Developing project-based supplier relations in a programmatic multi-project context: an exemplary case study from the construction industry

Abstract

Purpose

The aim of this research is to explore how a programmatic multi-project context influences project-based firms (PBFs) in organizing their relations with other PBFs and suppliers in a project-based industry.

Design/methodology/approach

A multiple case study research is conducted. Data are collected from two case studies in the construction infrastructure sector. Eleven interviews with contractors and other suppliers are the primary source of data collection. The data are complemented by procurement documents and expert consultations.

Findings

The findings show that within a programmatic multi-project context, PBFs settle relations with (1) key partners for program management capacity, PBFs establish relations with (2) main contractors to divide projects and (innovation) tasks, and PBFs intensify relations with (3) suppliers to ensure continuity and expertise.

Research limitations/implications

The study contributes to the body of project management literature by exploring PBF’s relations with other PBFs and suppliers in a multi-project context. Based on empirical data, the study provides a distinction in layers presenting distinct levels of PBF’s supplier relations. This layer structure provides an excellent starting point for future studies exploring the program perspective of PBFs in the integrated supply chain.

Originality/value

Given the increase in programmatic multi-project context for project-based domains, discussed in both literature and practice, this study explores the effect of programs on relations of PBFs with other PBFs and suppliers. The study distinguishes PBF’s relations with the different suppliers in three layers and discusses the characteristics of these relations.