Managing Supply Chain Disruptions in the Construction Industry: An Institutional Approach

Abstract

Purpose This study aimed to explore the institutional theory as a lens for investigating how construction firms adapt to supply chain disruptions. Specifically, the paper evaluates the interactions and interdependencies amongst various organizations, participants and institutions in the construction industry as a basis for a holistic, adaptive response strategy for managing supply chain disruptions.

Design/methodology/approach Following the tenets of relativist philosophy and qualitative research methodology, this study explores the lived experiences of senior-level managers across major construction firms in New Zealand through in-depth semi-structured interviews, as a basis for understanding how their respective organizations adapt to supply chain disruptions.

Findings The research findings suggest that aside from the formal rules that guide the conduct of construction firms as they adapt to supply chain disruptions, informal interactions that exist amongst various organizations and players in the construction industry could also enhance the development of innovative and practical response strategies to supply chain disruptions.

Originality/value This study makes original empirical contributions to the supply chain management literature by providing insights into how construction firms demonstrate normative, coercive and mimetic isomorphic tendencies amidst the complexity of supply chain disruptions. Insights from this study could enhance the adaptive response of construction firms to supply chain disruptions while also improving the overall resilience of the built environment.