Chinese International Contractors:Evaluation Of The Role Of Incentive Mechanisms In Managing Supply Chain In Africa

In the international construction projects,the main contractors rely on multiple subcontractors and suppliers to carry out different project tasks,relationship management in such projects is said to be the key to achieve project success.As understanding incentive mechanisms as way to enhance the relationships between participants and project performance is already difficult to fulfill,the application of such procurement procedures in a cross-nations context is even more complex.Incentive mechanism are found to be crucial in enhancing the motivation of the participants,change their behaviors and consequently lead to better project performance,these incentives can be categorized in financial and nonfinancial incentives.The research model is developed from the existing literature on motivation theory,organizational behaviors,supply chain management,international projects and relationship management.The research develops a conceptual model to explain how financial and nonfinancial incentives might influence project outcomes through the mediation influence of collaborative climate between Chinese contractors and local African subcontractors and suppliers.The study has been conducted using data provided by practitioners from different countries with good experience in managing different construction project across the African continent.The reliability and validity of the measurement scales for the constructs were tested,and the measurement models of the Structural equation modeling were assessed using confirmatory factor analysis(CFA).Three main factors have been determined by the respondents: culture differences,client interventions and service provided by the subcontractors.The findings of the model show that financial and nonfinancial incentives through a better collaborative climate(commitment,trust,problem solving,information sharing and flexibility)are likely to create better project outcomes.The incentive mechanisms resulted in no differences in Overall performance,but the modified model suggested significant direct effects of financial and nonfinancial incentives on time performance.The investigations about the perceptions of Chinese and African organizations carry out theoretical implications for the knowledge of international supply chain management and extend the scope of research on cross-nations projects from evaluating a set of different factors that influence the relationships between international contractors and indigenous subcontractors and suppliers.The research conclusion implies the need for new management standards and techniques in order to enhance the project delivery in Africa,including the need to consider the local realities,as well as the efficiency of collaborative relationships generated by incentive mechanisms on the outcomes.