Impact of Trust on the Performance of Construction Enterprises - Analysis of the Cooperative Process Mechanism in the Context of Chaoshan Culture

Yingfeng Ke, Fordham University


In the 21st century, with the acceleration of marketization and globalization, an enterprise can hardly maintain its individual competitive advantages solely with their own capabilities and resources. Enhancing the integration of and collaboration between enterprises’ external resources and capabilities helps give full play to their respective professional advantages and values, and creates complementary, sharing and scale effects, thereby maximizing the enterprises’ performance. Cooperation cannot be achieved without mutual trust. Trust can help reduce transaction costs and risk losses in the process of cooperation, reduce information asymmetry between partners, and improve the willingness and efficiency of cooperation. Inter-organizational trust has become an important guarantee for enterprises to realize cultural integration, establish cooperation, participate in competition, seek development and improve performance. As a result, through what mechanism trust affects enterprise performance, and how to establish a trust mechanism among enterprises have become a research focus for enterprises in the journey to realize cooperation and improve performance. Based on relevant domestic and overseas theoretical and empirical studies, this dissertation explores the impact of trust on enterprise performance from the perspective of inter-enterprise cooperation, beginning with construction enterprises and taking Chaoshan culture as the background. This dissertation defines the connotations of trust and performance, and divides trust into three dimensions: integrity trust, capability trust and institutional trust, and enterprise performance into two dimensions: direct and indirect performance, and introduces cooperation as a mediator variable, and Chaoshan culture as a moderator variable. This dissertation constructs a hypothetical model and hypothetical conditions of “trust-cooperation-performance”, and validates them with data to explore the impact of inter-organizational trust on the performance of construction enterprises. This dissertation uses a variety of research methods, including case study, field interview, questionnaire survey, comparative analysis, etc., and realizes the combination of theoretical and empirical analysis, of qualitative and quantitative analysis, and of single-dimensional and multi-dimensional comparative analysis. The results show that there is a significant correlation between trust and performance, trust and cooperation, cooperation and performance for construction enterprises. Cooperation plays a mediating role between trust and performance, and Chaoshan culture plays a moderating role between trust and cooperation. This dissertation further chooses non-Chaoshan construction enterprises as the control group, analyzes the successes and problems of Chaoshan construction enterprises, and finds out the advantages, disadvantages and complementary aspects of Chaoshan and non-Chaoshan construction enterprises. Finally, some suggestions are proposed to establish a trust mechanism and improve the performance of construction enterprises. This dissertation discusses the function mechanism of trust and cooperation on performance, and the function mechanism of culture on trust and cooperation. It enriches existing studies on inter-organizational trust of construction enterprises in China, and provides a reference for cooperation practices for construction enterprises.

Subject Area

Management|Entrepreneurship|Asian Studies|Business administration|Organization Theory|Cultural anthropology

Recommended Citation

Ke, Yingfeng, "Impact of Trust on the Performance of Construction Enterprises - Analysis of the Cooperative Process Mechanism in the Context of Chaoshan Culture" (2020). ETD Collection for Fordham University. AAI28148174.