THE IMPACT OF STAKEHOLDER INTERACTIONS ON THE SUPPLY CHAIN RISKS OF MEGAPROJECTS IN AFRICA

Abstract

The successful delivery of megaprojects is frequently impeded by the complex and multifaceted risks associated with their supply chains. These challenges are exacerbated by the diverse network of stakeholders involved, encompassing both internal entities, such as contractors and consultants, and external actors, including governmental bodies and local communities. In the African context, these stakeholder networks are further complicated by decentralized governance structures and the involvement of international funding agencies. This study investigates the intricate relationships among stakeholders in African megaprojects through the lens of social network theory, aiming to understand how these interactions influence supply chain risk management. Online questionnaires administered in Ghana and South Africa produced 120 valid responses. Utilizing a partial correlation network analysis, the research identifies the central stakeholders within the network, examining the nature and strength of their interactions. The findings reveal that stakeholder interactions are predominantly characterized by information exchange, with consultants and clients emerging as pivotal actors due to their high centrality metrics—strength, closeness, and betweenness. These central stakeholders play a critical role in decision-making processes, information dissemination, and risk mitigation strategies within the supply chain. Moreover, the study highlights the significance of both strong and weak ties within the stakeholder network. While strong ties, such as those involving consultants, are key for shaping project outcomes, weak ties, particularly with external stakeholders such as local communities, provide access to diverse information and help identify emerging risks. The robust network model, evaluated through bootstrapping techniques, underscores the reliability of these findings, although it also calls for cautious interpretation due to some variability in edge weight estimations. This research contributes to the understanding of stakeholder interactions in African megaprojects and offers practical implications for improving supply chain risk management. By leveraging the insights gained from stakeholder centrality and interaction patterns, project managers can enhance communication, foster collaboration, and address risks more effectively, ultimately improving the overall success of megaprojects.