Impact of uncertainty and contract on project performance with mediating role of opportunistic behavior and moderating role of trust

Abstract

The uncertainty makes the exchange fairly fair under the attitude which is generally banned by the contract, however what subjected features of contract provide a blockage in developing opportunistic behavior and how relation norm could be helpful in maintaining a good and effective transactional relation in project. The study is empirical by nature and will examine the impact of uncertainty on opportunistic behavior and also investigate that how the coordination and adaptation in contract could prevent it from happening. And also, this study provides a clear stance that how opportunistic behavior of contractor effects project performance. Data was taken from IT and Telecom sector in Rawalpindi and Islamabad by 221 projects professional. The results showed that the opportunistic behavior has a significant impact on project performance and uncertainties have a significant role in opportunistically behaving, results also elaborates that coordination and adaptation in contract have the ability to reduce the probability of opportunistic behavior along with trust as moderator also moderated the relation of uncertainties and opportunistic behavior positively. Thus, study emphasis on that project manager should pay attention to uncertainty in transaction relation and provide a coordination and Adaptation in contract to contractor and try to maintain a relation of trust in transaction relation to make their project successful