Impacts of Relational and Formal Governance on Information Sharing and Project Management Performance in Collaborative Contracts: A Mixed-Method Approach

Abstract

Collaborative contracts are considered a means to address poor communication, adversarial relationships, and unsatisfactory project management arising from traditional contracts. However, the governance mechanisms of collaborative contracts have been unproven. This study investigates the impacts of relational and formal governance on information sharing and project management performance in collaborative contracts. We employ a mixed-method approach, in which the results obtained from structural equation modeling in a survey study are cross-validated by the qualitative findings from a focus group study. The results reveal the mediating role of information sharing in the influencing mechanisms of relational and formal governance on project management performance. The focus group study complements a multilevel framework to cultivate mutual trust (relational governance) for enhancing project management. The findings of this study not only fill existing knowledge gaps in understanding the underlying governance mechanisms of collaborative contracts, but also extend the comprehension of the interplay between relational and formal governance, emphasizing the crucial role of mutual trust in collaborative contracts. Furthermore, this study holds practical implications by highlighting potential strategies for enhancing project management performance by leveraging governance mechanisms and cultivating mutual trust across multiple levels.