An empirical study on supply chain management in India: the perspective of original equipment manufacturers and suppliers

Abstract

Supply Chain Management (SCM) is a key strategic approach for increasing organisational effectiveness and the realisation of organisational goals. Effectively selecting and evaluating suppliers and managing their involvement in the supply chain are some of the capabilities that enable Original Equipment Manufacturers (OEMs) to achieve customer satisfaction. At the same time, the suppliers have a significant and direct impact on the performance of buyers. A sustained supplier-manufacturer relationship cannot be possible without tangible benefits accrued to both the partners. The present study, by viewing the supply chain from the perspective of the OEMs and the suppliers, identifies the critical dimensions of SCM and the measures of performance. Reliable and validated instruments are developed. Conceptual models are proposed. The effect of the moderator, such as 'selection', 'long-term relationships', etc. (OEM's perspective) and 'supply chain orientation' (supplier's perspective) on the relationship between the critical dimensions of SCM and the performance measures, are investigated. The investigations reveal that from the perspectives of the OEM and supplier, the moderator has a significant and positive effect on the relationship between the critical dimensions of SCM and the performance measures. The simultaneous effect of all the moderators on the above relationship is also significant in the case of the OEM. [Submitted 31 December 2007; Revised 28 April 2008; Accepted 28 June 2008]