Relationship Based Procurement

Relationship based procurement leads to mutual benefit in construction business-to-business dealings and provides benefits over traditionally fragmented supply chains. Research in the area of Relationship Marketing (RM) provides an insight into key variables of collaboration and cooperation. These h...

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Main Authors: Davis, Peter, Walker, D.
Format: Conference Paper
Published: ARCOM 2004
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/42504
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author Davis, Peter
Walker, D.
author_facet Davis, Peter
Walker, D.
author_sort Davis, Peter
building Curtin Institutional Repository
collection Online Access
description Relationship based procurement leads to mutual benefit in construction business-to-business dealings and provides benefits over traditionally fragmented supply chains. Research in the area of Relationship Marketing (RM) provides an insight into key variables of collaboration and cooperation. These have the ability to enhance the construction procurement value chain. Further, theory on the creation of social capital and its role in generating intellectual capital between parties engaged in collaborative project procurement is explored. For example, Nahapiet and Ghoshal (1998) have argued that social capital comprises structural, cognitive and relationship dimensions and that through combination and exchange of this social capital intellectual property is created that leads to organisational advantage. Social and intellectual capital adds an intangible benefit to participating in a relationship based procurement systems. Project alliances are a particular kind of relationship procurement system that rely on virtual organisations generating new knowledge enabling teams to solve interrelated problems in a complex environment. Utilising the theory described an insight into alliance projects recently carried out in Australia is provided drawing on contemporary construction literature. Instances are described where the RM literature together with social capital knowledge fills gaps in the construction literature.
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spelling curtin-20.500.11937-425042017-01-30T15:00:03Z Relationship Based Procurement Davis, Peter Walker, D. Project alliances Construction Relationship Marketing Social capital Alliance procurement RM Construction procurement Relationship based procurement leads to mutual benefit in construction business-to-business dealings and provides benefits over traditionally fragmented supply chains. Research in the area of Relationship Marketing (RM) provides an insight into key variables of collaboration and cooperation. These have the ability to enhance the construction procurement value chain. Further, theory on the creation of social capital and its role in generating intellectual capital between parties engaged in collaborative project procurement is explored. For example, Nahapiet and Ghoshal (1998) have argued that social capital comprises structural, cognitive and relationship dimensions and that through combination and exchange of this social capital intellectual property is created that leads to organisational advantage. Social and intellectual capital adds an intangible benefit to participating in a relationship based procurement systems. Project alliances are a particular kind of relationship procurement system that rely on virtual organisations generating new knowledge enabling teams to solve interrelated problems in a complex environment. Utilising the theory described an insight into alliance projects recently carried out in Australia is provided drawing on contemporary construction literature. Instances are described where the RM literature together with social capital knowledge fills gaps in the construction literature. 2004 Conference Paper http://hdl.handle.net/20.500.11937/42504 ARCOM fulltext
spellingShingle Project alliances
Construction
Relationship Marketing
Social capital
Alliance procurement
RM
Construction procurement
Davis, Peter
Walker, D.
Relationship Based Procurement
title Relationship Based Procurement
title_full Relationship Based Procurement
title_fullStr Relationship Based Procurement
title_full_unstemmed Relationship Based Procurement
title_short Relationship Based Procurement
title_sort relationship based procurement
topic Project alliances
Construction
Relationship Marketing
Social capital
Alliance procurement
RM
Construction procurement
url http://hdl.handle.net/20.500.11937/42504