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Motivation toward financial incentive goals on construction projects

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  • Rose, Timothy
  • Manley, Karen

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 that if project clients ignore the importance of relationship quality between participants, the impact of any financial incentive will be compromised.

Suggested Citation

  • Rose, Timothy & Manley, Karen, 2011. "Motivation toward financial incentive goals on construction projects," Journal of Business Research, Elsevier, vol. 64(7), pages 765-773, July.
    • Handle: RePEc:eee:jbrese:v:64:y:2011:i:7:p:765-773
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    References listed on IDEAS

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    Cited by:

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    2. Kunnathuvalappil Hariharan, Naveen, 2019. "Elements and success factors for an efficient budgeting," MPRA Paper 109507, University Library of Munich, Germany.
    3. Kerkhove, L.-P. & Vanhoucke, M., 2017. "A parallel multi-objective scatter search for optimising incentive contract design in projects," European Journal of Operational Research, Elsevier, vol. 261(3), pages 1066-1084.
    4. Phi-Hung Nguyen, 2023. "A Fully Completed Spherical Fuzzy Data-Driven Model for Analyzing Employee Satisfaction in Logistics Service Industry," Mathematics, MDPI, vol. 11(10), pages 1-34, May.
    5. Kerkhove, L.P. & Vanhoucke, M., 2016. "Incentive contract design for projects: The owner׳s perspective," Omega, Elsevier, vol. 62(C), pages 93-114.
    6. Qianqian Shi & Jianbo Zhu & Marcel Hertogh & Zhaohan Sheng, 2018. "Incentive Mechanism of Prefabrication in Mega Projects with Reputational Concerns," Sustainability, MDPI, vol. 10(4), pages 1-16, April.
    7. Stare, Aljaz, 2012. "The impact of a project organisational culture and team rewarding on project performance," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 17(1), pages 40-67.
    8. Rodríguez-Segura, Enrique & Ortiz-Marcos, Isabel & Romero, José Javier & Tafur-Segura, Javier, 2016. "Critical success factors in large projects in the aerospace and defense sectors," Journal of Business Research, Elsevier, vol. 69(11), pages 5419-5425.
    9. Wu, Yunna & Yong, Xingkai & Tao, Yao & Zhou, Jianli & He, Jiaming & Chen, Wenjun & Yang, Yingying, 2023. "Investment monitoring key points identification model of big science research infrastructures -- Fuzzy BWM-entropy-PROMETHEE Ⅱ method," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).

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