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Strategic management of the dyadic buyer–supplier relationship and supplier development practices with respect to industry 4.0: An empirical study

Author

Listed:
  • Manoj Govind Kharat

    (Sinhgad Institute of Business Management (SIBM))

  • Mukesh Govind Kharat

    (K J Somaiya Institute of Management (KJSOM))

  • Shreyanshu Parhi

    (IMI Bhubaneswar)

  • Samridhi Kapoor

    (Pranveer Singh Institute of Technology (PSIT))

  • Sarang Prakashrao Joshi

    (Imperial College of Engineering and Research)

  • Rajeev Agrawal

    (Malaviya National Institute of Technology)

Abstract

The present study investigates how supplier development practices (SDP) and buyer–supplier relationship practices augments buyer–supplier relationship improvement and impacts the supply chain performance (SCP) in the presence of industry 4.0 as the contextual factor. A questionnaire survey was conducted during the time period of 2018–2021, and the responses were collected from 512 manufacturing firms consisting of automobiles, gear manufacturing, etc. who have implemented Industry 4.0 (wholly or partially) and or are in the process of implementation. The study employed covariance based structural equation modelling approach to test the proposed hypotheses. It relied on SPSS-AMOS to test the measurement and structural model. The findings revealed that supplier development strategy, i.e., supplier incentives, direct involvements, and trust, influences buyer–supplier relationship (BSR). Industry 4.0 implementation supports the performance of SDP and buyer–supplier relationship practices, which enhances the BSR strongly, and robust implementation of SDP and buyer–supplier relationship practices that paved the way for deeper buyer–supplier relationship improvement and improved SCP. On the contrary, the organisations that did not implement the industry 4.0 technologies had to deal with the issues of customer uncertainty. Besides, the results show that the implementation of Industry 4.0 and related technologies helps to implement SDP more effectively and affects the agility speed of BSR. The findings of the study will enable the firms to explore and assess the positive and negative effects within the supply chain networks. Thus, it will assist supply chain managers in evaluating pathways to leverage its potential and apply suitable strategies throughout the BSR process to capitalise on current and future business opportunities. Finally, the study concludes that SDP and BSR practices in an industry 4.0 environment help fortify BSR leading to enhanced SCP, competitive advantage, and profitability.

Suggested Citation

  • Manoj Govind Kharat & Mukesh Govind Kharat & Shreyanshu Parhi & Samridhi Kapoor & Sarang Prakashrao Joshi & Rajeev Agrawal, 2025. "Strategic management of the dyadic buyer–supplier relationship and supplier development practices with respect to industry 4.0: An empirical study," Operations Management Research, Springer, vol. 18(2), pages 821-847, June.
    • Handle: RePEc:spr:opmare:v:18:y:2025:i:2:d:10.1007_s12063-025-00554-z
    DOI: 10.1007/s12063-025-00554-z
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