DOI QR코드

DOI QR Code

Effect of Employer's Power on Contractor' s Behavior in the Construction Industry

건설 산업에서 발주자의 권력이 시공사의 행동에 미치는 영향

  • Kim, Jung-hoon (Graduate School of Business Administration, Hanyang University) ;
  • Lee, A-yeon (Graduate School of Business Administration, Hanyang University) ;
  • Kim, Seung-chul (Graduate School of Business Administration, Hanyang University)
  • 김정훈 (한양대학교 경영대학원) ;
  • 이아연 (한양대학교 경영대학원) ;
  • 김승철 (한양대학교 경영대학원)
  • Received : 2018.08.06
  • Accepted : 2018.09.18
  • Published : 2018.09.30

Abstract

The cooperative relationship between Employer and Contractor in the construction industry is the most important factor to achieve the project success. Employer shall draw the Contractor's cooperative behavior during executing the project. A study on the impact of the Owner's power on the contractor's cooperative behavior is rare in the construction industry in Korea even though the negative impact of the high-power distance between the Employer and the Contractor has been a hot issue in Korea. In this empirical study, it is shown that the Employer's power can address the contractor's cooperative behavior. The respondents were mostly employees in the domestic construction companies who have experienced in the construction projects. The total number of respondents was 317 effectively. The multiple regression analysis using SPSS 21.0 were conducted to verify the hypotheses. In conclusion, the Mediated Power is positively associated with the In-Role Behavior and with the Extra-Role Behavior. Some of Non-Mediated Power is positively associated with the In-Role Behavior and with the Extra-Role Behavior. It seems that the Contract underestimate the Employer's Expert Power. It was known that the cooperative power caused by Non-Mediated Power is good for long term relationship of the business to business transaction. So it is highly recommended that the Employer shall foster its expertise.

Keywords

References

  1. Allen, T.D. and Rush, M.C., The effects of organizational citizenship behavior on performance judgments : a field study and a laboratory experiment, Journal of Applied Psychology, 1998, Vol. 83, No. 2, pp. 247-260. https://doi.org/10.1037/0021-9010.83.2.247
  2. Anderson, J.C. and Narus, J.A., A model of distributor firm and manufacturer firm working partnerships, Journal of Marketing, 1990, Vol. 54, No. 1, pp. 42-58. https://doi.org/10.1177/002224299005400304
  3. Brown, J.R., Lusch, R.F., and Muehling, D.D., Conflict and power-dependence relations in retailer-supplier channels, Journal of retailing, 1983, Vol. 59, No. 4, pp. 53-80.
  4. Brown, J.R., Lusch, R.F., and Nicholson, C.Y., Power and relationship commitment : their impact on marketing channel member performance, Journal of retailing, 1995, Vol. 71, No. 4, pp. 363-392. https://doi.org/10.1016/0022-4359(95)90019-5
  5. French Jr, J.R.P. and Raven, B., The bases of social power, In D. Cart-wright (Ed.), Studies in social power, 1959, pp. 150-167.
  6. Handley, S.M. and Benton Jr, W.C., The influence of exchange hazards and power on opportunism in outsourcing relationships, Journal of Operations Management, 2012, Vol. 30, No. 1-2, pp. 55-68. https://doi.org/10.1016/j.jom.2011.06.001
  7. Hunt, S.D. and Nevin, J.R., Power in a channel of distribution : sources and consequences, Journal of Marketing Research, 1974, Vol. 11, No. 2, pp. 186-193. https://doi.org/10.1177/002224377401100210
  8. Iwamatsu, J., Akiyama, T., and Endo, K., Construction claims and disputes and the business culture of construction in Japan, Journal of Professional Issues in Engineering Education and Practice, 2008, Vol. 134, No. 1, pp. 119-127. https://doi.org/10.1061/(ASCE)1052-3928(2008)134:1(119)
  9. Kadefors, A., Trust in project relationships-inside the black box, International Journal of Project Management, 2004, Vol. 22, No. 3, pp. 175-182. https://doi.org/10.1016/S0263-7863(03)00031-0
  10. Kale, S.H. and McIntyre, R.P., Distribution channel relationships in diverse cultures, International Marketing Review, 1991, Vol. 8, No. 3, pp. 31-45.
  11. Katz, D. and Kahn, R.L., The psychology of organizations, New York : HR Folks International, 1966.
  12. Ke, W., Liu, H., Wei, K.K., Gu, J., and Chen, H., How do mediated and non-mediated power affect electronic supply chain management system adoption? The mediating effects of trust and institutional pressures, Decision Support Systems, 2009, Vol. 46, No. 4, pp. 839-851. https://doi.org/10.1016/j.dss.2008.11.008
  13. Lu, S. and Hao, G., The influence of owner power in fostering contractor cooperation : Evidence from China, International Journal of Project Management, 2013, Vol. 31, No. 4, pp. 522-531. https://doi.org/10.1016/j.ijproman.2012.10.008
  14. Maloni, M. and Benton, W.C., Power influences in the supply chain, Journal of Business Logistics, 2000, Vol. 21, No. 1, pp. 49-74.
  15. Meng, X., The effect of relationship management on project performance in construction, International Journal of Project Management, 2012, Vol. 30, No. 2, pp. 188-198. https://doi.org/10.1016/j.ijproman.2011.04.002
  16. Morgan, R.M. and Hunt, S.D., The commitment-trust theory of relationship marketing, Journal of Marketing, 1994, pp. 20-38.
  17. Nord, W.R., Dreams of humanization and the realities of power, Academy of Management Review, 1978, Vol. 3, No. 3, pp. 674-679. https://doi.org/10.5465/amr.1978.4305962
  18. Organ, D.W., A restatement of the satisfaction-performance hypothesis, Journal of Management, 1988, Vol. 14, No. 4, pp. 547-557. https://doi.org/10.1177/014920638801400405
  19. Quanji, Z., Zhang, S., and Wang, Y., Contractual governance effects on cooperation in construction projects : Multifunctional approach, Journal of Professional Issues in Engineering Education and Practice, 2016, Vol. 143, No. 3, pp. 1-12.
  20. Rahim, M.A., Relationships of leader power to compliance and satisfaction with supervision : Evidence from a national sample of managers, Journal of Management, 1989, Vol. 15, No. 4, pp. 545-556. https://doi.org/10.1177/014920638901500404
  21. Stern, L.W., Ansary, A.I., and Brown, J.R., Management in marketing channels, Prentice Hall, 1989.
  22. Tyler, T.R. and Blader, S.L., Cooperation in groups : Procedural justice, social identity, and behavioral engagement, Psychology Press., 2000.
  23. Von Simson, O.G., Compassio and Co-Redemptio in Roger van der Wey-den's Descent from the Cross, The Art Bulletin, 1953, Vol. 35, No. 1, pp. 9-16. https://doi.org/10.1080/00043079.1953.11408151
  24. Wang, Y., Chen, Y., Fu, Y., and Zhang, W., Do prior interactions breed co-operation in construction projects? The mediating role of contracts, International Journal of Project Management, 2017, Vol. 35, No. 4, pp. 633-646. https://doi.org/10.1016/j.ijproman.2017.02.019
  25. Yukl, G., Managerial leadership : A review of theory and research, Journal of Management, 1989, Vol. 15, No. 2, pp. 251-289. https://doi.org/10.1177/014920638901500207
  26. Zhang, L. and Qian, Q., How mediated power affects opportunism in owner-contractor relationships : The role of risk perceptions, International Journal of Project Management, 2017, Vol. 35, No. 3, pp. 516-529. https://doi.org/10.1016/j.ijproman.2016.12.003