Untangling the nexus between supplier relationship management and competitive advantage: insights on the role of procurement performance and supply chain responsiveness

Abstract

Purpose

The study examines the intricate interplay between supplier relationship management (SRM), procurement performance, supply chain responsiveness (SCR) and competitive advantage. Additionally, the study examines the mediating role of procurement performance and SCR in the link between SRM and competitive advantage.

Design/methodology/approach

A research model grounded in the resource-based view and dynamic capabilities theory (DCT) was developed and tested using partial least squares structural equation modeling (PLS-SEM). Data were obtained from 122 firms in Ghana.

Findings

The study revealed that SRM has a positive and significant effect on procurement performance, SCR and competitive advantage. Additionally, SCR has a positive and significant effect on competitive advantage; however, procurement performance has a negative and insignificant effect on competitive advantage. It was also revealed that SCR partially mediates the relationship between SRM and competitive advantage but fully mediates the relationship between procurement performance and competitive advantage. Also, it was also revealed that procurement performance does not mediate the relationship between SRM and competitive advantage.

Research limitations/implications

The study contributes to literature by highlighting the mediating role of SCR in influencing the effect of SRM and procurement performance on competitive advantage.

Practical implications

Practically, the study findings highlight the need for firms to seek, build and manage meaningful relationships with their suppliers in order to enhance their competency and capability to influence their competitive position in the marketplace.

Originality/value

To the best of the researchers' knowledge, no prior study has examined the effect of SRM on procurement performance and SCR. Additionally, no previous study has examined the mediating role of procurement performance and SCR on the link between SRM and competitive advantage.