Kissi, E; Agyekum, K; Musah, L; Owusu-Manu, D G and Debrah, C (2020) Linking supply chain disruptions with organisational performance of construction firms: The moderating role of innovation. Journal of Financial Management of Property and Construction, 26(1), pp. 158-180. ISSN 1366-4387
Abstract
Purpose: Supply chain (SC) disruption, whether demand sided or supply sided, is conversely perceived to affect organisational performance of construction firms. This paper, therefore, aims to examine the linkage of supply chain disruptions with organisational performance of construction firms through the moderating role of innovation. Design/methodology/approach: Using a quantitative research, approach the views of 84 construction professionals were elicited using a structured questionnaire. Ordinary least squares were utilised to validate the hypotheses set. Findings: The study proved that there is a negative relationship between demand-related disruption and business performance as well as project performance. Also, it was clear from the study that supply-related disruptions had a significant impact on both project performance and business performance. Although SC innovation was seen to impact business performance, it had no relationship with project performance. Generally, innovation was seen to have a moderating effect of demand and supply disruption of project performance, but it played no moderating role in business performance. Practical implications: The findings suggest that business firms must be innovative with the supply chain, as it moderated project success. The supply chain of a construction firm plays a very critical role on projects; hence, this study recommends that a supply chain manager ought to be innovative in their operations due to the moderating role SC innovation has on project performance and largely business performance. Originality/value: Various studies on supply chain has been done on different sectors in the economy; however, little can be said about the construction industry on how supply chain disruptions affects business and project performance and how innovation moderates such effects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | disruption; innovation; moderating; organisation; performance; supply chains |
| Index terms: | construction industry, organizational performance, project performance, construction professional, linkage, project success, quantitative research, questionnaire, business performance, methodology, construction firm, manager |
| Subjects: | data analysis and analytics, business, organization, data collection methods, practitioner, industry analysis, research methods, performance measurement, professional development, project management theory and practice |
| Topics: | Project Management, Research Practice, Information Management, Business Strategy, Roles and Professions, Quality Management |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here