Managing Relationship with Supplier(s): An Exploratory Study of Select Indian Manufacturing Firms

Abstract

Manufacturing industry is said to be partially driven by the component/input suppliers. The idea of developing and managing relationships with suppliers has been intensified due to the occurrence of rapid globalization and technological innovation. A paradigm shift can be witnessed in firms approaches towards supplier management which is gradually moving from a transaction-based arms-length approach to a relationship-based cooperative approach. Firms apparently, have started adapting various practices to strengthen the relationship with their respective supplier(s) to ensure the smooth functioning without any operational difficulties. The present study explores various practices pertaining to Supplier Relationship Management (SRM) from Relationship Marketing(RM) perspective, in the context of Indian manufacturing sector. The study is exploratory in nature where in the unit of analysis is collaborative manufacturer-supplier relationship. Information was collected through a self-administered questionnaire-based survey from a sample of 206 executives across levels of purchase department from select manufacturing firms in India. Data analysis, both descriptive as well as inferential were carried out with SPSS. Subsequently, the theoretical and managerial implications of the study are discussed.

Keywords: Supplier Relationship Management, Relationship Marketing, Exploratory Research, Indian Manufacturing Sector

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