Industry competitiveness: a supply chain learning agenda
Lead Research Organisation:
Heriot-Watt University
Department Name: Sch of the Built Environment
Abstract
Supply chain management remains pivotal within arguments to improve the productivity of organisations and, continues to receive significant attention. Indeed, supply chain management has been drawn upon, connected with and used as a lens to explore multiple research questions of interest to both theorists and practitioners. Within the context of the UK construction sector, aspirations of improved productivity and competitiveness have been pursued for over 60 years. Supply chain management has previously been to be instrumental in delivering these aspirations. Despite this, these aspirations remain unfulfilled. Further research is therefore necessary to explore processes and practices that underpin how supply chain management delivers improved competitiveness. The assumption underpinning the researech is that a new perspective that shifts the dominant emphasis away from collaboration, procurement, culture and trust towards, notions of learning and knowledge is necessary.Organisational learning and the learning organisation are similarly argued to be instrumental to organisations' abilities to improve productivity and competitiveness. Notably, despite its longevity in the literature, organisational learning and the learning organisation continue to provoke debate. Both share a similar emphasis on the management of knowledge and how knowledge within an organisation can be leveraged. Debates within the knowledge literature are therefore fundamental to learning in the context of an organisation. Of interest in this body of literature are arguments, models and processes for creating and sharing knowledge and disparate broad theories of learning.Notably, the dominant context focused upon by traditional organisational learning theorists and practitioners has been on individuals, single organisations or communities of practice. Arguments in the supply chain management literature however suggest that competitiveness must be related to supply chain learning. This brings with it significant complexity, not least the idea that learning can transcends organisational boundaries. Connecting supply chain management with organisational learning thus, posits both challenges and opportunities for learning and, by extension, knowledge sharing and competitiveness. The proposed research seeks to connect these two concepts. From a socio-technical perspective the processes and practices of supply chain management and organisational learning will explored and further developed to bring insights to competitiveness in the UK construction sector.
Organisations
People |
ORCID iD |
| Scott Fernie (Principal Investigator) |
Publications
Fernie S
(2013)
The non-adoption of supply chain management
in Construction Management and Economics
Scott Fernie (Author)
(2012)
CIB 2012 - Supply Chain Management in Construction: Three developments in search of a theory
Scott Fernie (Author)
(2010)
ARCOM 2010 - A contemporary examination of framework agreements.
Scott Fernie (Author)
(2011)
ARCOM 2011 - An alternative form of supply chain governance: Construction clans
Scott Fernie (Author)
(2010)
CIB 2010 - Supply Chain Management: A Critique of Supply Chain Architecture
Scott Fernie (Author)
(2011)
CIB 2011 - Extended Construction Supply Chain Management: Relationships, Rewards and Risks
Scott Fernie (Participant)
(2012)
ARCOM 2012 - Re-engineering the Construction Supply Chain: Transferring on-site activity, off-site
Stuart Tennant (Author)
(2012)
IJCSCM - An emergent form of supply chain governance: construction clans
in International Journal of Construction Supply Chain Management
Tennant S
(2013)
Organizational learning in construction supply chains
in Engineering, Construction and Architectural Management
Tennant S
(2014)
Theory to practice: A typology of supply chain management in construction
in International Journal of Construction Management
| Description | Summary of Outcomes: In simple terms describe your work in such a way that it could be publicised to a general audience. The research set out to explore processes and practices that underpin how supply chain management delivers improved competitiveness. Furthermore, the research was underpinned by an assumption that integrated supply chains exist and that an emphasis on 'learning' would bring fresh perspectives to competitiveness. Exploration of these chains and the development of learning processes and practices would therefore bring greater insights to competitiveness in UK construction. Notably, the research was conducted during an economic period where demand placed upon the construction industry dramatically fell. Prior to this period of financial austerity, economic stability within the construction industry had arguably provided a platform for clients to develop competing supply chains: framework agreements. These agreements formed an unprecedented opportunity for the research to explore contemporary forms and structures of competing construction supply chains and how learning underpinned competitiveness. During this period of financial austerity, existing frameworks agreements were also subject of renegotiation or abandoned altogether. Despite this, there use in the public sector has grown. Within this changing landscape, the research took the opportunity to capture 'reality in flight' and focussed upon public sector procurement and framework agreements to explore supply chain management and learning. This provided findings and outcomes that challenged assumptions underpinning the research, led to the development of theories to explain construction supply chain management and insights into the relevance of policy to practice. In summary: Supply chains in construction were conceived of as organisations with an interest in delivering particular products or projects. The prevailing assumption within supply chain management theory would be that these chains are designed and structured on the basis of integration, collaboration and learning. Furthermore these chains would be holistically managed from one end of the chain to the other. However, actively designing, integrating and holistically managing construction supply chains from end to end was found to be rare and very limited. The difficulty appeared to be centred around the question of who, if anybody, is best placed to holistically manage supply chains. This outcome significantly challenged one of the dominant assumptions of the research - the idea that competing end-to-end supply chains exist in construction. Despite this, industry practitioners were found to use the language of supply chain management extensively and associated it with certain processes and practices. This formed the basis of construction supply chain management explored in the research and the context within which learning could be used as a basis for competitiveness Construction supply chains were found to be managed in a more fragmented way and associated with disparate processes and practices mobilised within client-led and contractor-led supply chains. Managing these rarely extended beyond the next tier of suppliers. These chains were short and more reflective of partnering. Powerful institutions such as demonstrating 'value for money' and market dynamics (supply and demand) also dominated perspectives and views of supply chain management and found to typically create tensions between demonstrating competitiveness whilst simultaneously encouraging collaboration. This question of achieving co-opetition was complex and challenged the dominant idea that integration and collaboration universally deliver competitiveness. The adoption of disparate economic perspectives on supply chain management was found to be instrumental in framing co-opetition and in shaping the research outcomes that adopted a pluralistic approach to construction supply chain management and the role of learning. Client-led supply chains or strategic alliances were found to be rooted in the mobilisation of 'triadic sourcing arrangements'. In this sense, clients created a 'closed shop' within which they formed exchange relationships with clusters of first tier organisations. Contrary to many previous comparative studies, this research drew upon established theories of economic organization. Relationships were thus found to be governed by client-led, framework orientated communities, clans, where clusters had significant shared economic, social and technological interests formed vertically with clients and horizontally within clusters. This represented a significant step away from open-market competitive tendering. Predominantly, competition between clusters was controlled by clients. However integration and collaboration within and between clusters was not. Clients were sensitive towards the effect this could have on their power and ability to secure value for money. Consequently, clients were found to engineer, manage and control clusters via different mechanisms to achieve co-opetition via exclusivity clauses, renegotiating and ending agreements and, quickly reverting to open-market competitive tendering. Supply chain management for clients was thus dominantly concerned with controlling dyadic relationships. The research outcomes formed a large part of developing empirically grounded theoretical explanations for the way client-led dyadic relationships are controlled and implemented. These also helped explain the marginalised role that learning plays in legitimately achieving competitiveness. Central to these explanations was the novel use of triads, forms of governance and supply chain champions. Contractor-led supply chains were found to be predominantly concerned with developing transparent supplier management systems that rarely extended beyond a single tier of suppliers. The dominant criteria for such systems were costs and these systems largely formalised supplier selection systems that had hitherto remained tacit. Like framework agreements, these systems resonated with aspects of supply chain management theory but, on their own could not persuade and diffuse integration, coordination, collaboration and efficiencies across an entire supply chain. The governance of contractor-led supply chains was also found to differ from client-led supply chains. Chains that deliver projects are therefore associated with disparate governance structures at different points in the supply network. The research outcomes also related to developing empirically grounded theoretical explanations for the way contractor-led supply chains are controlled and how this exposes the problematic nature of learning as a competitive resource. The research has notable implications for learning as a competitive resource and the notion of a supply chain learning agenda. Despite growing awareness of organizational learning strategies, reactive modes of learning continue to dominate industry attempts to capture supply chain learning. This is further limited within construction supply chain management characterised by fragmentation, disparate governance mechanisms, no single point of control within the chain and ongoing shifts in the market. Whilst the findings suggests refinements and familiarity with concepts of 'trial and error' and management intervention respectively, the enactment of pro-active learning strategies across competing supply chains remained limited and attempts to develop interventions problematic. The outcomes of the research demonstrate that supply chain management 'creep' re: language / framework agreements, governance and supplier management systems. However, they are not representative of substantive supply chain management theory. Learning strategies underpinning client- and contractor-led supply chains are limited and interventions to develop such strategies extremely problematic and unlikely. The research outcomes emphasise a need to explore non-adoption. Non-adoption reveals multiple explanations why organizations and construction supply chains remain cautious of integration, collaboration and learning - especially in an industrial and political context that values competition and pro-market governance above all other modes of economic organization. This research project has therefore firmly established points of departure for construction supply chain management from supply chain management assumptions and theory per se. The outcomes support the need for a perspective on competitiveness that is sensitive to industry practice rather than overly relying on policy that promotes supply chain management per se. The research similarly points to further research to explore and develop evidence based policy making in the construction industry. Web address with further details if you wish: http://scl.lboro.ac.uk/ |
| Exploitation Route | The research has and could be further exploited by professional bodies to shape practice. The outcomes provide a basis upon which professional practitioners across multiple disciplines can engage with and understand the relevance of supply chain management theory to practice within the UK construction industry. The outcomes provide explanations for an industry specific form of supply chain management and the centrality of particular supply chain and learning concepts, processes and practices. These contextually grounded explanations can be used and exploited by industry practitioners to improve competitiveness in ways that resonate, rather than grate against, their professional practice. These research outcomes are also being used as teaching resources for UG and PG courses within universities and it is expected that lecturers across other universities will exploit the multiple resources freely available on the project website to inform the development of future professional practitioners. Industry organisations challenged with the task of diffusing supply chain management have, as part of this research, begun to exploit the findings from the research presented in newsletters, research papers and the website. The developed contextually grounded explanations and refinement of construction supply chain management and learning supply chains, provides a basis for supporting the development of organisation-wide change initiatives that resonate with commercial practice. Engagement with clients during the research process has also helped shape the way integrated procurement approaches are understood and shaped to provide learning and competitiveness. In particular, the findings that describe new forms of governance and the use of triadic sourcing arrangements by clients can be further exploited to develop coopetition across the construction industry. By outlining the impact such arrangements will have beyond dyadic relationships, the research takes practice towards exploiting further engagement with network theory. These findings are currently being exploited to bring a fresh perspective to a TSB project concerned with how supply chains deliver zero-carbon homes. Furthermore, the research findings and outcomes will be exploited during facilitated industry learning discussions arranged in the near future between UK and Swedish contractors. The research has not engaged with policy makers in the process of delivering the research outcomes but, it is expected that the findings and outcomes provide a significant concern of a chasm between policy and practice that has not and cannot be bridged. It is expected that this research can be further exploited to provide a contribution to a growing concern that policy is not robustly evidence based and that its content fails to resonate with industry practitioners concerns and interests. A PhD studentship at Loughborough University has begun and is expected to exploit this avenue of concern and further develop and deepen our understanding of policy development in the UK construction industry. It is also expected that further research will exploit the research findings to develop research proposals that seek to understand and connect policy, practice and research. By extension this will also be instrumental in developing a deeper view on industry competitiveness and how this can be better delivered through improved policy development. The research outcomes have and will continue to be exploited to develop research papers and proposals and, it is expected that through these exploitation routes and those mentioned above, the research has and will continue in the near future to be exploited by practitioners, researchers and policy makers alike. |
| Sectors | Construction |
| URL | http://scl.lboro.ac.uk/ |
| Description | Feb 2010 - Supply Chain Learning Newsletter 1 |
| Form Of Engagement Activity | A magazine, newsletter or online publication |
| Part Of Official Scheme? | No |
| Primary Audience | |
| Results and Impact | This newsletter formed the first of a series of newsletters produced throughout the research period that provided the evolving story of the research, emerging research concerns and debates as well as details of publications and future research activities. This was disseminated to the project collaborators, reearch project participants and interested parties. The newsletter is also available on the research project website. This first newsletter introduced and discussed the ideas of supply chain architecture as a way to characterise construction supply chains and relationships. This is a pivotal step towards answering the question surrounding the nature of supply chains in construction. The newsletter also introduced at this early stage of the research the pivotal role that frameworks play within the industry as a way to underpin construction supply chain management theory and practice. In essence it provided the basis of a focus within the ongoing research to explore the development and diffusion of supply chain management and the frame within which to explore learning. . |
| Year(s) Of Engagement Activity | 2009 |
| URL | http://scl.lboro.ac.uk/wp-content/uploads/2012/08/SCM-Newsletter-1-February1.pdf |
| Description | Feb 2011 - Supply Chain Learning Newsletter 4 |
| Form Of Engagement Activity | A magazine, newsletter or online publication |
| Part Of Official Scheme? | No |
| Primary Audience | |
| Results and Impact | As with previous newsletters, issue 4 continued the theme of reporting on progress and key dates. Additionally, the newsletter highlighted two pivotal themes that had emerged from the research. Firstly, the reseach had, upon exploring the question - what is a construction supply chain - uncovered two distinct supply chains. These related to client-led supply chains and also to Contractor-led supply chains. These chains were both interpreted to evident within construction but not necessarily connected. This exposed an emphasis within construction supply chain practice on dyadic relationships rather than holistic managment of activities across multiple layers of organisations organized in chains. the supply chains were also largely governed in disparate and distinct ways. The former by more explicit socially orientated agreements (framework agreements) described as clans and the latter by tacit and explicit agreements typically associated with construction networks. these provided an insight into the relevance of holistic management to construction and an insight into the emergence of a unique brand of supply chain management in construction. |
| Year(s) Of Engagement Activity | 2011 |
| URL | http://scl.lboro.ac.uk/wp-content/uploads/2012/08/SCM-Newsletter-4-February-2011.pdf |
| Description | Feb 2012 - Supply Chain Learning Newsletter 7 |
| Form Of Engagement Activity | A magazine, newsletter or online publication |
| Part Of Official Scheme? | No |
| Primary Audience | |
| Results and Impact | This newsletter, over and above the progress reporting, highlights another of the emergent findings from the research - the absence of supply chain management champions. In this sense, organisations within the industry mobilise very few senior management appointments and positions within thier organisations to oversee the development and diffusion of supply chain management. The absence of this explicit instgitution to support implementation is argued to be reflective of meanings ascribed to supply chain management by practitioners - that it is less about holistic management and more concerned with dyadic partnering arrangements. |
| Year(s) Of Engagement Activity | 2012 |
| URL | http://scl.lboro.ac.uk/wp-content/uploads/2012/08/SCM-Newsletter-7-February-2012.pdf |
| Description | Industry Report |
| Form Of Engagement Activity | A magazine, newsletter or online publication |
| Part Of Official Scheme? | No |
| Primary Audience | |
| Results and Impact | This Industry Report is primarily written for industry practitioners although it will be of interest to students and researchers alike. It provides a unique insight into the 3 year research project and highlights the important findings to be drawn out from the work. . As part of the dissemination strategy this industry report provides a single point of information for industry practitioners, students and researchers to the research, its findings and reccomendations. |
| Year(s) Of Engagement Activity | 2012 |
| Description | June 2010 - Supply Chain Learning Newsletter 2 |
| Form Of Engagement Activity | A magazine, newsletter or online publication |
| Part Of Official Scheme? | No |
| Primary Audience | |
| Results and Impact | Following the same rationale as for the previous newsletter, this second installment disseminated the emerging findings of the research related to intelligent clients and also market dynamics as highly relevant and contemporary issues within construction supply chain management. Both of these issues built upon the previous emphasis on market dynamics and framework agreements and helped to address the question surrounding the nature of supply chains in construction. |
| Year(s) Of Engagement Activity | 2010 |
| URL | http://scl.lboro.ac.uk/wp-content/uploads/2012/08/SCM-Newsletter-2-June1.pdf |
| Description | June 2011 - Supply Chain Learning Newsletter 5 |
| Form Of Engagement Activity | A magazine, newsletter or online publication |
| Part Of Official Scheme? | No |
| Primary Audience | |
| Results and Impact | This newsletter provided the usual progress and key management activities and dates. The newsletter also informed project collaborators and participants of further key issues and emergent themes arising from the research. This newsletter informed the community of the disparity between the use of supply chain management language, meanings ascribed to this language and how this is reflected in practice. One of the main finding flowing from the research at this point was that supply chain management practice fell substantially short of reflecting supply chain managment theory and attendant assumptions. The language however was firmly embedded within the industry but used to shape practice in disparate ways. Furthermore the newsletter reinforced previous discussions surrounding the application of action research interventions in the next phase of the research. |
| Year(s) Of Engagement Activity | 2011 |
| URL | http://scl.lboro.ac.uk/wp-content/uploads/2012/08/SCM-Newsletter-5-June-2011.pdf |
| Description | June 2012 - Supply Chain Learning Newsletter 8 |
| Form Of Engagement Activity | A magazine, newsletter or online publication |
| Part Of Official Scheme? | No |
| Primary Audience | |
| Results and Impact | This final newsletter provides a view on "Supply chain management in UK construction: The story so far". this captures for an industry audience the essence of the research and the main findings and publications of interest. |
| Year(s) Of Engagement Activity | 2012 |
| Description | Oct 2010 - Supply Chain Learning Newsletter 3 |
| Form Of Engagement Activity | A magazine, newsletter or online publication |
| Part Of Official Scheme? | No |
| Primary Audience | |
| Results and Impact | As well as informing project collaborators, participants and interested parties of the research progress and key dates for the future, the newsletter publishes the researchers key thoughts on a number of key contemporary issues arising from the research. These are directed at informing industry of issues concerned with the changing economic circumstances and the effect these were having on the shape of the reseach findings, thinking and direction. |
| Year(s) Of Engagement Activity | 2010 |
| URL | http://scl.lboro.ac.uk/wp-content/uploads/2012/08/SCM-Newsletter-3-October.pdf |
| Description | Oct 2011 - Supply Chain Learning Newsletter 6 |
| Form Of Engagement Activity | A magazine, newsletter or online publication |
| Part Of Official Scheme? | No |
| Primary Audience | |
| Results and Impact | This newsletter provided an update on progress and an overview of future key dates, activities and publications. The newsletter also provided for industry project collaborators and participants a typology of organisation learning flowing from the literature review and that would be used as the basis of describing learning within construction supply chains. Initial findings from the research are also provided and show that learning strategies for construction companies are predominately reactive. The challenge for a supply chain learning agenda is to stimulate proactive learning strategies; reflective of a developmental and process school of organizational learning. |
| Year(s) Of Engagement Activity | 2011 |
| URL | http://scl.lboro.ac.uk/wp-content/uploads/2012/08/SCM-Newsletter-6-October-2011.pdf |
| Description | Presentation - CIOB |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Primary Audience | |
| Results and Impact | This presentation on the research findings and outcomes was given to the Chartered Institute of Building in August 2012. This poresentation generated debate within this community of professional practitioners around the central findings and out comes from the research. |
| Year(s) Of Engagement Activity | 2012 |
| URL | http://scl.lboro.ac.uk/wp-content/uploads/2012/08/CIOB-Event-06-08-2012.pdf |
| Description | Website |
| Form Of Engagement Activity | A magazine, newsletter or online publication |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | |
| Results and Impact | The website provides open acdcess to all of the research material, the story of the research and associated research and publications that fed into the research. |
| Year(s) Of Engagement Activity | 2012 |