Guanxi Governance And Performance Of International Construction Projects: The Moderating Effect Of Environmental Uncertainty

With the strong support of national policy “One Belt and One Road” Initiative,the Chinese government has been encouraging and supporting competent enterprises to go abroad.This led to the birth of a group of multinational contractors to actively explore the international market under the call of the country.The international complex and unpredictable macro-environment and the uncertainties in the construction projects have caused international contractors to make mistakes in using guanxi governance to cope with problems.Some major losses and early termination projects in recent years have confirmed this phenomenon.Therefore,in the entire life cycle of the project the Chinese contractors who are committed to going out urgently need to understand the mechanism of the role of guanxi governance in project performance and the adjustment strategies in the face of different environmental uncertainties.In this context,based on transaction cost theory and social exchange theory,this study explores the impact of guanxi governance on project performance under international construction background and the moderating effect of environmental uncertainty.Specifically,this research mainly explores the following research questions:(1)How the different dimensions of guanxi governance affect the project performance of international construction,and(2)The difference influence between macro-environmental uncertainty and micro-environmental uncertainty on the relationship between guanxi governance and project performance.This study uses the method of qualitative and quantitative analysis to analyze the research problems,uses the statistical analysis techniques such as regression analysis and adjustment analysis to analyze the data of Chinese contractors' enterprises.The conclusions and main contributions are as follows:(1)By studying the influence of Guanxi governance on the performance of international construction projects,the applicability of the guanxi governance mechanism in the field of transnational construction in Chinese cultural background was validated.The study found that the trust,communication and cooperation between Chinese contractors and owners can improve the performance of the project,but Renqing has no impact on project performance.It is revealed that the rational and flexible guanxi governance behavior is still applicable in the international environment,Renqing only acts as lubricant in the project progress,and the short-term communication and favor have no fundamental driving force for the improvement of project performance..(2)Through the study of the two dimensions of environmental uncertainty(macro-environmental uncertainty and micro-environmental uncertainty)on the relationship between guanxi governance and project performance,it provides a new perspective for the study of guanxi governance.It also enriches the literature on environmental uncertainty.The study finds that macro-environmental uncertainty strengthens the positive effect of Renqing and communication on project performance,and the micro-environmental uncertainty strengthens the inhibition of Renqing and cooperation on project performance.It shows that the macroenvironment at the national level and micro-environment at the project level of Chinese contractors will influence and change the role of guanxi governance.And the impact of the two environmental uncertainties on the guanxi governance is different.Therefore,when Chinese contractors use guanxi governance,they should consider macro and micro environmental factors,so as to maximize the advantages of “guanxi” governance and avoid the disadvantages of “guanxi” governance.In addition,the micro-environmental uncertainty will directly have a negative impact on project performance,indicating that the effectiveness of the guanxi governance is limited by the contractor's external environment.The contractors need to find an effective governance mechanism according to the macroscopic and microcosmic environment.