Stakeholders’ Perception of the Impacts of Supply Chain Management on Tanzania Construction Projects’ Performance

Abstract

The current era that is characterised by growth in science and technology, free market beyond borders and globalization effects has compelled every construction industry globally to struggle to resolve the increasing and overwhelming challenges raised by increase in clients' demands and needs. The rise in demands and needs has led to a serious worldwide competition of which the construction industry and firms in particular from emerging economy countries can no longer escape from. In the domestic competitive atmosphere, construction competitors have attempted to identify the strategic competitive environment and potential adaptable market features targeting to lower unnecessary construction costs and time overrun, improving quality, safety, and environmental sustainability while attaining value for money. Thus, to tolerate within a global competition environment, supply chain management has been pointed to ease the construction projects’ performance. This study aimed at examining the impacts of supply chain management on construction projects’ performance. One hundred thirty-eight (138) respondents were randomly sampled from three cities in Tanzania. Primary data were collected using a structured questionnaire, and the data were analysed descriptively. An exploratory factor analysis was performed to validate the questionnaire. Afterwards, confirmatory factor analysis (CFA) was conducted, and structural equation modelling (SEM) technique was used to determine the validity of the study. The Statistical Package for Social Science (SPSS) was used to analyse the data. The findings provided pragmatic factors necessary for improving construction projects’ performance. Also, it was found that fourteen supply chain impacts had a positive significant contribution to improving the construction projects’ performance. Moreover, the findings showed direct and statistically significant influence of supply chain management on collaboration, integration, risk sharing and management as well as configuration. Thus, the findings suggested that supply chain management cannot be isolated from other potential factors when one needs to attain an adequate construction project’s improved performance. Both social and practical implications of the study are recommended to construction industry practitioners and policymakers in Tanzania to understand the impact of supply chain management on construction projects’ performance to enhance performance improvement. Therefore, increased use of information technology (IT) in supply chain management is recommended to improve construction projects’ performance.