Article: Return on investment from supplier/risk management Journal: Journal of Business and Management (JBM) 2019 Vol.25 No.2 pp.1 - 23 Abstract: Purpose: The purpose of this paper is to examine and outline the impact of the supplier management maturity on the supplier management performance. Design/methodology/approach: The study conceptualizes four dimensions (strategy & governance, organization & structure, process & systems and people) for the supplier management maturity and tests the relationship between supplier management maturity and supplier management performance (costs, quality, risk and innovation). Data for this study are collected from 98 purchasing consulting experts. The relationships proposed in the theoretical framework are tested using structural equation modeling. Findings: The empirical results and findings from this research indeed substantiate the notion that elaborate supplier/risk management approaches contribute significantly to the improvement of supplier management performance and organizational competitiveness. Research limitation/implications: This study is based on a group of purchasing consulting experts with an outside in view. Further studies should include participants from various industries to improve the representativeness of this study. Practical implications: Results from the study suggest to practitioners that increasing the maturity of their supplier management organization and people leads to higher returns from the organizational performance in terms of cost, quality, risk and innovation. Originality/value: This paper contributes in three ways to the discussion on how supplier management maturity affects the organizational performance. First by developing a theoretical model and testing it with empirical data using experience from the past, secondly by shedding more light on specific implications of empirical findings on different industries and lastly by predicting the main benefits contributing to the supplier management maturity in the near future. Inderscience Publishers - linking academia, business and industry through research

Title: Return on investment from supplier/risk management

Authors: Christopher A. Hoeckel; Josef Neuert; Marcus Schuller; Alla Schwamborn; Jianpeng Wang

Addresses: Author address listing can be found in the "About the Authors" section at the end of the article.

Abstract: Purpose: The purpose of this paper is to examine and outline the impact of the supplier management maturity on the supplier management performance. Design/methodology/approach: The study conceptualizes four dimensions (strategy & governance, organization & structure, process & systems and people) for the supplier management maturity and tests the relationship between supplier management maturity and supplier management performance (costs, quality, risk and innovation). Data for this study are collected from 98 purchasing consulting experts. The relationships proposed in the theoretical framework are tested using structural equation modeling. Findings: The empirical results and findings from this research indeed substantiate the notion that elaborate supplier/risk management approaches contribute significantly to the improvement of supplier management performance and organizational competitiveness. Research limitation/implications: This study is based on a group of purchasing consulting experts with an outside in view. Further studies should include participants from various industries to improve the representativeness of this study. Practical implications: Results from the study suggest to practitioners that increasing the maturity of their supplier management organization and people leads to higher returns from the organizational performance in terms of cost, quality, risk and innovation. Originality/value: This paper contributes in three ways to the discussion on how supplier management maturity affects the organizational performance. First by developing a theoretical model and testing it with empirical data using experience from the past, secondly by shedding more light on specific implications of empirical findings on different industries and lastly by predicting the main benefits contributing to the supplier management maturity in the near future.

Keywords: Supplier relationship management; supplier management; supplier management performance; supplier management maturity.

DOI: 10.1504/JBM.2019.141269

Journal of Business and Management, 2019 Vol.25 No.2, pp.1 - 23

Published online: 05 Sep 2024 *

Title: Return on investment from supplier/risk management

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