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The impact of relational governance on the adaptability of international contractors: a comparative study between China and Korea

Yi-Hsin Lin (Southeast University, Nanjing, China)
Yanzhe Guo (Southeast University, Nanjing, China)
Chan-Joong Kim (NOW Architects, Seoul, Republic of Korea)
Po-Han Chen (Department of Civil Engineering, National Taiwan University, Taipei, Taiwan)
Mingwei Qian (Suzhou New District Technology Industry Development Co., Ltd., Suzhou, China)

Engineering, Construction and Architectural Management

ISSN: 0969-9988

Article publication date: 6 July 2020

Issue publication date: 20 October 2020

295

Abstract

Purpose

In the process of undertaking overseas construction projects, relational governance has become indispensable for project stakeholders. This study examines how relational governance influences contractors' adaptability to foreign situations and whether such associations are positively moderated by international environmental complexity.

Design/methodology/approach

A crosssectional survey methodology was applied to collect primary data through questionnaires sent to domestic contractors in China and South Korea (hereafter Korea). Multiple regression analysis was used to test the effects of four dimensions of relational governance on contractor adaptability. Thereafter, the Chinese and Korean subsamples were tested separately through moderated regression analysis to explore differences in the influence of relational governance on adaptability.

Findings

The results showed that quality communication, favor exchange and establishing an emotional relationship significantly and positively affected a contractor’s adaptability. However, there were significant differences between the Chinese and Korean international contractors in terms of the moderating effects of international environment complexity.

Research limitations/implications

East Asian engagement in international development is not limited to China and Korea alone, and the study should be replicated using large representative samples from more countries, such as Japan, to gain a fuller understanding of the influence of relational governance.

Originality/value

The results have great significance for the managers of international contractors in East Asian countries and contribute to the research on relational governance and contractor adaptability.

Keywords

Acknowledgements

This work was supported by the National Natural Science Foundation of China under Grant No. 71573037.

Citation

Lin, Y.-H., Guo, Y., Kim, C.-J., Chen, P.-H. and Qian, M. (2020), "The impact of relational governance on the adaptability of international contractors: a comparative study between China and Korea", Engineering, Construction and Architectural Management, Vol. 27 No. 10, pp. 3235-3259. https://doi.org/10.1108/ECAM-12-2019-0719

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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