Influence of Supply Chain Management Practices on Project Performance of Selected Construction Firms in Lagos, Nigeria

Abstract

Achieving construction project performance in terms of project quality, profitability, on-time project delivery among others, supply chain management has been one of the major determinants. However, ineffective and poor deployments of supply chain management practices have resulted to poor quality project and deteriorate most construction project performance among construction companies in Lagos State, Nigeria. This study therefore examined the influence of supply chain management practices (supply chain collaboration practice, green supply chain management practice, information sharing practice and customer relationship management practice) on construction project performance in Lagos State, Nigeria. The study employed survey research design, sample size of 298 using Cochran sample size determination with multi-stage sampling technique as well as multiple regression method of analysis. The items used to measure the study variables are reliable and valid since Cronbach Alpha range between 0.772 to 0.832 with the KMO of greater than 0.5. Finding revealed that supply chain management practices have positive and significant influence on construction project performance of selected construction companies in Lagos State, Nigeria (F-stat = 98.422; Adj.R2 = 0.658; p<0.05). The study concludes that supply chain management practices influence construction project performance of selected construction firms in Lagos State, Nigeria. The study recommends that construction firms should create a database on supplier chain activities such as delivery schedules, complaints, quality management processes in order to seal all loopholes that may create opportunities for undermining of supply chain management practices as well as increase quality supply chain and procurement process, thus enhancing project performance.