Environment Uncertainty Implication on Supply Chain Integration (SCI) and Supplier’s Performance Relation in the Construction Sector

Objective – The objective of this study is to examine the impact of the environment uncertainty, predominantly from two factors which are supply uncertainty and design change to the relation between SCI and the supplier's performance in the construction sector. Methodology/Technique – The methodology used, was based on a case study of an Indonesian construction company with its connection to its suppliers. Data collection in this study included questioners and regression analyses to test the hypotheses. Findings – The empirical results show that SCI has positive effect on the supplier's performance. The positive SCI-performance relation will be weakened by supply uncertainty, but will be strengthen by the change or modification in the construction design. Novelty – This findings will provide better understanding, of environment uncertainty in term of supply uncertainty and design change on the SCI-performance relationship, therefore this study will provide valuable contribution to the SCI theory. Type of Paper: Case study