ROLE OF TRUST AND SATISFACTION IN PRODUCING FAVOURABLE BUYER-SELLER RELATIONSHIP OUTCOMES IN THE CONSTRUCTION INDUSTRY

Abstract

Despite the importance of trust and favourable relationship among project team players, there is a dearth of critically informed work about trust and other relationship outcomes such as issues of relationship enhancement and continuity.

The aim of this research is to investigate the role of trust and satisfaction in producing favourable relationship outcomes (i.e. relationship enhancement and continuity) between a buyer and a seller in a construction project organization. The specific objectives are to examine if there exist certain antecedents which affect trust and satisfaction between buyers and sellers. The possible antecedents include seller competence, communication, seller commitment, conflict management and, alignment of goals.

The scope of study is on dyadic buyer-seller relationships which exist within a construction project. The study of this relationship is unidirectional, focusing on the buyer’s perception of trust and satisfaction with his seller. It does not study the seller’s views of his relationship of trust and satisfaction with his buyer.

Data was collected with the aid of a structured questionnaire, via face-to-face interview sessions with 16 respondents of which most possess considerable working experience in the construction industry. Respondents were requested to base their answers on a completed construction project where they, as buyer, felt there was trust, satisfaction and good relationship with his seller.

It was found that in buyer-seller relationships in the construction industry, satisfaction, trust and relationships do occur. The results revealed that there was high level of satisfaction among the buyers with the sellers. Trust and relationship-wise, although both were rated low at the start of the project, it was reported that trust had deepened and the relationship level increased at the end of the project.

The research also revealed that while trust and satisfaction had no effect on relationship enhancement and continuity in client/consultant-main contractor relationships, in main contractor-sub contractor/supplier relationships, trust led to a continuity and enhancement of their relationship.

The study found that the antecedents of trust are: seller competence, presence of effective buyer-seller communication, seller’s commitment, effective conflict handling and alignment of goals. The antecedents of satisfaction are found to be: seller competence, effective communication and conflict handling.