Effect of Behavior Tension on Value Creation in Owner–Contractor Relationships: Moderating Role of Dependence Asymmetry

Abstract

Adding value is widely regarded as a key issue in engineering projects, and cooperative arrangements in project management have been investigated by researchers due to their superiority in value creation compared with traditional arrangements. However, it remains unclear how parties properly interact with each other to create greater value in their cooperative relationships. Based on the paradox theory, this study applied the construct of behavior tension to describe the tension between cooperative and competitive forms of behavior, a pair of two contradictory forces coexisting in owner–contractor partnerships. This study then explored the impact of behavior tension on value creation. Using data from 161 responses, the interactive effect of dependence asymmetry and behavior tension on value creation is examined. The data were analyzed using hierarchical regression. The results show an inverse U-shaped relationship between behavior tension and value creation in owner–contractor partnerships, implying that a balance between cooperation and competition, more than either behavior alone, is helpful in creating value. Meanwhile, dependence asymmetry weakens this inverse U-shaped relationship. This study contributes to the body of knowledge in project and engineering management by adding greater variance to partners’ behavior (i.e., not just cooperation or competition), and by potentially enriching our understanding of how to rearrange interactive behavior among partners in facilitating value creation. Our findings reveal that, to create greater value for each other, engineering managers should change their cognition regarding cooperation and competition, and try to take advantage of the merits of these two opposing forces.

Keywords:

• Behavior Tension
• Value Creation
• Construction Project
• Owner-Contractor Relationships

EMJ Focus Areas:

• Engineering Management Profession
• Program & Project Management and Strategic Management

Acknowledgements

The authors are very grateful to the editors and two anonymous reviewers for their valuable comments and suggestions.

Additional information

Funding

This work was supported by the National Natural Science Foundation of China (NSFC) [grant numbers 71902132; 71872126].

Notes on contributors

Qinzhen Qian

Qinzhen Qian received a PhD degree in Management Science and Engineering from Tianjin University. She is currently a senior lecturer of construction management at the school of Management Science and Engineering at Tianjin University of Finance and Economics. Her research interests include project stakeholder management, inter-organizational relationships, project management.

Lianying Zhang

Lianying Zhang received a MS degree in offshore engineering and a PhD degree in structure engineering from Tianjin University He is currently a professor of construction management in the College of Management and Economics at Tianjin University. His research interests include project governance, project stakeholder management, collaborative risks.

Tingting Cao

Tingting Cao received a MS degree in Hydraulic Engineering, and is getting a PhD degree right away in Management Science and Engineering from Tianjin University. She is now close becoming a lecturer in certain university in China. Her research interests include boundary spanning collaboration and shared leadership in complex projects.