Assessing Interorganizational Relationships Among Key Supply Chain Partners (KSCPs) in Public Construction Projects

Abstract

Public construction projects require significant interactions with Key Supply Chain Partners (KSCPs) among contractors, subcontractors, material suppliers, etc. This article addresses the problem of how collaborations with KSCPs can be established and managed in construction projects with a public buyer. The interesting lens here is the public sector and the fact that the literature on the private sector still has provided limited insights in this regard. The methodology uses social network analysis (SNA) to analyze the role of collaborative networks of KSCPs in public construction projects and the difference in measured quality levels of KSCPs. Through the SNA measures, the article results demonstrated how collaborative networks of KSCPs affect projects and quality levels of KSCPs. There are curial differences between high and lower quality KSCPs in six network measures: direct ties, in-degree, out-degree, betweenness, closeness, and triads. According to the network analysis, main contractors subcontract with more KSCPs to reduce dependency and widen their networks. Moreover, lower quality KSCPs were connected to fewer KSCPs than high-quality KSCPs in the collaboration network, resulting in a weaker knowledge-sharing network. As a result, the possibility of gaining high practices from other KSCPs is restricted. The data analysis revealed a statistically significant decrease in the failure rates of KSCPs by implementing a network of connections with five or more KSCPs on their projects. Considering the pertinent network metrics, this article provides recommendations for KSCPs and public sector managers willing to enhance public construction quality.