Abstract
<p>Long term relationship with suppliers is broadly considered a vital contributor to supply chain performance by both practitioners and researchers. This paper investigates the role of long term relationship in strategic supplier partnership and financial performance (SSP-LR-P model). Specifically, it has observed the role of long-term supplier relationship as the driver of integration. Using structural Equation modeling (SEM) to analyze the data from 401 Saudi chemical and petrochemical firms, it is found that strategic supplier partnership has a significant direct and indirect effect on firms’ performance through the mediation of long term relationship.</p>
Highlights
During the past two decades, there has been a growing interest among researchers in the Strategic supplier relationships (Adams et al, 2014; Cannon & Perreault, 1999; Deshpande, 2012; Li et al, 2006; Prajogo & Olhager, 2012; Zhang et al, 2015)
In order to further explore this relationship, based on stakeholder theory and relational management approach, this paper has modeled the long term relationship as an important intervening variable which mediates the relationship between supplier partnership (SSP) and firm performance
This study adds to the empirical research stream on Supply Chain Management (SCM) by examining the associations amongst SSP, long-term relation, and performance as per the hypothesized SSP-Long-term Relationship (LR)-financial performance (FP) model
Summary
During the past two decades, there has been a growing interest among researchers in the Strategic supplier relationships (Adams et al, 2014; Cannon & Perreault, 1999; Deshpande, 2012; Li et al, 2006; Prajogo & Olhager, 2012; Zhang et al, 2015). Today, when the market has become more competitive the need for integration and partnership with suppliers and long term relationship is growing Firms partnering with their suppliers have developed as an overwhelming topic in the literature on Supply Chain Management (SCM) (Handfield & Nichols, 2002; Holloway & Parmigiani, 2016; Laura Horvath, 2001). In order to further explore this relationship, based on stakeholder theory and relational management approach, this paper has modeled the long term relationship as an important intervening variable which mediates the relationship between SSP and firm performance. This accounts as adopting a strategic approach for organizing different supply chain elements. Discussion section is followed by future research directions and limitations
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