IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v1y2021i10d10.1007_s43546-021-00139-5.html
   My bibliography  Save this article

A project-based purchasing portfolio matrix applied to the Australian construction industry

Author

Listed:
  • Louise Bildsten

    (Lund University)

Abstract

For a project to be delivered on-time and to an agreed cost in accordance with the specification, it is important to have an appropriate purchasing strategy. A project succeeds due to many factors, one of which is cost alongside timely delivery and quality. Formal purchasing strategies for different purchasing categories are common in the manufacturing industry, but less so in a project-based industry such as construction. The paper argues that purchasing strategies suited to the project-based nature of construction would improve project delivery and other success factors. The purpose of this study is to determine if a matrix could assist companies in the project-based industry to formulating their purchasing strategies. Case studies of five Australian construction companies’ purchasing practises were undertaken to support this work. There is evidence that, to remain competitive, it is necessary for companies to develop a network of well-established relationships with suppliers and subcontractors. Purchasing strategies need to be adapted to each purchasing situation as projects are rarely, if ever, the same. It is necessary, therefore, to adopt an approach that combines the best commercial deal and most effective collaboration.

Suggested Citation

  • Louise Bildsten, 2021. "A project-based purchasing portfolio matrix applied to the Australian construction industry," SN Business & Economics, Springer, vol. 1(10), pages 1-18, October.
    • Handle: RePEc:spr:snbeco:v:1:y:2021:i:10:d:10.1007_s43546-021-00139-5
    DOI: 10.1007/s43546-021-00139-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-021-00139-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43546-021-00139-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    2. Nicholas S. Argyres & Todd R. Zenger, 2012. "Capabilities, Transaction Costs, and Firm Boundaries," Organization Science, INFORMS, vol. 23(6), pages 1643-1657, December.
    3. Mirjam I. Kibbeling & Cees J. Gelderman & Jan M. Ulijn & Arjan J. Van Weele & Richard Calvi, 2009. "A Dutch-French comparison of dependence, trust and commitment in buyer-supplier relationships: a purchasing portfolio approach," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 3(4), pages 353-373.
    4. Louise Bildsten, 2014. "Buyer-supplier relationships in industrialized building," Construction Management and Economics, Taylor & Francis Journals, vol. 32(1-2), pages 146-159, February.
    5. R. Calvi & M. Kibbeling & J. Ulijn & A. van Weele, 2009. "A Dutch-French comparison of dependence, trust and commitment in buyer supplier relationships: A purchasing portfolio approach," Post-Print halshs-00520885, HAL.
    6. Ohannes Missirilian & Catherine Pardo & Philippe Portier & Robert Salle, 2011. "Barriers to the "key supplierization" of the firm," Post-Print hal-02312639, HAL.
    7. James Richardson, 1993. "Parallel sourcing and supplier performance in the Japanese automobile industry," Strategic Management Journal, Wiley Blackwell, vol. 14(5), pages 339-350, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Louise Bildsten, 2014. "Buyer-supplier relationships in industrialized building," Construction Management and Economics, Taylor & Francis Journals, vol. 32(1-2), pages 146-159, February.
    2. Mingfeng Tang & Grace Sheila Walsh & Cuiwen Li & Angathevar Baskaran, 2021. "Exploring technology business incubators and their business incubation models: case studies from China," The Journal of Technology Transfer, Springer, vol. 46(1), pages 90-116, February.
    3. Massa, Silvia & Testa, Stefania, 2011. "Beyond the conventional-specialty dichotomy in food retailing business models: An Italian case study," Journal of Retailing and Consumer Services, Elsevier, vol. 18(5), pages 476-482.
    4. Cinzia Battistella & Gianluca Murgia & Fabio Nonino, 2021. "Free-driven web-based business models," Electronic Commerce Research, Springer, vol. 21(2), pages 445-486, June.
    5. Joon Mahn Lee & Rahul Kapoor, 2017. "Complementarities and Coordination: Implications for Governance Mode and Performance of Multiproduct Firms," Organization Science, INFORMS, vol. 28(5), pages 931-946, October.
    6. Coskun-Setirek, Abide & Tanrikulu, Zuhal, 2021. "Digital innovations-driven business model regeneration: A process model," Technology in Society, Elsevier, vol. 64(C).
    7. Puie Florina Răzvanţă, 2019. "Conceptual framework for rural business models," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 1130-1139, May.
    8. Oseni, Musiliu O. & Pollitt, Michael G., 2017. "The prospects for smart energy prices: Observations from 50 years of residential pricing for fixed line telecoms and electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 150-160.
    9. Gianluigi Giustiziero & Tobias Kretschmer & Deepak Somaya & Brian Wu, 2023. "Hyperspecialization and hyperscaling: A resource‐based theory of the digital firm," Strategic Management Journal, Wiley Blackwell, vol. 44(6), pages 1391-1424, June.
    10. Alexis Laszczuk & Lionel Garreau & Bernard de Montmorillon, 2017. "Understanding emergence in business model development: how companies interact with stakeholders to deal with environmental ambiguity," Post-Print hal-01787276, HAL.
    11. Giger, Markus & Mutea, Emily & Kiteme, Boniface & Eckert, Sandra & Anseeuw, Ward & Zaehringer, Julie G., 2020. "Large agricultural investments in Kenya’s Nanyuki Area: Inventory and analysis of business models," Land Use Policy, Elsevier, vol. 99(C).
    12. Wüstenhagen, Rolf & Menichetti, Emanuela, 2012. "Strategic choices for renewable energy investment: Conceptual framework and opportunities for further research," Energy Policy, Elsevier, vol. 40(C), pages 1-10.
    13. Jesús F. Lampón & Santiago Lago-Peñas, 2013. "Factors behind international relocation and changes in production geography in the European automobile components industry," Working Papers 2013/16, Institut d'Economia de Barcelona (IEB).
    14. Wenyao Zhang & Tugrul Daim & Qingpu Zhang, 2019. "Exploring the Multi-Phase Driven Process for Disruptive Business Model Innovation of E-Business Microcredit: a Multiple Case Study from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 590-617, June.
    15. Lehoux, P. & Daudelin, G. & Williams-Jones, B. & Denis, J.-L. & Longo, C., 2014. "How do business model and health technology design influence each other? Insights from a longitudinal case study of three academic spin-offs," Research Policy, Elsevier, vol. 43(6), pages 1025-1038.
    16. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    17. Esben Rahbek Gjerdrum Pedersen & Wencke Gwozdz & Kerli Kant Hvass, 2018. "Exploring the Relationship Between Business Model Innovation, Corporate Sustainability, and Organisational Values within the Fashion Industry," Journal of Business Ethics, Springer, vol. 149(2), pages 267-284, May.
    18. OGREAN Claudia, 2015. "Business Models To Meet The Challenges Of The Global Economy. A Literature Review," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 67(6), pages 127-146, December.
    19. Covin, Jeffrey G. & Garrett, Robert P. & Kuratko, Donald F. & Shepherd, Dean A., 2015. "Value proposition evolution and the performance of internal corporate ventures," Journal of Business Venturing, Elsevier, vol. 30(5), pages 749-774.
    20. Manuel Chaves-Maza & Eugenio M. Fedriani Martel, 2020. "Entrepreneurship support ways after the COVID-19 crisis," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(2), pages 662-681, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:1:y:2021:i:10:d:10.1007_s43546-021-00139-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.