Effects of interdependence asymmetry of parties in construction conflicts

Abstract

This research is about asymmetry of dependence on the exchange relationship, termed exchange interdependence asymmetry, which can generate power asymmetry and then influence actors’ psychological states and resulting behaviours in construction conflicts. In construction projects, one can observe that the likelihood of potential conflicts latent in same events becoming manifest conflicts differs across projects. Moreover, facing the same manifest conflicts, different conflict resolution behaviours make some manifest conflicts easily to be resolved while some others far less tractable. To explain the above phenomenon, it is necessary to explore the situations where a potential conflict will and will not become manifest as well as the conditions under which actors choose conflict resolution behaviours that support (or sabotage) the resolution of a manifest conflict. This research aims to explore these conditions from power perspective and investigates whether and how exchange interdependence asymmetry affects the likelihood of conflict manifestation and choice of conflict resolution behaviour. In responding to the research questions, two research objectives are proposed: (1) to investigate whether and how an actor’s dependence disadvantage affects conflict expression; and 2) to investigate whether and how an actor’s dependence disadvantage affects the choice of conflict resolution behaviour. This research applies approach/inhibition theory of power to develop two theoretical models with the following major hypotheses: (1) an actor’s dependence disadvantage negatively affects conflict expression mediated by psychological safety; and (2) an actor’s dependence disadvantage positively affects integrating behaviour, compromising behaviour and obliging behaviour mediated by sense of power, while negatively affects dominating behaviour mediated by sense of power. These hypotheses are tested by questionnaire survey with experienced Chinese project professionals in conflict management. Logistical regression analysis and structural equation modelling are used to process the data. This research reveals that exchange interdependence asymmetry negatively affects the likelihood of conflict manifestation where (1) the transacting parties have no prior transaction history or (2) a conflict event occurred during the middle stage of the construction period. These conclusions are derived from the findings that an actor’s dependence disadvantage has a negative indirect effect on conflict expression completely mediated by psychological safety in the above two situations. Besides, this research reveals that exchange interdependence asymmetry can affect both parties’ choice of conflict resolution behaviour. Specifically, the more asymmetric exchange interdependence is, the more likely the party with a dependence advantage is to use dominating behaviour, and the more likely the party with a dependence disadvantage is to use obliging behaviour or compromising behaviour. This research contributes to power and conflict management literature by investigating the underlying mechanisms of the effects of exchange interdependence asymmetry on the likelihood of conflict manifestation and choice of conflict resolution behaviour in construction projects. Moreover, this research enriches approach/inhibition theory of power by identifying its effective domain and extends the notion of psychological safety to the conflict context. This research also delivers some practical implications, suggesting that a more dependent actor should seek a more complete contract, and providing recommendations for an actor at a dependence disadvantage in conflict negotiations.