Effect of Pressure on Construction Company Compliance Attitudes: Moderating Role of Organizational Ethical Climate
Publication: Journal of Construction Engineering and Management
Volume 148, Issue 11
Abstract
Increasingly demanding project requirements, stringent regulatory environments, and the urgent need to create a positive industry climate all exert great pressure on construction companies. Compared with other factors, some pressures have been proven to have a significant positive or negative impact on company compliance. Thus, while previous studies have identified the causes of rule violations in the construction industry, whether the specific pressures faced by these companies as representatives of project-based organizations drive them to violate the rules remains to be further investigated. In response, this study investigated the effects of three types of pressure—project, regulatory, and reputational—on the compliance attitudes of construction companies. The study also explored the moderating effects of three organizational ethical climates (OECs)—caring, law and code, and instrumental OECs—within these relationships. The results of a partial least-squares structural equation model (PLS-SEM) analysis of data provided by 209 construction practitioners indicate that project pressure negatively affects construction company compliance attitudes and that instrumental OEC strengthens this relationship. In addition, regulatory pressure has a positive effect on compliance attitudes, and this relationship is positively moderated by law and code OEC. Moreover, reputational pressure positively affects compliance attitudes, and this relationship becomes more pronounced with increasing levels of caring OEC. This study offers a novel perspective on pressure in the construction sector which helps explain why construction companies violate the rules and which provides new insights for future compliance governance systems. The authors also offer suggestions for construction companies for addressing possible motivations for rule violations that stem from pressure by establishing appropriate OECs.
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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 work was supported by the National Natural Science Fund of China (Grant No. 71972143) and the National Office for Philosophy and Social Sciences (Grant No. 20BGL131).
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Published In
Journal of Construction Engineering and Management
Volume 148 • Issue 11 • November 2022
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© 2022 American Society of Civil Engineers.
History
Received: Jan 22, 2022
Accepted: Jul 6, 2022
Published online: Sep 8, 2022
Published in print: Nov 1, 2022
Discussion open until: Feb 8, 2023
ASCE Technical Topics:
- Business management
- Business organizations
- Climates
- Construction companies
- Construction engineering
- Construction management
- Data analysis
- Engineering fundamentals
- Engineering profession
- Environmental engineering
- Ethics
- Methodology (by type)
- Organizations
- Practice and Profession
- Professional practice
- Project management
- Research methods (by type)
- Standards and codes
Authors
Metrics & Citations
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Citations
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Cited by
- Yi Lu, Gayani Karunasena, Chunlu Liu, Conceptual Cross-Theoretical Assessment Model for Practitioners’ Compliance Behavior with Building Energy Codes, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 10.1061/JLADAH.LADR-1019, 16, 1, (2024).
- Aritra Halder, Sachin Batra, Navigating the Ethical Discourse in Construction: A State-of-the-Art Review of Relevant Literature, Journal of Construction Engineering and Management, 10.1061/JCEMD4.COENG-13880, 150, 3, (2024).