Quantifying the influence of supplier relationship management and supply chain performance

an investigation of Bangladesh’s manufacturing and service sectors





Supplier Relationship Management, SRM Practices, Supply Chain Performance, Cost Efficiency, Emerging Markets, Bangladesh


Purpose: This study explores the impact of Supplier Relationship Management (SRM) practices on supply chain performance, with a focus on cost efficiency, within the dynamic context of Bangladesh. The purpose is to elucidate the relationships between SRM practices, specifically Supplier Collaboration, Supplier Development, Supplier Evaluation and Selection, and Long-Term Supplier Relationships, and their influence on cost efficiency within supply chains.

Design/Methodology/Approach: A quantitative research approach was employed, utilizing regression analysis and correlation analysis to analyze data collected through a structured survey from 270 Participants within Bangladesh’s Manufacturing and Service Sectors. The research adopted a cross-sectional time horizon, providing a snapshot view of the relationships between SRM practices and cost efficiency.

Findings: The findings reveal that Supplier Collaboration and Long-Term Supplier Relationships significantly and positively influence cost efficiency within the supply chains of Bangladeshi organizations. These SRM practices collectively contribute to approximately 64.2% of the variance in cost efficiency, emphasizing their critical role in optimizing supply chain performance.

Research Limitations/Implications: Limitations of this study include its cross-sectional nature and the focus on a specific set of SRM practices. Future research can explore additional SRM dimensions and employ longitudinal approaches for deeper insights.

Practical Implications: Practitioners can leverage the study's findings to enhance supply chain performance by implementing holistic SRM strategies, fostering collaborative supplier relationships, and nurturing long-term partnerships with suppliers.

Social Implications: This research contributes to the broader economic landscape of Bangladesh by highlighting the importance of SRM practices in enhancing cost efficiency, which can ultimately lead to economic growth and competitiveness.

Originality/Value: This study extends the understanding of SRM practices by examining their applicability and significance in an emerging market like Bangladesh. It underscores the originality and value of SRM as a strategic imperative for organizations operating in diverse contexts.


Download data is not yet available.


Abbas, H. & Tong, S. (2023), "Green Supply Chain Management Practices of Firms with Competitive Strategic Alliances—A Study of the Automobile Industry", Sustainability, Vol. 15, No. 3, pp. 2156.

Abtahi, A.T., Farhana, N. & Hasan, M.M. (2023), "A Study on the Impact of E-Commerce Adoption for Enhancing Supply Chain Efficiency in Bangladesh SMEs", Business and Economics in Developing Countries, Vol. 1, No. 1, pp. 29-33.

Adesanya, A., Yang, B., Bin Iqdar, F.W. & Yang, Y. (2020), "Improving sustainability performance through supplier relationship management in the tobacco industry", Supply Chain Management: An International Journal, Vol. 25, No. 4, pp. 413-426.

Ali, S.S., Kaur, R., Ersoz, F., Altaf, B., Basu, A. & Weber, G.-W. (2020), "Measuring carbon performance for sustainable green supply chain practices: A developing country scenario", Central European Journal of Operations Research, Vol. 28, pp. 1389-1416.

Allioui, H. & Mourdi, Y. (2023), "Exploring the full potentials of IoT for better financial growth and stability: A comprehensive survey", Sensors, Vol. 23, No. 19, pp. 8015.

Amoako-Gyampah, K., Boakye, K.G., Adaku, E. & Famiyeh, S. (2019), "Supplier relationship management and firm performance in developing economies: A moderated mediation analysis of flexibility capability and ownership structure", International Journal of Production Economics, Vol. 208, pp. 160-170.

Andersen, J. (2021), "A relational natural-resource-based view on product innovation: The influence of green product innovation and green suppliers on differentiation advantage in small manufacturing firms", Technovation, Vol. 104, pp. 102254.

Asif, M., Searcy, C. & Castka, P. (2022), "Exploring the role of industry 4.0 in enhancing supplier audit authenticity, efficacy, and cost effectiveness", Journal of Cleaner Production, Vol. 331, pp. 129939.

Awan, U., Sroufe, R. & Kraslawski, A. (2019), "Creativity enables sustainable development: Supplier engagement as a boundary condition for the positive effect on green innovation", Journal of Cleaner Production, Vol. 226, pp. 172-185.

Barney, J. (1991), "Firm resources and sustained competitive advantage", Journal of Management, Vol. 17, No. 1, pp. 99-120.

Benton Jr, W.C., Prahinski, C. & Fan, Y. (2020), "The influence of supplier development programs on supplier performance", International Journal of Production Economics, Vol. 230, pp. 107793.

Burki, U., Glavee-Geo, R., Dahlstrom, R., Kanani, R. & Buvik, A. (2023), "The moderating effect of market knowledge on contractual efficacy: evidence from Asian supplier--Western buyer relationships", Asian Business & Management, pp. 1-31.

Cha, K.-J. & Kim, Y.S. (2018), "Critical success factors for mutual collaboration with suppliers in IT outsourcing industry: a case study of a top IT outsourcing company in Korea", Enterprise Information Systems, Vol. 12, No. 1, pp. 76-95.

Cocskun, S.S., Kumru, M. & Kan, N.M. (2022), "An integrated framework for sustainable supplier development through supplier evaluation based on sustainability indicators", Journal of Cleaner Production, Vol. 335, pp. 130287.

Cole, R. & Aitken, J. (2019), "Selecting suppliers for socially sustainable supply chain management: post-exchange supplier development activities as pre-selection requirements", Production Planning & Control, Vol. 30, No. 14, pp. 1184-1202.

Dash, A., Pothal, L.K. & Tripathy, S. (2018), "Factors affecting supplier relationship management: An AHP approach", IOP Conference Series: Materials Science and Engineering, Vol. 390, No. 1, pp. 12056.

Dobos, I. & Vörösmarty, G. (2019), "Inventory-related costs in green supplier selection problems with Data Envelopment Analysis (DEA)", International Journal of Production Economics, Vol. 209, pp. 374-380.

Dong, J.Q., Karhade, P.P., Rai, A. & Xu, S.X. (2021), "How firms make information technology investment decisions: Toward a behavioral agency theory", Journal of Management Information Systems, Vol. 38, No. 1, pp. 29-58.

Dubey, R., Gunasekaran, A., Childe, S.J., Papadopoulos, T. & Helo, P. (2019), "Supplier relationship management for circular economy: Influence of external pressures and top management commitment", Management Decision, Vol. 57, No. 4, pp. 767-790.

Ebinger, F. & Omondi, B. (2020), "Leveraging digital approaches for transparency in sustainable supply chains: A conceptual paper", Sustainability, Vol. 12, No. 15, pp. 6129.

Eisenhardt, K.M. (1989), "Agency theory: An assessment and review", Academy of Management Review, Vol. 14, No. 1, pp. 57-74.

Emon, M.M.H. & Khan, T. (2023), "The Impact of Cultural Norms on Sustainable Entrepreneurship Practices in SMEs of Bangladesh", Indonesian Journal of Innovation and Applied Sciences (IJIAS), Vol. 3, No. 3, pp. 201-209.

Emon, M.M.H. & Nahid, M.H. (2023), "Factors Affecting Sustainable E-Commerce Adoption: Empirical Evidence from Bangladeshi SME’s", Corporate Sustainable Management Journal (CSMJ), Vol. 01, No. 01, pp. 32-36. Disponível em: https://csmj.com.my/csmj-01-2023-32-36/

Enz, M.G. & Lambert, D.M. (2023), "A supply chain management framework for services", Journal of Business Logistics, Vol. 44, No. 1, pp. 11-36.

Fama, E.F. (1980), "Agency problems and the theory of the firm", Journal of Political Economy, Vol. 88, No. 2, pp. 288-307.

Farooque, M., Zhang, A., Liu, Y. & Hartley, J.L. (2022), "Circular supply chain management: Performance outcomes and the role of eco-industrial parks in China", Transportation Research Part E: Logistics and Transportation Review, Vol. 157, 102596.

Farooque, M., Zhang, A., Thürer, M., Qu, T. & Huisingh, D. (2019), "Circular supply chain management: A definition and structured literature review", Journal of Cleaner Production, Vol. 228, pp

Faruquee, M., Paulraj, A. & Irawan, C.A. (2021), "Strategic supplier relationships and supply chain resilience: is digital transformation that precludes trust beneficial?", International Journal of Operations & Production Management, Vol. 41, No. 7, pp. 1192–1219.

Feizabadi, J. & Alibakhshi, S. (2022), "Synergistic effect of cooperation and coordination to enhance the firm’s supply chain adaptability and performance", Benchmarking: An International Journal, Vol. 29, No. 1, pp. 136–171.

Fouji, M.H. & Hoque, I. (2021), "Supplier internationalization through upgrading in global supply chain: Evidence from the garments industry of Bangladesh", International Journal of Global Business and Competitiveness, Vol. 16, No. 2, pp. 116–129.

Gilmore, E.A. & Buhaug, H. (2021), "Climate mitigation policies and the potential pathways to conflict: Outlining a research agenda", Wiley Interdisciplinary Reviews: Climate Change, Vol. 12, No. 5, e722.

Grum, B., Tsegaye, D., Tariku, Z., Gebremariam, D., Gebremicael, H., Kuhilen, T., Yemane, S., Aregawi, A., Abebe, B.A., et al. (2023), "Applicability and Cost Implication of Labor-Based Methods for Sustainable Road Maintenance (SRM) in Developing Countries", Advances in Civil Engineering, 2023.

Gu, V.C., Zhou, B., Cao, Q. & Adams, J. (2021), "Exploring the relationship between supplier development, big data analytics capability, and firm performance", Annals of Operations Research, Vol. 302, pp. 151–172.

Herczeg, G., Akkerman, R. & Hauschild, M.Z. (2018), "Supply chain collaboration in industrial symbiosis networks", Journal of Cleaner Production, Vol. 171, pp. 1058–1067.

Hoang, T.-H., Nguyen, N.P.P., Hoang, N.-Y.N., Akbari, M., Quang, H.T. & Binh, A.D.T. (2023), "Application of social media in supply chain 4.0 practices: a bibliometric analysis and research trends", Operations Management Research, pp. 1–23.

Hossain, M.Z., Rahman, M.A.U., Rahaman, K.R., Ha-Mim, N.M. & Haque, S.F. (2023), "Investigating critical relationships among vulnerability, livelihoods, and non-migration strategies at the fishing communities in the Sundarbans", Environment, Development and Sustainability, pp. 1–40.

Huma, S., Ahmed, W. & Najmi, A. (2020), "Understanding the impact of supply-side decisions and practices on supply risk management", Benchmarking: An International Journal, Vol. 27, No. 5, pp. 1769–1792.

Jensen, M.C. & Meckling, W.H. (2019), "Theory of the firm: Managerial behavior, agency costs and ownership structure", in Corporate Governance, pp. 77–132, Gower.

Jia, M., Stevenson, M. & Hendry, L. (2023), "A systematic literature review on sustainability-oriented supplier development", Production Planning & Control, Vol. 34, No. 8, pp. 727–747.

Kannan, D. (2018), "Role of multiple stakeholders and the critical success factor theory for the sustainable supplier selection process", International Journal of Production Economics, Vol. 195, pp. 391–418.

Klingebiel, K., Leiras, A. & Másculo, F.S. (2013), "Challenges for Managing Complexity in Industrial and Operations Management--A point of view from ICIEOM 2013", Brazilian Journal of Operations & Production Management, Vol. 10, No. 2, pp. 7–10.

Kummer, S., Herold, D.M., Dobrovnik, M., Mikl, J. & Schäfer, N. (2020), "A systematic review of blockchain literature in logistics and supply chain management: identifying research questions and future directions", Future Internet, Vol. 12, No. 3, 60.

Lahti, T., Wincent, J. & Parida, V. (2018), "A definition and theoretical review of the circular economy, value creation, and sustainable business models: where are we now and where should research move in the future?", Sustainability, Vol. 10, No. 8, p. 2799.

Larsson, J. & Larsson, L. (2020), "Integration, application and importance of collaboration in sustainable project management", Sustainability, Vol. 12, No. 2, p. 585.

Le Jr, T. (2022), "Supplier’s Price Evaluation in the Purchasing Process", Journal details needed.

Lee, H.L. & Tang, C.S. (2018), "Socially and environmentally responsible value chain innovations: New operations management research opportunities", Management Science, Vol. 64, No. 3, pp. 983–996.

Leiras, A. & Fontainha, T.C. (2019), "Opportunities & Challenges for operations management--A point of view from the 2018 POMS International Conference in Rio", Brazilian Journal of Operations & Production Management, Vol. 16, No. 3, pp. 371–374.

Lim, M.K., Li, Y., Wang, C. & Tseng, M.-L. (2021), "A literature review of blockchain technology applications in supply chains: A comprehensive analysis of themes, methodologies and industries", Computers & Industrial Engineering, Vol. 154, p. 107133.

Lo, S.M., Zhang, S., Wang, Z. & Zhao, X. (2018), "The impact of relationship quality and supplier development on green supply chain integration: A mediation and moderation analysis", Journal of Cleaner Production, Vol. 202, pp. 524–535.

Macher, J.T. & Richman, B.D. (2008), "Transaction cost economics: An assessment of empirical research in the social sciences", Business and Politics, Vol. 10, No. 1, pp. 1–63.

Mani, V., Gunasekaran, A. & Delgado, C. (2018), "Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective", International Journal of Production Economics, Vol. 195, pp. 259–272.

Manuela, P., Cristina, B. & Molina-Morales, F.X. (2021), "I need you, but do I love you? Strong ties and innovation in supplier--customer relations", European Management Journal, Vol. 39, No. 6, pp. 790–801.

Milgrom, P.R., Roberts, J. & Roberts, J. (1992), “Economics, organization and management”, Vol. 7, Prentice-Hall, Englewood Cliffs, NJ.

Mohan, M., Nyadzayo, M.W. & Casidy, R. (2021), "Customer identification: the missing link between relationship quality and supplier performance", Industrial Marketing Management, Vol. 97, pp. 220–232.

Naghshineh, B. & Carvalho, H. (2022), "The implications of additive manufacturing technology adoption for supply chain resilience: A systematic search and review", International Journal of Production Economics, Vol. 247, p. 108387.

Nandi, M.L., Nandi, S., Moya, H. & Kaynak, H. (2020), "Blockchain technology-enabled supply chain systems and supply chain performance: a resource-based view", Supply Chain Management: An International Journal, Vol. 25, No. 6, pp. 841–862.

Oduro, S., Nyarku, K.M. & Gbadeyan, R.A. (2020), "Supplier relationship management and organizational performance of hospitals in an emerging economy context: a comparative study", Journal of Modelling in Management, Vol. 15, No. 4, pp. 1451–1478.

Panfilova, E., Dzenzeliuk, N., Domnina, O., Morgunova, N. & Zatsarinnaya, E. (2020), "The impact of cost allocation on key decisions of supply chain participants", International Journal of Supply Chain Management, Vol. 9, No. 1, pp. 552–558.

Paparoidamis, N.G., Katsikeas, C.S. & Chumpitaz, R. (2019), "The role of supplier performance in building customer trust and loyalty: A cross-country examination", Industrial Marketing Management, Vol. 78, pp. 183–197.

Pereira, G.I., Niesten, E. & Pinkse, J. (2022), "Sustainable energy systems in the making: A study on business model adaptation in incumbent utilities", Technological Forecasting and Social Change, Vol. 174, p. 121207.

Prosser, L., Lane, E.T. & Jones, R. (2021), "Collaboration for innovative routes to market: COVID-19 and the food system", Agricultural Systems, Vol. 188, p. 103038.

Queiroz, M.M. & Wamba, S.F. (2019), "Blockchain adoption challenges in supply chain: An empirical investigation of the main drivers in India and the USA", International Journal of Information Management, Vol. 46, pp. 70–82.

Rejeb, A., Keogh, J.G., Simske, S.J., Stafford, T. & Treiblmaier, H. (2021), "Potentials of blockchain technologies for supply chain collaboration: a conceptual framework", The International Journal of Logistics Management, Vol. 32, No. 3, pp. 973–994.

Reuß, M., Grube, T., Robinius, M. & Stolten, D. (2019), "A hydrogen supply chain with spatial resolution: Comparative analysis of infrastructure technologies in Germany", Applied Energy, Vol. 247, p. 438–453.

Rezaei Vandchali, H., Cahoon, S. & Chen, S.-L. (2020), "Creating a sustainable supply chain network by adopting relationship management strategies", Journal of Business-to-Business Marketing, Vol. 27, No. 2, pp. 125–149.

Rindfleisch, A. (2020), "Transaction cost theory: past, present and future", AMS Review, Vol. 10, Nos. 1–2, pp. 85–97.

Saad, N.A., Elgazzar, S. & Kac, S.M. (2022), "Linking supply chain management practices to customer relationship management objectives: a proposed framework", Business: Theory and Practice, Vol. 23, No. 1, pp. 154–164.

Saghiri, S.S. & Mirzabeiki, V. (2021), "Buyer-led environmental supplier development: Can suppliers really help it?", International Journal of Production Economics, Vol. 233, p. 107969.

Schmidt, C.G. & Wagner, S.M. (2019), "Blockchain and supply chain relations: A transaction cost theory perspective", Journal of Purchasing and Supply Management, Vol. 25, No. 4, p. 100552.

Shafiq, A., Johnson, P.F. & Klassen, R.D. (2022), "Building synergies between operations culture, operational routines, and supplier monitoring: implications for buyer performance", International Journal of Operations & Production Management, Vol. 42, No. 5, pp. 687–712.

Shakeel, R., Sajjad, H. & Ramish, A. (2018), "Towards A Third Party Logistics (3PL) Based Sustainable Supplier Relationship Management Framework", Journal of Quality and Technology Management, Vol. 15, No. 2, pp. 1–36.

Sharma, A., Adhikary, A. & Borah, S.B. (2020), "Covid-19's impact on supply chain decisions: Strategic insights from NASDAQ 100 firms using Twitter data", Journal of Business Research, Vol. 117, pp. 443–449.

Shibin, K.T., Dubey, R., Gunasekaran, A., Hazen, B., Roubaud, D., Gupta, S. & Foropon, C. (2020), "Examining sustainable supply chain management of SMEs using resource based view and institutional theory", Annals of Operations Research, Vol. 290, pp. 301–326.

Sikombe, S. & Phiri, M.A. (2019), "Exploring tacit knowledge transfer and innovation capabilities within the buyer--supplier collaboration: A literature review", Cogent Business & Management, Vol. 6, No. 1, p. 1683130.

Songsom, N., Nilsook, P., Wannapiroon, P., Fung, L.C.C. & Wong, K. (2019), "System architecture of a student relationship management system using Internet of Things to collect Digital Footprint of Higher Education Institutions", International Journal of Emerging Technologies in Learning (IJET), Vol. 14, No. 23, pp. 125–140.

Stek, K. & Schiele, H. (2021), "How to train supply managers--necessary and sufficient purchasing skills leading to success", Journal of Purchasing and Supply Management, Vol. 27, No. 4, p. 100700.

Stone, A. (1986), "The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. By Oliver E. Williamson. (New York: Free Press, 1985. Pp. 450. $27.95.)", American Political Science Review, Vol. 80, No. 4, pp. 1424–1425.

Swallehe, O. (2021), "Analysis of Challenges Facing SMEs in Implementing Suppliers Relationship", SSRN. Nota: Detalhes adicionais sobre publicação são necessários para uma referência completa.

Tai, P.D., Anderson, M.R., Hien Duc, T.T., Thai, T.Q. & Yuan, X.-M. (2022), "Strategic information sharing in supply chain with value-perceived consumers", Industrial Management & Data Systems, Vol. 122, No. 4, pp. 841–863.

Tay, H.L. & Aw, H. Sen. (2021), "Improving logistics supplier selection process using lean six sigma--an action research case study", Journal of Global Operations and Strategic Sourcing, Vol. 14, No. 2, pp. 336–359.

Tseng, S.-M. (2020), "The Impacts Of Social Media Adoption And SRM Relational Information Processes On Supply Chain Agility", Journal of Information, Technology and Society.

Uddin, M.B., Fu, Y. & Akhter, B. (2020), "Inter-organizational cost management: effects of antecedents and methods in a hybrid relational context", Journal of Business & Industrial Marketing, Vol. 35, No. 5, pp. 909–923.

Wang, C.-N., Yang, F.-C., Vo, T.M.N., Nguyen, V.T.T. & Singh, M. (2023), "Enhancing Efficiency and Cost-Effectiveness: A Groundbreaking Bi-Algorithm MCDM Approach", Applied Sciences, Vol. 13, No. 16, p. 9105.

Wernerfelt, B. (1984), "A resource-based view of the firm", Strategic Management Journal, Vol. 5, No. 2, pp. 171–180.

Wren, B. (2022), "Sustainable supply chain management in the fast fashion Industry: A comparative study of current efforts and best practices to address the climate crisis", Cleaner Logistics and Supply Chain, Vol. 4, p. 100032.

Wynstra, F., Suurmond, R. & Nullmeier, F. (2019), "Purchasing and supply management as a multidisciplinary research field: Unity in diversity?", Journal of Purchasing and Supply Management, Vol. 25, No. 5, p. 100578.

Yang, X. (2022), "Vertical Coopetition: Effect of Supplier Relationship Management Strategies on Supplier Involvement in New Product Development", IEEE Transactions on Engineering Management.

Zhang, A., Wang, J.X., Faroharvaroque, M., Wang, Y. & Choi, T.-M. (2021), "Multi-dimensional circular supply chain management: A comparative review of the state-of-the-art practices and research", Transportation Research Part E: Logistics and Transportation Review, Vol. 155, p. 102509.




How to Cite

Emon, M. M. H., Khan, T., & Siam, S. A. J. (2024). Quantifying the influence of supplier relationship management and supply chain performance: an investigation of Bangladesh’s manufacturing and service sectors. Brazilian Journal of Operations & Production Management, 21(2), 2015 . https://doi.org/10.14488/BJOPM.2015.2024



Research paper