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Article | Civil and Sustainable Urban Engineering | Volume 6 - Issue 1 - 2026 | 105-117 | https://doi.org/10.53623/csue.v6i1.948
© 2026 by the author(s), and is licensed under the Creative Commons Attribution 4.0 International (CC BY 4.0) License Creative Commons Attribution 4.0 International (CC BY 4.0) License

Identifying Supply Chain Risks Influencing Contractor Profitability Using Structural Equation Modeling

Author(s): Fikri Arief Ananda , I Nyoman Dita Pahang Putra ORCID https://orcid.org/0000-0002-5759-049X
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Department of Civil Engineering, Faculty of Engineering, Universitas Pembangunan Nasional Veteran Jawa Timur, FAD Building, Jl. Raya Rungkut Madya, Gunung Anyar, Kec. Gn. Anyar, Kota Surabaya, Jawa Timur 60294, Indonesia

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Civil and Sustainable Urban Engineering

Volume 6 - Issue 1 - 2026

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The construction supply chain involved complex interactions among stakeholders and was exposed to various risks that could affect contractor profitability. However, existing studies had rarely integrated Structural Equation Modeling (SEM) and the Relative Importance Index (RII) to simultaneously capture both statistical relationships and practitioners’ perceptions, particularly in the context of high-rise building projects in Indonesia. This study aimed to identify and analyze supply chain risks in the flows of information, materials, and funds and to examine their influence on contractor profitability. Data were obtained from structured questionnaires distributed to 50 respondents across five high-rise projects in Surabaya. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) alongside RII. The SEM results revealed that all three flows, information, materials, and finances, significantly improved contractor profitability, with information flow having the strongest effect. The RII rankings indicated that information risks were the primary concern, particularly unclear communication and errors in conveying project scopes. Comparing the statistical significance identified by SEM with the practical perceptions captured by RII revealed key gaps between measured impacts and practitioners’ views, thereby improving risk prioritization. Overall, this study advanced construction supply chain risk research by integrating SEM and RII methods, while providing practitioners with actionable recommendations to improve information sharing, streamline material handling, and strengthen financial management to enhance profitability.

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SUBMITTED: 05 December 2025
ACCEPTED: 18 February 2026
PUBLISHED: 23 February 2026
SUBMITTED to ACCEPTED: 76 days
DOI: https://doi.org/10.53623/csue.v6i1.948

Cite this article
Ananda, F. A. ., & Putra, I. N. D. P. . (2026). Identifying Supply Chain Risks Influencing Contractor Profitability Using Structural Equation Modeling. Civil and Sustainable Urban Engineering, 6(1), 105–117. https://doi.org/10.53623/csue.v6i1.948
Keywords
Construction Project Construction Supply Chain Risk Identification SEM RII
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