Managing Buyer-Supplier Relationship in Construction Project Outsourcing

Abstract

The study was undertaken to determine the effects of buyer-supplier relationship management and outsourcing efficiency amongst construction firms in Nigeria. Trust building, strategic collaboration and supplier development constituted the dimension for buyer-supplier relationship, while cost effectiveness, quality delivery and risk mitigation were used as indicators of outsourcing efficiency. The study adopted cross-sectional survey design, and 135 construction firms constituted the population for this study. A random sample of 101 respondents, comprising engineers, construction project managers, procurement officers, and contractors constituted the unit of analysis. This research adopted a structured online survey questionnaire which was administered via e-mail to obtain primary data. The findings showed that buyer-supplier relationship management in terms of trust building, strategic collaboration, and supplier development had a positive and a significant relationship on outsourcing efficiency. Construction and equipment leasing firms should build long term relationship with suppliers to enable them acquire the benefits of efficient outsourcing.