Procurement Process Coordination and Firm Performance in Building Construction

摘要

Supply chain management (SCM) has been recognized as a key driver of overall operational and financial performance particularly in the mainstream research. Various areas of SCM have been explored including supply chain coordination (SCC) and managing supplier relations. This paper presents an empirical study on the link between procurement process coordination and firm performance in the building construction industry. Concentration is given to the procurement process of building materials between the contractors and their main suppliers. Instead of testing the cause and effect between procurement process coordination and performance, this study allows identifying key dimensions in this process that contribute the most to the firm performance. The analysis was conducted using structural equation modelling (SEM) technique. The findings indicate that two of the procurement process coordination's dimensions (joint operation planning and supplier relationship development) are positively and significantly influenced firm performance.