Tensions in governing megaprojects: How different types of ties shape project relationship quality?

Abstract

Faced with increasing governance tensions to cope with conflicts and risks associated with megaprojects, relationship management is seen as an essential aspect for improving relationship quality and achieving project success. Drawing upon transaction cost theory, this study investigated the effects of two types of ties (relational ties and structural ties) on relationship quality. Data from 212 megaproject practitioners were analyzed by structural equation modeling (SEM) and fuzzy-set qualitative comparative analysis (fsQCA). The SEM revealed the indirect effects of two types of ties on relationship quality and the mediating role of contractual functions in the management of relationships. Through the lens of symbiosis, the fsQCA revealed three types of configurations that were sufficient for shaping relationship quality. This study provides a systematic and nuanced distinction between multi-dimensional strengths of ties and contractual functions in project management. Such knowledge would allow megaproject managers to develop effective interventions aimed at enhancing relationship quality.