A MULTI-THEORETICAL FRAMEWORK FOR SUPPLY CHAIN RISK MANAGEMENT IN MALAYSIA’S CONSTRUCTION INDUSTRY: HIGHLIGHTS THE THEORETICAL INTEGRATION AND SECTOR-SPECIFIC FOCUS

Abstract

The construction industry is inherently vulnerable to supply chain risks due to its complex, project-based nature and reliance on diverse stakeholders, materials, and external conditions. In Malaysia, these challenges are intensified by issues such as material shortages, labour constraints, regulatory changes, and unforeseen disruptions like the COVID-19 pandemic. Despite growing awareness of these risks, many firms continue to adopt conventional supply chain management approaches that are linear, reactive, and insufficiently equipped to manage the dynamic and interconnected nature of modern construction risks. This study aims to examine supply chain risks in the Malaysian construction industry through a robust theoretical lens and to propose a comprehensive, context-specific risk management framework. Three main objectives guide the research: to identify key supply chain risks, to assess the relevance and applicability of established theories in understanding these risks, and to develop a theoretical model for effective risk mitigation. The study is underpinned by a multi-theoretical foundation, incorporating Resource Dependence Theory (RDT), Transaction Cost Economics (TCE), Chaos Theory, Supply Chain Risk Management (SCRM) frameworks, Lean and Agile Supply Chain Theory, Network Theory, and Institutional Theory. These theories provide a comprehensive understanding of the causes, propagation, and mitigation of supply chain risks within construction projects. By bridging theoretical insights with industry practices, this research aims to contribute a tailored risk management framework that enhances resilience, adaptability, and performance in Malaysia’s construction sector. The outcomes are expected to support industry stakeholders in making informed, proactive decisions that safeguard project success and long-term sustainability.