TITLE:
The Contractor-Subcontractor Relationship Types in the Construction Industry in Saudi Arabia
AUTHORS:
Fahad Suraid Almutairi
KEYWORDS:
Contractor-Subcontractor Relationship, Dyadic Relationship Types, Collaboration, Adversarial, Construction, Saudi Arabia
JOURNAL NAME:
Open Journal of Business and Management,
Vol.10 No.6,
November
25,
2022
ABSTRACT: Purpose: The purpose of this
study is to examine the dyadic relationship between
contractors and subcontractors in the Saudi construction industry. The
perceptual differences in buyer-supplier relationships from the relational
perspective are studied in order to identify the most common types of the
contractor-subcontractor relationship in the Saudi construction industry by
assessing five dimensions—trust, commitment, decision making, information
sharing, and goal congruence. Methodology: To gain insight into and a
deeper understanding of the topic, this research adopts a qualitative method
using four case studies from the industry: one buyer firm and three suppliers.
Twelve interviews were conducted in total, three with the buying firm and three with each subcontractor. Findings/Results: Regarding the research question,
the type of relationship between the main contractor and its subcontractors
seems to sit between the “repeated transaction” and the “coordinated” type of relationship. However, both
types are considered to be adversarial types of relationship, involving
characteristics such as lack of trust and low levels of information sharing. Originality/value: Theoretical contribution:
the research contributes to the buyer-supplier literature by providing a
dyadic study and showing how the buyer and
supplier have different views about their relationship. Methodological
contribution: a case study approach was used that led to an examination of
issues that were not explained by previous studies. Practical contribution: useful information was provided
for both contractors and subcontractors, such as the factors that affect
their relationship. Identifying these factors and their impact on their
relationship will enable both parties to act to remove these barriers and
obstacles that prevent them from developing deeper and clearer relationships
with their partners.