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Motivation toward financial incentive goals on construction projects


  • Rose, Timothy
  • Manley, Karen


Construction 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.

Suggested Citation

  • Rose, Timothy & Manley, Karen, 2011. "Motivation toward financial incentive goals on construction projects," Journal of Business Research, Elsevier, vol. 64(7), pages 765-773, July.
  • Handle: RePEc:eee:jbrese:v:64:y:2011:i:7:p:765-773

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    References listed on IDEAS

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    1. repec:eee:ejores:v:261:y:2017:i:3:p:1066-1084 is not listed on IDEAS
    2. Rodríguez-Segura, Enrique & Ortiz-Marcos, Isabel & Romero, José Javier & Tafur-Segura, Javier, 2016. "Critical success factors in large projects in the aerospace and defense sectors," Journal of Business Research, Elsevier, vol. 69(11), pages 5419-5425.
    3. Kerkhove, L.P. & Vanhoucke, M., 2016. "Incentive contract design for projects: The owner׳s perspective," Omega, Elsevier, vol. 62(C), pages 93-114.


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