Impact of supply chain alignment on construction performance: A developed model for Vietnam

Abstract

There are many articles mentioning the advantages and benefits of supply chain alignment none, however, describe how to model such alignment in the supply chain. This paper offers a framework for examining and understanding the impact supply chain alignment has on performance. Based on supply chain mapping approach, a model describing alignment between processes/ flows in the supply chain network is developed. The model is then validated using a dataset of 316 enterprises operating in the Vietnam construction sector. Evidence indicates that the supply chain processes and flows were aligned. According to the results, the proposed supply chain alignment model is able to explain a 59.9% variance in operational performance, 58.9% in customer satisfaction, 34.5% in operating costs and 67.4% in business performance. To successfully align the supply chain network, companies can use the proposed model as a “road-map” to reduce high costs, to avoid the loss of control, management difficulties and/or vulnerability to opportunistic action, all of which may hinder efforts to align the supply chains.