Effect of Trust and Satisfaction on Interpersonal Relationships: Comparative Study of Capitalist and Socialist Countries

Abstract

This research investigated the effect of project quality, client satisfaction, and trust on interpersonal relationships between contracting parties in public construction projects. Using a questionnaire, data were collected from randomly selected construction industry practitioners with experience in public projects in China, Vietnam, Australia, and Singapore. China and Vietnam represent large and small socialist-oriented developing countries, respectively, whereas Australia and Singapore represent large and small capitalist and developed countries, respectively. The results show that in all four countries, trust enhances interpersonal relationships, leading to relationship continuity. In Singapore and Australia (capitalist countries), satisfaction leads to greater trust, but in Vietnam and China (socialist-oriented developing countries), this is not the case. In Vietnam, there is no significant correlation between satisfaction and relationship continuity, but a correlation was observed in the other three countries. One practical implication is that buyers should select sellers with whom they have prior good relationships because this provides continuity. When there is relationship continuity, trust is present, leading to enhanced relationships. This is a positive reinforcing cycle—greater trust leads to enhanced relationships, which lead to continuity of relationships, which in turn leads to greater trust. Unlike in capitalist developed countries, in socialist developing economies, client satisfaction does not lead to greater trust. Also, good interpersonal relationships between consultants and contractors during the project implementation stage are not associated with good relationships at the end of the project. This study contributes to knowledge by showing empirically that trust and interpersonal relationships are significantly correlated regardless of a country’s stage of development, the size of its construction industry, or its type of economy.