Procurement Process Digitalization in China’s Construction Supply Chains: Enabling Data- Driven Decision Making and Strategic Change

Author(s):

  • Liu Qi1 (Faculty of Management Science, Dhonburi Rajabhat University, Thailand)
  • Tachakorn Wongkumchai1 (Faculty of Management Science, Dhonburi Rajabhat University, Thailand)

Abstract:
With the dual challenges of the global economy and the need for sustainability, digital procurement has become an essential means of increasing supply chain resilience and agility. For China's construction supply chain, which is characterized by complex subcontracting, high-value materials, and long-cycle projects, these factors make the impact of digital transformation particularly significant. This study proposes and empirically tests an integrated model that combines Technology-Organization-Environment (TOE) framework, Diffusion of Innovations theory (DOI), dynamic capabilities (DC), and Information Processing Theory (IPT) perspectives to explore the impact of Procurement Process Digitization (PPD) on Data-Driven Decision-Making (DM) and Strategic Change (SC). The study analyzes empirical data from 383 Chinese construction supply chain firms. Data were collected using a structured survey questionnaire, which demonstrated a Cronbach’s alpha reliability ranging from 0.783 to 0.912. The sample consisted of middle and senior managers with over five years of work experience, selected through convenience sampling. Descriptive statistics and Partial Least Squares Structural Equation Modeling (PLS-SEM) were employed for data analysis. The results show that Relative Advantage (RA), Compatibility (CB), Top Management Support (TMS), Organizational Readiness (OR), Information Sharing Culture (ISC), and Partner Readiness (PR) all significantly and positively influence the deeper implementation of PPD, while complexity does not significantly impede the advancement of digital sourcing. PPD plays a key role in facilitating DM and consequently drives SC. In addition to providing new perspectives for technology adoption research in large project industries, this study also provides practical insights into digital transformation, sustainability, and supply chain management. Further mediation effect analysis shows that PPD plays an important bridge role between DM and SC and that RA, CB, PR, TMS, OR, and ISC drive SC through the dual mediation effects of PPD and DM. Finally, this study is further validated in terms of the reliability and validity of the results through robustness tests such as the endogeneity test and unobserved heterogeneity assessment.

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