Milind Jagtap and Sachin Kamble
The purpose of this paper is to examine how the client–contractor relationship affects the project performance in light the theory of relational contracting. The empirical study…
Abstract
Purpose
The purpose of this paper is to examine how the client–contractor relationship affects the project performance in light the theory of relational contracting. The empirical study evaluates the effect of project trust (PT) mediating through the dyadic factors and procurement-specific factors (PSFs) on the project performance.
Design/methodology/approach
Research design is carried out in three phases. The first phase of review of literature has identified the key constructs of the study and the conceptual model is formulated. Subsequently, the constructs of the study are validated through expert opinion and pilot study. In the third phase, the questionnaire of the study is administered on 320 samples in various cities of India. The exploratory factor analysis and confirmatory factor analysis is carried out on the two different sample sizes. The structural equation model is finally tested with satisfactory fit.
Findings
PT not only improves the dyad factors in construction supply chain (CSC), but also influences the project performance. However, project risk and relationship commitment are not associated with enhancing project performance directly. PSFs and dyad factors are the two mediators in transforming PT into relationship commitment and project performance. Client-led supply chain initiatives and contractor-led supply chain initiatives differ in the CSC.
Research limitations/implications
The present research has employed behavioral data to understand the effect of project procurement on project performance. Nevertheless, future studies should use objective data to support the constructs of the study. This study outlines the common and socially rooted relational governance of the project. This study is useful to the clients, contractors and policy makers in understanding the interplay of various control mechanisms to ease the procurement of large and complex construction projects. Future studies should focus on separating client-led control mechanisms and contractor-led control mechanisms of the relational contracting and its effect on project performance.
Originality/value
The research study contributes in formalizing the governance structure of supply chain in dealing with the complex construction projects. The study has contributed in understanding the client-led initiatives and contractor-led supply initiatives of establishing the supply chain of construction projects. It has demonstrated the mediating role of dyadic factors and PSFs in improving the project performance.
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Milind Jagtap and Sachin Kamble
The purpose of this paper is first to examine the effect of client-led and contractor-led supply chain initiatives on project performance in the Indian construction industry and…
Abstract
Purpose
The purpose of this paper is first to examine the effect of client-led and contractor-led supply chain initiatives on project performance in the Indian construction industry and second to assess how the client-led supply chain initiatives complement the contractor-led supply chain initiatives.
Design/methodology/approach
In this study, the effects of the client-led supply chain initiatives (reward power and competence trust of the construction clients) and the contractor-led supply chain initiatives (contractor integration and calculative commitment of the contractor) on project performance in construction projects are examined. The data were collected from 346 construction professionals working in Indian construction projects using purposive sampling. The proposed hypotheses were tested using structural equation modeling.
Findings
The contractor-led supply chain initiatives, in the form of contractor integration and the calculative relationship commitment of a contractor, were found to be strong mediators, indirectly affecting the project performance. On the other hand, the client-led supply chain initiatives, in the form of the reward power of the client and the competence trust of the client, directly influence the project performance.
Research limitations/implications
This study reports the inevitable bias on the part of participants, who responded to the survey either in the capacity of client or contractor, although they might have executed projects in both capacities. Future studies could benefit from the use of objective data instead of behavioral data.
Practical implications
This study helps construction firms understand how to demarcate the client and contractor roles in the construction supply chain to improve the project performance.
Originality/value
The originality of this study lies in its investigation of the influence of client-led supply chain initiatives and contractor-led supply chain initiatives on project performance.