Investigating the mechanism of international contractors' fraud from a moral perspective: evidence from Chinese international contractors

Abstract

Purpose

This study aims to clarify the psychological mechanism of international contractors' fraud by linking performance pressure to fraudulent intention through the displacement of responsibility and addressing the moderating role of moral intensity.

Design/methodology/approach

Based on moral disengagement theory, performance pressure was hypothesized to be positively associated with fraudulent intention by mediating the displacement of responsibility. Drawing on the issue-contingent theory, moral intensity was hypothesized to inhibit the relationship between performance pressure and displacement of responsibility in three aspects: magnitude of consequences (MC), probability of effect (PE) and social consensus (SC). The scenario-based questionnaire was conducted to collect information from contractors spread across 50 countries. The partial least squares structural equation modeling was employed to assess the proposed model.

Findings

The results demonstrated that performance pressure was positively associated with the fraudulent intention, and displacement of responsibility exerted a positive partial mediating impact between performance pressure and fraudulent intention. Regarding moral intensity in the moderating analysis, the negative moderating role of MC and PE was significant, while that of SC was insignificant.

Practical implications

This study provides international construction practitioners with a deep understanding of the formation mechanism of fraud at the psychological level.

Originality/value

It clarifies the psychological mechanism from performance pressure to fraudulent intention by integrating a mediation impact from the displacement of responsibility and a moderation effect from MC and PE. It contributes to the sparse research on how situational factors shape individuals' fraudulent intentions in the international context. It provides a fresh perspective on fraud by constructing a formation model from moral psychological theories.

Citation

Luo, M., Hwang, B.-G., Zhao, X. and Deng, X. (2023), "Investigating the mechanism of international contractors' fraud from a moral perspective: evidence from Chinese international contractors", Engineering, Construction and Architectural Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ECAM-05-2022-0488