Motivation toward financial incentive goals on construction projects
AbstractConstruction industry observers tout the use of financial incentives as promoters of motivation and commitment on projects. Yet, little empirical evidence exists concerning their effectiveness. What are the drivers of motivation on construction projects? The reasons that construction project participants are motivated to pursue voluntary incentive goals are examined through four Australian case studies. The results demonstrate the critical role played by project relationships and equitable contract conditions in promoting the effectiveness of financial incentives. In the context of a construction project, this study finds financial incentives to be less important to motivation and performance than relationship enhancement initiatives. This finding is unexpected and has implications for the design of project procurement strategies. These results suggest that if project clients ignore the importance of relationship quality between participants, the impact of any financial incentive will be compromised.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Business Research.
Volume (Year): 64 (2011)
Issue (Month): 7 (July)
Contact details of provider:
Web page: http://www.elsevier.com/locate/jbusres
Financial incentives Construction Contracts Motivation Projects;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andersen, Poul Houman & Cook, Nicole & Marceau, Jane, 2004. "Dynamic innovation strategies and stable networks in the construction industry: Implanting solar energy projects in the Sydney Olympic Village," Journal of Business Research, Elsevier, vol. 57(4), pages 351-360, April.
- Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
- Ernst Fehr & Armin Falk, .
"Psychological Foundations of Incentives,"
IEW - Working Papers
095, Institute for Empirical Research in Economics - University of Zurich.
- Fehr, Ernst & Falk, Armin, 2002. "Psychological Foundations of Incentives," IZA Discussion Papers 507, Institute for the Study of Labor (IZA).
- Ernst Fehr, 2003. "Psychological Foundations of Incentives," Microeconomics 0305010, EconWPA.
- Ernst Fehr & Armin Falk, 2002. "Psychological Foundations of Incentives," CESifo Working Paper Series 714, CESifo Group Munich.
- Falk, Armin & Fehr, Ernst, 2002. "Psychological Foundations of Incentives," CEPR Discussion Papers 3185, C.E.P.R. Discussion Papers.
- J. Rodney Turner, 2004. "Farsighted project contract management: incomplete in its entirety," Construction Management and Economics, Taylor & Francis Journals, vol. 22(1), pages 75-83.
- Robert Gibbons, 1998.
"Incentives in Organizations,"
Journal of Economic Perspectives,
American Economic Association, vol. 12(4), pages 115-132, Fall.
- Marco Herpen & Mirjam Praag & Kees Cools, 2005. "The Effects of Performance Measurement and Compensation on Motivation: An Empirical Study," De Economist, Springer, vol. 153(3), pages 303-329, 09.
- Sliwka, Dirk, 2003.
"On the Hidden Costs of Incentive Schemes,"
IZA Discussion Papers
844, Institute for the Study of Labor (IZA).
- Ranjay Gulati & Maxim Sytch, 2008. "Does familiarity breed trust? Revisiting the antecedents of trust," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 165-190.
- Ariño, Africa & de la Torre, Jose & Ring, Peter S., 2001. "Relational quality: Managing trust in corporate alliances," IESE Research Papers D/434, IESE Business School.
- Mike Bresnen & Nick Marshall, 2000. "Motivation, commitment and the use of incentives in partnerships and alliances," Construction Management and Economics, Taylor & Francis Journals, vol. 18(5), pages 587-598.
- Moers,F, 2000. "The Role of Performance Measure Characteristics in the Design of Incentive Systems: An Empirical Analysis," Research Memorandum 020, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Karen Manley, 2006. "The innovation competence of repeat public sector clients in the Australian construction industry," Construction Management and Economics, Taylor & Francis Journals, vol. 24(12), pages 1295-1304.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.