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Purpose

This study addresses the persistent challenges of power asymmetry and fragmented trust networks in megaprojects, which significantly impair operational performance. It investigates how power structures (coercive/non-coercive) and trust dimensions (relationship/competence) interact within hybrid governance frameworks to influence governance outcomes.

Design/methodology/approach

Drawing on empirical data from 376 validated questionnaires distributed among megaproject practitioners, this study employed partial least squares structural equation modeling (PLS-SEM) to analyze the interdependencies between power dynamics, trust mechanisms and performance outcomes.

Findings

The analysis reveals that relational and competence-based trust mechanisms significantly mitigate performance declines caused by the application of power by project owners. Notably, while both coercive and non-coercive power strategies enhance trust cultivation, non-coercive approaches prove more effective than coercive ones. Furthermore, non-coercive power indirectly optimizes owner–contractor decision-making alignment via dual trust pathways, whereas competence trust exerts a stronger mediating role under coercive power regimes. This indicates context-dependent trust utility in governance frameworks.

Originality/value

This research introduces a dual-axis analysis of power-trust interdependencies in megaproject governance, offering actionable strategies for optimizing collaboration in capital-intensive projects. The empirically validated framework advances theoretical insights and provides practitioners with scalable tools to manage complex stakeholder dynamics.

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