EVALUATING THE MODUS OPERANDI OF CONSTRUCTION SUPPLY CHAINS USING ORGANISATION CONTROL THEORY
National Institute of Construction Management and Research, Pune, India
National Institute of Industrial Engineering, Mumbai, India
Supply chains are omnipresent. However, the modus operandi of the construction supply chain is not clearly established in the literature. This might be attributable to the character of construction projects and the structure of the construction industry. Formal and informal control mechanisms are well established in retail and manufacturing supply chains which is evident in improved product performance. However, there is a paucity of research on the construction supply chain especially at identifying the interplay of control mechanisms and their relationship with project performance. In the case of large and complex construction projects, the client-contractor relationship requires input control, behaviour control and output control for successful project delivery. In the light of organisation control theory and the existing literature on construction supply chains, this study evaluates the modus operandi of the client-contractor relationship based on three control mechanisms: input control (project risk and reward power, and intra-project communication), behaviour control (opportunism) and output control (project performance) using a structural equation model. A survey data of 258 construction professionals working on construction projects in India was collected. The study findings reveal that input control, in terms of project risk and reward power, and intraproject communication, largely influence behaviour control in terms of opportunism. However, behaviour controls do not directly affect output control in terms of project performance; rather, a direct effect of the input control mechanism of output control is particularly evident.