The effects of supplier relationship management practices on organizational performance and competitive advantage of large manufacturing companies in Bahir Dar, Ethiopia

Abstract

The purpose of the study is to examine the effects of supplier relationship management practices on organizational performance and competitive advantage of large manufacturing companies in Bahir Dar, Ethiopia. The study employed an explanatory research design. A standardized five-point Likert scale questionnaire was administered to manufacturing companies' executives, top managers, and procurement managers. Structural equation modeling with the help of analysis of moment structure 23 is used to analyze the relationship between variables. The result reveals that supplier relationship management practices lead to enhancing organizational performance and competitive advantage. Also, competitive advantage significantly affects the performance of manufacturing companies. The study is limited by the effects of supplier relationship management practices on organization performance and competitive advantage over a quantitative research approach. Further, it only focused on large manufacturing companies in Bahir Dar, Ethiopia. The study contributes evidence on the effects of supplier relationship management practices on organization performance and competitive advantage. Moreover, it helps the supply chain managers in large manufacturing companies to have a deeper understanding of supplier relationship management and its importance to organizational performance and competitive advantage.