Factors Affecting on Supply Chain Performance in Mongolian Construction Companies
Authors:   Asia-Europe Perspective Association, Choi Daeheon 
Published: April 2019

In today’s world competition, companies are always in search for new ways to improve the performance of their supply chain, and gather knowledge and skills to reduce time, improve quality and increase productivity. In recent years, Mongolian construction companies started to recognize the importance of supply chain. But there is a limited research and literature on the way how to successfully manage and measure the supply chain performance in Mongolia. The thesis addresses the theory and practice of factors affecting on supply chain performance on the sample of Mongolian construction companies. The study tries to define which factors influence on supply chain performance and which one has the most critical impact in the case construction companies. This study utilized 71 valid responses from 200 surveyed companies in the multiple regression analysis. The findings indicate that supply chain relationship significantly mediates information technology with supply chain performance, whereas environmental uncertainty negatively effects the performance. In addition, the results demonstrate that the supply chain relationship factor is the most critical predictor of supply chain performance. Hence, companies should control the supply chain and gain experience from their mistakes on every stage of supply chain process, and utilize the knowledge in the next phase.
The answers of suggested research questions are as follows. The first research question was with which factors can the performance of the supply chain in the construction companies be measured? The results show that information technology, supply chain relationship, environmental uncertainty have positive impact on supply chain performance. The second question was with which factors are most effective in influencing supply chain performance. The results reveals that the most critical factor influencing supply chain performance in Mongolia is supply chain relationship. Since there was no formal information about supply chain performance in Mongolia, this study gives considerable information about supply chain performance in Mongolian companies. Also, it contributed to the limited research on supply chain system in Mongolia and tries to develop a framework for the relationship between affected factors and supply chain performance in case of Mongolian companies. Consequently, it provides insight for experts who would invest in supply chain systems. The result of this study pointed out critical factors for supply chain performance that claim more consideration from managers and engineers to implement supply chain performance successfully.
The results of this paper reveal that companies should start the planning stage with a plan detailing the supply chain from it indicators that needed to evaluate success. Without clarifying supply chain desired it companies would not be aware that whether they implementing successfully or not. Without clear indicators and adequate parameters, it is impossible to measure supply chain. Supply chain relationship is proved that it has the strongest influence on supply chain performance. This result asserts the assessment of existing supply chain relationship is required for reaping supply chain performance. Assessments of existing supply chain relationship includes assessing whether the company has supply relation team, building stronger relationships will bring extra security because collaboration with customers and suppliers demonstrates understanding, concern and the desire to work with them over the longer term. Supply chain practitioners continue to press managers to form closer, longer-term relationships between customers and fewer suppliers as the only response to increasing market sophistication and globalization.