The influence of owner power in fostering contractor cooperation: Evidence from China

Trust and power are considered to be two necessary mechanisms for promoting cooperation among construction partners. In this paper, trust is regarded as a mediator between power and cooperative performance. A model of the relationship between trust and power is developed and tested using the results of an empirical study based on a sample of Chinese contractors. The results show that an owner's expert power can influence a contractor's cognition- and affect-based trust in the owner and that coercive power has little direct impact on the formation of trust. However, coercive power is found to moderate the relationship between expert power and cognition-based trust, in that the relationship is more positive when the level of coercive power is lower. Moreover, affect-based trust has a significantly greater positive influence on cooperative performance than cognition-based trust. These findings are interpreted in light of Chinese culture, and provide some suggestions for how owners can exercise power to foster cooperation with their contractors.

► This paper explores how owners can exercise power to foster contractor's cooperation.
► Owner's expert power can influence a contractor's cognition- and affect-based trust.
► Affect-based trust has a greater positive influence on cooperative performance.