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This study examines how prior relationships between construction industry project teams influence work outcomes. Drawing on social network literature, we theorize that factors like the frequency of partner interactions, resource requirements, and level of competition impact performance. Using a dataset of public infrastructure projects in the State of California, we test how network structures (structural holes and Simmelian ties) affect project performance. Longitudinal network analyses reveal a strong positive effect of cliques on project performance in the construction industry. Even when tested under varying conditions of stress—competition and access to valuable resources—the positive effect of cliques remained intact. This study links the social networking theory to construction cost overruns and shows that cliques between contractors and subcontractors affect project performance.
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Jayaraj et al. (2022) studied this question.
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