Malaysian Bumiputera contractors' supply chain: A preliminary appraisal

Abstract

The construction industry is an industrial sector that is complex and dynamic. As a developing country, Malaysia recognizes building as one of the main contributors to the economy of the country. Hence, being one of the economic drivers, the construction industry needs to ensure it remains important and competent by venturing successful strategies applied by other sectors. The implementation of supply chain management, especially in the manufacturing sector, has been positive and has produced the expected benefits such as cost reduction, competitive advantages, improved productivity, value creation and better relations between parties. This study aims to review reported outcome on Bumiputera contractors' supply chain network. Additionally, this study also intent to analyse the main categories of risk that affect the Bumiputera contractors' project performance which related to their approach on supply chain management. Current research papers on relevance to the issue were critically reviewed. The results from the structured literature review managed to identifies that supply chain is not used extensively among the Bumiputera contractors. Additionally, risks associated with the supply chain network in construction industry can be further categorised into external and internal factors such as cooperative risk, financial risk, technology risk and economic risk. The result have aspired a better understanding between the supply chain management with sustaining project performance among Bumiputera contractors. This study is a part of an on-going contract research with the overall aim to model supply chain network using risk parameters which will be identified at later stage of this research.