The establishment of trust has been identified as the most critical factor that facilitates partnering success. As such, management should direct their efforts and energy to enhance trust effectively and systematically. It is hypothesized that partners’ trust level is positively related to their performance, permeability, and relational bonding and can be system based. This paper reports the use of the structural equation modeling technique to test this hypothesis. Project-based data on partnering success and the relative importance of the four trust factors were collected through a questionnaire survey, and the level of partnering success was assessed by the achievement of the preset project targets. The findings of the study support the hypothesized positive relationship between the partners’ trust level and partnering success. In addition, performance, permeability, and relational bonding were found to make significant contributions toward parties’ trust level.

Partnering has been advocated for use in construction as a project-delivery approach to curb dispute and enable a cooperative contracting environment. Successful construction partnering is perceived to derive benefits to both developers and contractors. In view of significant implications to successful project delivery, there has been a surge of research and studies on construction partnering. These studies typically focus on the partnering process as well as the identification of critical success factors. Among the various success factors that underpin partnering success, establishing trust among partners is considered the most important. Moreover, skeptics have been swift to point out that establishing trust in construction is daunting. A better understanding of the role of trust and its manifestation in partnering efforts is therefore of both academic and practical value. In this study, motivating trust in construction partnering is described within the classic framework of “the prisoner’s dilemma,” which suggests the trust cycle can be kick-started if construction partners put cooperation before competition and self-interest. This paper reports a study that is designed to suggest a suitable candidate for the trust initiator. As such, the critical trust factors for two groups of construction partners in Hong Kong—developers/consultants and contractors—are first identified. It is found that “performance” and “permeability” of partners are the two most critical trust factors. “Performance” describes the partner’s competence and problem-solving ability as perceived by their counterpart. “Permeability” reflects the partner’s openness in sharing information. The result of a multiple-regression analysis further suggests that the contractor is in a position to initiate trust through competent performance and maintaining effective communication with the client. In this manner, the trust cycle can expand with reciprocal trustworthiness from the client.

The operation of organizations is very much influenced by their culture. Organizational culture (OC) has been defined as a pattern of basic assumptions that are manifested by the behavior of an organization. Positive OC is considered to be catalytic to performance enhancement. As construction aspires to be an efficient industry, this study aims to contribute in this regard by examining the relationship between organizational culture and the performance of construction organizations. Artifacts corresponding to OC identifiers and Performance indicators are short-listed from a literature review. These artifacts are arranged into constructs. The eight OC constructs are: Goal Clarity, Coordination and Integration, Conflict Resolution, Employee Participation, Innovation Orientation, Performance Emphasis, Reward Orientation and Team orientation. The performance indicator constructs are; Financial, Internal Business Process, Custom and Innovation & Learning. The artifacts were elaborated and operationalized for data collection. The constructs, as well as the OC-Performance relationship framework, were then analyzed and tested using Structural Equation Modeling. Innovation was found to be the most critical OC as far as performance of construction organizations is concerned. In today's knowledge based society, innovative organizations have proved to be the performers. This timely finding highlights the need for a culture that fosters creativity and supports innovation.