The objective of this paper is to shed light on obstacles to, and opportunities for, increasing the effectiveness of construction
firms in managing buyer-supplier relationships. More specifically, the focus is on assessing the maturity level of buyer-supplier relationship
management by construction firms. First, on the basis of a literature review and discussions with industry experts, five constructs were defined
and, on the basis of these constructs, a measurement tool was developed. Following this, the maturity level in terms of the five constructs
was assessed by applying the measurement tool in 19 Dutch construction firms. The results demonstrate a large potential for improved
management of buyer-supplier relationships. Although there are major factors impeding, there are, at the same time, developments stimulating
the effectiveness of managing buyer-supplier relationships. A useful next research step would be to determine the optimum portfolio
of relationship types between contractors and suppliers in the construction industry.
“A long-term commitment by two
or more organizations for the purpose of achieving specific business
objectives by maximizing the effectiveness of each
participant’s resources. This requires changing traditional relationships
to a shared culture without regard to organizational boundaries.
The relationship is based upon trust, dedication to common
goals, and an understanding of each other’s individual expectations
and values. Expected benefits include improved efficiency
and cost-effectiveness, increased opportunity for innovation, and
the continuous improvement of quality products and services”
(CIIA 1996). Storey et al. (2005) argue there are several organizational
factors that impede the development of such collaborative
relationships: a lack of commitment, diverging corporate strategies
and priorities, and differences in levels of trust and commitment at
the operational and strategic levels in the organization. Barratt
(2004) also mentions lack of trust as one of the key inhibitors
of collaborative planning in supply chains.