Critical supply chain vulnerabilities affecting supply chain resilience of industrialized construction in Hong Kong

Abstract

PurposeIndustrialized construction (IC) has been recognized as a game-changing approach in Hong Kong (HK). However, the increasing risks of disruptions in IC supply chains (SCs) raise SC vulnerability levels, prompting attention to developing supply chain resilience (SCR). Since SCR is only attainable through overcoming critical supply chain vulnerabilities (CSCV) with enhanced SC capabilities, this study first aimed to determine the most CSCV of ICSCs by addressing this current research gap and practical need.Design/methodology/approachDrawing on SCV factors identified from a precursor literature review, an empirical study of IC in HK was conducted using a questionnaire survey and interviews with industry experts. Focussed significance analysis of the data collected through questionnaire survey enabled the selection of 26 CSCV as appropriate to IC. Next, factor analysis was conducted, enabling the grouping of these CSCV under five components. The results were verified and reinforced by interview findings.FindingsThe results revealed 26 CSCV pertinent to resilient ICSCs in HK with five underlying components: economic, technological, procedural, organizational and production-based vulnerabilities. Loss of skilled labour is the most critical vulnerability, whereas organizational SCV is the most critical component identified.Originality/valueFindings of this study would motivate IC project professionals to appreciate and address the CSCV in the context of five components and thereby develop adequate specific capabilities to successfully withstand these CSCV. This should trigger future studies to map CSCV with appropriate capabilities in developing an envisaged powerful assessment model for evaluating the SCR in IC in HK.