Interest in the supply chain management concept by the construction research community arose from the successful implementation by manufacturing sectors to resolve firm and industry performance problems. Construction industry policymakers have appropriated the concept. Researchers tend to develop normative models to improve industry performance through supply chain integration. Such models are based upon the assumption of an homogeneous industry which is fragmented and composed of numerous small to medium sized enterprises. Policymakers are seeking positive economic models however policies are not based upon an explicit detailed understanding of the nature of the industry nor an explicit model of firm and industry performance. The positive economic model accepts that the industry is specialised and heterogenous with varied structural and behavioural characteristics across individual markets. The greatest difficulty with supply chain management in terms of construction research theory and practical application is that currently too little is known about these characteristics and how to describe them. / Procurement modelling across the supply chain is fundamental to describing the underlying structure and behaviour of the industry. The industrial organisation economics theory was examined for its contribution and the structure-conduct-performance methodology was modified to develop a project oriented industrial organisation economic model for procurement in the construction supply chain. The model defines entities such as firms, projects, markets and firm-firm relationships and their relative associations. The model was static and nomothetic in approach and lacked the capacity to represent the duality of structure and behaviour of entities and individual procurement and project scenarios. The object-oriented methodology was used to address this and reinterpret the construction supply chain using the Unified Modelling Language. The model is interdisciplinary and merges industrial organisation economics and object-oriented methodology. Structural and behavioural model views of real world procurement in construction supply chains were developed based upon six major building projects in an Australian city. On thousand two hundred and fifty three procurement relationships were mapped using data collected from forty seven structured interviews and forty four questionnaires. / The data analysis was qualitative and quantitative. Data display techniques were used to describe common themes and differences to develop an ideographic view of procurement. A statistical categorical data analysis provided a nomothetic view by comparing observed procurement results versus likelihood of expected results. The findings indicate that classifications of objects within the supply chain procurement model provides clues to structure and behaviour. Eight structural organisation maps of key construction industry commodities describe typical channels according to the type of commodity and the major groupings within the commodities. Supply chains can be classes according to attributes including uniqueness, property sector, importation and specialisation. Supplier firms can be classed by: commodity significance and countervailing power. The procurement relationships between firms can be classified based upon risk and expenditure, transaction significance and negotiation attributes. There are patterns of behaviour in the industry reliant upon a set of “if / then” type rules. This study concludes that the perception of the industry as fragmented, unstructured, unpredictable and high risk is a simplistic view of what is in reality a complex set of varied and numerous markets with degrees of predictability. Contrary to the traditional view, procurement is a strategic activity. This study highlights numerous research opportunities particularly in the area of interdisciplinary construction industry studies.
| Identifer | oai:union.ndltd.org:ADTP/245074 |
| Creators | London, Kerry |
| Source Sets | Australiasian Digital Theses Program |
| Language | English |
| Detected Language | English |
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