An industrial organization economic supply chain approach for the construction industry: a review

Abstract

Understanding industries in terms of the concepts of chains, clusters and networks is becoming increasingly important in economies around the world. Supply chain management for an individual organization is an emerging field of research in the construction management discipline, but less attention has been devoted to investigating the nature of the construction supply chains and their industrial organizational economic environment. This selected review of construction and mainstream management supply chain literature is organized around four themes; distribution, production, strategic procurement management and industrial organization economics, and highlights the need to develop an industrial organization economic supply chain framework for construction. The merging of the supply chain concept with the industrial organization model as a methodology for understanding firm conduct and industry structure and performance is an important contribution to both construction supply chain and construction economic theory. Much of the industrial organization supply chain literature has tended to focus upon manufacturing industries, where typically firms are permanent organizations. This raises issues as to the differences between industries founded upon temporary compared with permanent organizations. There is potential for the development of an industrial organization methodology applicable to the project based industry. Ultimately industrial organization research seeks to have direct implications for industry performance and government policies.Supply Chain Theory Critical Review Construction Industry Industrial Organization Economics,

Inter- and intra-organizational conditions for supply chain integration with BIM

“…Whilst this study resonates with London and Kenley (2001) regarding two main SCM thinking schools: performance-oriented (case A) and relational (case B), perhaps the proposed strategies for integration do not have to be binary. After all, 'seemingly opposed viewpoints can inform one another' (Poole & Van de Ven, 1989, p. 566) as organizational paradoxes.…”

“…As PPPs represent project-specific delivery methods, they hardly extend across multiple tiers and beyond projects. However, supply chain management (SCM), being a procurement strategy, introduces the potential for deeper integration across tiers from a relational perspective (London & Kenley, 2001). Although SCM has emanated from logistics, it carries numerous interpretations.…”

The non-adoption of supply chain management

“…Interpretations of supply chain management theory and practice have nonetheless reinforced and provided novel assumptions to underpin the appraisal of exchange relationships and transactions between clients and construction industry service and product providers (London and Kenley, 2001). However, for the construction industry to replicate the successful diffusion of supply chain management in other sectors has arguably demanded "careful translation" (Skitmore and Smyth, 2009 p. 97).…”

Theory to practice: A typology of supply chain management in construction

“…Key characteristics include (9) supply competition, (10) market climate, (11) managerial intent and (12) asset specificity. Given the industry's long-standing emphasis on a transactional model of economic exchange Gadde, 2000, London andKenley, 2001), these four characteristics; supply competition, market climate, managerial intent and asset specificity retain a commercial currency in the supply and demand of construction services and goods. It should be noted that the industry characteristics identified are neither definitive nor exhaustive, nor are they necessarily mutually exclusive.…”