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.