Response of contractor behavior to hierarchical governance: Effects on the performance of mega-projects

Purpose: This study aims to examine the impacts of formal and informal hierarchical governances (HGs) on the performance of mega-projects and the mediating role of contractor behavior (i.e. perfunctory and consummate behaviors) in these relationships. Design/methodology/approach: A total of 375 valid data entries from managers representing 375 mega-projects were analyzed through path analysis. Findings: Both formal and informal HGs exert positive effects on the performance of mega-projects. While formal HG positively affects contractor perfunctory behavior and contractor consummate behavior, informal HG affects contractor perfunctory behavior only. Contractor behavior mediates the relationship between formal HG and project performance. Research limitations/implications: The impacts of potential moderators (e.g. institutional arrangement and complexity) on the relationship between HG and contractor behavior have not been considered in this study. Practical implications: This study is useful for owners to enhance formal HG to improve contractor perfunctory and consummate behaviors, which in turn can enhance the performance of mega-projects. Originality/value: This study expands the knowledge of mega-project performance management from the perspective of HG. It also contributes to the literature of contractor behavior within the context of mega-projects.