Evaluating the modus operandi of construction supply chains using organization control theory

Abstract

Supply chains are omnipresent. However, the modus operandi of the construction supply chain is not clearly established in the literature. This might be attributable to the character of construction projects and the structure of the construction industry. Formal and informal control mechanisms are well established in retail and manufacturing supply chains whichis evident in improved product performance. However, there is a paucity of research on the construction supply chain especially atidentifying the interplay of control mechanisms and their relationship with project performance. In the case of large and complex construction projects, the client-contractor relationship requires input control, behaviour control and output control for successful project delivery. In the light of organisationcontrol theory and the existing literature on construction supply chains, this study evaluates the modus operandi of the client-contractor relationship based on three control mechanisms: input control (project risk and reward power, and intra-project communication), behaviour control (opportunism) and output control (project performance) using a structural equation model. A survey data of258 construction professionals working on construction projectsin Indiawas collected. The study findingsreveal that input control, in terms of project risk and reward power,and intra-project communication, largely influence behaviour control in terms of opportunism. However, behaviour controls do not directly affect output control in terms of project performance; rather, a direct effect of the input control mechanism of output control is particularly evident.