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Impact of Strategic Material Sourcing on Construction Performance. A Comparative Study of Domestic Verses Overseas Sourcing Strategies

Projektarbeit 2017 89 Seiten

BWL - Beschaffung, Produktion, Logistik

Leseprobe

TABLE OF CONTENTS

Cover Page

Declaration

Acknowledgement

Abstract

List of Tables

List of Figures

CHAPTER ONE: INTRODUCTION
1.1 Background
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Significance of the Study
1.6 Proposed Methodology
1.7 Scope
1.8 Organization of Study

CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction
2.1 Sourcing
2.1.1 Sourcing Role
2.1.2 The Five Sourcing Principles
2.1.3 Different Types of Sourcing
2.2 Strategic Material Sourcing
2.2.1 Sourcing Strategies
2.2.2 Benefits/ Importance of Strategic Material Sourcing
2.3 International Sourcing verses Domestic Sourcing Strategies
2.3.1 Overseas Sourcing Strategy
2.3.1.1 Characteristics of International Sourcing Strategy
2.3.1.2 Driving Forces of Overseas Sourcing strategy
2.3.1.3 Advantages and Disadvantages of Overseas Sourcing Strategy
2.3.1.4 Reasons/ Benefits of Overseas Sourcing Strategy
2.3.2 Domestic Sourcing Strategy
2.3.2.1 Advantages of Domestic Sourcing Strategy
2.3.2.2 Disadvantages of Domestic Sourcing
2.3.2.3 Reasons/ Benefits of Domestic Sourcing Strategy
2.4 Overview of the Construction Industry
2.4.1 Construction Performance Measurement/ Indicators (KPIs)
2.5 List of Common Construction Materials

CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction
3.1 Research Design
3.1.1 Model Specification and Expected Signs
3.2 Population of the Study
3.3 Sample Technique and Sample Size
3.4 Data Collection Method
3.4.1 Validity and Reliability
3.5 Data Analysis
3.6 Overview of the Real Estate Industry

CHAPTER FOUR: ANALYSIS AND DISCUSSION OF RESULTS
4.0 Introduction
4.1 Background of Respondents
4.1.1 Gender
4.1.2 Educational Background
4.1.3 Professional Background
4.1.4 Years of Work Experience
4.1.5 Types of Project undertaken
4.2 Survey Results and Analysis (Discussion on the Rankings)

CHAPTER FIVE: FINDINGS, CONCLUSION, AND RECOMMENDATIONS
5.0 Introduction
5.1 Findings
5.2 Conclusion
5.3 Recommendations
5.4 Suggestions for Future Research

REFERENCE

APPENDIX

LIST OF TABLES

Table 2.1: Summary of Performance Indicators for Construction Industry Measures

Table 2.2: Performance Indicators for Industry Measures

Table 3.1: Expected Signs of the Independent variables

Table 4.1 - 4.5: Respondent Background

Table 4.6 - 4.13: Construction materials the firm’s purchases for their operations

Table 4.14 - 4.21: Sourcing Strategy the firms’ employs

Table 4.22: Section D (Regression Analysis)

Table 4.23: Section E (Regression Analysis)

Table 4.24: Section F (Regression Analysis)

LIST OF FIGURE

Figure 2.1: Effective Sourcing benefits15

Figure 2.2: Conceptual Framework

ACKNOWLEDGEMENT

I express my sincere appreciation to the Almighty God, the father of our Lord Jesus Christ for granting me His divine supply, love, courage, strength and knowledge and making this exercise very successful. I indeed wish to express my profound gratitude and appreciation to JOHN FRIMPONG MANSO for his unrelenting inspiration and guidance throughout the course of investigation. His knowledge, support, advice and kind heartedness were invaluable for the completion of this thesis. I gratefully acknowledge his indefatigable effort in going through, improving and finally approve the manuscript without which this report would not have been completed. My heartfelt appreciation also goes to Sedem Komla Dzandu for his kind support. My in-depth gratitude also goes to my beloved wife (Millicent A. Sarpong) for her outstanding contribution at every moment on the way, words of encouragement, prayers and every needed support

ABSTRACT

Procurement is increasingly playing a vital role in assisting major organizations to achieve cost savings through strategic material sourcing. Strategic sourcing is a firm’s procurement process that continuously improves and re-evaluates the purchasing activities of a company. There is a dilemma of trade-off between sourcing overseas (low cost) and locally (responsiveness) to increase construction or organizational performance. This study investigates the impact of strategic material sourcing on construction performance, a comparative study of domestic verses overseas sourcing strategies. In pursuance of this, the key objective was to determine the effects of sourcing strategies on the performance of construction/ real estate industry of Ghana. Stratified sampling technique was used in addition with structured questionnaires to obtain data. The study adopted descriptive research design to generate findings. Analysis of data was done using the SPSS and findings were presented in descriptive and Microsoft Excel tables with frequency and percentages. Regression analysis was also used to analyze the relationship between strategic material sourcing and construction performance. The findings show that, 55% of materials used in the real estate industry were sourced from the overseas market and it implies the industry depends highly on foreign materials which impacts construction performance. Several reasons why the industry source from the local or foreign market but ten (10) reasons were identified as significant to domestic sourcing while eleven (11) were recorded for overseas sourcing, implying that, there is a minute advantage in sourcing overseas to local market. Recommendations made based on the findings were: the industry should engage in technology transfer and local supplier development to enrich the local market to provide the needed materials and boost local economy; further study on the impact of quality and cost characteristics of foreign goods on construction performance.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Procurement is increasingly playing a vital role in assisting major organizations to achieve cost savings through strategic material sourcing. The potential of strategic sourcing function in procurement to increase organizational performance and shareholder value has not being well publicized and hence, not widely recognized in Ghana. Global competition has forced companies to devise and go after foreign procurement strategies that aim at reducing cost and increasing quality (Loppacher, et al., 2007). This has enabled overseas sourcing strategies to be a key competitive factor for organizational performance. Strategic sourcing is a corporate approach or game plan aimed at beneficial use of worldwide materials and resources. Measurable value chain improvement and cost savings can be attained if firms’ source strategically and manage their intangible and tangible products.

According to Boateng (2016), Supply chain management encompasses strategically controlling the firms in the chain; whiles procurement is primarily aspect of the supply chain management process that handles the purchasing of materials or services for the end user. Strategic sourcing on the other hand is a subset activity in procurement that enables maximizing the use of every cedi used to purchase materials and resources.

Strategic sourcing is an organizational purchasing procurement process that repeatedly upgrade and re-examine the acquisition functions of an organization (Kerruish & Chris, 2016).

There are two main sourcing strategies: domestic and overseas/ global. Overseas/ global sourcing is the best strategy for organizations to reduce the purchased price of labor and gain means of opportunity to modern technology and resources. The growth of technological advances has made it economically advantageous and accessible for companies to source from overseas (Sawhney & Sumukadas, 2005). According to Jiang & Tiang (2009), overseas sourcing is a concentrated purchasing method for organizations, wherein a buying firm finds economies of scale through corporate-wide standardization and benchmarking. Whiles domestic sourcing strategy is contracting for materials that are manufactured or delivered within the buyers’ country.

The often cited merit of overseas sourcing is the cost savings as a result of inexpensive labor in developing economies. On the other hand, local production increases companies to adjust quickly to market changes, improve customer service, and reduce inventory levels. Hence, a major compromise is between cost and responsiveness (Farrell, 2005, Anderson, 2006, Ryley, 2010). The decision of overseas sourcing is arguable in most instances, as it is not always clear whether the cost advantage overrule the reactivity advantage (Goel, Moussavi & Srivatsan 2008; De Treville & Trigeorgis, 2010). According to Wu & Zhang (2014), the discussion and argument on overseas sourcing has increased in recent time. More people have made contributions who are not easily convinced about the trend to move for various reasons. For instance, supply costs in developing economies have repeatedly increased. By mid-2010, most Chinese companies were faced with labor deficiencies and were required to increase wages to interest skilled staff (Plunkett, 2011). More so, the overseas commodity price index has increased significantly (Ferreira & Prokopets, 2009). This has resulted in high transport costs and manufacturing costs (higher oil prices and raw material costs). Due to not regarded as likely to happen to high costs of the supply chain in outsourcing, many companies are taking into account local supply preferably to overseas sourcing. It is not surprising that trade-off of "reshoring," "onshoring" and “backshoring” have often made headlines in the trade press. Master Lock, the world's largest producer of padlocks and associated security items, has shifted its production from Asia to Milwaukee since 2010, driven by economic situations such as higher labor and logistics costs high in Asia. President Barack Obama stressed the master lock in his address to the State of the Union and promotes companies to return their businesses back to the United States (Wu, & Zhang, 2014). Many instances required in current "backshoring" conversations involve Caterpillar, General Electric and Apple (Bussey, 2011; Denning, 2012).

In Ghana, the real estate industry source from both the domestic and overseas markets, but the industry largely depend on the overseas sourcing strategy due to the advantage of reduced material purchased price, durability, flexibility, prestige, and quality, yet the market prices of real estate buildings are comparatively expensive as compared to some developed countries. Material sourcing strategy the industry employs has a great potential to impact positively or negatively on construction performance

1.2 Problem Statement

There are myriads challenges affecting material sourcing strategy practice performances in the real estate industry of Ghana. The real estate firms often practice overseas sourcing strategy, thus, purchasing materials mostly from China and other countries with the main purpose of cost savings, durability, flexibility and prestige yet the market price of the finished products (buildings) are known to be expensive as compared to some part of the developed world.

The issue is that, delayed deliveries of materials sourced from overseas affects largely the completion performance of construction projects, because sourced materials consume a lot of shipment and ports time and stock-out. Many studies have shown that, construction projects are hugely set back in performance, due to delays which leads to a more of deficiencies in construction performance like delay completion, lost productivity, lost acceleration, increased costs, and contract termination (Divya & Ramya, 2015).

Furthermore, because foreign suppliers in the chain are far away, most of the real estate organizations sometimes purchase huge volumes of certain materials which tend become obsolete stock in some cases as a result of items replaced by an alternative or a change in demand and rendered unusable or diminished in value and cannot be returned to the supplier and hence, affects construction performance.

The real estate industry source for almost every technologically advance material for building projects from overseas, which tends to render the industry lack of domestic innovations and capacity building of local firms. For example, glazed windows, water closets, light bulbs, floor/ wall tiles and many more are used in the industry which is not manufactured in Ghana. On the other hand, local sourcing helps companies to provide quick responds to market dynamics improved customer service and reduce inventory levels (Farrell, 2005; Anderson, 2006; Wu & Zhang, 2014). The challenges of local supply are that local businesses are unable to produce materials in large quantities so that the real estate industry benefits from economies of scale. Indeed, the materials are high cost, which may impact the cost output of construction project. Second, some local resources may be highly costly compared to the nearby countries, companies that have tried to encourage domestic resources may lose market share and this is just the reason majority would agree with the plan of paying much to assist local supply (Aldrick & Philip, 2013). In addition, organizations that choose to depend on high cost local resources could lose their competition in the overseas market based on the increases price of manufacturing (Mathews & Rick, 2012). Hence, can an organization choose foreign sourcing strategy with minimum purchasing cost or local sourcing strategy with responsiveness? Clearly, construction performance is affected by the cost and responsiveness trade-off which plays vital position in both on-shoring and offshoring decisions.

Based on the above challenges that the research seeks to close the gap impact of strategic material sourcing on construction performance, a comparative study of domestic verses overseas sourcing strategies.

1.3 Objectives of the Study

The primary objective is to analyze the effects of strategic material sourcing on construction performance.

The specific objectives are:

i) To determine the construction materials the industry purchases for their operations;
ii) To analyze the sourcing strategies for the materials the industry purchases;
iii) To assess the performance indicators of construction/ real estate industry; and
iv) To analyze the impacts of the sourcing strategies on the construction/ real estate industry performance.

1.4 Research Question

i) What are the construction materials the industry purchases for their operations?
ii) What are the sourcing strategies use to purchase materials in the industry?
iii) What are some of the performance indicators in the construction/ real estate industry?
iv) What are some of the impacts of sourcing strategies on the construction/ real estate industry performance?

1.5 Significance of the Study

The findings of the research shall contribute immensely to the real estate firms and the construction industry of Ghana, considering that strategic material sourcing is an organizational purchasing activity that ceaselessly enhances and re-examines the procurement process of organization, it is a critical strategic activity an organization can employ to increase performance. In addition, this research will inform organizations to reconsider their buying behavior since, it has been debated that, the fact that procurement is obliged for consuming more than 60 percent of a firms sales cedis climax the profits maximization potentials of the procurement process on a firm (Carter, 1993). More so, this research will help government and private organizations to consider which of the tradeoff best suit their needs since responsiveness and cost are key factors to the success to operational performance. The research’s goal is also designed to help supply chain, procurement and strategic sourcing professional and students to develop employable skills and capabilities, improve academic competence and knowledge addition. Finally, the study is aimed at enabling the researcher to be more informed; serves as a resource material for use in the public and private organizations and as a reference material for further research activity.

1.6 Research Methodology

In this study, the researcher makes use of the quantitative method of research in explanatory and descriptive form. The population will be sampled to draw specimen to show what the rest of the population is like. In order to obtain the required sample size selection for the research, a statistical method of determining sample size by “Pennsylvania State University (2017),” and random sampling shall be used with respect to the total population in the real estate industry in Greater Accra Region of Ghana.

Data will be collected in two parts: primary and secondary. The primary data will be collected through the administering of questionnaire. The Secondary data will also be collected through existing literature and information relating to the study such as the internet, journal and articles. Analysis of data will be done using the Regression Analysis, to analyze the relationship between material sourcing and construction performance; Statistical Package for the Social Sciences (SPSS) software associated with mean and standard deviation; and by the use of Microsoft Excel to generate tables with frequency and percentages to analyze the data descriptively.

1.7 Scope of the Study

The study focuses on strategic material sourcing and specifically its impact on construction performance. It also concentrates on the real estate industry of Ghana, precisely in the Greater Accra Region and focuses on the Management, Finance, Procurement and Quantity Surveying Departments of ten (10) main real estate companies namely: Devtraco Limited, Rehoboth Properties Limited, Regimanuel Gray Limited, Edlorm Housing Limited, Gold Key Properties, Castle Gate Estate Limited, Krane Construction, Magna Terris Limited, RedRow Developments Limited and PS Global Limited.

1.8 Organization of the Study

The study was assembled into five chapters: Chapter one (1) presents the introduction aspect of the study; they are the background to the study, statement of the problem, objectives, research questions, significance of the study and scope/ limitations of the study. Chapter two (2) forms the literature review of information and ideas that are relevant to the research area from articles and journals etc. Chapter three (3) is the method section which illustrates and justifies the research method adopted for this research such as quantitative method of research in explanatory and descriptive form, regression analysis and data collected through questionnaires. The analysis and findings in chapter four (4) with tables and Statistical Package for Social Sciences (SPSS) to generate analysis used to represent the responses obtained from the targeted group. Finally, chapter five (5) concludes with a summary of the findings and suggested recommendations in the light of the established problem.

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This section highlights diverse studies executed by excellent researchers, as well as explained terminologies with regards to the effect of strategic material sourcing on construction performance. In addition, the chapter gives the history and current status of the problem from previous studies which are closely related which covers procurement, sourcing strategic material sourcing and construction performance indicators.

2.1 Sourcing

Sourcing is a vital business in the purchasing process that can produce advantage for consumers, stimulate transformation and discover new products and market opportunities for recent firms. From strategic point of view, it can be said that sourcing is an organized exercise that instructs procurement and supply managers to plan, control and enlarge the supply base according to the strategic objectives of the firm (Oy & Furlotti, 2014 cited in Roger, 2005).

Sourcing is the "location, acquisition and management of all the vital inputs required for an organization to operate. This includes raw materials, component parts, products, labor in all its forms, location and services" (Hinkelman, 2008). Sourcing is an analytical process used at both tactical and strategic levels. It is apprehensive with what is required to be procured, why, when and where. The notion is made to help supply chain managers to enhance, develop and instrument sourcing strategies (Concept of Sourcing, 2017).

2.1.1 Sourcing Role

Sourcing is a day-to-day activity in the lives of everyone. When decision is made to procure a material we begin by a specification, a target price and the supplier. The kind of product and budget determines the process time and effort. The chief basis is that we deploy a strategy by searching the market to find the best supplier which fits our personal criteria. Scott, et al., (2011) separates sourcing into two main procurement functions: Firstly, determine and nominate new suppliers. This involves searching for suppliers that supplies materials or goods that meet the requirements, examining them, and establishing contracts. Secondly, is to handle the vendor over a period of time. This may be short, which includes single or long term procurement as a strategic business (supplier) partner. The significance of sourcing is recognized by most academic reports and books that the author read.

2.1.2 The Five Sourcing Principles

Many organizations have a set of principles that in some way defines how the organization wishes to operate. The focus is often on the tangible business goals or desired ways of working and the more intangible aspects of the operation, such as the behaviors that staff should display and the beliefs or philosophies that underpin the organization. It is in same light that that sourcing has the five principles which are, firstly, Alignment: ensure that sourcing strategies and activities are well aligned with the needs of the organization and internal stakeholders. That means understanding the business drivers in each case, whether cost, quality or other goals, and making sure sourcing reflects those. Also align with markets and suppliers, and work to resolve situations where the internal and external aspects are in conflict. Secondly, Openness: Being open to new ideas, products, services and suppliers sits at the heart of organizational success. It is impossible to generate competitive advantage by buying the same things and using the same suppliers as all competitors, and curiosity is a vital quality for procurement professionals. This means we must collaborate with our internal stakeholders, suppliers and potential suppliers, and look to innovate with them in terms of specification, supply techniques, technology and process. Thirdly, Rigour: Once we move beyond our basic requirements, sourcing is not a trivial, routine or simple process; it requires a professional and structured approach in order to generate good outcomes. We must approach it with careful planning, and make sure adequate skilled resource is engaged in the process. We will use appropriate tools and techniques to give us the best possible results in terms of selecting suppliers and agreeing robust contracts that deliver value and advantage to the organization. Fourthly, Coherence: We look at sourcing as an end to end process that starts with early market engagement and runs through into the contract and supplier management phase. Different stages will be linked and all assist the total aims of the firm and the specific sourcing exercise. The objectives will be visible to internal and external contributors in the procedure, and each element of the sourcing procedure will clearly fit into the bigger picture. Finally, Commerciality: Our suppliers play a vital and central role to our organization, whether it is a private sector firm, a public or third-sector organization. The purpose of sourcing is to achieve strong commercial outcomes, relationships and contracts with suppliers who can contribute to how the organization achieves its goals, whether those are profit, meeting social needs, or governmental policy related. Competitive advantage is central to this in the private sector; but for all organizations, thinking commercially is essential and sits alongside the other principles to guide our sourcing (Smith, 2016).

2.1.3 Different Types of Sourcing

It should be known that the many suggestions of source decision-making vary depending on the kind of procurement. For instance, among the divergent types of source resolutions are: consumables, manufacturing goods and elements, capital purchases (e.g. machinery), intellectual property (e.g. software), subcontractor and services.

Every kind will include divergent factors. For instance, a mineral may be accessible in only one country. However, it may be purchased directly or through an agent or distributor. Computer equipment can be purchased directly or leased, and among the many factors included in this resolution, the suggested equipment may be suited with the existing equipment. As regards production materials, account must be taken of the logistical implications, the distance of the supplier and the frequency of delivery. Subcontractor decisions can then be made to the persons who must assume the contract and the responsibilities of both parties (Baily et al., 2008).

2.2 Strategic Material Sourcing

Strategic sourcing of materials was launched by General Motors in the 1980s, strategic procurement was then formalized into a methodology and executed in other larger-scale blue chip companies with the assistance of organizations such as AT Kearney, Price Water House Coopers, KPMG and many others. This methodology becomes a standard for purchasing divisions and is now examined as a yardstick work procedure (Nichiguchi, 1994).

The term "strategic sourcing" has been popularized by working with several of blue chip organizations by a number of consulting companies in the late 1980s and early 1990s. This methodology is currently the yardstick for division purchasing in large sophisticated organizations like Fortune 500 companies.

Strategic Sourcing is the process of expanding the supply model at the lowest total cost, not only the lowest procured price. It extends the traditional purchasing process, including all activities in the procurement cycle, from specifications to receipts and materials. Strategic Sourcing is an organization's procurement process that can be repeatedly upgraded and reevaluated to the purchasing function of an enterprise. In the service industry, strategic procurement is called a service solution, and in some cases is called a strategic partnership, especially tailored to meet the individual needs of customers. In the manufacturing sector, it is seen as part of the supply chain management. At present, the management of the supply chain management focus on determining the clear distinction between strategic procurement and procurement. The procurement business assists in strategic day-to-day operations, such as issuing purchase orders to suppliers, which are strategic planning, supplier development, contract negotiation, supply chain and subcontracting (Kerruish & Chris, 2016)

The author (Kerruish & Chris) opine that strategic sourcing is interested in total acquisition cost of ownership and embodies the procurement cycle activities but not limited to just lowest purchased prices. Strategic sourcing is a sequence and reality based method for increasing firms’ supply base and enhancing the total value proposition.

Strategic Sourcing is an activity that extends the supply model at the lowest total cost, not only the minimum purchase price. It extends the traditional procurement functions, including all activities in the procurement cycle, from specifications to receipts and payments for goods and services. While strategic sourcing depends only on cost reduction, its core is to establish long- term, win-win relationships with key suppliers to provide a competitive advantage for its customers (Burt et al., 2010).

The authors (Burt, et al., 2010; Kerruish, et al., 2016) agrees that strategic sourcing considers total acquisition cost and not just the lowest purchased price and it covers both the traditional procurement functions and all the activities within the procurement cycle.

2.2.1 Sourcing Strategies

Effective sourcing strategy demands a rigorous appreciation of a firm’s business strategy, the resources needed to achieve that strategy, the market demands and the risks in the organization involved with establishing specific methods. A time frame review of the sourcing strategy enhances the implementation of required results and extended alignment with business objectives. Some supply chain management sourcing strategies exercised today are: firstly, Single Purchasing: Purchasing part is provided by only one vendor. JIT manufacturers will continue to provide a supplier to the procurement department to provide good relevance, which can be achieved through a smaller number of suppliers. These good correlations (and interdependence) can improve quality, reliability, shorten delivery times and collaborative action.

Secondly, multi-sourcing: which is purchasing of material or service from two and beyond supplier. Firms’ sometimes could use it to lure good competitiveness within the suppliers in order to establish good quality and low price.

Furthermore, outsourcing is the method of being supplied materials that were formerly provided internally from external supplier. Outsourcing includes trade-off—the substitution of internal capacity and production by that of the supplier.

Finally, insourcing: which is the materials or services are developed internally. (Sourcing strategy, 2011)

2.2.2 Benefits/ Importance of Strategic Material Sourcing

The significance of material sourcing is measured by the fact that it is the appropriate strategic section in the procurement or purchasing stage of the supply chain.

Abbildung in dieser Leseprobe nicht enthalten

Figure 2.1 (Source): Effective sourcing benefits (Scott et al., 2011).

2.3 International Sourcing verses Domestic Sourcing Strategies

This section deals with the two main sourcing strategies. It concentrates on the definitions, advantages, disadvantages, characteristics, driving force, importance, benefits and reasons of selecting either of the two strategies.

2.3.1 Overseas Sourcing Strategy

According to Jiang & Tiang (2009), overseas sourcing is a concentrated purchasing strategy for multinational firms; a ccentral purchasing companies seeks economies of scale across the company's standardization and benchmarking.

For Monca et al., (2005), overseas procurement is the process of purchasing materials from overseas markets to the entire geopolitical boundary. The purpose of overseas procurement is mainly to use overseas material supply efficiency. These efficiencies include low-cost qualified labor, lower-cost raw materials and many economic indicators such as tax cuts and lower trade tariffs.

2.3.1.1 Characteristics of International Sourcing Strategy

Overseas sourcing channel has the following attributes according to Jiang and Tian, (2009 cited in Fan, 2007) firstly, improved purchasing scope: Given the increasing scope of supply functions in the international context and the lack of resources available to a country, resources can be obtained anywhere in the world. Therefore, due to the richness of potential suppliers, companies can obtain reasonable costs, so as to obtain accurate resources and products. Second, increase the risk of procurement, taking into account the overseas procurement, including a series of procurement, the organization often a large number of procurement of materials, the need for higher currency transactions. As a result of currency fluctuations, large- scale transactions face higher risks. In addition, cross-border transactions will produce complex processes and channels, which bring many existing risks to the enterprise.

More importantly, due to the need to consider all the resources of the world's demand, so the purchase price decline, the entity can be in the competitive cost of the channel "shopping" to obtain reasonable prices of quality materials.

Furthermore, the requirement for sequential criteria in supplier selection: in view of the overseas procurement suppliers from different parts of the world, with different models, standards and culture. Therefore, in order to select a reliable supplier, enterprises to develop systematic, standardized standards and the situation is very important.

Finally, a stable procurement model: due to the concept of supply chain management, rely on overseas procurement entities and global suppliers. Therefore, buyers and sellers are establishing strategic cooperative relations. As a result, entities with overseas procurement strategies form a more stable acquisition model (Jiang & Tian, 2009 cited in Fan, 2007).

2.3.1.2 Driving Forces of Overseas Sourcing Strategy

According to the study of Jiang & Tian (2009 cited in Stevens, 1995) the main drivers of overseas sourcing are as follows: First, the material is not available in the country: based on geographical and technology reasons, some local producers cannot be able to provide specific products. In addition, due to limited technical capacity, they may not be able to meet the required delivery time or provide some material.

Second, poor quality of local products: the quality of the products obtained from the local market may not meet the buyer's specifications. The quality of the local material may not be sufficient to allow the manufacturer to sell its products to overseas markets where high standards may apply.

In addition to the quality of the material itself, the supplier may not provide the manufacturer with the appropriate assurance.

More importantly, the price: mainly in developed countries, local suppliers to provide materials or products may be too costly; they can in other parts of the world at economical price to get the same materials.

Finally, technology: mainly in developing countries, some firms have no option but to come from overseas; or else they cannot get world-class technology (Jiang & Tian, 2009 cited in Stevens, 1995).

2.3.1.3 Advantages and Disadvantages of Oversea Sourcing Strategy

Overseas procurement is often designed to take advantage of the efficiency of providing products or services worldwide. These efficiencies include low-cost qualified labor, lower-cost raw materials and some economic factors such as tax cuts and low tariffs. More proportion of information technology projects and services, including IS applications and mobile applications and database services, all come from overseas. Common events for overseas procurement of materials or services include labor-intensive manufacturing products using lower-cost Chinese workers. Most of today's companies are trying to capitalize on the potential of overseas sourcing to reduce costs. Thus, it is generally found that overseas procurement initiatives and programs are part of many multinational companies' procurement plans and procurement strategies.

Overseas sourcing is mostly included with the concentrated purchasing strategy of multinational companies, where the central purchasing company seeks economies of scale through company- wide standardization and benchmarking. Some of the merits of overseas sourcing strategies that go beyond lower cost involves learning how to transact business in an advantageous market, exploiting local skills or resources that are not available, developing alternative suppliers/ suppliers to stimulate competition, and increase total supplier capacity.

Some of the major shortcomings of overseas purchasing may involve: hidden costs associated with different cultures and time zones, financial and political risks in conflict with (often) emerging economies, increased risk of loss of intellectual property, (Monczka et al., 2005; Roth et al., 2008).

2.3.1.4 Reasons/ Benefits of Overseas Sourcing strategy

According to Carter (2010), below are seven reasons firms should consider overseas/ global sourcing. First, Get Raw Materials. If your firm depends on raw materials that are not rich in your own country, then if the availability of these materials increases elsewhere, you can reduce the risk of supply through overseas sourcing. Second, get cheaper wages. The labor-intensive manufacturing process can be made cheaper from countries with lower wages than your country. Thirdly, reciprocal trading: Overseas/ global sourcing works both ways as it involves both a buying organization and a selling organization. If a company sells its products to a country that can also provide products that you want to buy then there may be an opportunity for doing a deal that offsets your sales and purchases to give you a better overall economic benefit. More so, learn how to do business in another country. To understand the culture and work of other countries, when you want to sell them to them, it may be a great advantage. Before starting sales and marketing work, buying from these countries can be an effective way to learn how to trade with the country to win business. In addition, stimulate competition in the country. If they think they have a large share of the local market, then sometimes your country's suppliers will become complacent. Finding alternatives overseas can be a good way to attract new entrants (or just threaten to do so) and shake the local market. In addition, increase the supply capacity. If your own production operations have a current or potential key material or component defect, there may be a serious risk of supply. Looking for alternative sources of overseas supply can increase the available capacity, thereby reducing risk. Finally, use a global organization. If your own organization is a global organization, purchasing from your subsidiary can be a great way to access global resources that may be difficult to develop independently (Carter, 2010).

2.3.2 Domestic Sourcing Strategy

Local procurement is a contracting event of materials provided or manufactured within the country boarder. Local sourcing is at the heart of the discussion of "buy the United States" or the protectionist debate that is being discussed at the top of the country. This discussion is generating a specifically serious and the unemployment rate in the United States is above 8% in the country and is now affecting the employment of white-collar workers or services (Domestic sourcing, 2017).

2.3.2.1 Advantages of Domestic Sourcing

First, Fast/ Short Time Delivery: local sources are mainly nearer to dealers or retailers than "source of imports". Sources such as raw materials, services or materials can be provided in a short period of time compared with international sources. After the sale, the exchange or refund of the defective materials will also benefit; since communicating with the local business is always easier, not overseas. In addition, there is a faster response to emergencies or faster decisions about market uncertainty (Morrell, 2010).

Second, Consumer Confidence: transport time is shorter and shorter, you can ensure that food, beverages and other products remain fresh. According to statistics, domestic purchases have increased consumer confidence; according to IGD report, 57% of consumers believe that the purchase of local food is fresher. It may also affect consumers' decisions about multiple options; sales of local products through domestic procurement strategies can help consumers get support, and they are concerned about the sources of products purchased for political, moral or environmental reasons. Tell the consumer that the quality of the local product is guaranteed is also convincing; buying confidence is a very significant aspect of the retailer's access to consumer trust, thereby increasing brand awareness and loyalty (Morrell, 2010).

Third, cost-effectiveness: Companies or retailers who maintain a good correlation with domestic suppliers do not have to experience long-term supply chains, helping to reduce sales costs and attract more consumers at lower prices. Reduced traffic between suppliers and retailers may also reduce sales prices as transportation costs are cut (Morrell, 2010).

In addition, job opportunities: increased local purchases rather than overseas purchases will increase local employment opportunities. If all local businesses assist local purchases, domestic procurement demand will increase, and then more job opportunities will be created to meet new needs (Morrell, 2010).

More so, the Benefits of the Local Economy: According to the IGD report, more than 54% of consumers buy domestic food because they feel obliged to assist local producers and farmers in 2006. The increase in local procurement labor will benefit the country or the country's economy by increasing the circulating revenue; it is estimated that £10 per local cost of the local product is increased by £25 in the circulating cycle of the domestic economy (Morrell, 2010). According to Collison & Patrick (2013), domestic suppliers should engage many people to meet demand as local demand increases, and these new labor will spend more money in the domestic economy, followed by a positive multiplier effect. In addition, local firms tend to pay for most chains, which mean that employees will receive more disposable income (Schwartz & Judith, 2009).

In addition, the protection of local culture: there are many domestic business sales of special products or services, such as handmade or other places can provide customized products; assist for local procurement can prevent large enterprises chain supermarkets higher, to prevent small businesses are eliminated. Local procurement also promotes more entrepreneurs to carry out small businesses in the domestic market (McClatchey & Caroline, 2011; Anorak, 2009).

Finally, the time zone advantage: Companies that assist local sourcing or manufacturing can enjoy the same time zone as the supplier, which means that the supplier is rapid to respond to any query or problem, and sometimes a few minutes of delay to solve the problem may be spent on business Millions, easy to communicate Supply is always good (McClatchey & Caroline, 2011; Anorak, 2009).

2.3.2.2 Disadvantages of Domestic Sourcing

Firstly, Trade war / price war: the local sourcing campaign may influence international trade war. When a country begins to motivate citizens to buy local materials, there are usually other countries to resist, so poor countries with greater demerits may be forced to increase taxes on a country. The recent example of trade wars took place in 2013, when the EU claimed that China was selling less than average cost of solar panels, leading to a decline in demand for solar panels in Europe, leading to trade wars between China and the EU (Aldrick & Philip, 2013).

In addition, Imports: compared to neighboring countries, some local resources may be very costly, trying to encourage local resources of enterprises may lose market share, it is because not everyone agrees to more assist the concept of domestic procurement; sometimes choose to buy more the proportion of consumers who are cheaper products or services exceeds the market that is willing to pay additional funds to support local purchases, and as a result, the focus on locally sourced businesses may be chosen to be imported from neighboring markets, which could lead to export trade The deficit is lower than the import, and the unemployment rate due to the reduction in local procurement demand may increase, thus reducing the staff (Aldrick & Philip, 2013).

Furthermore, Export: export enterprises choose to use more costly local resources, due to rising production costs, may be lost in the international market competitiveness, global forces will eventually shrink, trade negative balance, affecting gross domestic product (consumption + investment) + government spending + (Export - Import)) (Mathews & Rick, 2012; Mathews & Rick, 2012).

2.3.2.3 Reasons/ Benefits of Domestic Sourcing

According to Smith (2016), the following are some of the benefits of domestic sourcing:

Firstly, More Reaction: You may not know when there is a chance to strike or challenge. For example, you could get a high-margin bid from a good buyer, or an existing customer may need you to upgrade to meet your needs. Are you ready? If you are in a local source, the answer may be yes. This is because local suppliers are usually more resilient than away from suppliers. They can deliver products faster and suppliers are more likely to coordinate goods across the world (Smith, 2016).

In addition, the Greater Control: the farther away from the supply chain elements, the less control. Vendors may say that they are the same for all customers and purchase orders, but if they anticipate live visits or have meetings from you, they have the opportunity to keep your mind. Face-to-face access will allow you to solve any problems and ensure that all products meet your criteria. Things are "lost in translation" are also less likely to occur in the work with distant people, many of them are not actually on the floor, but touch your product (Smith, 2016).

More so, Reduce Supply Chain Costs: If you tighten your budget, you should also consider tightening the supply chain. The company's annual spend on logistics is staggering, North American firms spend more than $ 1 trillion. North American companies send and receive components and goods across the continent and the country, and the cost can be as fast as mileage. Even so, these pieces must be stored in the warehouse until they are shipped again to the next supplier, or if you are lucky, that customer. By localizing your supply chain you can reduce many of these costs. Moreover, with the reduction of logistics funds, your bottom line will be reduced (Smith, 2016).

Furthermore, the Better Business: domestic sourcing not only helps to save money; it can also help you produce more of it. That's because you try to keep your tense and fast-paced supply chain, which can help you attract new customers and firms in your area may be impressed. Commit your commitment to domestic procurement into your marketing and sales work. In fact, consider integrating it into your unique sales proposition (Smith, 2016).

Also, Good for the Community: Reasons to increase your bottom line if you purchase domestically, For other suppliers and manufacturers in your area, this will be the same for your local economy and people who live there. Happy, highly paid employees are more likely to invest in local businesses. In addition, respected and affluent businesses can contribute to the community through fundraising, volunteerism, welfare and sponsorship (Smith, 2016).

Finally, Help the Environment: domesticizing the supply chain is a great advantage to assist the environment. When you reduce transportation and storage, you can also reduce emissions and energy consumption. Domestic purchases are good for your business, community, your friends, neighbors and even the earth (Smith, 2016).

2.4 Overview of The Construction Industry

The construction industry is considered to be among the major platform for the development in the national economy. It is a large and mature industry; it has many significant connections with other economies. The importance of the construction industry to the economy can be estimated by the contribution of gross domestic product; its contribution to investment and the quantity of manpower employment. According to Oxford Business Group (2016), construction activity contributed GHc13.7bn ($3.8bn) to GDP in 2014 at recent prices. This was 12.7% of total GDP and up 26.9% from GHc10.8bn ($2.9bn) in 2013. The industry has matured strongly over the past decade, from GHc1.01bn ($280.3m) in 2006, and has become of increase significance to the whole economy, more than doubling as a contributor to GDP from 5.7% in 2006.

According to Donkor-Hyiaman (2014), "In the 21st century international, infrastructure is the lifeblood of success and economic confidence. Efficient implementation of well-planned infrastructure investments facilitates emerging economies where Ghana is an advantage to compete in the international marketplace. In addition to this critical role, the contribution of the construction industry to national development can be summed up through forward and backward connections with other sectors and the economic industry. Through the advance connections, the output of the construction industry (product) For example, the construction industry, including buildings, roads, dams and other infrastructure in various forms, have been financial, transportation, energy and other industries and industries put into use. On the other hand, backwards linked to the Construction technicians, professionals and manufacturing companies to provide construction investment in the industry's growth.

2.4.1 Construction Performance Measurement/ Indicators (KPIs)

The UK Key Performance Indicators Working Group (KPI) has identified 10 parameters for the baseline project to achieved good results according to Egan's report (1998 cited in Takim & Akintoye, 2016). Nonetheless, most of the measures such as building costs, construction time, defects, customer satisfaction with products and services, profitability, and productivity will drive results-oriented thinking, design costs and time forecasts, as well as construction costs and time predictability. Is thought to be process-oriented. According to Dvir et al., (Unpublished article, 2002), the output of the demand analysis phase may determine the output of the whole development process. They said the success of the project was critical to identifying the start and start stages of major decisions, such as project objectives and planning decisions. This problem is even more serious when this activity depends on the outcome of the early activity. Hence, it is vital to determine the parameters (performance indicators) of the baseline project at the project selection stage to achieve good project performance (Takim & Akintoye, 2016). Posten (1985), they found that 55% of all defects in the research and development project occurred in the requirements analysis and specification, before the location was recorded, and 43% of the defects were found after the testing phase. The same situation applies to construction projects, which is not surprising. According to Pillai et al., (2002), a performance measurement system is needed to reflect the needs and expectations of all stakeholders. Throughout the project phase, it is necessary to measure and assess the performance of stakeholders to ensure that there is no significant conflict, controversy and sense of responsibility after the completion phase.

Table 2.1: Summary of Performance Indicators for Construction Industry Measures

Abbildung in dieser Leseprobe nicht enthalten

Source: From (Ali et al., 2013)

Table 2.1 shows the wide range of key performance indicators or measurement for the construction industry from different authors. Among the frequent mentioned ones are: cost, safety, client and customer satisfaction, profitability, environment, growth, quality, and productivity. Other measure which was listed ones or twice but very vital to construction performance is time or schedule performance (Ali et al., 2013).

Table 2.2 indicates slightly different key performance indicators or measures.

Table 2.2 Performance Indicators for Industry Measures

Abbildung in dieser Leseprobe nicht enthalten

Source: Mbugua et al., (1999)

2.5 List of Common Construction Materials

Many types of building materials are used in the construction industry to put up buildings and structures. These materials and products are widely used by many construction professionals to specify the materials and methods for construction. The list of common construction materials as follows: Cold Steel Frames Pipes/ Sheets for purlins, portable buildings, prefabricated buildings, mezzanine floors, steel frame systems, Wooden materials for doors, frames, windows, stile and rails, wood clad, door hard-wares, gypsum/ plaster boards, architraves, skirting, heavy timbers, and bamboo. Electrical Systems for AC power plugs and sockets, circuit breaker, connectors, switches, alarm systems, earth rods, cables, extractors. Plumbing and HVAC (Heating ventilation and air conditioning) materials such as pipes, HVAC systems, water heaters, bath sets, wash hand basins, shower sets, firefighting systems and plumbing fixtures. Mason materials such as cement brick/ blocks, concrete. Metals materials like structural steel I-beams and columns, rebar, wire rope and cables, metal joist, decking, framing, trusses, metal staircases, ladder, grating, strut channel roofing and decorative metal. Finishing materials example as curtain walling, glass doors and windows, louvre blades, plastic T&G, and ceramic tiles and Health and Safety equipment such as personal protective equipment, first aid tools are some of the common materials the industry purchases for their operations (Varghese, 2005).

2.6 Conceptual Framework

Conceptual framework is a set of broad ideas and theories that enables the researcher to properly identify problems in the study, frame questions and find the relevant literature for the study (Stratman & Roth, 2004). The independent variables of the study are domestic sourcing and overseas sourcing strategies whiles the dependent variable is construction performance.

Figure 2.2: Conceptual Framework

Abbildung in dieser Leseprobe nicht enthalten

Dependent Variable Independent Variable

The dependent variables are the organizational trade-off that has the potential to either enhance or impede the construction performance represented by domestic sourcing and overseas sourcing strategies. When companies source locally they enjoy rapid response, but lack cost savings. In a sharp contrast, companies enjoy cost savings but lack responsiveness when they source globally, hence, a major decision to make because sourcing can be strategic when the type of sourcing adopted has a positive influence on construction performance.

The independent variables were measured in the study by the following elements: reduced supply chain cost, short delivery time, convenience, quick accessibility to resource, better relationship with suppliers, good customer service, reduced inventory levels, quick response to market change, durability/ quality, low cost, aesthetic beauty, flexibility in procurement process, stimulates better competition, competitive advantage, consumer confidence, benefits to local economy, hidden procurement costs, wide range of resources to choose from, supply interruptions, prestige, better access to technology, more uniform quality and better access to innovation and new ideas. The measuring elements or tools for the independent variables were drawn from their definitions, characteristics, driving force, advantages, disadvantages, reasons and benefits. The dependent variable was measured in the study by the construction key performance indicators.

CHAPTER THREE

METHODOLOGY PROFILE OF STUDY ORGANIZATIONS

3.0 Introduction

This chapter deals with the design of the research and structure of the whole project work. It describes the design, study population, sample size, sampling technique, instrument for data collection, validity and reliability, pre testing of instrument, data collection, plan for data handling and analysis and overview of the real estate industry of Ghana.

3.1 Research Design

According to Ngahu et al., (2015 cited in Kombo & Tromp, 2006) Research design is a sequential guide to how to answer research questions. In this study, the researcher shall make use of the quantitative approach and a descriptive research design.

To Ngahu et al., (2015 cited in Oso & Onen, 2009) descriptive research is better if the researcher has the knowledge or conceptual knowledge to be reviewed or considered and to seek more understanding.

The study adopts descriptive design because it seeks to explore and explain why materials are either sourced from the domestic or overseas markets. In addition, the study adopts explanatory research design because it attempts to provide a linkage between strategic material sourcing and construction performance. Finally, the study embraces quantitative approach because the kinds of data to be collected are in numerical nature.

3.1.1 Model Specification and Expected Signs

Model specification refers to the determination of which independent variables should be included in or excluded from the regression equation. In general, the specification of a regression model should be based primary on theoretical considerations rather than empirical or methodological ones. A multiple regression model is, in fact, a theoretical statement about the causal relationship between one or more independent variable and a dependent variable (Allen, 2007). The model specification for the study was multiple regression models since there are causal relationship between two independent variables and a dependent variable.

Table 3.1: Expected Signs

Abbildung in dieser Leseprobe nicht enthalten

3.2 Population of the Study

Polit & Hungler (1999), think of the population as a whole for observing all the objects, topics, or subscribers of a set of statements. Patton (2002) also argues that the target population of the study is often involved in defining a group of people, objects or institutions. In this study, the population will concentrates on the real estate industry of Ghana, precisely in the Greater Accra Region and focuses on Management Procurement, Finance and Quantity Surveying departments of ten (10) main real estate companies namely: Devtraco Limited, Rehoboth Properties Limited, Regimanuel Gray Limited, Edlorm Housing Limited, Gold Key Properties, Castle Gate Estate Limited, Krane Construction, Magna Terris Limited, RedRow Developments Limited and PS Global Limited. The various real estate firms were selected based on their popularity and due to convenience, time and financial constraints.

3.3 Sample Technique and Sample Size

The method of choosing a fraction of the population to replace the whole population is called sampling (Polit & Hungler 1999). According to Sarantakos (2006), Sample size refers to an important question, such as "how much" or "small" the sample must be representative.

In order to obtain the sample size for the survey, a statistical method was used with respect to the total population Management, Procurement, Finance and Quantity Surveying departments of selected firms in the Greater Accra Region.

Stratified sampling shall be used to control the group that are of interest to the research and simple random sampling shall be used to select a proportion with respect to the total population in the real estate industry in the selected organizations.

To determine the sample size for unknown population, Pennsylvania State University (2017), has the following formula: n= (z /M)² p(1 - p) where: ‘n’ is the sample size; ‘M’ is the margin of error; p is an estimated value of the proportion. As the study has no predetermine value of the exact population proportion the worst case scenario is used by setting p = 0.50 since it is most conventional which will give the largest sample size and 95% confidence interval with the margin of error (M) equal to 10%. Since there is no estimate of the proportion given, ‘p’ = 0.50 is used for a conventional estimate.

For a 95% confidence interval, z= 1.960.

n= (1.960)² (0.50)(1-0.50) = 96.04 ( 0.10)

To build 95% confidence intervals with a margin error of 10%, the research should obtain a sample of at least n= 97 but to cater for shortfalls, the sample size was increased to 100, therefore n= 100 as population size for the 10 real estate firms.

3.4 Data Collection Method

Polit & Hungler (1999) define the data as information gathered during the period of the study. Data collection is a method of sorting and evaluating the statistical data of the target variables in an acceptable order, and then gives an answer to important questions and evaluates the results (Lescroël, et al., 2014). According to Muijs (2010), the quantitative approach emphasizes objective assessment as well as statistical, mathematical or numerical analysis of data consisting of voting, questionnaires and surveys, or the use of computing techniques to influence pre- existing statistical data. The study adopted the quantitative method of data collection for the achievement of the objectives of the study. Data shall be collected in two parts: primary and secondary. The primary data shall be collected through the administering of questionnaire. The Secondary data shall also be collected through existing literature and information relating to the study such as the internet, journal, books and articles.

The quantitative data combination process depends on the random sampling and structured data collection tools that apply to a variety of practices to the intended answer category. The results they produce are easy to summarize, compare and promote. The study will make use of questionnaires as data collection instrument.

The questionnaire was designed to base on the research objectives and was structured in sections from ‘A’ to ‘F.’ Section ‘A’ deals with the demographic characteristics of respondents to assess respondent background and the impacts of their responses. Section ‘B’ to ‘F’ forms the main questions which will be used to analyze the tradeoff between Domestic sourcing strategy (Responsiveness) and Overseas sourcing strategy (Cost) that best impact on construction performance. The questions were organized in multiple choice and likert scale manner for easy response. The targeted population was the Management, Procurement, Finance and Quantity Surveying departments of ten (10) selected real estate companies. Hundred (100) questionnaires were distributed and 90 responses were retrieved, forming 90% of the total number of distributed questionnaires. The researcher sought permission from administrators and human resource executives to distribute the questionnaires to their staff. Due to busy time schedule of some of the respondents, some of the questionnaires were issued through online platform (e-mails), personal and telephone.

3.4.1 Validity and Reliability

Validity is the range to which an idea is precisely assessed in a quantitative study. The types of validity are firstly, content validity: The research instrument accurately evaluates the range of all aspects of the structure. Second, build the validity: the research tool (or tool) evaluates the scope of the calculation structure. Third, the standard validity: research tools and evaluation of the same variables other tools interrelated range (Ali, et al., 2013).

Reliability refers to the regularity of assessment. A contributor finishing an instrument meant to assess incentive should have roughly the same answers each time the examination is finished. Though it may not feasible to give a precise calculation of reliability, an estimate of reliability may be attained in diverse measures (Ali, et al., 2013).

To ensure validity, the questionnaires were compared to the research objectives, and the questionnaire was shown to the supervisor for critical examination. To further ensure reliability of the instrument, the study adopted a practice run or testing of the research instrument (questionnaires) by way of pretesting to small set of respondents (10) from the population to help in redesigning and reshaping of the questionnaires. The pretesting was carried out at Devtraco Limited - Tema community 25 project site.

3.5 Data Analysis

Data analysis is the process of checking, cleaning, transforming, and modeling data, with the aim of discovering useful information, making conclusions and supporting decisions (Data analysis, 2017). Analysis of data shall be done using the Regression Analysis, to analyze the relationship between material sourcing and construction performance; Statistical Package for the Social Sciences (SPSS) software associated with mean and standard deviation; and by the use of Microsoft Excel to generate tables with frequency and percentages to analyze the data descriptively.

3.6 Overview of The Real Estate Industry

According to Management (2015), Ghana's real estate industry is a developing area. In terms of housing supply, the industry contributes greatly to economic growth. The industry includes private and public sector residential and commercial developers. Private sector's highly recognized real estate companies are Regimanuel Gray Limited, MANET Housing Limited, Noble Properties, DEVTRACO, Blue Rose Manor, ASN Ghana Real Estate, HFC Property, National Trust Holdings Limited, Africa Concrete Products Real Estate Limited, Whitewall Properties, Elle King Investment, Rehoboth Property, RedRow Development Limited, Edlorm Housing Limited, Magna Terris Limited, GHS Houses Ltd., Castle Gate Estate Limited, are concentrated in Accra, almost once in Kumasi, such as Angel Estate and Asenso Manor Co., Ltd., Sabonkudi Estate Ltd. and Pinnacle Solutions Ltd. are also Tamale in northern Ghana.

Public sector operators include National Housing Limited, Tema Development Corporation, Social Security and National Insurance Trust (SSNIT) and then Family Finance Limited (Management, 2015).

With the rise of new residential facilities throughout the country, Ghana's real estate industry continues to flourish. The property in Ghana is considered to be one of the important investments that people can do in life, and it is considered a successful way. Ghana has more cultural tolerance than some other African countries, which means that more immigrants flock to the country. As a result, more retail and commercial properties are entering the country. Since the opening of the Accra Mall in 2007, several new and smaller shopping malls are on the rise. Ghana's residential property market is increasing and profitable due to good economic growth. Ghana and land houses have recently been higher prices than in previous years. Most middle- class citizens sell their property and are being purchased by nonresidents and foreign investors in the country. Some of Ghana's neighboring cities are expensive for Ghana's average.

Accra's population is currently growing at 2.5 million, thus requiring more energy in Ghana to meet the population, which will tend to build new apartments and homes, and more investors are seeking real estate investment in Ghana. Due to the rapid development of the industry, GREDA is the acronym for Ghana Real Estate Developers Association, established under the laws of Ghana, responsible for industry management. Many of Ghana gated communities are a good choice for the average family or professional and in many cases provide economical rents. Some houese may cost about $ 600 a month. Residents enjoy the privacy and security of the closed community providing housing and apartments. Many of these communities are located in tiles or paved compounds in modern buildings. Facilities include one to three bedrooms, full toilets, kitchen, hall, dining area, tiled floors and residential parking (Ameyaw, 2016).

According to Management (2015), although the industry’s bestows towards residential accommodation provision in Ghana, there are many challenges the organizations go through. High-cost credit is one of the major challenges facing the industry. The reason is that investment in real estate requires long-term capital, so the need for long-term financing in order to maintain business operations. Secondly, high interest rates and short term repayment time is a major challenge. In addition, land dispute is another hectic issue which the industry battles with. There are no complete shortages of land, but there is congestion in the conveyance procedure. One of the factors restricting the supply of housing development land is the lack of institutional arrangements for land management and management, thus reducing the land ownership registration process. Lack of sufficient information about land can also cause interference with the issue of shelters.

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.0 Introduction

This chapter deals with the analyses of the data assembled from the field through a structured questionnaire that were conducted. Hundred (100) questionnaires were administered and eighty three (90) were completed and returned, forming 90% response rate.

The first section ‘A’ discusses the respondent background. The remaining sections ‘B’ to ‘F’ addressed research objectives. Descriptive statistics and regression analysis tools were used for the analysis mean and standard deviation), and frequency analysis with percentages. Results were presented in tables and figures.

4.1 Background of Respondents

The background of respondents in this research involves: Gender, educational background, professional background, years of work experience, and the type of project undertaken.

4.1.1 Gender

The survey assessed the gender of respondents to gather information on the impact of gender to the findings. Table 4.1, shows that majority of respondents were males (86.75%) whiles percent 13. 25 percent were female. It means that the impact of the male gender on the research is high.

Table 4.1 Gender

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

4.1.2 Educational Background

Again Table 4.2 demonstrates the respondents’ educational background. The highest was BSc. (56.63%) and PhD and ‘Other’ recorded zero. Education is among the major characteristics that might affect the survey responses. In this way it is vital to know the educational background of respondents. Majority of them were Quantity Surveyors representing 40 percent, 47

Table 4.2 Educational background

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

4.1.3 Professional Background

With the fore knowledge of the professional background with respect to purchasing, the researcher realizes the need to gather data from the respondent. Table 4.3 indicates the respondents’ professional background and majority of them were Procurement Managers/ Officers representing 47.78 percent, and the least was CEO/ Manager/ administrators with a percentage of 2.22., which forms the least.

Table 4.3 Professional background

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

4.1.4 Years of Work Experience

The study also gathered information on working experience of respondents. Again from table 4.4, it was observed that 53.33%, majority have experience for 6-10 years, 23.34% have experience of 2-5 years. Respondents who have worked more than 20 years, 16-20 years, 11-15 years, less than 2 years represented 23.33%.

Table 4.4 Years of work experience

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

4.1.5 Types of Projects undertaken

Table 4.5 shows that, large scale residential (all type) dominates the industry with 55 percent, followed by 27 percent from large scale residential houses (excluding storey type). Hotels and Hostels and ‘Other’ had zero percentage, meaning the real estate industry does not participate or engage in such building projects.

Table 4.5 Type of building projects undertaken.

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

4.2 Survey Results and Analysis (Discussion on the Rankings)

Section B:

Table 4.6 Construction materials the firm’s purchases for their operations

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

From table 4.6 above, all the metals materials show a minimum value of 1 and a maximum 1 with a mean value of 1.00 and a standard deviation of 0.000. this mean all the metal materials , Aluminum roofing sheets, Door/ window frames, Burglar proof, Ironmongery/ locks, Metal balustrades, Iron rods/ binding wire/ mesh, Doors, Steel pipes and Louvre carrier are all purchase at the same rate and all are used in the operations of the real estate industry.

Table 4.7 Construction materials the firm’s purchases for their operations

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

Again table 4.7 above shows that all the electrical materials have a minimum value of 1 and a maximum 1 with a mean value of 1.00 and a standard deviation of 0.000 this mean all the metal materials , Cables , Light bulbs/ tubes, Earth rod, Switches, Generators, Conduit pipes and Alarm systems are all purchase at the same rate and all are used in the operation of the real estate industry.

Table 4.8 Construction materials the firm’s purchases for their operations

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

From table 4.8 above, all the wooden materials show a minimum value of 1 and a maximum 1 with a mean value of 1.00 and a standard deviation of 0.000. this mean all the wooden materials such as the Doors, board for form work, kitchen cabinets/ wardrobes, roofing timbers/ members, gypsum/ plaster board and architraves/ skirting are all purchased at the same rate and all are used in the operation of the real estate industry.

Table 4.9 Construction materials the firm’s purchases for their operations

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

Table 4.9 above indicates that, all the plumbing materials show a minimum value of 1 and a maximum 1 with a mean value of 1.00 and a standard deviation of 0.000. this mean all the plumbing materials: pipes and accessories, water heater, water closet pot/ accessories, wash hand basin, shower set, and firefighting system are all purchased at the same rate and all are used in the operations of the real estate industry.

Table 4.10 Construction materials the firm’s purchases for their operations

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

Table 4.10 above demonstrates that, all the glass materials show a minimum value of 1 and a maximum 1 with a mean value of 1.00 and a standard deviation of 0.000. this mean all the glass materials such as glass for doors/ windows (glazing) and louvre blades are purchased at the same rate and all are used in the operations of the real estate industry.

Table 4.11 Construction materials the firm’s purchases for their operations

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

From table 4.11 above, all the finishing materials show a minimum value of 1 and a maximum 1 with a mean value of 1.00 and a standard deviation of 0.000. this mean all the construction finishing materials: wall/ floor tiles, paints and plastic T&G are purchased at the same rate and all are used in the operations of the real estate industry.

Table 4.12 Construction materials the firm’s purchases for their operations

Abbildung in dieser Leseprobe nicht enthalten

Source: field work, 2017

Table 4.12 above indicates that, the cement material show a minimum value of 1 and a maximum 1 with a mean value of 1.00 and a standard deviation of 0.000 this mean other building material like cement is purchased at the same rate and all are used in the operations of the real estate industry.

Table 4.13 Construction materials the firm’s purchases for their operations

Abbildung in dieser Leseprobe nicht enthalten

Source: field work, 2017

Table 4.13 above indicates that, all the health and safety materials show a minimum value of 1 and a maximum 1 with a mean value of 1.00 and a standard deviation of 0.000. this mean the above listed health and safety materials such as personal protective equipment, and first aid kids are all purchased at the same rate and all are used in the operations of the real estate industry.

Section C:

In this section the study uses percentage to determine sourcing strategies (domestics or overseas), the firm employed in purchasing the following construction materials. Note: the higher the percentage, the higher the rate at which the strategy is been used.

Table 4.14 Sourcing strategy the firms’ employs

Abbildung in dieser Leseprobe nicht enthalten

Source: field work, 2017

Table 4.14 indicates best strategy either domestic or overseas sourcing for the construction materials used in the industry. Of the 100% responses, aluminum (63.3%), Ironmongery/ locks (63.3%) and doors (70.0%) formed majority which means they were the metal materials which the industry source from the overseas market. On the other hand, door/ window frames (80.0%), burglar proof (88.9%), metal balustrades (81.1%), steel pipes (8.1%), and louvre carriers (100%) were the metal materials sourced by the industry from the domestic market.

Table 4.15 Sourcing strategy the firms’ employs

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

Table 4.15 indicates best strategy either domestic or overseas sourcing for the construction materials used in the industry. Out of the 100% responses, light bulbs/ tubes (54.4%), earth rod (55.6%), switches (63.3%), generators (52.2%), conduit pipes (52.2%), and alarm systems (72.2%), shows majority in percentage which indicates they are electrical materials sourced from the overseas market. Contrary, only cables (63.3%) indicates the electrical material sourced by the industry from the domestic market.

Table 4.16 Sourcing strategy the firms’ employs

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

Table 4.16 indicates best strategy either domestic or overseas sourcing for the construction materials used in the industry. Of the 100% respondents, doors (85.6%), gypsum/ plaster board (80.0%) and architraves/ skirting (74.4%) forms majority and were the wooden materials which the industry source from the overseas market. In sharp contrast, board for form works (81.1%), kitchen cabinet/ wardrobes (92.2%), roofing timber/ members (100.0%) also formed majority and were the wooden materials sourced by the industry from the domestic market.

Table 4.17 Sourcing strategy the firms’ employs

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

Table 4.17 indicates best strategy either domestic or overseas sourcing for the construction materials used in the industry. Of the 100% responses, water heaters (68.9%), water closet pots/ accessories (64.4%), bath set (67.8%), wash hand basin (74.4%), and shower set (77.8%) shows majority in percentage which were the plumbing materials that the industry source from the overseas market. On the other hand, pipes and accessories (63.3%), and firefighting systems (58.9%) were the only two plumbing items sourced by the industry from the domestic market with a high percentage.

Table 4.18 Sourcing strategy the firms’ employs

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

Table 4.18 indicates best strategy either domestic or overseas sourcing for the construction materials used in the industry. Of the 100% respondents, the two materials listed under glass: glazed door/ windows (52.8%), and louvre blades (100.0%) shows majority percentage that the materials were sourced by the industry from the domestic market.

Table 4.19 Sourcing strategy the firms’ employs

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

Table 4.19 also indicates best strategy either domestic or overseas sourcing for the construction materials used in the industry. Of the 100% responses, wall/ floor tiles (87.8%) forms the majority which means the material is source from the overseas market. On the other hand, paints (81.1%), and plastic T&G (85.6%), forms the majority, hence, the industry sources them from the domestic market.

Table 4.20 Sourcing strategy the firms’ employs

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

Table 4.20 furthermore indicates best strategy either domestic or overseas sourcing for the construction materials used in the industry. Of the 100% responses, cement (100.0%) is sourced by the industry from the domestic market.

Table 4.21 Sourcing strategy the firms’ employs

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

Table 4.21 more so indicates best strategy either domestic or overseas sourcing for the construction materials used in the industry. Out of the 100% responses, personal protective equipment (56.7%) shows majority which means the material is sourced from the overseas market. On the other hand, first aid kits (92.2%) is sourced by the industry from the domestic market.

Section D:

In your experience, what are the reasons why you source construction materials locally?

Table 4.22 Regression Analysis

Abbildung in dieser Leseprobe nicht enthalten

Independent variables in the regression model account for 98 percent of the total variation in the regression model. This signifies that the model is highly fit for regression analysis and also the regression model best explained the contribution of the independent variable in the model.

Analysis of Variance

Abbildung in dieser Leseprobe nicht enthalten

The second output table of significance shows the "F-statistic" of the model. Normally, the regression table will report this statistic and its meaning, but the most important is the statistic (.000). The significance of the ‘F-statistic does not have an independent variable (factor) that is more likely to be associated with the dependent variable than the probability of pure chance (due to random sampling error). In Table 4.22, we can explain the significance statistic of the F-test in the following way: "The significance statistic of the regression model for the F-test shows that there is essentially no chance (less than 1,000), more independent and variables are only due to random sampling errors.

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

The table above reports the partial regression coefficients [both unstandardized (B) and standardized (Beta)] for each independent variable (Factors) in the model and tests of significance for each of these statistics. The p-values (less 0.05) in the table 4.22 above show an individual significance contribution in the model. Reduced supply chain cost (0.001<0.05), Short delivery time (0.000<0.05), Convenience (0.043<0.05), Quick accessibility to resource (0.028<0.05), Reduced inventory level (0.004<0.05), Quick response to market change (0.009<0.05), Flexibility in procurement process (0.343<0.05), Benefit to local market or economy (0.038<0.05), Hidden procurement charges (0.000<0.05), and Supply interruptions (0.037>0.05), show a significant contribution in the model.

Good customer service (0.760>0.05), Quality/ Durability (0.102>0.05), Low cost (0.866>0.05), Aesthetic beauty (0.428>0.05), Stimulates better competition (0.311>0.05), Competitive advantages (0.227>0.05), Consumer confidence, (0.082>0.05), Wide range of resources to choose from (0.227>0.05), Prestige (0.851>0.05), Better access to technology (0.692<0.05), More uniform quality (0.264<0.05) Better access to innovation and new ideas (0.429>0.05), were found not to be significant in the regression model hence their contribution is not much felt in the regression model. Also the un standardized Coefficients (B) show the contribution weight that each of the significant (p<0.05) factors contribute in the model holding are other variable constant.

Section E:

In your experience, what are the reasons why you source construction materials overseas?

Table 4.23 Regression Analysis

Abbildung in dieser Leseprobe nicht enthalten

Independent variables in the regression model account for 97 percent of the total variation in the regression model. This signifies that the model is highly fit for regression analysis and also the regression model best explained the contribution of the independent variable in the model.

Analysis of Variance

Abbildung in dieser Leseprobe nicht enthalten

The second output table of significance shows the "F-statistic" of the model. Normally, the regression table will report this statistic and its meaning, but the most important is the statistic (.000). The significance of the F statistic does not have an independent variable (factor) that is more likely to be associated with the dependent variable than the probability of pure chance (due to random sampling error). In Table 4.22, we can explain the significance statistic of the F-test in the following way: "The significance statistic of the regression model for the F-test shows that there is essentially no chance (less than 1,000), more independent and Variables are only due to random sampling errors.

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

The table above reports the partial regression coefficients [both unstandardized (B) and standardized (Beta)] for each independent variable (Factors) in the model and tests of significance for each of these statistics. The p-values (less 0.05) in the table 4.23 above show an individual significance contribution in the model. Quality/ Durability (0.040<0.05), Low cost (0.006<0.05), Aesthetic beauty (0.05<0.05), Stimulates better competition (0.121<0.05), Competitive advantages (0.000<0.05), Consumer confidence, (0.000<0.05), Hidden procurement charges (0.029<0.05), Wide range of resources to choose from (.000<0.05), (0.040<0.05), Prestige (0.008<0.05), Better access to technology (0.005<0.05), More uniform quality (0.030<0.05) , and Better access to innovation and new ideas (0.006>0.05), show a significant contribution in the model. Reduced supply chain cost (0.336>0.05), Short delivery time (0.409>0.05), Convenience (0.475>0.05), Quick accessibility to resource (0.830>0.05), Good customer service (0.424>0.05), Reduced inventory level (0.597>0.05), Quick response to market change (0.389<0.05), Flexibility in procurement process (0.671<0.05), Benefit to local market or economy (0.367>0.05), and Supply interruptions (0.336>0.05), were found not to be significant in the regression model hence their contribution is not much felt in the regression model. Also the un standardized Coefficients (B) show the contribution weight that each of the significant (p<0.05) factors contribute in the model holding are other variable constant.

Section F:

In your opinion, what are the key construction performance measurement indicators?

Table 4.24

Abbildung in dieser Leseprobe nicht enthalten

Independent variables in the regression model account for 95 percent of the total variation in the regression model. This signifies that the model is highly fit for regression analysis and also the regression model best explained the contribution of the independent variable in the model.

Analysis of Variance

Abbildung in dieser Leseprobe nicht enthalten

The second output table of significance shows the "F-statistic" of the model. Normally, the regression table will report this statistic and its meaning, but the most important is the statistic (.000). The significance of the F statistic does not have an independent variable (factor) that is more likely to be associated with the dependent variable than the probability of pure chance (due to random sampling error). In Table 4.22, we can explain the significance statistic of the F-test in the following way: "The significance statistic of the regression model for the F-test shows that there is essentially no chance (less than 1,000), more independent and Variables are only due to random sampling errors.

Abbildung in dieser Leseprobe nicht enthalten

Source: Field work, 2017

The table above reports the partial regression coefficients [both unstandardized (B) and standardized (Beta)] for each independent variable (Factors) in the model and tests of significance for each of these statistics. The p-values (less 0.05) in the table 4.24 above show an individual significance contribution in the model. Profitability (0.001<0.05), Productivity (0.000<0.05), Customer satisfaction (0.041<0.05), Time schedule performance (0.004<0.05), Cost performance (0.000<0.05), Client satisfaction (0.032<0.05), Technology capability (0.043<0.05), Low/ zero defect (0.012<0.05), Cash flow (0.008<0.05), and Quality (0.000<0.05), show significant contribution in the model. Environment impact (0.544>0.05), Repeat business (0.760>0.05), Construction safety (0.866>0.05), Market share (0.428>0.05), Research and development (0.311>0.05), Return on capital employed (0.227>0.05), and Employee training (0.243>0.05), were found not to be significant in the regression model hence their contribution is not much felt in the regression model. Also the un standardized Coefficients (B) show the contribution weight that each of the significant (p<0.05) factors contribute in the model holding are other variable constant.

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.0 Introduction

This chapter discusses the main findings, conclusions and recommendations based on this study and are relevant to the objectives of the study. The main objective which the study focuses on is to analyze the effects of strategic material sourcing on construction performance in the real estate industry of Ghana.

5.1 Summary of Findings

After the detailed analysis of the questionnaires with regards to the impact of strategic material sourcing on construction performance, the following conclusions were drawn:

Firstly, the findings from the respondent background indicated that, majority of respondents were male, secondly, the major educational background in the Bachelors (BSc.). Procurement profession was the highest percentage to the research and respondents’ years of experience falls within 6-10 which recorded higher percentage. Finally, large scale residential (all types) scored the highest, which implies that, the real estate industry major on all types of residential building projects.

Secondly, all the respondents agreed to the fact that, all the construction materials listed were purchased for the industry’s operations.

In addition, with respect to metal materials, six (6) items were sourced from the domestic market with high percentage as compared to three (3) items sourced from the overseas market with high percentage. Therefore, the industry depends majorly on the local market for metal materials. The analysis also showed that, one (1) electrical item with higher percentages is sourced domestically whiles six (6) materials with high percentage were purchased using the overseas sourcing strategy. This indicates that the industry highly depends on foreign goods with regards to electrical materials. Thirdly, out of the six (6) wooden materials, three (3) items are sourced from the local market with higher percentage, whiles the remaining three were sourced from the overseas market with high percentage. Fourthly, five (5) materials were sourced from the overseas market with high recorded percentage whiles two (2) items were sourced from the local market with respect to plumbing materials. This shows that, majority of plumbing materials were sourced from the overseas market. More so, regards to glass material, all the two (2) items were sourced from the local market with recorded high percentage margins. Furthermore, out of the three (3) finishing materials, two (2) items were sourced from the local market whiles one (1) sourced from the overseas market. In addition, all the respondents sourced for cement material from the local market. Finally, one (1) item each is sourced from both the domestic and overseas market with regards to the health and safety items. In totality, out of the thirty seven (37) construction materials the real estate industry purchases for their operation, eighteen (18) items (forming 48.6% of total sourced materials) of them are highly sourced from the domestic market whiles nineteen (19) of the item (forming 51.4% of total sourced materials) were highly sourced from the overseas market which impacts heavily on construction performance.

More so, with respect to reasons why organizations source from the local market, reduced supply chain cost, short delivery time, convenience, quick accessibility to resources, reduced inventory levels, quick response to market change, flexibility in procurement process, benefit to local market, no hidden procurement charges, and less supply interruptions, were recoded as significant reasons why the real estate industry source from the local market which affects construction performance.

Furthermore, in sharp contrast, Quality, low cost, aesthetic beauty, stimulates better competition, competitive advantage, consumer confidence, wide range of materials to choose from, prestige, better access to technology, more uniform quality and better access to innovation and new ideas, were recorded as the positive or beneficial reasons why the industry depend on the overseas sourcing strategy for materials which influences construction performance. In total, respondents chose ten (10) positive reasons why they depend on domestic sourcing strategy and eleven (11) positive reasons why they adopt overseas sourcing strategy.

Finally, from the findings, profitability, productivity, customer satisfaction, time schedule performance, cost performance, client satisfaction, technological capability, low/ zero defects, cash flow and quality were recorded as significant indicators of construction performance.

5.2 Conclusion

The study concluded that there was a positive and significant relationship between strategic material sourcing and construction performance. This implies that through strategic material sourcing (domestic or overseas), the industry can enhance the benefits of profitability, customer and client satisfaction, low/ zero defects, cost and time performance, etc. Furthermore, the study concluded that, overseas sourcing strategy was the best method to enhance construction performance since it attained the highest number of measuring tools or reasons compared to domestic sourcing strategy.

5.3 Recommendations

The construction industry depend highly on materials for their operations, hence from the findings 51.4% of materials sourced from the overseas market shows high volumes of purchases and capital invested in overseas market. Therefore the research recommend that, the industry should look for ways such as technology transfer and domestic supplier development to enrich and provide capacity building for the local market to be more empowered and resourced to meet domestic demands for the industry to enjoy economies of scale.

Secondly, the research recommends that, the government should increase her participation or engage in public private partnership to increase industrialization in the construction industry, by way of producing local ceramic water closets, wash-hand basins, glass etc., which are highly purchased in the industry to increase domestic generated revenue and reduce unemployment.

Furthermore, from the research findings, it was deduced that, there are more reasons to source from the overseas market than the domestic market, yet the developed world are concentrating on ‘backshoring’, ‘reshoring’ or domestic sourcing strategy to increase industrialization, reduce unemployment, investing locally to keep their economy running and self-sufficient. Therefore the research recommends that, the industry should consider high percentage to domestic sourcing as compared to overseas sourcing so that the Ghanaian economy or industry can grow.

5.4 Suggestions for Future Research

The research indicates that, quality and low cost materials were among the main reasons why firms source from the overseas market, yet it is assumed that the real estate buildings are highly expensive and constructed with inferior materials, therefore the study recommends a further study on the impact of quality and cost characteristics of foreign goods on construction performance. In addition, the study recommends that more studies should be conducted in other industries apart from the construction industry.

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APPENDIX

KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY (KNUST) INSTITUTE OF DISTANCE LEARNING

TOPIC: IMPACT OF STRATEGIC MATERIAL SOURCING ON CONSTRUCTION PERFORMANCE. A COMPARATIVE STUDY OF DOMESTIC VERSES OVERSEAS SOURCING STRATEGIES

Name of researcher: Dennis Joseph Kojo Sarpong

Introduction

I am a research student from the Department of Supply Chain and Information Systems, KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY. This research is conducted in partial fulfillment of the requirement for the award of MSc. Logistics and Supply Chain Management and it focuses on the topic: IMPACT OF STRATEGIC MATERIAL SOURCING ON CONSTRUCTION PERFORMANCE. A COMPARATIVE STUDY OF DOMESTIC VERSES OVERSEAS SOURCING STRATEGIES.

This questionnaire seeks your participation and information gathered is solely for academic purpose and shall be treated with confidentiality.

INSTRUCTION

Kindly tick [√] the box for appropriate response and write in the given spaces provided where necessary.

SECTION A

Respondent Background

1. Gender [ ] Male [ ] Female

2. Your educational background?

[ ] PhD [ ] MSc [ ] BSc [ ] HND

3. What is your professional background? [ ] Procurement Manager/ Officer

[ ] Finance Manager/ Officer [ ] Quantity Surveyor

[ ] Project Manager [ ] CEO, Manager, Administrator

[ ] other, please specify: ________________

[ ] Other, please specify: ________________________________________

4. Years of work experience

[ ] Less than 2 years [ ] 2 - 5 [ ] 6-10 [ ] 11-15 [ ] 16-20 [ ] More than 20

5. Which type of building projects do you undertake? Please select as many as applicable [ ] Large scale residential houses (Not including storey building type) [ ] Large scale residential houses (Only storey buildings) [ ] Large scale residential houses (All types)

[ ] Office Accommodation

[ ] Hotels, Hostels

[ ] Others (please specify)_________________________________________

SECTION B:

In your experience, what are the construction materials your firm purchases for operations? Please tick [√] the appropriate box

illustration not visible in this excerpt

SECTION C:

What sourcing strategy (domestic or overseas) does your firm employ in purchasing the following construction materials? Please indicate by ticking [√] the appropriate boxes.

illustration not visible in this excerpt

SECTION D:

In your experience, what are the reasons why you source construction materials locally?

Please indicate the level of influence of each factor by ticking [√] the appropriate box. 1= Strongly Disagree (SD), 2= Disagree (D), 3= Neutral (N), 4= Agree (A), 5= Strongly Agree (SA)

illustration not visible in this excerpt

SECTION E:

In your experience, what are the reasons why you source construction materials overseas?

Please indicate the level of influence of each factor by ticking [√] the appropriate box. 1= Strongly Disagree (SD), 2= Disagree (D), 3= Neutral (N), 4= Agree (A), 5= Strongly Agree (SA)

illustration not visible in this excerpt

SECTION F:

In your opinion, what are the key construction performance measurement indicators?

Please indicate the level of influence of each factor by ticking [√] the appropriate box. 1= Strongly Disagree (SD), 2= Disagree (D), 3= Neutral (N), 4= Agree (A), 5= Strongly Agree (SA)

illustration not visible in this excerpt

Details

Seiten
89
Jahr
2017
ISBN (Buch)
9783668648531
Dateigröße
948 KB
Sprache
Englisch
Katalognummer
v388190
Institution / Hochschule
Kwame Nkrumah University of Science and Technology – Supply Chain and Information System
Note
3.42
Schlagworte
impact strategic material sourcing construction performance comparative study domestic verses overseas strategies

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Titel: Impact of Strategic Material Sourcing on Construction Performance. A Comparative Study of Domestic Verses Overseas Sourcing Strategies