Effects of buyer-supplier relationship on social performance improvement and innovation performance improvement

Abstract

Social performance improvement and innovation performance improvement is rapidly developing an area of research. Little empirical research has been conducted on the social performance outcomes in Pakistan and other developing countries. This research contributes to understanding how relational governance relates to social and innovation performance improvement in exporter and importer relationships. The analysis is based on cross-sectional base survey questionnaires on a sample of 239 senior managers from four export manufacturer industries using square structural equation modelling approach. The findings of this study show that relational governance has a key role in ensuring the continuation of relationship as a means to support suppliers, resulting in improvements in social performance and innovation performance. Social performance improvement in supply chain relationship requires the commitment of significant resources to implement it. It is proposed that a cultural intelligence is improving information exchange among buyers and suppliers, and is the more appropriate context for social performance improvement. Further research is also required to develop a deeper understanding of the relationship between an element of commitment and innovation performance improvement. Theoretical contributions, managerial implications and future research directions are also presented.

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