Driving forces of strategic supply management: a preliminary empirical investigation

Abstract

Fostering and maintaining a win-win relationship with suppliers and other supply chain partners is a daunting task. Various driving forces play a significant role in making this a reality. In this study, we first define the theoretical domain of strategic supply management. Based on an extensive literature review, we then identify the key driving forces that assist buyer firms in making their supply management strategic and successful. Multiple regression analyses were conducted to examine the effect of these driving forces on strategic supply management and the effect of strategic supply management on buyer's performance. The results provide empirical evidence to the fact that strategic supply management is driven by several critical factors including environmental uncertainty, customer focus, competitive priorities, top management support, information technology and supply network structure. However, uncertainty was not found to be a significant deterrent in the successful management of supply activities. Rather, it was a stepping-stone for preparedness among the supply chain partners. In general, the results of this study provide additional insights for practitioners and researchers in understanding the strategic management of the supply function.