Supply management integration model for Indian manufacturing industries

Abstract

Purpose – The purpose of this paper is to identify and develop the structural relationship among the key drivers to control and enhance the supply management (SM) performance in Indian manufacturing environment. Design/methodology/approach – The drivers (i.e. sourcing alternatives and supplier selection, supplier development (SD), contract management (CM) and risk management (RM)) of SM were identified and SM integration model was proposed through literature review and in consultation with industry experts. The proposed model was validated by capturing experts’ view in Indian manufacturing environment. The strength of relationships between these drivers and on SM performance was also established using structural equation modeling. Findings – CM has positive direct effect on SM performance and two drivers (i.e. sourcing alternatives and supplier selection, and SD) have positive indirect effect mediated by CM. Whereas, RM has direct and indirect (mediated by CM) positive effect on SM performance in Indian manufacturing environment. Research limitations/implications – This model can be validated for manufacturing industries in other countries. Practical implications – This model provides a comprehensive relationship among four drivers of SM and shows the direction for designing and implementing appropriate policies in order to enhance the SM performance in Indian manufacturing environment. Originality/value – Although many issues related to SM have been widely researched, but no literature has been reported related to SM integration model consisting of its drivers in general and in Indian manufacturing environment in specific. The key drivers of SM were identified and their relative importance was analyzed in Indian manufacturing environment.