Factors Affecting Buyer-Supplier Relationship in Sarawak, Malaysia from the Construction Contractor’s Perspective: A PLS-SEM Approach

Chu Sheng Ding, Tiong Koh Chieng, Chih Siong Wong, Shi Yee Wong and Prescilla Anak Palis
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Chu Sheng Ding: School of Built Environment, University of Technology Sarawak, 96000 Sibu, Sarawak, Malaysia
Tiong Koh Chieng: School of Built Environment, University of Technology Sarawak, 96000 Sibu, Sarawak, Malaysia
Chih Siong Wong: School of Built Environment, University of Technology Sarawak, 96000 Sibu, Sarawak, Malaysia
Shi Yee Wong: School of Built Environment, University of Technology Sarawak, 96000 Sibu, Sarawak, Malaysia
Prescilla Anak Palis: School of Built Environment, University of Technology Sarawak, 96000 Sibu, Sarawak, Malaysia

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 8, 450-463

Abstract: The relationship management between buyers and suppliers has always been an indispensable issue in the construction industry. In order to obtain direct and/or indirect benefits of good buyer-supplier relationship, construction firms are required to put in efforts in maintaining the relationship. Some of the benefits of effective buyer-supplier relationship management include good project quality, on time project delivery and reasonable construction cost. However, it is highlighted in the literature that the buyer-supply relationship in Malaysia are often poorly maintained due to lack of trust, ineffective communication and poor collaboration. Poor relationship may bring forth negative impacts such as delay, cost overrun and substandard material quality during the project delivery process. In Sarawak, many projects were also being affected due to poor buyer-supplier relationship management. Therefore, the present research aimed to study the factors affecting buyer-supplier relationship in Sarawak construction industry from the contractors’ perspective. A quantitative research approach was adopted in the present research. Self-administered questionnaires were distributed to Grade 7 contractors in Sarawak to collect primary data. The collected data was subsequently analyzed using the partial least squares structural equation modelling (PLS SEM)approach.Based on the generated results, “commitment†, “trust†and “quality†are three factors that showed significant relationship with buyer-supplier relationship. The findings of the present research would contribute to enhancing the relationship between buyers and suppliers and thereby improving the performance of construction projects in Sarawak.

Date: 2024
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