Trust or fairness is more important:research on the mechanism of contract risk allocation inducing contractor to consummate performance behavior

Abstract

Contractor’s consummate performance behavior (CPB) is the key to achieve consummate performance. However, the mechanism of reasonable contract risk allocation incentives for Contractor’s CPB is unknown. The objective of this study is to reveal the effective ways to encourage contractor’s CPB by contract risk allocation based on the contract reference point theory and selecting the contractor’s trust perception and fair perception as mediating variables. Through an empirical analysis of the valid questionnaires collected, the results are as follows: (1) Although the economic benefits generated by reasonable contract risk allocation can induce contractor’s fair perception, fair perception has no mediating effect in the relationship between contract risk allocation and contractor’s CPB; (2) The cooperative value generated by reasonable contract risk allocation can induce contractor’s trust perception, and trust perception plays a part mediating role between contract risk allocation and contractor’s CPB. The findings also provide insights into how risk allocation facilitates contractor’s CPB in the construction industry.

Keywords

• risk allocation
• consummate performance behavior (cpb)
• trust perception
• fair perception