DISRUPTION IN THE BUSINESS ENVIRONMENT: IMPACT ON INTERNATIONAL CONTRACTS
Keywords:
Contract administration, supply chain management, exogenous, endogenous risks, acquisition cycle time.Abstract
The US Navy has switched its contract vehicle from a firm-fixed-price indefinite delivery/indefinite quantity (five year) contract cycle to a short-term (two to five days) contract. Many companies now face a weekly procurement burden regionally in Asia Pacific region. The purpose of this research is to find out the impacts due to the implementation of the multiple award contract vehicles and to find some solutions to sustain the disruption in this business environment. The data were collected from 192 respondents predominantly from supply chain background from leading marine companies like Marine Trader, Marine Service Provider, Port Authority, Supply Chain professionals. Structural equation modelling (SEM) was used to analyze data, as it is a popular statistical technique because of its ability to model selected independent variables and take into account all possible forms of measurement error to test an entire theory.