SEM-based research on integration between project management and supplier management

Structural equation model is widely used in economic field, but it has not been adequate in project management, especially construction industry. This paper investigates the operation of the entire supplier activities, reveals the core factors of the integration between project management and supplier management, and also analyses the extent to which these factors rely on the supplierpsilas responsibility. 8 hypothesis of the integration have been put forward. A case study is carried on applying structural equation model (SEM) to validate them. The result shows that the integration between project management and supplier management has significant, direct, and positive impacts on construction industry, such as enhancing quality, controlling progress, lowering costs and ensuring safety. The management ability of the suppliers has direct impacts on the effectiveness of the project management.