Naslov
The Economics of Trust in Construction
(Economics of Trust in Construction)

Autori
Cerić, Anita

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
Economics of Trust in Construction

Urednik/ci
Ofori, George

Izdavač
Edward Elgar Publishing

Grad
Cheltenham

Godina
2022

Raspon stranica
309-328

ISBN
978 1 83910 822 8

Ključne riječi
trust, New Institutional Economics, principal-agent theory, transaction cost, communication risk, information asymmetry

Sažetak
Trust is central to construction projects. This is shown both by empirical research and theoretical foundations of related fields of social science, such as economics, sociology, and psychology. However, a large proportion of papers in the construction management field investigate trust empirically without proper theoretical foundations. This chapter demonstrates the importance of trust in construction economics through application of the principal-agent theory, which is part of the New Institutional Economics. According to the principal-agent theory, information asymmetry occurs between project participants, which leads to communication risk. Trust minimises information asymmetry and it thus reduces the communication risk. Building trust and creating reputation for trustworthy behaviour is valuable for every project. In construction projects, the role of trust is even more important as the non-contractual relationships dominate contractual relationships in the construction phase. Research on trust in construction projects needs to focus on both empirical research and its theoretical foundation. Researchers and practitioners in the field need to establish a close relationship conducive to the advancement of both theory and practice.

Izvorni jezik
Engleski

Znanstvena područja
Građevinarstvo, Ekonomija

POVEZANOST RADA