Impact of Supplier Relationship Management on Supply Chain Performance in Manufacturing Firms

Thesis Abstract

Effective supply chain performance is vital for manufacturing firms seeking competitive advantage in increasingly complex and globalized markets. Nonetheless, many firms encounter difficulties in optimizing supply chain outcomes due to suboptimal relationships with suppliers, which can lead to delays, increased costs, and reduced flexibility. This study investigates the impact of Supplier Relationship Management (SRM) on supply chain performance within manufacturing firms to fill the existing empirical gap and provide actionable insights for practitioners and policymakers. The primary aim is to examine the extent to which SRM practices influence key supply chain performance indicators, including delivery reliability, cost efficiency, and flexibility. Specific objectives include (1) to assess the current state of SRM implementation in manufacturing firms, (2) to identify the dimensions of SRM that significantly influence supply chain performance, (3) to explore the mediating role of information sharing and collaboration, and (4) to develop a model illustrating the relationship between SRM practices and supply chain outcomes. To achieve these objectives, a descriptive correlational research design was adopted, facilitating the examination of relationships among variables. The population comprised 150 manufacturing firms operating within the electronics and automotive sectors in the region. A stratified random sampling technique was employed to select a sample of 90 firms, ensuring representative variation across firm size and operational scope. Data were collected through structured questionnaires administered to purchasing managers and supply chain coordinators, with items validated through content and construct validity procedures. Reliability analysis yielded a Cronbach's alpha exceeding 0.85 for all constructs. Supplementary qualitative data were gathered via semi-structured interviews with ten senior supply chain managers to enrich the interpretative analysis. Quantitative data were analyzed using multiple regression analysis to determine the influence of SRM dimensions on supply chain performance, while Structural Equation Modeling (SEM) tested the hypothesized mediating effects of information sharing and collaboration. Thematic analysis was employed to interpret qualitative interview data, providing contextual richness and validating quantitative findings. It is anticipated that the findings will reveal a significant positive relationship between effective SRM practices—such as supplier performance evaluation, strategic partnership development, and communication frequency—and key performance indicators like on-time delivery, cost reduction, and agility. Additionally, the mediating roles of information sharing and collaborative problem-solving are expected to strengthen this relationship, indicating the importance of relational and communicative factors in enhancing supply chain outcomes. This research contributes to the body of knowledge by empirically validating the theoretical linkage between SRM practices and supply chain performance, grounded in the Transaction Cost Economics and Relational Exchange theories. It also offers a comprehensive framework for manufacturing firms to implement targeted SRM strategies that can improve operational efficiency and competitive positioning. In conclusion, the study recommends that manufacturing firms prioritize strategic supplier relationships and invest in information technology systems that facilitate seamless communication and collaboration. Further research could explore longitudinal effects of SRM practices over time and extend the analysis to different industrial sectors or geographic contexts to enhance the generalizability of the findings. Overall, the study underscores the strategic significance of robust SRM in achieving sustainable supply chain excellence.