X., Lu, Y., & Chang, R. (2019). Governing behavioral relationships in megaprojects: Examining effect of three governance mechanisms under project uncertainties. Journal of Management in Engineering, 35(5), Article 04019016. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000701