Validation of an Instrument to Measure Governance and Performance on Collaborative Infrastructure Projects

Abstract

Collaborative infrastructure projects use hybrid formal and informal governance structures to manage transactions. Based on previous desktop research, the authors identified the key mechanisms underlying project governance, and posited the performance implications of the governance. The current paper extends that qualitative research by testing the veracity of those findings using data from 320 Australian construction organizations. The results provide, for the first time, reliable and valid scales to measure governance and performance of collaborative projects, and the relationship between them. The results confirm seven of seven hypothesized governance mechanisms, 30 of 43 hypothesized underlying actions, eight of eight hypothesised key performance indicators, and the dual importance of formal and informal governance. A startling finding of the study was that the implementation intensity of informal mechanisms (noncontractual conditions) is a greater predictor of project performance variance than that of formal mechanisms (contractual conditions). Further, contractual conditions do not directly impact project performance; instead their impact is mediated by the noncontractual features of a project. Obligations established under the contract are not sufficient to optimize project performance.