The role of trust in project negotiation: A case study
- electrical projects
How to Cite
Copyright (c) 2020
This work is licensed under a Creative Commons Attribution 4.0 International License.
Most projects include procurement processes which may consist of tendering, negotiation or a combination of the two. It has been found that if the procurement relationships in a project are healthy, then it has a significant influence on the success of the project. This may be because team performance in a project environment is influenced, amongst others, by the extent to which the contracting parties trust each other. However, most of these studies have been conducted in Europe, America, and Asia and in large international construction projects where tendering is the usual method of contract award. Few studies have investigated the role and types of trust during project initiation, specifically during project negotiation.
- Ahola, T. 2009, 'Efficiency in project networks: the role of inter-organizational relationships in project implementation Tuomas Ahola', Helsinki University of Technology.
- de Araújo, M.C.B., Alencar, L.H. & de Miranda Mota, C.M. 2017, 'Project procurement management: A structured literature review', International Journal of Project Management, p. 25. https://doi.org/10.1016/j.ijproman.2017.01.008
- Arslan, G. 2012, 'Web-based contractor evaluation system for mass-housing projects in Turkey', Journal of Civil Engineering Management, vol. 18, no. 3, pp. 323-34.https://doi.org/10.3846/13923730.2012.698892
- Bolton, P. 2006, 'Grounds for dispensing with public tender procedures in Government Contracting', Potchefstroom Electronic Law Journal, vol. 9, no. 2.https://doi.org/10.4314/pelj.v9i2.43444
- Bolwerk, W. & Groot, N. 2016, 'How Trust and Understanding in a Municipal Organization can Lead to More Effective and Credible Leadership', Procedia - Social and Behavioral Sciences, vol. 226, pp. 269-77.https://doi.org/10.1016/j.sbspro.2016.06.188
- Costa, A.C. & Anderson, N. 2011, 'Measuring trust in teams: Development and validation of a multifaceted measure of formative and reflective indicators of team trust', European Journal of Work and Organizational Psychology, vol. 20, no. 1, pp. 119-54.https://doi.org/10.1080/13594320903272083
- Diallo, A. & Thuillier, D. 2005, 'The success of international development projects, trust and communication: an African perspective', International Journal of Project Management, vol. 23, no. 3, pp. 237-52, viewed 21 September 2011, <http://linkinghub.elsevier.com/retrieve/pii/S0263786304000997>.https://doi.org/10.1016/j.ijproman.2004.10.002
- Elkins, A.C. & Derrick, D.C. 2013, 'The Sound of Trust: Voice as a Measurement of Trust During Interactions with Embodied Conversational Agents', Group Decision and Negotiation, vol. 22, no. 5, pp. 897-913.https://doi.org/10.1007/s10726-012-9339-x
- Gil, N., Pinto, J.K. & Smyth, H. 2011, 'Trust in relational contracting and as a critical organizational attribute', in P.W.G. Morris, J. Pinto & J. Söderlund (eds),The Oxford Handbook of Project Management, Oxford University Press, Oxford, pp. 438-60.https://doi.org/10.1093/oxfordhb/9780199563142.003.0019
- Gill, P., Stewart, K., Treasure, E. & Chadwick, B. 2008, 'Methods of data collection in qualitative research: interviews and focus groups', British Dental Journal, vol. 204, no. 6, pp. 291-5.https://doi.org/10.1038/bdj.2008.192
- Grafton, J. & Mundy, J. 2016, 'Relational contracting and the myth of trust: Control in a co-operative setting', Management Accounting Research, vol. 36, pp. 24-42.https://doi.org/10.1016/j.mar.2016.07.008
- Hensher, D.A. & Stanley, J. 2008, 'Transacting under a performance-based contract: The role of negotiation and competitive tendering', Transportation Research Part A: Policy and Practice, vol. 42, no. 9, pp. 1143-51.https://doi.org/10.1016/j.tra.2008.05.004
- Hoezen, M.E.L. 2012, 'The competitive dialogue procedure: negotiations and commitment in inter-organisational construction projects', University of Twente.
- Hurley, R.F. 2011, The decision to trust: How leaders create high-trust organisations, Jossey-Bass, San Francisco.
- Issa, R.A., Olbina, S. & Zuppa, D. 2018, 'Model for developing trust on US construction projects', Built Environment Project and Asset Management, vol. 8, no. 1, pp. 5-23.https://doi.org/10.1108/BEPAM-03-2017-0017
- Kadefors, A. 2004, 'Trust in project relationships-inside the black box', International Journal of Project Management, vol. 22, no. 3, pp. 175-82, viewed 13 July 2011, <http://linkinghub.elsevier.com/retrieve/pii/S0263786303000310>.https://doi.org/10.1016/S0263-7863(03)00031-0
- Kavanagh, P. 2016, 'A case for negotiated performance-based contracting rather than competitive tendering in government public transport (bus) service procurement', Research in Transportation Economics, vol. 59, pp. 313-22. https://doi.org/10.1016/j.retrec.2016.06.006
- Lewicki, R. and Stevenson, M. 1997, 'Trust development in negotiation: Proposed actions and a research agenda', Trust and Business: Barriers and Bridges, DePaul University, Chicago.https://doi.org/10.5840/bpej1997161/2/311
- Lumineau, F. & Henderson, J.E. 2012, 'The influence of relational experience and contractual governance on the negotiation strategy in buyer-supplier disputes', Journal of Operations Management, vol. 30, no. 5, pp. 382-95. https://doi.org/10.1016/j.jom.2012.03.005
- Mayer, R., Davis, J. & Schoorman, F. 1995, 'An integrative model of organizational trust', Academy of Management Review, vol. 20, no. 3, pp. 709-734. https://doi.org/10.5465/amr.1995.9508080335
- Meyerson, D., Weick, K.E. & Kramer, R.M. 1996, 'Swift Trust and Temporary Groups', in M. Kramer & T.R. Tyler (eds), Trust in Organizations: Frontiers of Theory and Research, Sage Publications, Thousand Oaks, CA, pp. 166-95. https://doi.org/10.4135/9781452243610.n9
- Milanzi, M. & Bond-Barnard, T. 2017, 'Exploring the Effects of Centralised Procurement on Projects in South African Matrix Mining Organizations', PMI Australia Conference, Project Management Research & Practice Journal, Sydney, Australia, pp. 1-22.https://doi.org/10.5130/pmrp.pmiac2017.5835
- Ministry of Business Innovation and Employment 2015, Mastering Procurement: A structured approach to procurement management, Strategic Procurement.
- Morgan, R.M. & Hunt, S.D. 1994, 'The commitment-trust theory of relationship marketing', The Journal of Marketing, pp. 20-38. https://doi.org/10.1177/002224299405800302
- Müller, R. & Martinsuo, M. 2015, 'The impact of relational norms on information technology project success and its moderation through project governance', International Journal of Managing Projects in Business, vol. 8, no. 1, pp. 154-76. https://doi.org/10.1108/IJMPB-04-2014-0036
- Murtoaro, J. & Kujala, J. 2007, 'Project negotiation analysis', International Journal of Project Management, vol. 25, no. 7, pp. 722-33. https://doi.org/10.1016/j.ijproman.2007.03.002
- Nassar, K. & Hosny, O. 2013, 'Fuzzy clustering validity for contractor performance evaluation: application to UAE contractors', Automation in Construction, vol. 31, pp. 158-68. https://doi.org/10.1016/j.autcon.2012.11.013
- Neuman, L.W. 2014, Social Research Methods: Quantitative and Qualitative Approaches, Pearson Education Limited, London.
- Nicholas, J.M. & Steyn, H. 2017, Project Management for Business, Engineering and Technology, Fifth., Routledge, Oxon.
- Pinto, J.K., Slevin, D.P. & English, B. 2009, 'Trust in projects: An empirical assessment of owner/contractor relationships', International Journal of Project Management, vol. 27, no. 6, pp. 638-48, viewed 11 June 2011, <http://linkinghub.elsevier.com/retrieve/pii/S0263786308001385>.
- du Plessis, Y.E.A. 2014, Project Management- A Behavioural Perspective, Pearson, Pretoria.
- PMI 2017, A Guide to the Project Management Body of Knowledge, Sixth., Project Management Institute, Inc., Newton Square, PA.
- Rosenthal, M. 2016, 'Qualitative research methods: Why, when, and how to conduct interviews and focus groups in pharmacy research', Currents in Pharmacy Teaching and Learning, vol. 8, no. 4, pp. 509-16. https://doi.org/10.1016/j.cptl.2016.03.021
- Rousseau, D.M., Sitkin, S.B., Burt, R.S. & Camerer, C. 1998, 'Not so Different After All?: A Cross-Discipline View of Trust', Academy of Management Review, vol. 23, no. 3, pp. 393-404. https://doi.org/10.5465/amr.1998.926617
- Schiller, S.Z., Mennecke, B.E., Nah, F.F.H. & Luse, A. 2014, 'Institutional boundaries and trust of virtual teams in collaborative design: An experimental study in a virtual world environment', Computers in Human Behavior, vol. 35, pp. 565-77. https://doi.org/10.1016/j.chb.2014.02.051
- Sparrius, A. 2016, 'Project Procurement Management', in H. Steyn (ed.),Project Management: A multidisciplinary Approach, FPM Publishing, Pretoria, pp. 449-504.
- Steyn, H., Carruthers, M., Dekker, A., du Plessis, Y., Kruger, D., Kuschke, B., Sparrius, A., van Eck, S. & Visser, K. 2016, Project Management: a Multi-disciplinary Approach, H. Steyn (ed.), 4th Revise., FPM Publishing, Pretoria.
- Tadelis, S. & Bajari, P. 2006, 'Incentives and award procedures: competitive tendering vs. negotiations in procurement', Handbook of procurement, pp. 121-39.
- Tatham, P. & Kovacs, G. 2010, 'The application of "swift trust" to humanitarian logistics', International Journal of Production Economics, vol. 26, no. 1, pp. 35-45. https://doi.org/10.1016/j.ijpe.2009.10.006
- Walker, R. 2011, Strategic management communication for leaders, South-Western Cengage Learning, Mason, OH.
- Wallis, I., Bray, D. & Webster, H. 2010, 'To competitively tender or to negotiate - Weighing up the choices in a mature market', Research in Transportation Economics, vol. 29, no. 1, pp. 89-98. https://doi.org/10.1016/j.retrec.2010.07.012
- Weick, K.E. & Roberts, K.H. 1993, 'Collective mind in organizations: Heedful interrelating on flight decks.', Administrative Science Quarterly, vol. 38, no. 3, pp. 357-381. https://doi.org/10.2307/2393372
- Weiping, J., Lu, Y. & Le, Y. 2016, 'Trust and Project Success: A Twofold Perspective between Owners and Contractors.', Journal of Management in Engineering., vol. 32, no. 6, p. 04016022. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000469
- Williams, M. 2001, 'In whom we trust: Group membership as an effective context for trust development', Academy of Management Review, vol. 26, no. 3, pp. 377-396. https://doi.org/10.5465/amr.2001.4845794
- Wong, W.K., Cheung, S.O., Yiu, T.W. & Pang, H.Y. 2008, 'A framework for trust in construction contracting', International Journal of Project Management, vol. 26, no. 8, pp. 821-9. https://doi.org/10.1016/j.ijproman.2007.11.004
- Yin, R. 2014, Case study Research Design and Method, V. Knight (ed.), fifth edit., SAGE Publications, London.
- Yin, R.K. 2015, 'Case Studies A2', in J.D. Wright (ed.), International Encyclopedia of the Social & Behavioral Sciences, second edi., Oxford: Elsevier, pp. 194-201. https://doi.org/10.1016/B978-0-08-097086-8.10507-0
- Zhang, J.D., Liu, L.A. & Liu, W. 2015, 'Trust and Deception in Negotiation: Culturally Divergent Effects', Management and Organization Review, vol. 11, no. 1, pp. 123-44. https://doi.org/10.1111/more.12028