Next Article in Journal
A Comprehensive Assessment and Spatial Analysis of Vulnerability of China’s Provincial Economies
Next Article in Special Issue
Manufacturer’s Decision as Consumers’ Low-Carbon Preference Grows
Previous Article in Journal
Risk Profile Indicators and Spanish Banks’ Probability of Default from a Regulatory Approach
Previous Article in Special Issue
Multi-Criterion Two-Sided Matching of Public–Private Partnership Infrastructure Projects: Criteria and Methods
Open AccessArticle

Incentive Mechanism of Prefabrication in Mega Projects with Reputational Concerns

1
School of Management and Engineering, Nanjing University, Nanjing 210093, China
2
Faculty of Civil Engineering and Geosciences, Delft University of Technology, Stevinweg 1, 2628 CN Delft, The Netherlands
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(4), 1260; https://doi.org/10.3390/su10041260
Received: 19 March 2018 / Revised: 12 April 2018 / Accepted: 13 April 2018 / Published: 19 April 2018
(This article belongs to the Special Issue Sustainable Development and Management of Mega Projects)
As one of the most important sustainability project management practices, prefabrication has been drawing increasing attention to project construction practitioners. However, due to the needs of high technology and large capital investment, there is a great challenge for suppliers to adopt prefabrication in mega project construction. Therefore, designing an adequate incentive mechanism has become a daunting task for the project owner, which aims to ensure a socially and environmentally friendly project delivery. In this study, an incentive model with reputational concerns from the perspective of the project owner was established and how this incentive affects supplier’s effort and project owner’s profit was investigated. By contrasting to the incentive model without reputational concerns, when the reputation incentive is considered in the incentive contract, both supplier’s effort and project owner’s profit increase. In addition, adding reputation incentive implies more expenses, thus the project owner may not want to take this strategy due to the potential expense increase. Therefore, the study also considered an incentive mechanism with constant total incentive intensity. By comparison, the result shows that this strategy is also useful which can improve supplier’s effort and project owner’s profit. View Full-Text
Keywords: prefabricated construction; incentive mechanism; reputation; sustainability management practice prefabricated construction; incentive mechanism; reputation; sustainability management practice
Show Figures

Figure 1

MDPI and ACS Style

Shi, Q.; Zhu, J.; Hertogh, M.; Sheng, Z. Incentive Mechanism of Prefabrication in Mega Projects with Reputational Concerns. Sustainability 2018, 10, 1260.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop