Technical Papers
Dec 2, 2014

Effect of Trust and Satisfaction on Interpersonal Relationships: Comparative Study of Capitalist and Socialist Countries

Publication: Journal of Professional Issues in Engineering Education and Practice
Volume 141, Issue 3

Abstract

This research investigated the effect of project quality, client satisfaction, and trust on interpersonal relationships between contracting parties in public construction projects. Using a questionnaire, data were collected from randomly selected construction industry practitioners with experience in public projects in China, Vietnam, Australia, and Singapore. China and Vietnam represent large and small socialist-oriented developing countries, respectively, whereas Australia and Singapore represent large and small capitalist and developed countries, respectively. The results show that in all four countries, trust enhances interpersonal relationships, leading to relationship continuity. In Singapore and Australia (capitalist countries), satisfaction leads to greater trust, but in Vietnam and China (socialist-oriented developing countries), this is not the case. In Vietnam, there is no significant correlation between satisfaction and relationship continuity, but a correlation was observed in the other three countries. One practical implication is that buyers should select sellers with whom they have prior good relationships because this provides continuity. When there is relationship continuity, trust is present, leading to enhanced relationships. This is a positive reinforcing cycle—greater trust leads to enhanced relationships, which lead to continuity of relationships, which in turn leads to greater trust. Unlike in capitalist developed countries, in socialist developing economies, client satisfaction does not lead to greater trust. Also, good interpersonal relationships between consultants and contractors during the project implementation stage are not associated with good relationships at the end of the project. This study contributes to knowledge by showing empirically that trust and interpersonal relationships are significantly correlated regardless of a country’s stage of development, the size of its construction industry, or its type of economy.

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Acknowledgments

This research is supported by the Singapore Ministry of Education’s Academic Research Fund Tier 2 funding (Grant number: MOE2009-T2-2-067) for the project entitled “Boosting Public Construction Project Outcomes through Relational Transactions”. The assistance of Yongjian Ke, Yan Ning, Phuong Quynh Tran, Samuel Koh, and Stefanie Tan in the research is acknowledged with grateful thanks.

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Go to Journal of Professional Issues in Engineering Education and Practice
Journal of Professional Issues in Engineering Education and Practice
Volume 141Issue 3July 2015

History

Received: Jan 9, 2014
Accepted: Nov 10, 2014
Published online: Dec 2, 2014
Discussion open until: May 2, 2015
Published in print: Jul 1, 2015

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Florence Yean Yng Ling [email protected]
Associate Professor, Dept. of Building, National Univ. of Singapore, 4 Architecture Dr., Singapore 117566. E-mail: [email protected]

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