An empirical examination of the procurement-led supply chain in the construction industry

Abstract

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