Relational Governance and Project Performance: Unveiling the Mediating Role of Organizational Resilience

Abstract

Relational governance, as a flexible and informal mechanism, plays a critical role in addressing the challenges of construction projects in the VUCA environment. However, existing research has rarely examined relational governance mechanisms from a resilience perspective. Furthermore, current studies on organizational resilience often overlook static characteristics, leaving the interplay between static and dynamic resilience underexplored. To address this gap, this study aims to explore how relational governance influences project performance through organizational resilience, with a focus on the mediating roles of static resilience and dynamic resilience. Empirical data were collected through 270 construction professionals, with questionnaire design refined through expert interviews and a pilot study to ensure validity and reliability. Partial least squares structural equation modeling (PLS-SEM) was employed to assess relationships. The findings indicate that relational governance positively influences addressing opportunistic behaviors of construction participants and improving project performance. Mutual trust and timely commitment among project participants in relational governance significantly impact both the static characteristics and dynamic capabilities of construction projects. Additionally, organizational resilience partially mediates the relationship between relational governance and project performance. This study advances the understanding of the mechanisms linking relational governance and project performance from a resilience perspective and provides actionable insights for fostering efficient governance practices.

Keywords

• relational governance
• static resilience
• dynamic resilience
• project performance