Supply Chain Management Strategies of the Private Residential Construction Sector in South Africa


  • G. Khoza Regenesys Business School
  • Krishna Kistan Govender University of KwaZulu-Natal


supply chain management; private residential construction sector


The aim of the study was to critically evaluate the supply chain management (SCM) strategies and challenges in the private residential construction sector in South Africa. A quantitative approach was used to survey 320 private residential construction companies registered with the National Homebuilders Registration Council (NHBRC) within the Gauteng province. The data from 250 questionnaires returned were analysed using SPSS (Versions 23) and Smart PLS. It became evident that the SCM challenges included a lack of trust between the supplier and the organization; a lack of adoption of the SCM system; a lack of a sufficiently skilled SCM workforce; and poor implementation of contract management. It was ascertained that there is a significant positive relationship between the performance of the private residential construction sector in South Africa and the SCM strategies and processes. Strategies are proposed to enhance performance.


Alabi, B. & Fapohunda, J. (2021). Effects of Increase in the Cost of Building Materials on the Delivery of Affordable Housing in South Africa. Sustainability, 13(3): p. 1772.

Al-Werikat, G. (2017). Supply chain management in construction; Revealed. International Journal of Scientific & Technology Research, 6(3): 106-110.

Amade, B., Akpan, E., Ubani, E. & Amesh, F. (2016). Supply Chain Management and Construction Project Delivery: Constraints to its Application. PM World Journal, 5(5), pp. 1-19.

Ambe, I.M. (2010). Agile supply chain: Strategy for competitive advantage. Journal of Global Strategic Management, 7 (9): pp. 5-17.

Amedofu, M., Asamoah, D. & Agyei-Owusu, B. (2019). Effect of supply chain management practices on customer development and start-up performance. Benchmarking: An International Journal, 26(7), pp. 2267-2285.

Aneesa, M; Gupta, A.K & Desai, D.B. (2015). ―Supply Chain Management: Effective Tool in Construction Industry. International Journal of Novel Research in Engineering and Science. 2 (1), pp. 35 – 40.

Behera, P.; Mishra, U. & Mishra, B. (2017). Performance management in the construction supply chain: Review, implication, and direction for future research. International Journal of Applied Business and Economic Research. 15 (15), pp. 261-270.

Bentler, P. M. & Bonett, D. G. (1980). Significance tests and goodness-of-fit in the analysis of covariance structures. Psychological Bulletin, 88, pp. 588-606.

Carlson, K.D. & Herdman, A.O. (2010). Understanding the impact of convergent validity on research results. SAGE journals, 15(1), pp. 15-25.

Centre for Affordable Housing Finance in Africa. (2020). Annual reports. (online). Retrieved: April, 20, 2021 available at

Chigozie C. O.; Ugochukwu, S.A. & Ugwu, O. (2020). Evaluation of Supply Chain Management Lapses in Nigeria’s Construction Industry. International Journal of Construction Education and Research, 18:2, pp. 103-122.

Chinomona, R. (2011). Non-mediated channel powers and relationship quality: A case of SMEs in Zimbabwe channels of distribution. Unpublished PhD Thesis. Zhongli, National Central University.

Cigolini, R.; Gosling, J.; Lyer, A. & Senicheva, O. (2020). Supply chain management in construction and engineer-to-order industries. International Journal of Production Research, 60(18), pp. 5450-5467.

Construction Industry Development Board (CIDB). (2020). Annual report 2020-2021. (online). Retrieved: April, 05, available at

Cunningham, T. (2017). Cost Control during The Construction Phase of the Building Project: - The Consultant Quantity Surveyor’s Perspective. Dublin Institute of Technology, pp. 1-30.

Development Bank of Southern Africa. (2019). Anti-bribery and corruption policy.

Estate agency affairs board. (2020). Annual report. (online). Retrieved: May, 05, 2021 available at

Falks, S.M. (2018). Supply chain management strategies in the manufacturing industry. Unpublished PHD Thesis. Columbia, Walden University.

Felea, M. & Albăstroiu, I. (2013). Defining the concept of supply chain management and its relevance to Romanian academics and practitioners. The Amfiteatru Economic Journal, 15(33), pp. 74-88.

Fornell, C. & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research, 18, pp. 382-388.

Gor, D. & Pitroda, J. (2018). A critical literature review of impact of supply chain management practice on construction project performance. International Journal of Constructive Research in Civil Engineering, 4(1), pp. 14-22.

Gustafsson, R. & Lofstrom, J. (2018). The Usage of the Perspectives Comprising the BSC from the Family Firm’s Point of View A Case Study Influenced by the Spirit of Gnosjö. Unpublished Master’s Thesis. Gjuterigatan, Jönköping University.

Habib, M.M. (2011). Supply Chain Management (SCM): Theory and Evolution. Supply Chain Management, Applications and Simulations. Open Journal of Social Sciences, 2(9), pp. 15-22.

Hair Jr., J.F.; Black, W.C.; Babin, B.J. & Anderson, R.E. (2010). Multivariate Data Analysis: A Global Perspective. 7th Edition. Pearson Education, Upper Saddle River.

Hassani, Y.; Ceausu, L. & Iordache, A. (2020). Lean and Agile model implementation for managing the supply chain. Proceedings of the 14th International Conference on Business Excellence, pp. 847-858.

Hu, L. & Bentler, P.M. (1999). Cut-off Criteria for Fit Indexes in Covariance Structure Analysis: Conventional Criteria versus New Alternatives. Structural Equation Modelling: A Multidisciplinary Journal, 6, pp. 1-55.

Kiromu, E.M. (2015). Factors affecting procurement and supply chain performance in building construction firms in Nairobi. Unpublished Master’s Thesis. Nairobi, University of Nairobi.

Lee, R. (2021). The Effect of Supply Chain Management Strategy on Operational and Financial Performance. Sustainability, 13(1): 1-18.

Lopes, J., Oliveira, R. & Abreu, Ma. (2017). The Sustainability of the Construction Industry in Sub-Saharan Africa: Some New Evidence from Recent Data. Procedia Engineering, 17, pp. 657-664.

Loury-Okoumba, W.V. & Mafini, C. (2020). Supply chain management antecedents of performance in small to medium scale enterprises. South African Journal of Economic and Management Sciences, 24(1), pp. 1-13.

Madhani, P. (2020). Customer-focused supply chain strategy: developing 4Rs framework for enhancing competitive advantages. International Journal of Services and Operations Management. 36(4): pp. 505.

Madzimure, J. (2020). Examining the influence of supplier integration on supply chain performance in South African small and medium enterprises. Southern African Journal of Entrepreneurship and Small Business Management, 12(1), pp. 1-7.

Mahlatsi, M.K. & Chinomona, E. (2020). Green supply chain practices and supply chain performance in the Beverage industry of South Africa. Journal of Contemporary Management, 17(2), pp. 295-325.

Manyathi, S. (2019). The influence of procurement practices on service delivery: an analysis of government legislation-service delivery relationships in South Africa. Unpublished PhD. Thesis, Stellenbosch, Stellenbosch University.

Mbhele, T. P. (2014). Electronic supply chain management systems in managing the bullwhip effect on selected fast-moving consumer goods. Unpublished PHD Thesis. Durban, University of Kwazulu-Natal.

Mdadane, T.A. (2018). An examination of the construction procurement challenges faced by small, micro and medium enterprises in the public sector: A case study of the department of public works in Kwazulu-Natal. Unpublished Master’s thesis, University of KwaZulu-Natal, Durban.

National Home Builders Registration Council (NHBRC) (2020). Annual report. (online). Retrieved: March, 15, 2021 available at

Nguegan, C. A. (2017). Supply chain management challenges and business performance in the food processing industry in Gauteng province. Unpublished Master’s Thesis, Vanderbijpark, Vaal University of Technology.

Nugroho, A.; Setiawan, A.; Sutopo, W. & Wibowo, Mo. (2021). The Implementation of supply chain management in construction industry. IOP Conference Series: Earth and Environmental Science. DOI 832. 012026. 10.1088/1755-1315/832/1/012026.

Ojo, E.; Mbohwa, C. & Akinlabi, E. 2014. Green Supply Chain Management in Construction Industries in South Africa and Nigeria. International Journal of Chemical, Environmental & Biological Sciences (IJCEBS), 2(2), pp. 146-150.

Olarewaju, O.I.; Chileshe, N.; Babarinde, S.A. & Sandanayake, M. (2020). Investigating the barriers to building information modeling (BIM) implementation within the Nigerian construction industry. Engineering, Construction and Architectural Management, 27(10), pp. 2931-2958.

Pillay, P. & Mafini, C. (2017). Supply chain bottlenecks in the South African construction industry: Qualitative insights. Journal of Transport and Supply Chain Management 11(0): a307.

Pillay, P. (2016). An empirical exploration of supply chain constraints facing the construction industry in South Africa. Unpublished D. Tech. Thesis. Vanderbijlpark, Vaal University of Technology.

Pooe, R. & Pillay, P. (2019). Supply Chain constraints in the South African construction industry – perspectives from Supply Chain practitioners. Journal for New Generation Sciences, 17(1), pp. 35-47.

Rana, S.; Haji, Y.; Osman, A.; Bahari, K. & Solaiman, M. (2015). Supply Chain Strategies and Retail Supply Chain Efficiency. Australian Journal of Basic and Applied Sciences, 9, pp. 67-73.

Ringle, C. M.; Wende, S. & Becker, J.-M. (2005). Bönningstedt: Smart PLS.

Setino, R. (2018). Alignment of supply chain management practices with policies and regulations in state owned entities in South Africa. Unpublished PhD Thesis, Pretoria, University of South Africa.

Sibiya, M. (2015). Assessment of factors affecting the performance of construction project in South Africa. Unpublished Master’s Thesis, Johannesburg, University of Johannesburg.

Sukatia, I.; Hamida, A.B. & Baharuna, R. (2012). The Study of Supply Chain Management Strategy and Practices on Supply Chain Performance. The 2012 International Conference on Asia Pacific Business Innovation & Technology Management.

Urbach, N. & Ahlemann, F. (2010). Structural Equation Modeling in Information Systems Research Using Partial Least Squares. Journal of Information Technology Theory and Application (JITTA), 11(2), pp. 25-36.

Uwamahoro, A. (2018). Effects of Supply Chain Integration on Performance: An Analysis of Manufacturing Firms in Rwanda. Masters dissertation, Jönköping International Business School (JIBS).

Van Zoest, S.; Volker, L. & Hermans, M. (2019). Implementing a new procurement strategy: the case of social housing associations. International journal of managing projects in business, 13(2), pp. 409-425.

Wibowo, M.A.; Handayani, N.U.; Sinaga, G.; Sholeh, M.N. & Ulkhaq, M.M. (2019). Building construction supply chain performance. IOP Publishing, 673 (1), pp. 29-43.

Windapo, A. & Cattell, K. (2012). Examining the trends in building material prices: built environment stakeholders’ perspectives. Management of Construction. Research to Practice, 1, pp. 187-201.

Yang, C.F. & Lai, C.S. (2010). The effects of corporate social responsibility on brand performance: the mediating effect of industrial brand equity and corporate reputation. Journal of Business Ethics, 95, pp. 457-469.

Yuen, K. F & Thai, V. (2017). The influence of supply chain integration on operational performance: A comparison between product and service supply chains. The International Journal of Logistics Management, 28(2), pp. 444-463.

Zhao, G.; Feng, T. & Wang, D. (2015). Is more supply chain integration always beneficial to financial performance? Industrial Marketing Management, 45(1), pp. 15-27.

Zhao, L.; Liu, Z. & Mbachu, J. (2019). Optimization of the Supplier Selection Process in Prefabrication Using BIM. Buildings, 9(10), pp. 1-18.

Zingoni, T. (2020). Deconstructing South Africa’s Construction industry performance. (online). Retrieved: March, 12, 2021 available at




How to Cite

Khoza, G., & Govender, K. . K. (2024). Supply Chain Management Strategies of the Private Residential Construction Sector in South Africa. The Journal of Accounting and Management, 13(3), 27–44. Retrieved from