Supply Chain Integration Practices and Construction Project Performance: Developing a Structural Equation Model for the Indian Construction Industry
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Abstract
Background – The study examines the influence of six SCM practices on Project Performance in the Indian construction industry, and this is one of the important gaps in the empirical studies on effectiveness of SCM practices in the setting of developing economies.
Design/Methodology/Approach – The study tests six hypotheses using the data of 587 respondents from five districts of Maharashtra State and the Structural Equation Modeling (SEM).Design, Methodology/Approach – The data from 587 respondents from five districts of Maharashtra State is tested in the study to test the proposed hypotheses: Relationship between Supplier Relationship Management (SRM) and Client Relationship Management (CRM), Relationship between Information Sharing & Coordination (ISC) and Client Relationship Management (CRM), Relationship between Inventory Management (INV) and Client Relationship Management (CRM), Relationship between Logistics Management (LOG) and Client Relationship Management (CRM), Relationship between Technology Adoption (TECH) and Project Performance (PERF), Relationship between Project Performance (PERF) and Client Relationship Management (CRM).
Findings – All 6 SCM practices are found to have significant impact on project performance with Client Relationship Management (CRM) having the highest impact (β = 0.312, p < 0.001), followed by Logistics Management (LM) (β = 0.256, p < 0.001), Supplier Relationship Management (SRM) (β = 0.234, p < 0.001), Information Sharing & Coordination (ISC) (β = 0.178, p < 0.001), Inventory Management (IM) (β = 0.145, p = 0.004), and Technology Adoption (TA) (β = 0.123, p = 0.020). The model accounts for 62.3% of the variance in project performance (R² = 0.623).
Originality/Value – The study is empirical evidence based and it has provided practical insight into SCM's critical role in construction project success and it has provided a practical insight for managers and policy makers. The results are part of the emerging research on SCM in developing countries...
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