earticle

영어

In project markets, as civil construction and bridge construction, contractors usually select subcontractors through a competitive bidding process. Motivated by the attractiveness of the contractor and fear of losing to competitors, subcontractors are likely to offer their lowest possible prices and best quality to gain customer preference. Competitive bidding is a market-based principle for supplier selection and is widely used even when selecting subcontractors with experience attributes. However, optimal subcontractor choice involves balancing quality and price. The purpose of this study is to examine the relationship among previous experience, company brand credibility, corporate social responsibility(CSR), price, and likelihood of choosing subcontractor and the moderating effects of price between them. The results of analyzing 107 contractors in small and medium construction firms showed that CSR and price positively affected likelihood of choosing subcontractor but previous experience and company brand credibility did not. The moderator variable had no significant effect on the dependent variable. In competitive bidding situations, suppliers with strong quality reputations may benefit most by low price offers. Thus, suppliers with a strong reputation should achieve profitability through a volume premium rather than a price premium effect. Suppliers opting for price premiums should target the quality sensitive segment of the market.