Use of leader–member exchange theory to promote the project governance of construction project contractors

Abstract

PurposeIn temporary construction project organizations, general contractors need to strengthen control over subcontractors through such measures as supervision and coordination, and resource sharing. In the management process, the good implementation of relational contracts among the general contractor and subcontractors is affected by the quality of relationship between managers and followers. From the perspective of leader–member exchange (LMX) theory, this study explores the influence of LMX, which reflects the quality of relationship between superiors and subordinates, on relational contracts.Design/methodology/approachBy combining the longitudinal influence mechanism and organizational background of relational contracts in project organizations, this study constructed a multi-level structural equation model. The hypothesis is tested based on data collected from 213 respondents.FindingsThe findings of this study show that LMX has a positive influence on relational contracts and organizational identification in construction project organizations. Organizational identification has a positive effect on relational contracts and plays a mediating role between LMX and relational contracts. Power distance plays a moderating role on the influence of LMX on organizational identification.Originality/valueThis study explores the influence of LMX on relational contracts from a new perspective, which can help establish a high-quality relation of the general contractor and subcontractors in project organizations and enriches the longitudinal study of relational contracts in project organizations.