Identification of Barriers and their Effects in Implementation of Construction Supply Chain Management

Abstract

The construction industry is increasingly implementing supply chain management (SCM), yet various barriers hinder its effective implementation. Identifying and addressing these barriers may ensure the realization of expected benefits from Construction Supply Chain Management (CSCM). The purpose of this study is to investigate the impact of these implementation barriers on effects as well as to develop and evaluate the hypothesis that these barriers affect the effects in the implementation of CSCM. Firstly, through an extensive literature review, 31 barrier attributes and 13 effect attributes were identified, and a questionnaire was prepared accordingly. Exploratory factor analysis (EFA) on a questionnaire survey of 110 industry experts grouped 29 barrier attributes into seven components. Similarly, 13 effect attributes were grouped into four components. Initially, two three-level hierarchical structure was developed for barrier and effect components based on the results of factor analysis. Subsequently, the two separate models of the barrier and effect components were created and confirmed using the findings of Confirmatory Factor Analysis (CFA). A hypothesized model was developed using Structural Equation Modelling (SEM) approach, indicating a relationship between barriers and effects. The model was tested positive relationship between five barrier components and four effect components. The findings of this study shown the positive relationship between barriers and effects and indicates that “stakeholder’s issue” is the most important factor followed by execution issue.” This study contributes valuable insights to the existing body of knowledge on CSCM, enhancing practitioners’ and researchers’ understanding and fostering the evolution of SCM practices in the construction sector.