How mediated power affects opportunism in owner–contractor relationships: The role of risk perceptions

Abstract

Contractor opportunism is an obstacle to close collaboration in owner–contractor relationships for construction projects. But little is known about what causes it. This study examines how the mediated power of an owner influences contractor opportunism from the risk perception perspective. Using data from 156 responses to an opinion questionnaire survey, the moderating effect of solidarity on the relationship between mediated power and risk perceptions in the owner–contractor relationship is explored. The data were analyzed with Partial-Least Squares Structural Equation Modeling (PLS-SEM). The results show that the relational risk perceptions and the performance risk perceptions of contractors have a positive influence on their tendency to become opportunist; while the mediated power of the owner can increase the contractor's negative perceptions of relational risks but not performance risks. High solidarity helps to weaken the positive influence of mediated power on the contractor's relational risk perceptions. These findings confirm that risk perception is an important perspective to understand why contractors behave opportunistically. In addressing this situation, owners should put themselves in the contractor's shoes to perceive what kinds of risks the contractor would face, and consider the potential impact of their own behavior to the contractor.