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Factors Affecting Buyer-Supplier Relationship in Sarawak, Malaysia from the Construction Contractor’s Perspective: A PLS-SEM Approach

Author

Listed:
  • Chu Sheng Ding

    (School of Built Environment, University of Technology Sarawak, 96000 Sibu, Sarawak, Malaysia)

  • Tiong Koh Chieng

    (School of Built Environment, University of Technology Sarawak, 96000 Sibu, Sarawak, Malaysia)

  • Chih Siong Wong

    (School of Built Environment, University of Technology Sarawak, 96000 Sibu, Sarawak, Malaysia)

  • Shi Yee Wong

    (School of Built Environment, University of Technology Sarawak, 96000 Sibu, Sarawak, Malaysia)

  • Prescilla Anak Palis

    (School of Built Environment, University of Technology Sarawak, 96000 Sibu, Sarawak, Malaysia)

Abstract

The relationship management between buyers and suppliers has always been an indispensable issue in the construction industry. In order to obtain direct and/or indirect benefits of good buyer-supplier relationship, construction firms are required to put in efforts in maintaining the relationship. Some of the benefits of effective buyer-supplier relationship management include good project quality, on time project delivery and reasonable construction cost. However, it is highlighted in the literature that the buyer-supply relationship in Malaysia are often poorly maintained due to lack of trust, ineffective communication and poor collaboration. Poor relationship may bring forth negative impacts such as delay, cost overrun and substandard material quality during the project delivery process. In Sarawak, many projects were also being affected due to poor buyer-supplier relationship management. Therefore, the present research aimed to study the factors affecting buyer-supplier relationship in Sarawak construction industry from the contractors’ perspective. A quantitative research approach was adopted in the present research. Self-administered questionnaires were distributed to Grade 7 contractors in Sarawak to collect primary data. The collected data was subsequently analyzed using the partial least squares structural equation modelling (PLS SEM)approach.Based on the generated results, “commitment†, “trust†and “quality†are three factors that showed significant relationship with buyer-supplier relationship. The findings of the present research would contribute to enhancing the relationship between buyers and suppliers and thereby improving the performance of construction projects in Sarawak.

Suggested Citation

  • Chu Sheng Ding & Tiong Koh Chieng & Chih Siong Wong & Shi Yee Wong & Prescilla Anak Palis, 2024. "Factors Affecting Buyer-Supplier Relationship in Sarawak, Malaysia from the Construction Contractor’s Perspective: A PLS-SEM Approach," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(8), pages 450-463, August.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:8:p:450-463
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    References listed on IDEAS

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    1. Oghazi, Pejvak & Rad, Fakhreddin Fakhrai & Zaefarian, Ghasem & Beheshti, Hooshang M. & Mortazavi, Sina, 2016. "Unity is strength: A study of supplier relationship management integration," Journal of Business Research, Elsevier, vol. 69(11), pages 4804-4810.
    2. Marko Sarstedt & Christian M. Ringle & Joseph F. Hair, 2022. "Partial Least Squares Structural Equation Modeling," Springer Books, in: Christian Homburg & Martin Klarmann & Arnd Vomberg (ed.), Handbook of Market Research, pages 587-632, Springer.
    3. Louise Bildsten, 2014. "Buyer-supplier relationships in industrialized building," Construction Management and Economics, Taylor & Francis Journals, vol. 32(1-2), pages 146-159, February.
    4. Patrucco, Andrea S. & Moretto, Antonella & Knight, Louise, 2021. "Does relationship control hinder relationship commitment? The role of supplier performance measurement systems in construction infrastructure projects," International Journal of Production Economics, Elsevier, vol. 233(C).
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