Resilient Capabilities to Tackle Supply Chain Risks: Managing Integration Complexities in Construction Projects

Abstract

Due to the increased globalization and the disruptions caused by pandemics, supply chains (SCs) are becoming more complex in all industries. Such increased complexities of the SCs bring in more risks. The construction industry is no exception; its SC has been disrupted in line with its industrial counterparts. Therefore, it is important to manage the complexities in integrating SC risks and resilient capabilities (RCs) to enable a resilient SC in construction. This study investigated the complexity involved in the dynamics of effects between organizations’ SC risks and RCs to overcome disruptive events. Past researchers investigated how to improve the performance of construction projects, regardless of the complexities and interdependencies associated with the risks across the entire SC. However, the system dynamics (SD) approach to describe the diversity of construction SCs under risks has received limited attention indicating a research gap pursued by this study. This work aimed to analyze and establish interconnectivity and functionality amongst the construction SC risks and RCs using systems thinking (ST) and SD modeling approach. The SD technique is used to assess the complexity and integrated effect of SC risks on construction projects to enhance their resilience. The risks and RCs were identified by critically scrutinizing the literature and were then ranked through content analysis. Questionnaire surveys and expert opinions (involving 10 experts) helped develop causal loop diagrams (CLDs) and SD models with simulations to assess complexity qualitatively and quantitatively within the system. Research reveals that construction organizations are more vulnerable to health pandemics, budget overruns, poor information coordination, insufficient management oversight, and error visibility to stakeholders. Further, the most effective RCs include assets visibility, collaborative information exchange, business intelligence gatherings, alternative suppliers, and inventory management systems. This research helps industry practitioners identify and plan for various risks and RCs within their organizations and SCs. Furthermore, it helps understand trade-offs between suitable RCs to abate essential risks and develop preparedness against disruptions to improve organizational policymaking, project efficiency, and performance.

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