Effect of Behavior Tension on Value Creation in Owner–Contractor Relationships: Moderating Role of Dependence Asymmetry

Abstract

Adding value is widely regarded as a key issue in engineering projects, and cooperative arrangements in project management have been investigated by researchers due to their superiority in value creation compared with traditional arrangements. However, it remains unclear how parties properly interact with each other to create greater value in their cooperative relationships. Based on the paradox theory, this study applied the construct of behavior tension to describe the tension between cooperative and competitive forms of behavior, a pair of two contradictory forces coexisting in owner–contractor partnerships. This study then explored the impact of behavior tension on value creation. Using data from 161 responses, the interactive effect of dependence asymmetry and behavior tension on value creation is examined. The data were analyzed using hierarchical regression. The results show an inverse U-shaped relationship between behavior tension and value creation in owner–contractor partnerships, implying that a balance between cooperation and competition, more than either behavior alone, is helpful in creating value. Meanwhile, dependence asymmetry weakens this inverse U-shaped relationship. This study contributes to the body of knowledge in project and engineering management by adding greater variance to partners’ behavior (i.e., not just cooperation or competition), and by potentially enriching our understanding of how to rearrange interactive behavior among partners in facilitating value creation. Our findings reveal that, to create greater value for each other, engineering managers should change their cognition regarding cooperation and competition, and try to take advantage of the merits of these two opposing forces.