Effects of supply chain strategies on performance and key account management

Purpose The resource-based view (RBV) and relationship management are two isolated perspectives in business-to-business research. Few studies have evaluated both the integration of supply chain resources and the development of long-term customer relationships among contract manufacturers concurrently. To fill this gap, this study used the RBV to examine the alignment between supply chain management strategies (i.e. supplier development and supply chain visibility and flexibility) and key account management (KAM) in contract manufacturers; on the basis of the findings, the study provides practical recommendations for effectively integrating resources. Design/methodology/approach A survey-based methodology was adopted. Survey data were collected from 252 Taiwanese contract manufacturers, and structural equation modeling was employed to test the research model and hypotheses. Findings The findings indicate that supply chain strategies (i.e. supply chain visibility and flexibility) positively affect KAM and that KAM positively influences relationship performance. However, the direct effect of supplier development on KAM is nonsignificant. Supplier development exerts an indirect influence on KAM through supply chain visibility and flexibility. Originality/value This study developed an empirically tested model that explains how contract manufacturers develop suppliers and manage their supply chain’s visibility and flexibility, which can enhance KAM and relationship performance.