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Supplier development initiatives and their impact on the consistency of project performance

Author

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  • Jonathan Gosling
  • Mohamed Naim
  • Denis Towill
  • Wessam Abouarghoub
  • Brian Moone

Abstract

Many empirical studies exploring the impact of supply chain management on performance metrics have been undertaken in the manufacturing and retail sectors, espousing the positive outcomes attainable. Owing to a range of industry characteristics, some have questioned the effectiveness of such initiatives in the construction sector, and it has been noted that there is a lack of longitudinal empirical data in this setting. Exploiting a unique performance dataset gathered from a global construction company's archival records (1990-2013), the following question is addressed: 'what is the impact of supplier development initiatives on key performance indicators (KPIs) in a construction supply chain?'. Mobilizing established frameworks on relationship types and supplier development initiatives, suppliers are organized into relational categories, including 'strategic partners', 'preferred' and 'approved' suppliers. A combination of descriptive statistics, ANOVA and Levene's tests was used to analyse the data. The findings report a significant difference between the volatility of performance between different groups. The higher the level of partnership in the relational category, the more consistency there will be in performance. Suppliers in the approved category perform less well on the 'closeout' KPI, suggesting a need for initiatives with this category to help raise performance on closeout issues.

Suggested Citation

  • Jonathan Gosling & Mohamed Naim & Denis Towill & Wessam Abouarghoub & Brian Moone, 2015. "Supplier development initiatives and their impact on the consistency of project performance," Construction Management and Economics, Taylor & Francis Journals, vol. 33(5-6), pages 390-403, June.
    • Handle: RePEc:taf:conmgt:v:33:y:2015:i:5-6:p:390-403
    DOI: 10.1080/01446193.2015.1028956
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    References listed on IDEAS

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    Cited by:

    1. Noorizadeh, Abdollah & Kuosmanen, Timo & Peltokorpi, Antti, 2021. "Effective purchasing reallocation to suppliers: insights from productivity dynamics and real options theory," International Journal of Production Economics, Elsevier, vol. 233(C).
    2. Cannas, Violetta Giada & Gosling, Jonathan, 2021. "A decade of engineering-to-order (2010–2020): Progress and emerging themes," International Journal of Production Economics, Elsevier, vol. 241(C).

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