Does laborer compensation affect the time performance of force account construction projects in Tanzania? The moderating role of social capital

This paper examines the moderating effect of social capital in the relationship between compensation and time performance of force account projects. Data were collected from 192 force account projects in selected local government authorities in Tanzania, where contractors participated in filling out structured questionnaires. The study employed partial least squares structural equation modelling to examine the hypothesized relationships. The findings indicate that compensation has a positive and significant effect on-time performance of force account projects. On the other hand, social capital negatively moderates the relationship between compensation and time performance, such that at high levels of social capital, the effect of compensation on time performance diminishes compared to lower levels. Therefore, the study offers intriguing insights into the negative effect of social capital on the relationship between compensation and time performance in the context of force account projects. This study makes a distinct contribution to the academic field by examining the moderating effect of social capital on the relationship between laborers’ compensation and time performance within the context of force account projects, a relatively neglected area in existing literature. While effective compensation practices are crucial for enhancing performance, the presence of social capital as a moderator impedes the positive effects of compensation in these projects. Future studies could further explore the complex dynamics between compensation, social capital, and time performance across different contexts and industries.