COVID-19 impact in supply chain performance: a study on the construction industry

Abstract

PurposeThe strict lockdown during COVID-19 has suspended construction, procurement and logistics in construction industry and affected the entire Supply Chain Management (SCM). The COVID-19 has been universally observed in all sectors, but a limited study has been done in construction industry and also the ways to mitigate it. Hence, the current study aims to identify the impact of COVID-19 in Construction Supply Chain (CSC) and to analyse the influence of factors on Supply Chain (SC) performance during uncertainty in the construction industry.Design/methodology/approachFrom previous studies, the factors enhancing the SCM performance are taken. The research follows a qualitative in-depth interview to identify the factors and quantitative study to collect data using a questionnaire. Samples for the study were chosen using purposing sampling techniques. The collected data were analysed using “Statistical Package for Social Science” (SPSS V 20).FindingsEffect of COVID-19 is more on medium sized builders and developers. A positive impact is found between SC agility, SC resilience and information technology (IT) capabilities on SC performance.Research limitations/implicationsFirstly, the study adopted cross-sectional data to test the hypothesis. The study results on the combined effect of the factors SC agility, SC resilience and IT capability during uncertainty were found to have a positive influence. The longitudinal study would enrich the understanding of the research. Secondly, the study was focussed on the perspective of the dynamic capability view. Further studies can adopt a multi-method approach to develop a theoretical framework using in-depth study and empirical validation. It will help in a better understanding of the current situation and young discipline in SC. Thirdly, the study has considered only Kerala construction companies; hence, the data were less. More data with better results will be obtained if the study has included construction companies from other states. Fourthly, the study can be extended to understand the interdependent effects of SC agility, SC resilience and information technology capability on performance. Presently, the interdependent effect in the study is limited.Practical implicationsThe study helps the construction professionals to understand the preventive measures needed for the industry during any uncertainty. Also, the study is expected to help the construction managers and leaders with better performance in SCM and other business activities by adopting IT connectivity and being agile in all situations. Moreover, the study also helps policymakers take active solutions by providing awareness and incentives to the construction industry professionals. The literature and the factors will also help the academicians in further research progress.Originality/valueThe research is important for construction professionals to comprehend the impact of COVID-19 and to analyse the influence of factors such as SC agility, SC resilience and IT capabilities on improving the SC performance. This research can assist private and public construction firms to enhance SC performance during times of uncertainty. The result is likely to help construction companies with better SC performance and helps academicians' further progress in research.