The Ambiguous Impact of Supplier Involvement in Product Development on Supplier Relationship Resilience and Company Performance

Abstract

The study aims to determine how supplier participation in new product development (SPP) and supplier justice practices (SJP) affect supplier relationship resilience (SRR), supply chain resilience (SCR), and company performance (CP). It further investigates the mediating roles of SRR and SCR or moderating supplier trust (ST) influences effectiveness of these connections. A quantitative study design was adopted, and survey data from 200 supply chain management professionals in manufacturing companies that engage in collaborative supplier relationships were used for the purpose of the study. The proposed conceptual model was evaluated by employing PLS-SEM using Smart PLS 4.0 software. SIPD and SJP significantly improve either SSR or SCR. These resilience capabilities have a positive effect on CP (collaborative practices) due to the increased stability or adaptability that they provide. Meanwhile, ST (supplier relationships) facilitates relationships, whereas a lack of trust leads to reduced flexibility or reliance on a few suppliers. based on the study, the management can come up with collaborative ways of managing suppliers to improve performance. In particular, it is essential to establish early supplier involvement, implement consistent procurement practices, and build relationships based on trust to achieve SC (supply chain) resilience as well as gain competitive advantage over others. The present paper highlights the added value generated by considering concepts such as supplier collaboration practices, supplier relationship resilience, and supplier trust, as factors contributing to the performance improvement of the companies.

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