Purpose The purpose of this paper is first to examine the effect of client-led and contractor-led supply chain initiatives on project performance in the Indian construction industry and second to assess how the client-led supply chain initiatives complement the contractor-led supply chain initiatives. Design/methodology/approach In this study, the effects of the client-led supply chain initiatives (reward power and competence trust of the construction clients) and the contractor-led supply chain initiatives (contractor integration and calculative commitment of the contractor) on project performance in construction projects are examined. The data were collected from 346 construction professionals working in Indian construction projects using purposive sampling. The proposed hypotheses were tested using structural equation modeling. Findings The contractor-led supply chain initiatives, in the form of contractor integration and the calculative relationship commitment of a contractor, were found to be strong mediators, indirectly affecting the project performance. On the other hand, the client-led supply chain initiatives, in the form of the reward power of the client and the competence trust of the client, directly influence the project performance. Research limitations/implications This study reports the inevitable bias on the part of participants, who responded to the survey either in the capacity of client or contractor, although they might have executed projects in both capacities. Future studies could benefit from the use of objective data instead of behavioral data. Practical implications This study helps construction firms understand how to demarcate the client and contractor roles in the construction supply chain to improve the project performance. Originality/value The originality of this study lies in its investigation of the influence of client-led supply chain initiatives and contractor-led supply chain initiatives on project performance.
Purpose The purpose of this paper is to examine how the client–contractor relationship affects the project performance in light the theory of relational contracting. The empirical study evaluates the effect of project trust (PT) mediating through the dyadic factors and procurement-specific factors (PSFs) on the project performance. Design/methodology/approach Research design is carried out in three phases. The first phase of review of literature has identified the key constructs of the study and the conceptual model is formulated. Subsequently, the constructs of the study are validated through expert opinion and pilot study. In the third phase, the questionnaire of the study is administered on 320 samples in various cities of India. The exploratory factor analysis and confirmatory factor analysis is carried out on the two different sample sizes. The structural equation model is finally tested with satisfactory fit. Findings PT not only improves the dyad factors in construction supply chain (CSC), but also influences the project performance. However, project risk and relationship commitment are not associated with enhancing project performance directly. PSFs and dyad factors are the two mediators in transforming PT into relationship commitment and project performance. Client-led supply chain initiatives and contractor-led supply chain initiatives differ in the CSC. Research limitations/implications The present research has employed behavioral data to understand the effect of project procurement on project performance. Nevertheless, future studies should use objective data to support the constructs of the study. This study outlines the common and socially rooted relational governance of the project. This study is useful to the clients, contractors and policy makers in understanding the interplay of various control mechanisms to ease the procurement of large and complex construction projects. Future studies should focus on separating client-led control mechanisms and contractor-led control mechanisms of the relational contracting and its effect on project performance. Originality/value The research study contributes in formalizing the governance structure of supply chain in dealing with the complex construction projects. The study has contributed in understanding the client-led initiatives and contractor-led supply initiatives of establishing the supply chain of construction projects. It has demonstrated the mediating role of dyadic factors and PSFs in improving the project performance.
Abstract:The mechanisms of supply chains are omnipresent, but procurementcentric supply-chain management has received little attention in the construction industry, despite its economic weight. A procurement centric construction supply chain requires client integration and contractor integration to cope with the project complexity and project uncertainty. In this regard, procurement-led supply-chain initiatives using mediated power and non-mediated power of the client organisation can influence contractor integration and project performance. A structural equation model consisting of two exogenous variables -mediated power and non-mediated power of clientand three endogenous variables -client integration, contractor integration and project performance -is developed based on theoretical support. The data are collected from 244 construction professionals working in a variety of construction projects across India. The result of the study suggests that, the use of mediated power by the client organisation accompanied by the involvement of the client in the project relates to the improving of project performance.Keywords: supply chain; procurement; integration; project performance; power.Reference to this paper should be made as follows: Jagtap, M., Kamble, S.S. M. Jagtap et al.Sachin S. Kamble is an Associate Professor at the National Institute of Industrial Engineering, Mumbai, India is a leading academician, top industry consultant and researcher with rich experience in supply chain and operations management. He obtained his Bachelor degree in Mechanical Engineering; Master degree in MBA; Doctorate degree in Business Management. His research area of expertise includes supply chain performance studies in several sectors that include -farm fresh products (agriculture supply chain), medical supply chain, construction, retail and automobile supply chains. He has co-authored more than 67 publications in international refereed journals such as
Supply chains are omnipresent. However, the modus operandi of the construction supply chain is not clearly established in the literature. This might be attributable to the characterof construction projects and the structure of the construction industry. Formal and informal control mechanisms are well established in retail and manufacturing supply chains whichis evident in improved product performance. However, there is a paucity of research on the construction supply chain especially atidentifying the interplay of control mechanisms and their relationship with project performance. In the case of large and complex construction projects, the client-contractor relationship requires input control, behaviour control and output control for successful project delivery. In the light of organisationcontrol theory and the existing literature on construction supply chains, this study evaluates the modus operandi of the client-contractor relationship based on three control mechanisms: input control (project risk and reward power, and intra-project communication), behaviour control (opportunism) and output control (project performance) using a structural equation model. A survey data of258 construction professionals working on construction projectsin Indiawas collected. The study findingsreveal that input control, in terms of project risk and reward power, and intra-project communication, largely influence behaviour control in terms of opportunism. However, behaviour controls do not directly affect output control in terms of project performance; rather, a direct effect of the input control mechanism of output control is particularly evident.
Managing the disruptions in projects is a challenging task for project managers. In this respect, critical chain project management (CCPM) has been considered as a promising methodology in expediting projects. However, the effectiveness of this methodology is often lost in search of optimal use of project buffers to hedge against delays occurring in the critical chain. The more critical chain activity gets delayed, the greater is the likelihood of penetration of project buffer time. The resource constraints of critical chains have been considered as a major determinant of project buffer penetration. Although a project buffer is provided to protect the critical chain, to keep the CCPM project schedule competitive, it is the priority of the project manager to minimize the blatant consumption of project buffer time by multiple critical chain activities. Historically, resource constraints within the critical chain have been associated with penetration of project buffer time. The literature suggests that the productivity of resources deployed in the critical chain can predict the penetration of project buffer time. Based on the premise that delays are omnipresent and unavoidable but predictable, this research aims to consider the post-facto measures of delays instead of pre-facto measures. Pre-facto measures are resources productivity and resources availability while post-facto measures are the compensation paid by the client and the cost of liquidity damages incurred by the contractor. It is assumed that pre-facto measures are convertible into post-facto measures. A linear programming model is formulated and tested using the case of Botanical Garden Construction Project in Pune city. Sensitivity analysis revealed that the propensity of project buffer penetration on a critical chain varies with the compensation matrix. Varieties of scenario are developed and the optimal solution is validated with the case study.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.