Research On The Effect Of Contextual Combined Factors On Governance Strategy Of Public Construction Projects Based On Multiple Case Studies

The dynamic and complementary effect of contractual governance and relational governance is necessary for the success of project governance.In the public project governance practices,the government owners always think they take top priority in the course of contracting and they are subject to strict rules and regulations so that there are obstacles for the implementation relational governance.At the same time,due to the government owners' laziness and the lack of creativity,they won't select appropriate governance strategy to guide the work of project governance according to the best practice for specific conditions of projects.As a result,the project performance will not improve effectively.What's more,with the deepening of project governance theory,the influence of contextual factors on the interaction of contractual governance and relational governance is receiving attention.So,developing suitable contextual project governance theory that fits Chinese context is of great theoretical and practical significance.Based on all the above,this study consolidates and simplifies two-dimensional governance mechanism and consolidates the interaction of core elements of contractual governance and relational governance as governance strategy.Then this study disintegrates Chinese context into indicators that can be measured and try to answer and explain the question that “How to choose different types of governance strategy in different contexts”.The main research contents and conclusions are as follows:Firstly,aimed at the dimensions of governance strategy,the paper adopts grounded theory and the result shows that the construct of contract strategy in public construction project can be made of the selection of contractor,the focus of contracting strategy as well as the way of preventing problems.Three dimensions combine four kinds of governance strategy.Then the paper explains the formation process and connotation of governance strategies.Secondly,this study contrasts the development of management model of public construction projects in developing countries and China and concludes that the contextual factors of transaction attributes is the structure of property right: the government invests or social capital financing and the contextual factors of relationship attributes is the enterprise nature of contractor according to the theory of property rights and theory of social exchange.Finally,the paper conducts case study method and builds the fitness of contextual factors and governance strategies.Then it comes to the conclusions as follows:Proposition 1:When the government invests the public construction project,if the enterprise nature of contractor is private enterprises,the government owner should adopt contractual governance strategy.If the enterprise nature of contractor is state-owned enterprise,the government owner should adopt contractual governance strategy based on trust.Proposition 2:When the social capital invests the public construction project,if the enterprise nature of contractor is private enterprises,the government owner should adopt relational governance strategy based on contract.If the enterprise nature of contractor is state-owned enterprise,the government owner should adopt relational governance strategy.Proposition 3: Relationship attributes of public construction project effects the selection of governance strategy.If the government owner chooses to cooperate with the state-owned enterprises,contracting parties will sign flexible contract terms that share risk more reasonably based on the trust.If the government owner chooses to cooperate with private enterprises,contracting parties will rely on strict contract that regulates parties' rights and obligations to ensure parties' performance behaviors and create an atmosphere of trust through conducting relational behaviors during implementation stage so that improve the efficiency of performance.Proposition 4: Transaction attributes of public construction project effects the selection of governance strategy.If the government invests the public construction project,there exists principal-agent relationship between government owners and constructors.So government owner supervise and control agents through formal institutional arrangements and formal institutional arrangements is at the core of governance strategy.If the social capital invests the public construction project,there exists cooperative partnership between government owners and social investors.The most important target of governance strategy is to build and maintain the trust between contracting parties and cultivate cooperation atmosphere in the process of contracting so that all parties pursuit the common goal that increases the value of projects and realize altogether wins.