Improved supplier relationships and technology boost firm performance in manufacturing.
The article explores how supplier relationships, information technology, and purchasing practices impact firm performance. A survey of 179 manufacturing companies was conducted, and the results showed that firm performance is directly influenced by purchasing practices and indirectly by supplier relationships and information technology. The use of information technology in materials management affects both supplier relationships and purchasing practices. The study emphasizes the importance of managing supplier relationships for purchasing practitioners and highlights that technology can only improve firm performance when paired with proper purchasing practices.