Direct and indirect effect of risk on construction supply chain in disruption era: a service-oriented view

Abstract

Purpose: This study analyses the direct and indirect impacts of risks on the service-oriented construction supply chain and its resilience during disruptions. Design/methodology/approach: We utilised the service-dominant logic, contingency and information processing theories to identify service-oriented construction supply chain characteristics and risk behaviours during turbulent times. Findings: Our analysis of 285 construction companies with a strong service orientation revealed that the proposed risk model explains a 33.6% variance in supplier performance, 46.4% operational performance, 47.1% customer satisfaction and 46.5% financial performance. Our findings highlight the importance of effectively monitoring risks in service-oriented construction supply chains and examining complex networks in which risk variables impact construction supply chain performance. Research limitations/implications: This study examines the influence mechanisms between risks and actors’ performance in construction supply chains, taking a service-oriented perspective. Originality/value: Previous studies emphasise the risks that construction companies encounter from disruptions, such as maintaining operations and enhancing performance. Nevertheless, the research still needs to establish the transmission mechanism of the simultaneous impact (direct and indirect) of all forms of risk on supply chain performance.