Impact of Regulatory Focus on Uncertainty in Megaprojects: Mediating Role of Trust and Control

Abstract

The behavior preference and decision matching of participants have an important influence on the governance of megaproject uncertainty. However, the framework and drivers largely are unknown, and are little studied. This study used regulatory focus theory to describe the motivation orientation of all parties. In addition, this study discussed the relationship between regulatory focus and megaproject uncertainty through the choice of governance mechanism—trust and control. A partial least-squares structural equation model was used to test the hypothesis based on data collected from 219 respondents. Results showed that promotion and prevention focuses have negative effects on megaproject uncertainty. Promotion focus has a positive effect on trust but does not have a significant effect on control. Prevention focus has a positive effect on control and a negative effect on trust. Trust mediates the relationship between promotion focus and megaproject uncertainty, whereas control does not. Trust and control mediate the relationship between prevention focus and megaproject uncertainty, make rational behavioral decisions in different uncertain situations, and choose matching governance modes. Furthermore, regulatory focus theory based on megaprojects goes beyond the boundaries of a single organization. This theory occurs at an interorganizational level and helps to build a governance mechanism for megaproject uncertainty. Results of this study enrich the knowledge system of megaproject management theory.