Supply Chain Management: A Contextual Analysis of Aerospace and Construction

Stuart D. Green¹, Robert Newcombe¹, Marylin Williams², Scott Fernie¹ and Stephanie Weller¹

¹Department of Construction Management & Engineering, University of Reading, UK

² Department of Psychology, University of Reading, UK

Abstract

Research is reported that investigates the extent to which supply chain management practices can be shared between different industrial contexts. Current recipes for learning from other industries tend to be over-simplistic and often fail to recognise the embedded and contextual nature of management practice. The existing literature reveals a widespread absence of contextual awareness amongst those who advocate supply chain management for the construction industry. The industrial context of UK construction is compared to that of the aerospace. The construction industry is highly fragmented and localised. In contrast, the UK aerospace sector has experienced significant consolidation as a result of global pressures. These differences have fundamental implications for the way that supply chain management is implemented in the two sectors. Semi-structured interviews with practitioners from both sectors support the contention that supply chain management is significantly more established in aerospace than construction. The introduction of prime contracting in the construction sector potentially provides a much more supportive climate for supply chain management than has traditionally prevailed.

Keywords: supply chain management, contextual embeddedness, industry structure, consolidation, prime contracting