Unlocking the Potential of Construction Governance: Developing Participants’ Capability Scale

Abstract

There is a consistent lack of consensus on critical elements in the study of construction governance. To advance the practice and theoretical development of project governance, this paper aims to construct a scale for the governance capabilities of participants in construction projects. By employing agency theory, stakeholder theory, resource dependence theory, and transaction cost economics, this study examines the governance capabilities of participants in construction projects and conceptualizes a comprehensive framework for governance capabilities. Based on post-positivism, the triangulation method was used to collect data, and the Governance Capability Scale was developed through a pre-survey and formal research. The research findings identify governance capabilities across eight dimensions and 47 measurement items, encompassing business, finance, human resources, learning and innovation, marketing, organizational management, project management, and procurement. The scale has satisfactory applicability. Among these constructs, only organizational management is negatively correlated with the other constructs. The findings significantly clarify capability constructs in construction governance, aiding project managers in achieving refined management during construction. Essentially, this study advances the knowledge base of project governance. This contribution not only supports the theoretical development of governance practices but also promotes high-quality development in the construction industry.