Motivation toward financial incentive goals on construction projects

Rose, Timothy M. & Manley, Karen (2011) Motivation toward financial incentive goals on construction projects. Journal of Business Research, 64(7), pp. 765-773.

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Abstract

Construction industry observers tout the use of financial incentives as promoters of motivation and commitment on projects. Yet, little empirical evidence exists concerning their effectiveness. What are the drivers of motivation on construction projects? The reasons that construction project participants are motivated to pursue voluntary incentive goals are examined through four Australian case studies. The results demonstrate the critical role played by project relationships and equitable contract conditions in promoting the effectiveness of financial incentives. In the context of a construction project, this study finds financial incentives to be less important to motivation and performance than relationship enhancement initiatives. This finding is unexpected and has implications for the design of project procurement strategies. These results suggest if project clients ignore the importance of relationship quality between participants, the impact of any financial incentive will be compromised.

Impact and interest:

22 citations in Scopus
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14 citations in Web of Science®

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ID Code: 38397
Item Type: Journal Article
Refereed: Yes
Additional URLs:
Keywords: financial incentives, construction, contracts, motivation, projects
DOI: 10.1016/j.jbusres.2010.07.003
ISSN: 0148-2963
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > BUILDING (120200) > Building Construction Management and Project Planning (120201)
Divisions: Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Past > Schools > School of Urban Development
Copyright Owner: Copyright 2010 Elsevier Inc.
Deposited On: 08 Nov 2010 22:02
Last Modified: 16 Jan 2014 04:35

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