Role of Strategic Procurement in Projects Success in Construction Industry of Pakistan.

Abstract

Procurement has evolved into strategy for quality improvement and production cost cutting to increase efficiency. Construction sector contribute a significant percentage to the GDP of any country. Strategic procurement practices are more interconnected and dynamic networks. In Pakistan, construction industry has been understudied and still relying on traditional procurement methods and practices. The objective of this research work is to scrutinize the key aspects of strategic procurement, correlation between them and strategic procurement and on project success in construction industry of Pakistan. This study is conducted through a broad survey of construction industry and focus is made on factors shape the procurement decision. During the research, both primary and secondary data were collected from big cities of Pakistan. Primary data collection was conducted through survey questionnaire covering the strategic role of procurement in project success. Data was collected from 249 respondents from 186 construction companies from different areas of Pakistan that includes Rawalpindi, Islamabad, Peshawar, Quetta, Karachi and other big cities through Non-probability convenient sampling technique. Sampling unit is managers and executives concerned with procurement and project management in construction firms. The collected sampling data was cleansed, purified and descriptive statistics and inferential analysis using statistical package for social sciences (SPSS) version 26 was employed to analyze the data. Findings of analysis confirm the strategic importance of procurement decision to project success. The finding show that project success has significant and positive correlation with strategic procurement (β = 0.917, p = 0.000) and strategic procurement mediates positive and significant with market forces and project success in construction industry of Pakistan. Practitioners will find this study useful to help them in enhancing procurement efficiency as compared to their corporate efforts. Researcher will similarly find details that extend body of knowledge by analyzing a large sample in depth that deals with role and effects of strategic procurement in project success. This study has presented implications by possible research gaps, trends and proposing new avenues for future research.