Technical Papers
Mar 14, 2024

Concentrated or Dispersed: The Effects of Subcontracting Organizational Arrangements on Construction Project Resilience

Publication: Journal of Management in Engineering
Volume 40, Issue 3

Abstract

Construction project deliveries are confronted with various unprecedented challenges and disruptions in today’s dynamic business environment, including external disturbances and internal discontinuity, but previous studies have paid little attention to project resilience and its antecedents. Subcontracting is an important way of tackling construction project disruptions, but many subcontracting decisions made by general contractors have turned out to fail to achieve the desired goals. This study investigates the effects of subcontracting organizational arrangements of general contractors, i.e., subcontracting dispersion, on construction project resilience, including proactive resilience and reactive resilience. Besides, the social network perspective is employed to explain the aforementioned effects in consideration of the significance of the network-level features for project resilience. In particular, this study scrutinizes the mediating role of two core features of subcontracting networks—strength and openness. Questionnaire data were collected from Chinese general contractors. The questionnaire items were adopted from previous studies and were finalized based on semistructured interviews and a pilot study. The empirical analyses show that subcontracting dispersion enhances proactive resilience while exerting no significant effects on reactive resilience. The mediating analyses show that subcontracting network openness plays a mediating role in the link between subcontracting dispersion and the two resilience elements. Theoretically, this study has introduced the social network perspective to (1) empirically scrutinize the underexplored project resilience and its antecedents; (2) investigate the less-explored issue of subcontracting dispersion and clarify the “concentrated or dispersed” dilemma by differentiating the dimensions of social networks and elements of project resilience; and (3) shed light on the conflicting findings about the advantages of social networks by highlighting the disruption contexts. Practically, project managers can benefit to design subcontracting organizational arrangements and develop their subcontracting networks in order to enhance construction project resilience.

Get full access to this article

View all available purchase options and get full access to this article.

Data Availability Statement

Some or all data, models, or code that support the findings of this study are available from the corresponding author upon reasonable request.

Acknowledgments

This study was supported by the Social Science Planning Project of Shandong Province (No. 23DGLJ12).

References

Abbasianjahromi, H., H. Rajaie, and E. Shakeri. 2013. “A framework for subcontractor selection in the construction industry.” J. Civ. Eng. Manage. 19 (2): 158–168. https://doi.org/10.3846/13923730.2012.743922.
Ali, A., A. Mahfouz, and A. Arisha. 2017. “Analysing supply chain resilience: Integrating the constructs in a concept mapping framework via a systematic literature review.” Supply Chain Manage. 22 (1): 16–39. https://doi.org/10.1108/SCM-06-2016-0197.
Asamoah, D., B. Agyei-Owusu, and E. Ashun. 2020. “Social network relationship, supply chain resilience and customer-oriented performance of small and medium enterprises in a developing economy.” Benchmarking: Int. J. 27 (5): 1793–1813. https://doi.org/10.1108/BIJ-08-2019-0374.
Baron, R. M., and D. A. Kenny. 1986. “The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations.” J. Personality Social Psychol. 51 (6): 1173. https://doi.org/10.1037/0022-3514.51.6.1173.
Bhamra, R., S. Dani, and K. Burnard. 2011. “Resilience: The concept, a literature review and future directions.” Int. J. Prod. Res. 49 (18): 5375–5393. https://doi.org/10.1080/00207543.2011.563826.
Blay, K. B. 2017. Resilience in projects: Definition, dimensions, antecedents and consequences. Loughborough, UK: Loughborough Univ.
Bode, C., S. M. Wagner, K. J. Petersen, and L. M. Ellram. 2011. “Understanding responses to supply chain disruptions: Insights from information processing and resource dependence perspectives.” Acad. Manage. J. 54 (4): 833–856. https://doi.org/10.5465/amj.2011.64870145.
Burt, R. S. 1992. Structural holes: The social structure of competition. Cambridge, MA: Harvard University Press.
Carmeli, A., A. Levi, and R. Peccei. 2021. “Resilience and creative problem-solving capacities in project teams: A relational view.” Int. J. Project Manage. 39 (5): 546–556. https://doi.org/10.1016/j.ijproman.2021.03.007.
Chen, Y., Y. Chen, Z. Liu, and H. Yao. 2018. “Influence of prior ties on trust in contract enforcement in the construction industry: Moderating role of the shadow of the future.” J. Manage. Eng. 34 (2): 04017064. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000584.
Chih, Y.-Y., Y.-L. Hsiao Cody, A. Zolghadr, and N. Naderpajouh. 2022. “Resilience of organizations in the construction industry in the face of COVID-19 disturbances: Dynamic capabilities perspective.” J. Manage. Eng. 38 (2): 04022002. https://doi.org/10.1061/(ASCE)ME.1943-5479.0001014.
Chowdhury, M. M. H., and M. Quaddus. 2017. “Supply chain resilience: Conceptualization and scale development using dynamic capability theory.” Int. J. Prod. Econ. 188 (May): 185–204. https://doi.org/10.1016/j.ijpe.2017.03.020.
Ding, C. G., C.-F. Chen, and T.-D. Jane. 2023. “Improving the performance of the unmeasured latent method construct technique in common method variance detection and correction.” J. Organ. Behav. 44 (3): 519–542. https://doi.org/10.1002/job.2673.
Eisingerich, A. B., S. J. Bell, and P. Tracey. 2010. “How can clusters sustain performance? The role of network strength, network openness, and environmental uncertainty.” Res. Policy 39 (2): 239–253. https://doi.org/10.1016/j.respol.2009.12.007.
Fan, Y., and M. Stevenson. 2019. “Non-linear effects of relational capital on supply-side resilience: The moderating role of boundary spanners’ personal ties.” Int. J. Oper. Prod. Manage. 39 (9/10): 1053–1075. https://doi.org/10.1108/IJOPM-09-2018-0530.
Franke, H., F. Wynstra, F. Nullmeier, and C. Nullmeier. 2022. “Project managers’ reactions to project disruption: Sponsor actions versus environmental uncertainty.” Int. J. Oper. Prod. Manage. 42 (13): 335–357. https://doi.org/10.1108/IJOPM-02-2022-0103.
Geambasu, G. 2011. “Expect the unexpected: An exploratory study on the conditions and factors driving the resilience of infrastructure projects.” Ph.D. thesis, Au College du Management de la Technologie, École Polytechnique Fédérale de Lausanne.
Gölgeci, I., and O. Kuivalainen. 2020. “Does social capital matter for supply chain resilience? The role of absorptive capacity and marketing-supply chain management alignment.” Ind. Mark. Manage. 84 (Mar): 63–74. https://doi.org/10.1016/j.indmarman.2019.05.006.
Granovetter, M. S. 1973. “The strength of weak ties.” Am. J. Sociol. 78 (6): 1360–1380. https://doi.org/10.1086/225469.
Gulati, R. 1999. “Network location and learning: The influence of network resources and firm capabilities on alliance formation.” Strategic Manage. J. 20 (5): 397–420. https://doi.org/10.1002/(SICI)1097-0266(199905)20:5%3C397::AID-SMJ35%3E3.0.CO;2-K.
Han, F., and S. M. Bogus. 2021. “Resilience criteria for project delivery processes: An exploratory analysis for highway project development.” J. Constr. Eng. Manage. 147 (11): 04021140. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002179.
Han, Y., W. K. Chong, and D. Li. 2020. “A systematic literature review of the capabilities and performance metrics of supply chain resilience.” Int. J. Prod. Res. 58 (15): 4541–4566. https://doi.org/10.1080/00207543.2020.1785034.
Hou, T., Y. Fang, J. J. Li, J. Lin, and Q. Su. 2023. “Building organizational resilience: The role of supply chain board members and in supply network positions.” IEEE Trans. Eng. Manage. https://doi.org/10.1109/TEM.2023.3287836.
Hu, Z., G. Wu, X. Zhao, J. Zuo, and S. Wen. 2021. “How does the strength of ties influence relationship quality in Chinese megaprojects? The mediating role of contractual flexibility.” Balt. J. Manage. 16 (3): 366–385. https://doi.org/10.1108/BJM-09-2020-0347.
Kutsch, E., and M. Hall. 2016. Project resilience: The art of noticing, interpreting, preparing, containing and recovering. Oxfordshire, UK: Routledge.
Lee, J.-N., Y. Park, D. W. Straub, and Y. Koo. 2019. “Holistic archetypes of IT outsourcing strategy: A contingency fit and configurational approach.” MIS Q. 43 (4): 1201–1226. https://doi.org/10.25300/MISQ/2019/14370.
Li, Y., X. Wang, T. Gong, and H. Wang. 2023. “Breaking out of the pandemic: How can firms match internal competence with external resources to shape operational resilience?” J. Oper. Manage. 69 (3): 384–403. https://doi.org/10.1002/joom.1176.
Lu, P., L. Qian, Z. Chu, and X. Xu. 2016. “Role of opportunism and trust in construction projects: Empirical evidence from China.” J. Manage. Eng. 32 (2): 05015007. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000401.
Park, J., T. P. Seager, P. S. C. Rao, M. Convertino, and I. Linkov. 2013. “Integrating risk and resilience approaches to catastrophe management in engineering systems.” Risk Anal. 33 (3): 356–367. https://doi.org/10.1111/j.1539-6924.2012.01885.x.
Park, K. 2011. “Flexible and redundant supply chain practices to build strategic supply chain resilience: Contingent and resource-based perspectives.” Ph.D. thesis, College of Business and Innovation, Univ. of Toledo.
Patel, P. C., and S. Terjesen. 2011. “Complementary effects of network range and tie strength in enhancing transnational venture performance.” Strategic Entrepreneurship J. 5 (1): 58–80. https://doi.org/10.1002/sej.107.
Rahi, K. 2019. “Project resilience: A conceptual framework.” Int. J. Inf. Syst. Project Manage. 7 (1): 69–83. https://doi.org/10.12821/ijispm070104.
Ram, J. 2023. “Investigating staff capabilities to make projects resilient: A systematic literature review and future directions.” Int. J. Prod. Econ. 255 (Jan): 108687. https://doi.org/10.1016/j.ijpe.2022.108687.
Ranasinghe, U., M. Jefferies, P. Davis, and M. Pillay. 2023. “Enabling a resilient work environment: An analysis of causal relationships between resilience engineering factors in construction refurbishment projects.” J. Constr. Eng. Manage. 149 (9): 04023078. https://doi.org/10.1061/JCEMD4.COENG-13283.
Randolph, R. V. 2016. “A multilevel study of structural resilience in interfirm collaboration: A network governance approach.” Manage. Decis. 54 (1): 248–266. https://doi.org/10.1108/MD-06-2015-0247.
Richardson, H. A., M. J. Simmering, and M. C. Sturman. 2009. “A tale of three perspectives.” Organ. Res. Methods 12 (4): 762–800. https://doi.org/10.1177/1094428109332834.
Rød, B., D. Lange, M. Theocharidou, and C. Pursiainen. 2020. “From risk management to resilience management in critical infrastructure.” J. Manage. Eng. 36 (4): 04020039. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000795.
Shen, W., and W. Ying. 2022. “Large-scale construction programme resilience against creeping disruptions: Towards inter-project coordination.” Int. J. Project Manage. 40 (6): 671–684. https://doi.org/10.1016/j.ijproman.2022.06.004.
Shi, C., Y. Chen, Y. Hua, and Y. Tang. 2023. “Understanding subcontracting organizational arrangements for construction projects in China: Integrating capabilities and uncertainty.” Eng. Constr. Archit. Manage. 30 (6): 2381–2399. https://doi.org/10.1108/ECAM-11-2019-0631.
Spector, P. E. 2019. “Do not cross me: Optimizing the use of cross-sectional designs.” J. Bus. Psychol. 34 (2): 125–137. https://doi.org/10.1007/s10869-018-09613-8.
Sun, J., X. Ren, and J. Anumba Chimay. 2019. “Analysis of knowledge-transfer mechanisms in construction project cooperation networks.” J. Manage. Eng. 35 (2): 04018061. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000663.
Tang, Y., Y. Chen, D. Arditi, and F. Meng. 2021. “Effects of the general contractor’s governance capabilities and project goals on the organizational arrangement of subcontracting.” IEEE Trans. Eng. Manage. 70 (5): 1724–1737. https://doi.org/10.1109/TEM.2021.3064020.
Tang, Y., Y. Chen, H. Yao, and Y. Chen. 2023. “When does control curb opportunistic behaviour: Evidence from the construction industry.” Prod. Plann. Control. https://doi.org/10.1080/09537287.2023.2166882.
Tang, Y., and H. Yao. 2023. “Watch out for the hidden costs of subcontracting in construction projects: The impacts of subcontractor dispersion.” J. Constr. Eng. Manage. 149 (11): 04023113. https://doi.org/10.1061/JCEMD4.COENG-13307.
Tukamuhabwa, B. R., M. Stevenson, J. Busby, and M. Zorzini. 2015. “Supply chain resilience: Definition, review and theoretical foundations for further study.” Int. J. Prod. Res. 53 (18): 5592–5623. https://doi.org/10.1080/00207543.2015.1037934.
Wang, L., X. Yang, F. Zhu, and O. J. Klakegg. 2023. “How governance of interorganizational projects develops resilience: Mediating role of resource reconfiguration.” J. Manage. Eng. 39 (2): 04022076. https://doi.org/10.1061/JMENEA.MEENG-4936.
Wedawatta, G., and B. Ingirige. 2016. “A conceptual framework for understanding resilience of construction SMEs to extreme weather events.” Built. Environ. Project Asset Manage. 6 (4): 428–443. https://doi.org/10.1108/BEPAM-06-2015-0023.
Wieland, A., and C. M. Wallenburg. 2013. “The influence of relational competencies on supply chain resilience: A relational view.” Int. J. Phys. Distrib. Logist. Manage. 43 (4): 300–320. https://doi.org/10.1108/IJPDLM-08-2012-0243.
Wu, G., J. Zheng, X. Zhao, and J. Zuo. 2020. “How does strength of ties influence project performance in Chinese megaprojects?” Int. J. Conflict Manage. 31 (5): 753–780. https://doi.org/10.1108/IJCMA-09-2019-0150.
Yang, X., L. Wang, F. Zhu, and R. Müller. 2022. “Prior and governed stakeholder relationships: The key to resilience of inter-organizational projects.” Int. J. Project Manage. 40 (1): 64–75. https://doi.org/10.1016/j.ijproman.2021.10.001.
Yao, H., Y. Chen, Y. Chen, and X. Zhu. 2019. “Mediating role of risk perception of trust and contract enforcement in the construction industry.” J. Constr. Eng. Manage. 145 (2): 04018130. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001604.
Yao, H., Y. Chen, and Y. Tang. 2023. “Contract violations in the construction projects: How contractual obligations are reached affects contractual and reputational enforcement.” IEEE Trans. Eng. Manage. https://doi.org/10.1109/TEM.2023.3257883.
Zhang, S., Y. Fu, Y. Gao, and X. Zheng. 2016. “Influence of trust and contract on dispute negotiation behavioral strategy in construction subcontracting.” J. Manage. Eng. 32 (4): 04016001. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000427.

Information & Authors

Information

Published In

Go to Journal of Management in Engineering
Journal of Management in Engineering
Volume 40Issue 3May 2024

History

Received: Aug 17, 2023
Accepted: Dec 28, 2023
Published online: Mar 14, 2024
Published in print: May 1, 2024
Discussion open until: Aug 14, 2024

Permissions

Request permissions for this article.

ASCE Technical Topics:

Authors

Affiliations

Assistant Professor, School of Management, Shandong Univ., Jinan 250100, PR China. ORCID: https://orcid.org/0000-0002-9375-5554. Email: [email protected]
Ph.D. Candidate, Antai College of Management and Economics, Shanghai Jiaotong Univ., Shanghai 200030, PR China (corresponding author). ORCID: https://orcid.org/0000-0001-6394-6846. Email: [email protected]

Metrics & Citations

Metrics

Citations

Download citation

If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.

View Options

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Media

Figures

Other

Tables

Share

Share

Copy the content Link

Share with email

Email a colleague

Share