Amoako-Gyampah et al., 2019

Supplier Relationship Management & performance

Amoako-Gyampah et al., 2019. Supplier relationship management and firm performance (Int. J. Production Economics) ScienceDirect

The study by Amoako-Gyampah et al. (2019) explores how Supplier Relationship Management (SRM) influences firm performance in manufacturing organizations. The researchers examine both a direct performance effect and an indirect pathway through operational flexibility.

Their results show that firms with structured SRM practices consistently achieve stronger outcomes — including higher product quality, more reliable deliveries, and improved cost efficiency.

A key insight is that SRM creates value not only by improving supplier relationships, but by strengthening the organization's adaptability. When companies collaborate closely with suppliers, share information, and formalize processes, their operational flexibility increases — and this flexibility is what ultimately drives stronger business performance.

The study also finds that SRM does not impact all firms equally. Ownership structure matters: locally owned companies benefit more from SRM than foreign-owned firms, potentially because they have fewer resources and therefore gain more from structured processes and disciplined relationship management.

Overall, the article demonstrates that SRM should be viewed as a strategic capability, not a transactional function. Through improved flexibility and collaboration, SRM directly enhances competitiveness and long-term performance.

Research Summary 

This study investigates how Supplier Relationship Management affects firm performance in manufacturing industries. The authors find that:

• SRM has a direct positive effect on performance (quality, delivery reliability, cost outcomes).

• SRM also has an indirect effect by building operational flexibility, which becomes a key driver of improved results.

• The benefits of SRM vary depending on ownership structure — local firms gain more than foreign-owned companies.

• Effective SRM should therefore be understood as a strategic capability that strengthens adaptability and competitiveness.

Together, the findings show that SRM contributes to performance not only through better supplier relationships, but through the organizational capability it builds.

Our Perspective

In our work, we often see the same patterns that the research highlights. When organizations begin to structure their supplier relationships more clearly, collaboration improves and internal governance becomes stronger. This, in turn, creates the operational flexibility that many companies rely on today.

We also notice that the value of SRM is often greatest in organizations that have not yet developed mature processes. Even small steps — clearer segmentation, simple governance routines, or regular follow-ups — can make a surprisingly large difference.

For us, SRM is not about applying a standard framework. It is about helping each client build an approach that fits their reality. We aim to work close to the organization, with respect for existing ways of working and available resources, and to support improvements that are sustainable over time.

The study reinforces what we often see in practice: when companies strengthen their relationships, their processes, and their flexibility, the results tend to follow — gradually, and in partnership with their suppliers.