Supply management contribution to channel performance: a top management perspective

Abstract

PurposeThis study serve aims to fill a gap in the supply management literature with respect to supply management contribution to channel members' performance and its antecedents: strategic supply management skills and supplier integration. The resource‐based theory of the firm is used to establish the tested theoretical framework.Design/methodology/approachThe sample used consists of 152 firms represented by highly ranked supply management professionals. The conceptual model and the hypothesized relationships are tested using structural equation modeling.FindingsSupport was found for the causal relationships among: strategic supply management skills and supply management contribution to channel members' performance; supplier integration and supply management contribution to channel members' performance; and for supply management strategic skills and supplier integration. Additionally, strategic supply management skills were found to have a significant mediated effect on supply management channel members' performance through supplier integration.Practical implicationsThis study offers some guidance to supply management professionals who need both a clear understanding of the underlying tradeoffs involved in deploying the tested strategies and a prescriptive model to help guide their use. The results of this study will help supply management professionals in rationalizing their making various decisions concerning supplier relationships, recruiting the necessary skills in the supply management function, and investing in a supply knowledge base.Originality/valueAlthough previous literature documented the link between supply management and the focal firm's performance, the research of supply management's contribution to channel members' performance has been largely overlooked. This work answers the recent calls for more empirical research in general and, specifically, for more empirical supply management strategy research. It should assist future researchers who focus on strategic supply management and channel performance and would also be of interest to supply management practitioners interested in keeping up with the academic literature.