Linking supply chain disruptions with organisational performance of construction firms: the moderating role of innovation

Abstract

Purpose Supply chain (SC) disruption, whether demand sided or supply sided, is conversely perceived to affect organisational performance of construction firms. This paper, therefore, aims to examine the linkage of supply chain disruptions with organisational performance of construction firms through the moderating role of innovation. Design/methodology/approach Using a quantitative research, approach the views of 84 construction professionals were elicited using a structured questionnaire. Ordinary least squares were utilised to validate the hypotheses set. Findings The study proved that there is a negative relationship between demand-related disruption and business performance as well as project performance. Also, it was clear from the study that supply-related disruptions had a significant impact on both project performance and business performance. Although SC innovation was seen to impact business performance, it had no relationship with project performance. Generally, innovation was seen to have a moderating effect of demand and supply disruption of project performance, but it played no moderating role in business performance. Practical implications The findings suggest that business firms must be innovative with the supply chain, as it moderated project success. The supply chain of a construction firm plays a very critical role on projects; hence, this study recommends that a supply chain manager ought to be innovative in their operations due to the moderating role SC innovation has on project performance and largely business performance. Originality/value Various studies on supply chain has been done on different sectors in the economy; however, little can be said about the construction industry on how supply chain disruptions affects business and project performance and how innovation moderates such effects.