The role of trustworthiness in the formation and governance of construction alliances – a case study in Botswana

Type Working Paper
Title The role of trustworthiness in the formation and governance of construction alliances – a case study in Botswana
Author(s)
Publication (Day/Month/Year) 2006
URL http://www.irbnet.de/daten/iconda/CIB4455.pdf
Abstract
The ensuing globalization of the construction industry as well as its highly fragmented
and divisive nature are among the forces that are influencing it to seek management
approaches such as strategic alliances that could leverage the capabilities of the
various participants. This paper reports on a study that investigated the factors
considered by firms when selecting alliance partners, and the influence of
trustworthiness in deciding the governance structures of the alliances. A study of key
partners in existing and potential construction alliances in Botswana that was carried
out using a postal questionnaire and structured interviews determined that firms
consider complementarity, similar status, indirect prior alliance experience and
reputation before they make a selection of alliance partner. The study also determined
that partner trustworthiness eliminates the need of contractual clauses in the operation
of the alliances. The paper concludes that trustworthiness of a partner is an
influencing factor in all stages of the alliance development.

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