Projects typically require
the input of specialist expertise from a variety of disciplines to deliver
effective solutions. In this paper we examine the particular situation where
client organisations must engage outside firms to provide necessary expertise
and resources.
The creation of this
temporary coalition of firms is facilitated by procurement systems that provide
the mechanisms through which firms can engage and transact with one another
throughout the project lifecycle. Procurement is a major issue for projects,
particularly in the construction industry where traditional systems, in use for
decades, have resulted in poor overall project performance. Recent attempts to
reform the construction industry both in Ireland
and the UK
appear to be directed at developing a relationship based approach to
procurement. We argue that a network perspective is a useful means through
which the effects of different procurement systems on inter-firm relationships
can be investigated.
We develop insights from
previous work using social network analysis and demonstrate how new
developments in simulating and estimating statistical models can be used to
reveal underlying structural influences that govern information exchanges between
firms. We construct a network based on suggested procurement reforms aimed at
achieving efficient and effective network structures and compare these with 3
cases observed using different procurement systems. Initial results confirm
that the cases using integrated and
mediated procurement systems show a stronger structural tendency towards an
efficient cluster based structure than the traditional procurement case. We
conclude by outlining the future direction for this research.