Moderating Effect of Equity Sensitivity on Behavior-Outcome Relationships in Construction Dispute Negotiation

Abstract

This study builds on Adam’s equity theory by examining the moderating effects of equity sensitivity (i.e., a person’s perception of what is equitable or inequitable) on behavior-outcome relationships among negotiators in construction dispute negotiation. First, an equity sensitivity construct is developed. This construct reveals that most construction negotiators are entitleds, also known as “takers,” at the negotiation table. Moderated multiple regression (MMR) is used to test the moderating effects of equity sensitivity. The MMR models affirm that the nature of behavior-outcome relationships varies, depending on the perception of equity. An entitled construction negotiator is found to be a versatile moderator who fosters satisfactory negotiation outcomes. The models show that negotiators are able to predict inequitable responses and to take measures to forestall or deal with different inequitable situations. This study indicates the merit of further study of equity theory in the context of construction dispute negotiation. Future challenges in this area include the examination of the equity restoration responses of negotiators to create an equitable environment.