Supply chain capital in construction industry: coining the term

Abstract

PurposeThe purpose of this paper is to understand the concept of supply chain capital, which is formed through managing knowledge in supply chains on a long‐term basis.Design/methodology/approachThe development of a conceptual model describing supply chain capital is achieved through extensive literature review, past research carried out by the authors, and past experiences of the authors within the construction industry.FindingsThe paper develops a conceptual model that provides a link between construction organisations and their learning activities as part of a project supply chain, resulting in creation of a learning organisation and a learning supply chain. The model shows that the learning supply chains consist of learning organisations which would create supply chain capital in order to promote innovation and creativity by managing knowledge in supply chains on a long‐term basis.Practical implicationsIn addition to the establishment of the model, the paper suggests that the learning organisations would also establish a virtual knowledge transfer among themselves and the supply chains in which they are involved. The paper also suggests that, as unit of competition changes from organisation verses organisation to chain verses chain under supply chain management, supply chain capital will become increasingly important for sustaining competition within the construction industry. Therefore, supply chain capitals are to be created through managing knowledge in supply chains on a long‐term basis, using the proposed conceptual model. The model also facilitates innovation and creativity, essentially required to thrive in the downturned business environment of today in many countries in different parts of the world.Originality/valueThe paper's authors are the first to come up with the term “supply chain capital” in the research domain and to have developed the conceptual model for the construction industry.