Reactive Devaluation as a Psychological Impediment to Construction Dispute Negotiation
Publication: Journal of Management in Engineering
Volume 36, Issue 4
Abstract
Disputes are common in construction projects. Protracted dispute resolution processes drain valuable resources. Therefore, promoting efficient construction dispute negotiation (CDN) has been one of the key recommendations of almost every construction industry review. Moreover, irrational decisions of disputants could negatively affect dispute negotiation. One cause of irrational decision is reactive devaluation (RD), which describes the devaluation of a proposal raised by the counterpart. Disputants having RD behavior reject proposals raised by the counterpart with no regard to the quality and reasonableness of the proposal. Thus the occurrence of RD in CDN decisions stifles proposal exchanges that are essential to successful settlement. This study examined the practices of RD in CDN. Manifestations of RD were developed from the literature and then operationalized in CDN. With data provided by construction professionals, five taxonomies of RD in CDN were obtained through principal component factor analysis. The five taxonomies are reluctance to change, doubts about the counterpart’s ability, overconfidence, biased information processing, and mistrust toward the counterpart. Correspondingly, mitigation measures to alleviate RD respective to the taxonomies were provided. The conceptualization of RD brings insight for future studies investigating other forms of psychological impediment to amicable CDN. Minimizing measures of RD suggested in this study can motivate further studies of strategies to enhance success in CDN.
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Data Availability Statement
All data, models, and code generated or used during the study appear in the published article.
Acknowledgments
The work described in this paper was fully supported by a HKSAR GRF (No. 11209118).
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Journal of Management in Engineering
Volume 36 • Issue 4 • July 2020
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©2020 American Society of Civil Engineers.
History
Received: Aug 12, 2019
Accepted: Jan 10, 2020
Published online: Apr 3, 2020
Published in print: Jul 1, 2020
Discussion open until: Sep 3, 2020
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