Does controlling work? : Mediated power and contractual specificity as means to align perceptions in projects

This study addresses perceptual distance between principal and agent in projects and how the principal attempts to prevent or mitigate this perceptual distance by means of control. Specifically, we investigate two controlling mechanisms: power-based control (i.e. mediated power) and contract-based control (contractual specificity) and we study how these two mechanisms influence the perceptual distance that is observed on several key relationship issues through their effect on social identification and information asymmetry. We investigate these phenomena in four rail-infrastructure projects. Based upon a cross-case comparison we can conclude that both control measures do not decrease perceptual distance; on the contrary, mediated power rather increases perceptual distance. Other findings are that acknowledgement of power that is held at both sides and contractual quality are features of the projects in which less perceptual distance is found.