The Relationships of Human Success Factor, Information Technology, and Procurement Process Coordination on Operational Performance in Building Construction Industry – A Proposed Conceptual Framework

Malaysian construction industry is one of the key economic sectors that has a significant contribution on national economic development with a steady contribution around 3-5% towards Gross Domestic Product (GDP) for the past 20 years. However, despite its growth and contribution to the GDP, this fragmented sector has a poor coordination among its project participants, leading to horrific material control with time and cost overrun. As such, there is a need to investigate the coordination aspect of the business conduct among project participants, particularly the procurement process that is considered as the initiator of construction project. At the same time, the firms’ internal resources such as human success factor (HSF) and information technology (IT) play a significant part in determining the operational performance of construction project. Thus, the main objective of this study is to propose a conceptual framework on the relationships of internal resources (HSF and IT) and performance, mediated by procurement process coordination (PPC). The framework is using resource-based view as the underpinning theory to explain the relationships of the variables used. The scope of study is on one of the key business processes in supply chain management (SCM) and concentrating on one of the groups (G7) in the population. Future empirical research is expected to be carried out in effort to test this proposed conceptual framework.