Analysing Determinants of Effective Supplier Relationship Management in Construction Projects: The case of Ayat S.C.
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Date
2026-10
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Addis Abeba Universty
Abstract
he study explores the structural and behavioral determinants of effective Supplier Relationship Management (SRM) in the context of large-scale real estate construction project in Ethiopia. Based on the Relational View and Social Exchange Theory, the research assesses the causal effects of four key dimensions: Contract Management, Supplier Selection, Collaboration and Trust, and Conflict Management on Effective SRM. Construction projects are facing several challenges, including delays, cost overruns, and quality issues which creates unsatisfied end user and that can be attributed to poor relationships in the middle of clients, consultants, contractors and suppliers. Among this suppliers and contractor‟s relationship faces several challenges in construction projects. To provide an empirically rigorous investigation into the relationship dynamics this study adopts quantitative, descriptive, and explanatory research design to empirically validate the hypotheses of the study. Primary data was collected through a 5-point Likert scale survey administered via purposive sampling to a technically diverse cohort of construction professionals, and suppliers at Ayat S.C. The analysis confirms a robust and highly predictive research model and the diagnostic tests verify that the selected variables are appropriate for regression with a predictive accuracy of 97%. Empirical findings suggest that the optimization of contractor-supplier relations requires a balanced integration of hard institutional governance structures and soft relational capacities. The result of the standardized coefficients proves that one-standard-deviation upgrade in Collaboration and Trust execution generates a 0.27, Conflict Management 0.346, Contract Management 0.443, and Supplier Selection 0.065 standard deviation increase in SRM effectiveness respectively. In conclusion the study offers dynamic strategic routes to procurement managers and project administrators facing volatile emerging real estate markets, and selecting a capable supplier establishes a vital operational baseline that capability remains dormant and is only realized through active daily contract enforcement, conflict mitigation and resolution mechanisms and trusted collaboration through the project lifecycle. The recommendations are transition from reactive dispute resolution to proactive contract governance, establish integrated supplier selection protocols, and Optimize the project performance by self-reinforcing feedback loop
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Keywords
Supplier Relationship Management, Contract Management, Supplier Selection, Conflict Management, Collaboration and Trust, Construction Project