Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.

Abstract

Purpose: The purpose of the study is to explore the relationship development process between consultants and a project management firm in Malaysia.
Research approach: This qualitative study was based on 6 in-depth semi-structured interviews which were carried out with the owners and senior managers of five consultant firms (an architect, quantity surveyors and structural and civil consultants) and the director of a project management firm. The data were analysed using thematic analysis method.
Findings and Originality: Although theoretically, a well developed relationship has to go through five phases of relationship development process (awareness, exploration, expansion, commitment and dissolution), the findings reveal that every consultant’s relationship with the project management firm appeared to exhibit additional developmental stages to those which are established within the literature. The results revealed that the practices that lead to a successful or failed inter-organisational relationship are greatly influenced by interpersonal factors rather than the organisation’s performance-related factors.
Research impact: This study has explored various ways in which the cultural values play significant roles in the development of long term relationships among organisations in the construction supply chain.
Practical impact: This study brings new dimensions in the context of inter-organisational construction supply chain through the significant use of cultural values, which could be practiced by other supply chains.

Full text

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THE DEVELOPMENT OF LONG TERM RELATIONSHIPS
BETWEEN CONSULTANTS AND PROJECT MANAGERS IN
CONSTRUCTION SUPPLY CHAIN IN MALAYSIA
Nasruddin Faisol1, Harlina Suzana Jaafar2
1Department of Quantity Surveying, Faculty of Architecture, Planning and Surveying, Universiti Teknologi
MARA, Shah Alam, MALAYSIA
2Malaysia Research Centre for Logistics and Supply Chain (MaRCeLS), Malaysia Institute of Transport
(MITRANS)/Faculty of Business and Management, Universiti Teknologi MARA, Shah Alam, MALAYSIA
ABSTRACT

Purpose: The purpose of the study is to explore the relationship development process
between consultants and a project management firm in Malaysia.
Research approach: This qualitative study was based on 6 in-depth semi-structured
interviews which were carried out with the owners and senior managers of five consultant
firms (an architect, quantity surveyors and structural and civil consultants) and the director of
a project management firm. The data were analysed using thematic analysis method.
Findings and Originality: Although theoretically, a well developed relationship has to go
through five phases of relationship development process (awareness, exploration, expansion,
commitment and dissolution), the findings reveal that every consultant’s relationship with the
project management firm appeared to exhibit additional developmental stages to those which
are established within the literature. The results revealed that the practices that lead to a
successful or failed inter-organisational relationship are greatly influenced by interpersonal
factors rather than the organisation’s performance-related factors.
Research impact: This study has explored various ways in which the cultural values play
significant roles in the development of long term relationships among organisations in the
construction supply chain.
Practical impact: This study brings new dimensions in the context of inter-organisational
construction supply chain through the significant use of cultural values, which could be
practiced by other supply chains.
Keywords: relationship development process, personal relationship, cultural values,
indebtedness, construction supply chain
INTRODUCTION
There is no doubt that the relationships between project managers and consultants are
important for the success of a construction project. Researchers and practitioners agree that
every party can play an important role if they have harmonious working relationships
manifested in mutual understanding, minimal conflict, open communication, team working,
fairness and a high degree of trust and commitment (e.g. McDermott et al. 2005; Barratt,
2004). In the construction supply chain, many studies have been conducted focusing the
importance of integration and collaboration and issues preventing collaboration (e.g. Dainty et
al. 2001; McDermott et al. 2004). However, few have examined relationship development as a
To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554

Page 2

process. Moreover, previous research on the importance of developing harmonious working
relationships has been mainly conducted in the western cultures such as the USA, UK and
other European countries. Less attention has been paid to collectivist societies such as
Malaysia that put much concern on relationships (e.g. Abdullah, 1992; Goddard, 1997). This
paper reports on research which explores the process of how long-term relationships develop
between the consultants and the project managers in Malaysia and how those elements emerge
within the process.
RELATIONSHIP DEVELOPMENT PROCESS
A number of studies have examined the process of relationship development among
organisations. These include work on buyer-seller relationships (Ford, 1980; Dwyer et al.
1987; Ellram, 1991; Wilson, 1995), pharmacist-physician relationships (McDonough and
Doucette, 2001), alliances learning (Iyer, 2002), and franchisor-franchisee relationships
(Doherty and Alexander, 2004). Each of these bodies of literature offers insights into the
nature of how relationships develop in stages. The similarities of the studies lie on the fact
that relationships evolve over time through a predetermined set of phases (Ford, 1980).
However, although studies on relationship development process involved contractual and non
contractual relationships, there is little consensus on determining when the contractual
relationships begin in a complete cycle of the relationships. For example, Ford (1980) divided
the relationships into five stages (pre-relationship stage, early stage, development stage, long-
term stage and final stage). Similarly, Dywer et al. (1987) identified five stages (awareness,
exploration, expansion, commitment and dissolution) and Ellram (1991) five phases
(preliminary phase, identify potential partners, screen & select, establish relationship and
evaluation relationship). However Ford (1980) identified contractual relationships started at
development stage, as compared to Dwyer et al. (1987) at commitment stage and Ellram
(1991) at ‘establish relationship stage’.
In the construction management literature, there have been many studies conducted
emphasising the importance of integration and collaboration in construction supply chain as
well as various issues that may hinder collaboration to occur (e.g. Dainty et al. 2001;
McDermott et al. 2004). However, studies focusing on relationship development as a process,
beginning from the early stage of the relationships to the dissolution stage have been paid less
attention. Furthermore, studies conducted within a collectivist society like Malaysia have
been widely neglected. Within Malaysia, it is well-known that there is a very high concern
for relationships with others (Abdullah, 1992; Goddard, 1997; Abdullah and Lim, 2001).
To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554

Page 3

Thus, it represents a very different cultural context for examining the development of inter-
firm relations. The aim of the research reported in this paper is to explore the relationship
development process between projects managers and consultants in Malaysia in order to
establish the applicability of existing relational models to this very different context.
RESEARCH METHODOLOGY
This study employed a qualitative method and case study design. Since the relationship
development process has received little attention in the construction management literature,
in-depth semi-structured interviews were deemed appropriate as there was little priori
knowledge from which a more structured research instrument could be deduced. The
interviews were conducted with representatives from a range of five case study organisations
operating in Malaysia.
In each case, the data was collected from a project manager, an architect, two quantity
surveyors, and two civil and structural consultants. The main themes covered in the
interviews concerned the background of the organisation, how long they have been in inter-
firm relationships, and how they developed long-term relationships. The recorded interviews
were transcribed verbatim and then categorised under conceptual headings. A research
framework was developed following the tabulation of the research findings. A summary of the
organisations taking part in the study is provided in Table 1 below. The client organisation is
a large government agency which runs many development projects throughout Malaysia. The
project manager (PM) has been in the contract with the client for 10 years managing these
development projects.
FINDINGS
Based on the experiences of the consultants and the project managers indicated from the in-
depth interviews, the stages of relationship development were labelled with a number. Level 1
(which includes consultants B, D and E) represented the ‘exploration’ stage. They did not
know the project manager before the relationship began. Level 2, began at the ‘commitment’
stage and comprised the relationships between the consultant A and the PM. Level 3
represented the relationships of the consultant C and the PM began at the ‘indebtedness
(terhutang budi) stage’.
To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554

Page 4

Table 1: The Background of Informants
Position
Project Manager
(PM)
Background
Previously, PM was the subsidiary of Client N that managed all
development projects of the client throughout Malaysia. The consultants
who wanted to carry out the project have to register with the PM by
submitting their profile. The award was normally based on rotation. While
procurement route for the contractors was based on traditional method.
From mid 1990s, PM has become independent project management
consultant and has been in the contract with client for 10 years.
Consultant A is a civil and structural firm. Two of its directors were the
former staff of PM, who joined Consultant A after the firm has been in
operation for a few years. Since they joined Consultant A, the firm has
been awarded many projects within 10 years.
Consultant B is a civil and structural firm. It has managed only one of the
PM’s projects, but many projects with other clients.
Consultant C is an architect firm, who is a sole proprietor. He started his
own business with the help of the PM. He is also the former staff of the
PM. He has been awarded a huge number of projects within the first 5
years.
Consultant D is a consultant quantity surveyor firm. It business has been
in operation for 8 years. It has been awarded many projects from other
clients and only one project from PM.
Consultant E is a quantity surveyor firm. It has some experiences
handling a few of PM’s projects previously and has never been given any
projects since then.
Consultant A
Consultant B
Consultant C
Consultant D
Consultant E
These stages are discussed in more detail below together with the other developmental stages
discussed by the informants. Figure 1 shows the levels and stages of the relationship
development process developed in this study.
Stage 1: Pre-relationship stage
The pre-relationship stage is where the contractual relationships between the project manager
and the consultants have yet to develop. The informants suggested that during the early stage
of relationship development, the recognition of the potential consultants was just based on
their company’s profile and reputation. For example, the decision to award the project to
Consultant D was based on their reputation for being competent to carry out the work
required. However, the project manager was also influenced by the recommendation from a
member of their staff that had a personal relationship with Consultant B. As stated by
Consultant B; “…when I was given the first project, it was a continuation project of other
consultant, who was insolvent. It was the PM’s engineer whom I knew and he recommended
(to the Board of Director of the PM’s firm) me to continue the project.”
To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554

Page 5

Level 3
Indebtedness
(‘Terhutang budi’)
Shame
(‘malu’)
Commitment Voice
Exit
Consultant C
Consultant A
Burden
Exploration
Level 2
Level 1
Consultants B,D,E
Commitment Stage
Exploration
StageIndebtedness (terhutang budi) stage Dissolution stage
Pre-relationship
Stage
Figure 1: The Relationship Development Process between the Consultants and the
Project Managers
Stage 2: Exploration stage
The exploration stage takes place when the contractual relationships begin. Exploration is a
trial stage, in which both parties gauge and test their compatibility, expectations,
trustworthiness and commitment to the relationships. At this stage, the PM assesses the
degree of each consultant’s actual capability and performance in providing the service and
fulfilling PM’s expectations. It could also be a point in which the consultant could be trusted
in conducting future projects. In relation to this, Consultant B stated that:
“…in practice, when we get a project from them (PM/client), complete the project first, then
only we asked for another project. I have to perform and the good performance would be the
evident of my firm’s capability. The same goes to other clients; I’ll be the Civil & Structure
Consultant for the wet market project (east of the city centre).”
Consultant D also had a similar experience, in which he said that “there was once in a
meeting with PM, in which the PM mentioned that the PM will only give other project to us
after the first project completed”.
The ability to provide excellent performance in the first project is very important to gain the
PM’s recognition on the consultant’s capability in conducting the project. This would in turn
determine the PM’s willingness or unwillingness to continue giving projects in future. If the
consultant is able to perform in the first project, it verifies that trust given by the project
manager at the pre-relationships stage was warranted. From there, trust would develop and
To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554

Page 6

consequently PM would commit to give them more projects in future. The data showed that
all Consultants have fulfilled their PM’s expectations. However, Consultant B highlighted
that performance was not the prerequisite to get projects in future. In fact, he emphasised that
a consultant should know how to persuade PM and learn their interest.
‘To get projects, you must lobby them and it should be for the common interest of both
parties’. In fact, he said, ‘you must know them personally and they know you personally. In
order to get to know very closely, I have to meet and visit them regularly’. Cons B also
stressed that, ‘it has been a practice that we will have lunch or coffee together either at the
meeting venue or any restaurant after each meeting. We normally join them until the function
is over. The most important thing according to B was that ‘we have to be very close to the
decision-maker of that firm and normally he is the owner of the firm’.
These quotations show that the technical aspect were not significant in obtaining the future
projects. In fact, it was the relational elements that were more vital. It also demonstrated that
the decision to continue a contract was not based on the performance alone, but it was based
on ‘whom you know’ instead of ‘what you know’.
The exploration stage also occurred from the perspective of consultants to their PM.
Consultant B developed trust in their PM when they did not face any problems working with
the PM and they received all payments accordingly. ‘PM could be trusted as a good
company. In terms of payment, I trust them. I received all my payments and they never
deduct fees that I suppose to get’. This indicated that consultant B was satisfied with the PM’s
service and their relationships. However, dependency on the same project manager did not
guarantee that the consultant would get more projects in future. Consultant E stated that ‘we
only have to ensure that we have good relationships with them, but that does not guarantee
that we will get more projects in future. We cannot force them. We only rely on fate
determined by God. In an uncertain situation, the consultant did not depend on the power of
the PM in giving them projects preferring to rely on fate.
Stage 3: Indebtedness (terhutang budi) stage
Consultant C entered the relationships with the PM at Level 3, i.e. the indebtedness
(terhutang budi) stage. Indebtedness is the feelings of being in debt of kindness existed when
he/she has been helped or obtained kindness from others. The owner of Consultant C was a
former staff of PM and had established a long-term personal relationship. When Consultant C
decided to set up his own firm, the PM offered their help in providing consultancy
opportunities. The PM also agrees to incur operational expenses such as the office rental,
To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554

Page 7

employees’ salaries payments and other expenses payments. This situation implied that the
PM has placed a high degree of trust on Consultant C. When Consultant C was prepared for
the relationship he said that, ‘I appreciated PM because they gave me the opportunity to learn
many things. I consider PM as my university. It’s because I’ve learn many things about
professional practice. If I didn’t work with them, I won’t be at this stage without their help’.
However, the expenses spent on Consultant C’s business were in the form of advance and
Consultant C had to pay back all of these expenses when he received revenue from his
projects. In addition, the PM also requested that the profits gained by Consultant C should be
shared based on an agreed percentage. Thus, Consultant C’s willingness to partner with the
PM by sharing his profits was resulted from the concept of indebtedness (terhutang budi) felt
by Consultant C. This situation of indebtedness makes them feel ‘malu’ (literally shame) to
the donor until he can repay such debts. The PM’s decisions in choosing Consultant C and
giving them projects continuously represented the power of the PM. Consultant C became
loyal to the PM only after the PM showed their commitment to partner with Consultant C. On
the other hand, PM became loyal to Consultant C due to his commitment to carry out his
responsibilities as a consultant and prepared to share his profits with the PM.
Stage 4: Commitment stage
Commitment is the desire to continue the relationships in future. In this study, commitment
appeared at level 2 of the relationships, in which Consultant A entered the relationships with
the PM at this stage. This was because trust in Consultant A has been developed before
Consultant A entered the inter-organisational relationships (two of the Consultant A’s
directors were former staff of the PM’s firm). As a result, the PM awarded many repeat
projects to Consultant A,
‘after I left PM in 1995, we immediately got projects from PM, from small to big projects,’
and ‘trust has already existed because the relationships with PM have already been
established, especially when I knew the Executive Director, Managing Director and Chief
Executive Officer personally and they also knew me personally. So, trust was there for quite
a long time because we were the former staff of PM’.
Even though the interpersonal relationships with the senior management of the PM had been
established, the relationships were not sufficient to form a collaborative relationship. As
Consultant A stated, ‘we do the work on our own and PM just monitor. Whether we deliver
or not, we designed as per client’s requirement. To me, the PM’s roles are quite minor’.
Consultant A perceived that the PM did not play an important role in delivering the service to
To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554

Page 8

the client. In fact, Consultant A was heavily dependent on the client who they believed had
greater power to award projects than the PM. For example, if the client felt that the consultant
chosen by the PM has too many projects, client may overrule this decision by asking the PM
to appoint other consultant whom of which not within the PM’s consortium. As was stated by
Consultant A, ‘…there was a situation where Client N decided that the PM has to appoint us
as the consultant instead of Consultant P because Consultant P has a lot of projects in hand
(Consultant P is a member of the ‘consortium’). So, at a certain point, we feel that we are
competing with the PM. So, when we are working with the PM, we worked as a team, but at
other time we have to compete with them to get the projects. These are the two situations that
we faced. But, trust is still there’.
Accordingly, there, must be trust from both parties, i.e. the project manager and Consultant A,
for the relationship to develop further.
Stage 5: Dissolution stage
Dissolution takes place when loyalty of the two parties deteriorates. Loyalty begins to
deteriorate when either party realised that the relationships does not benefit them in bringing
in more profits and that they have better options in dealing with this problem. Consultant C
was not satisfied with the proportion of profits shared and started to consider leaving the
relationship after five years. He believed that he could have had higher profits if he worked
independently and did not rely on the PM. As a result of dissatisfaction with the PM, his
loyalty started to deteriorate. As he stated, ‘I’m unhappy because for every profit that I get, I
have to share with them. Whenever I get the payment, after deducting all the expenses, I still
have to give them’. His statements implied the feelings of dissatisfaction with the PM due to
the burden of sharing the profits with the PM. Accordingly, Consultant C decided to exit from
the partnership. However, considering the huge amount of money to be repaid by Consultant
C, the PM considered instalment method of payment instead of one lump sum. The act of
tolerant (tolak ansur) shown by the PM was one example of the good manners found in the
Malay culture. However, the end of the partnership did not totally end the business
relationships. PM still awarded projects to Consultant C, but not as frequently as when they
were in the good relationships. This reflects an element of normative commitment on the part
of the PM.
To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554

Page 9

DISCUSSION
The results in this study present a number of issues worthy of discussion. Firstly, it was found
that the existing inter-organisational relationship models in the literature did not accord with
the Malay organisations. It is argued that there is a need for more culturally sensitive models
which fit the Malay cultural context. As a result, a model that represented the Malay
organisations was developed in this study. Three levels of entry to the relationships were
found and they were incorporated in the model. Each level of entry differs in accordance with
the degree of inter-personal relationships in the pre-relationship stage. The organisations that
have no personal contact with the counterpart would enter the level 1 of the relationships. On
the other hand, those who have close personal relationship would enter at level 2 (in
commitment stage) or level 3 (in indebtedness stage) of the relationships (as shown in Figure
1). However, the commitment stage at level 2 and level 3 differed in that there existed two
main cultural elements, indebtedness (‘terhutang budi’) and ‘malu’ (shame) at level 3. In this
study, ‘terhutang budi’ and ‘malu’ were the pre-requisite to willingness for relationship. In
the previous research, ‘terhutang budi’ and ‘malu’ were considered as strong values among
the Malays in the perspective of socio-cultural relation (e.g. Dahlan, 1991; Goddard, 1997).
However, studies that found ‘terhutang budi’ and ‘malu’ as the pre-requisite to relationships
in the perspective of inter-organisational relationships were lacking.
Secondly, the model in this study showed that the contractual relationships between the PM
and its five consultants started at various levels, i.e. the beginning of each level; exploration
stage in level 1, commitment stage at level 2 and indebtedness stage at level 3. It differed
from the previous models, which the contract started in the middle of the whole stages of the
relationships. For example, at level 1 of this study, the contractual relationships began before
the exploration stage started. The PM was willing to have the contract before receiving and
experiencing any service from the consultant. Exploration did not occur before the contract
started as other models. This is because PM did not buy any one-off service from the
consultants before making decision to have the contract and thus, did not know the
competencies of the consultants. In fact, the PM only relied on the consultants’ company
profile and their reputations before signing up for the contract of the projects involved.
Thirdly, the results also demonstrated that the PM’s willingness to partner with the Consultant
C could be viewed in the perspective of entrepreneurship to set up a new organisation. The
roles of the PM did not only restricted to a normal project management consultancy but also
To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554

Page 10

acted as a ‘venture capitalist’, which involved in helping to set up, manage and oversee the
founding and development of a new firm (Thornton, 1999). As a new firm, Consultant C
relied on the PM’s organisation for continuous projects in order to be secured in business.
Accordingly, the formation of a new entrepreneur (Consultant C) was one of the examples
that PM helped the Malays to actively involve in business.
Fourthly, the findings from the case study exhibited the existence of the main relational norms
at every stage, i.e. power, trust and personal relationships. The power to appoint the
consultants for any projects has been the main factor to continue the relationships. As
indicated in the previous literature of relationships, if one party has a strong power to appoint,
the party that would be potentially appointed would be highly dependent on this party (e.g.
Cox, 2004). Interestingly, this study found a different perspective of dependency, in which
the consultant was not highly dependent on the project manager. In fact, they were highly
dependent on their fate or have faith on God’s power to determine whether they would be
awarded more projects or vice versa. The value that they practice from the religion they
embraced has been cultivated in them and thus has emerged as their attitude in dealing with
these relationships. (e.g. Abdullah, 1992; Rashid and Ho, 2003)
This study also found that trust existed at every stage of the relationship development. But
the level of trust demonstrated by both parties differed at every stage (e.g. Naismith et al,
2005). For example, the project manager’s trust in consultant B at the beginning of the
relationships was based on recommendation from project manager’s staff. Doney and Cannon
(1997) describe that gaining trust through third party’s definition of another is the basis for
defining that other is trustworthy. Here, trust was transferred from a trusted proof source, i.e.
the project manager’s staff to the project managers (Milliman and Fugate, 1988). In addition,
the written document indicating the rich experience of the consultants and their recognition as
a chartered consultant was based on the institutional trust, in which they gained a third party
certification that defines their trustworthiness and expected behaviour (Zucker, 1986; Pavlou,
2002). The level of trust would keep increasing especially when the consultant demonstrates
competency and credibility in providing the service as required by the project manager in
fulfilling the contractual obligations (e.g. Anderson and Weitz, 1989; Naismith et al, 2005).
The element of personal relationships seemed to be a vital factor at every stage. In a
collectivist society, personal relationships could be the measure of success or failures of
To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554

Page 11

certain relationships. The connotation of ‘whom you know’ demonstrates that decisions could
be based more on connections rather than on merit (Javidan and House, 2002).
Fifth, dissolution of partnership occurred when the parties involved felt that they were not
receiving benefits from the partnership. However, a surprising result found in this study was
that even though the consultant had already exited from the formal contractual relationships
with the project manager, their long interpersonal relationships led them to continue to award
projects to the consultants. It implied that through the dissolution of formal relationships, the
consultant did not have to share profits with the PM and that ended the inter-organisational
contractual relationships, but not the interpersonal relationships. This result differed from the
previous literature, in which the business relationships ended at the dissolution stage when the
parties involved started to look for other business network to continue their business.
CONCLUSION
Theoretically, the framework developed in this study (as shown in Figure 1) demonstrated
that indebtedness (terhutang budi) and ‘malu’ (shame) are two important cultural Malay
values, in which they act as the antecedents to the relationship. Thus, any local or foreign
parties who would like to deal with Malay organisations should receive their repayment for
any helps that are given to them, whether it is in the form of tangible or intangible gift. This
is because they have a strong belief that any good deeds that that they receive should be
repaid. Long-term commitment emerges as consequence of these values rather than
transactional requirements emerging out of contractual relationships. This study provide
guidance to any foreign construction organisations who are interested to deal with and entered
the construction industry market in Malaysia with regard to the specific characteristics of
Malaysian construction industry market.
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To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554

Page 12

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To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554

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To cite this paper: Nasruddin Faisol and Harlina Suzana Jaafar (2011) The Development of Long Term
Relationships Between Consultants and Project Managers in Construction Supply Chain in Malaysia.
Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany, 10-13 July, pp. 547-554