The underlying potential of supply management in value creation

This study discusses the value-creation potential of supply management in firms, highlighting the significance of buyer–supplier collaboration, as well as resources and capabilities in the process. It is a conceptual study that builds on the theoretical basis of the resource-based view and the value net approach. Given the critical role of supply management in generating value the strategic emphasis in future should be on triple value creation. It is concluded that this cannot be achieved by focusing only on dyadic relationships or relationships in chains, and that supply relations should be viewed in a wider network context.

► Buyer–supplier collaboration, resources and capabilities are critical part of value creation. ► Role of supply management in value creation is significant. ► In the future focus should be on strategically important triple value creation. ► Supplier relationship management should be viewed in a wider network context.