EFFECT OF SUPPLIER SELECTION MANAGEMENT ON THE PERFORMANCE OF CONSTRUCTION COMPANIES IN RWANDA. A CASE STUDY OF ROCK HILL CONSTRUCTION COMPANY LTD IN KIGALI, RWANDA
Abstract
The objective of the study is to examine the effect of supplier selection management on the performance of Rock Hill construction company ltd in Kigali. The study adopted a mixed research design which included descriptive survey and correlation. The target population was 124 employees from all departments in Rock Hill Construction Company where census approach was adopted. For primary data questionnaires were used for data collection instruments and were in form of a five Likert scale with close ended questions. Validity of the instruments was measured using a team of experts in the field of project management. Data was analyzed using qualitative and quantitative methods using SPSS version 21. Multiple regression model and correlation coefficient were used. The results reveal that effective supplier selection management positively impacts the performance of the construction company. The study finds that factors such as supplier reliability, quality of materials, cost-efficiency, and timely delivery significantly influence project performance. Furthermore, the qualitative insights shed light on the strategies and challenges encountered by Rock Hill Construction Company Ltd in managing its supplier selection process. The study reveals that supplier selection management shows a modest positive effect on performance (Beta = 0.108, p = 0.047). This research contributes to the understanding of how supplier selection management can be a key determinant of success in the construction industry and offers practical recommendations for enhancing supplier-related decision-making processes to improve overall company performance. Furthermore, the research identifies key factors affecting supplier selection, including financial stability, reliability, and compliance with industry regulations. The study further recommends that the Rock Hill construction company ltd in Kigali should ensure full adoption of supplier selection practices in procurement and supply chain departments.
Keywords: Supplier Selection Management, Organization Performance, Rock Hill Construction Company
CITATION Murekatete, Z., & Dushimimana, J. D. (2023). Effect of supplier selection management on the performance of construction companies in Rwanda. A case study of rock hill construction company ltd in Kigali. The Strategic Journal of Business & Change Management, 10 (4), 189 – 200. http://dx.doi.org/10.61426/sjbcm.v10i4.2743.
Full Text:
PDFReferences
Ahmed, S., Farooqui, R. U., & Ali, M. (2019). Role of supply chain management practices in enhancing the performance of construction projects in developing countries. Journal of Construction in Developing Countries, 24(1), 75-98.
Al Hattab, M. A., & Al-Rashdan, D. (2020). The impact of supply chain management practices on the performance of construction projects in the Middle East. International Journal of Construction Management, 1-16.
Carr, A. S. (2016). Relationships among Information Technology, Organizational Cooperation and Supply Chain Performance. Journal of Managerial Issues, 28(4), 171-190.
Chang, J. F. (2016). Business process management systems: strategy and implementation. Florida: CRC Press.
Cooper, M.C. (2016). Supply chain postponement and speculation strategies. Journal of Operations Management. 26(2), 148-163.
Field, A. (2013). Discovering statistics using IBM SPSS statistics. Sage
Freeman, R. E. (1984). Strategic Management: A stakeholder approach. Marshfield, MA:Pitman Books.
Ghannad, M., & O'Brien, W. J. (2015). A Bayesian network model for assessing supplier selection risk. International Journal of Production Economics, 168, 280-291.
Kannan, G., & Tan, K. C. (2015). Supplier selection and assessment: Their impact on business performance. Journal of Supply Chain Management, 41(2), 23-33.
Kothari, C. R. (2017). Research Methodology methods and techniques, (second edition). New Delhi: New age International.
Kumar, A., & Ozdamar, L. (2012). A fuzzy multicriteria approach to personnel selection problems. Human Systems Management, 21(1), 33-44.
Kumar, A., & Maheshwari, S. (2019). Game theory in supply chain risk management: The role of supply chain management practices on performance of construction projects. Journal of Engineering, Design and Technology, 17(5), 1167-1181.
Lambert, D. M., & Cooper, M. C. (2020). Issues in supply chain management. Industrial Marketing Management, 29(1), 65-83.
Li, H., Akintoye, A., Edwards, P. J., & Hardcastle, C. (2015). The allocation of risk in PPP/PFI construction projects in the UK. International Journal of Project Management, 23(1), 25-35.
Li, M., Lin, M., & Liang, D. (2019). The impact of inventory management on supply chain performance: A study on manufacturing firms. Journal of Operations Management, 35(1), 129-149.
Li, Y., Wang, Q., Qiao, Q., & Ren, Y. (2021). Impact of relational contracting on construction project performance: The moderating role of communication and trust. Journal of Cleaner Production, 280, 124199.
Mitchell, R. K., Agle, B.R., & Wood, D.J. (2017). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853-886.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.
Mugenda, O. M., & Mugenda, A. G. (2013). Research Methods: Quantitative and Qualitative Approaches. Nairobi: ACTS Press.
Mugenda, O. M., & Mugenda, A. G. (2012). Research Methods Dictionary. Nairobi: Applied Research & Training Services.
Mwakali, J. A. (2016). Effects of supply chain management practices on the performance of construction projects in Kenya. International Journal of Construction Engineering and Management, 5(2), 27-34.
Newcombe, R. (2013). From client to project stakeholders: a stakeholder mapping approach. Construction Management and Economics, 21(8), 841-848.
Neves, S., Saavedra, A., & Brito, C. (2013). Performance indicators for successful construction project performance. Procedia Engineering, 57, 739-746.
Ntawuyirushintege, A., Niragira, J. D., Habimana, J. B., & Uwimana, A. (2020). The Role of Supply Chain Management Practices on the Performance of Construction Projects in Rwanda. Journal of Construction Engineering and Management, 146(11), 04020120.
Ntihabose, E., Kamana, A., & Muhirwa, C. (2021). The Role of Supply Chain Management Practices on Performance of Construction Projects in Rwanda. International Journal of Construction Engineering and Management, 10(1), 18-27.
Odeyinka, H. A., & Yusif, A. (2014). Supply chain management in construction industry. The Built & Human Environment Review, 7, 52-62.
Ogunsemi, D. R., Oladapo, A. A., & Ekundayo, D. (2014). Supply chain management practices in the Nigerian construction industry. Journal of Construction Engineering and Project Management, 4(4), 1-11.
Osei-Kyei, R., & Chan, A. P. C. (2018). Review of studies on the critical success factors for public-private partnership (PPP) projects from 1990 to 2015. International Journal of Project Management, 36(7), 1063-1079.
Pfeffer, J., & Salancik, G. R. (2018). The external control of organizations: A resource dependence perspective. Stanford University Press.
Saunders, M., Lewis, P. & Thornhill, A. (2015). Research Methods for Business Students (7th ed.). Edinburgh Gate: Pearson Education Limited.
Sekaran, U., & Bougie, R. (2013). Research Methods for Business: A skill Building Approach. (6th ed.). West Sussex: John Wiley and Sons.
Shi, J., Zhang, X., Li, H., & Wang, X. (2021). Impact of supply chain management practices on construction project performance: evidence from China. Journal of Cleaner Production, 287, 125351.
Son, J.Y., & Orchard, R.K. (2013). Effectiveness of policies for mitigating supply disruptions. International Journal of Physical Distribution & Logistics Management, 43(8), 684-706.
Taylor, P.C. (2014). Contemporary Qualitative Research: Handbook of Research on Science Education. London: Routledge.
Uwitonze, E., Munyampundu, J. P., & Muvunyi, C. M. (2020). Assessment of factors affecting construction project performance in Rwanda: A case of infrastructure projects. Journal of Construction Engineering and Project Management, 10(2), 30-41.
Uwitonze, E., & Munyakazi, E. (2019). Impact of supply chain management practices on the performance of manufacturing firms in Rwanda. International Journal of Engineering Business Management, 11, 1-12.
Wang, Z., Wu, Z., & Wu, X. (2020). Supplier relationship management and organizational performance. International Journal of Production Economics, 228, 107745.
Wang, C., Tan, K., & Kek, S. (2020). The impact of supply chain management practices on firm performance: A study of manufacturing SMEs in China. International Journal of Operations & Production Management, 40(5), 589–612.
Yu, L., Chan, A. P., & Chan, D. W. (2020). Impact of supply chain management practices on project performance in the construction industry. Journal of Construction Engineering and Management, 146(6), 04020051.
Zhang, Y., Fang, D., & Han, Y. (2020). Evaluating the effectiveness of supply chain management practices in construction projects using grey relational analysis. Journal of Cleaner Production, 245, 118926.
Zhou, W., Huang, W., & Zhang, R. (2014). A two-stage queueing network on form postponement supply chain with correlated demands. Applied mathematical modelling, 38(11-12), 2734-2743
DOI: http://dx.doi.org/10.61426/sjbcm.v10i4.2743
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.