ASSESSING THE INFLUENCE OF SUPPLY CHAIN MANAGEMNET ON OPERATIONAL PERFORMANCE IN BUILDING CONSRUCTION COMPANIES

Available studies indicate that construction organizations still struggle to achieve high operational performance due to their inadequate understanding of how supply chain management (SCM) strategies can be effectively adopted. Hence, the aim of this study is to assess how supply chain management influences operational performance. The objectives include: identifying the most important supply chain management factors that affect operational performance in building construction companies, and to determine the effect of such factors. Fifty Likert type close-ended questionnaires were administered to construction companies and 40 were returned, representing 80% of the distributed questionnaires. Descriptive statistics was used in the analysis. From the results it was found that ‘Ineffective financial management’, ‘Inadequate project planning’, and ‘Delay in payment’ are among the major factors that affect operational performance in building construction companies. ‘Ensuring prompt payment’, ‘safe working environment’, and timely delivery of materials’ are among the strategies for mitigating the effect of the factors that affect operational performance in building construction companies. 7 It is therefore concluded that operational performance in building construction companies is influenced by supply chain management factors such as ineffective financial management, inadequate project planning, and delay in payment. It is recommended that building construction companies should encourage adequate project planning and that building construction companies should have effective financial management.