Abstract：The Chinese construction industry is transforming into a new stage with high-quality developments. The incentive mechanism is an important project management tool, especially when pursuing project excellence and sustainability. However, existing research on incentives has mainly focused on descriptions of the applications and strategies, with little information on the mechanisms. This research developed a conceptual model of the interorganizational incentive mechanism which was verified by empirical questionnaire data from Chinese engineering firms and the partial least squares structural equation method. The analysis results showed light on the interorganizational incentive mechanism and the relation to interorganizational relationships, project resources, organizational capabilities, and project performance. The results showed that interorganizational incentives not only directly improve project performance, but also indirectly improve project performance by improving interorganizational relationships as well as project resource supplies. The results highlight the importance of turning cooperative relationships into project resources and turning resources into organizational capabilities. This research provides a theoretical basis for promoting incentives in China's construction industry and provides practical guidance for applying incentives in construction projects.
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2022, Vol. 62 
