Governing Behavioral Relationships in Megaprojects: Examining Effect of Three Governance Mechanisms under Project Uncertainties

Abstract

The relational behavior of project participants is crucial to the success of a megaproject. Although project governance has been widely studied with the aim of improving participants' relational behavior, limited research examines the distinct effectiveness of various governance mechanisms on influencing relational behavior, especially in megaprojects. Through examining three varieties of governance mechanisms—contract, trust, and institutional support—a hierarchical moderated regression analysis has been used to explore the impact of each of the governance mechanisms in facilitating the relational behavior of megaproject participants and further team performance. The analysis is based on data collected from 202 contractors and consultants working at megaprojects in China. Results unveiled that both contractual term specificity and its interaction with trust can facilitate relational behavior. Project uncertainty moderates the relationship between governance mechanisms and relational behavior, thus affecting project team performance. The findings offer both theoretical and managerial implications for megaproject participants to cultivate beneficial relational behavior to improve team performance.