Unity is strength: A study of supplier relationship management integration

Researches on the supply chain management within the last decade demonstrate that business processes integration can increase the performance effectiveness and efficiency across the chain. This study intends to investigate the integration of the supplier relationship management (SRM) process between the manufacturer and its first upstream tier of suppliers within the construction equipment industry. This research also strives to identify the potential obstacles to the SRM integration and provides solution suggestions to overcome these barriers. In this regard, the review of the literature and subsequent analyses of the empirical findings from European construction equipment manufacturers illustrate that the SRM process integration can take place through the integration of its several sub-processes into strategic and operational characteristics. In this context, the lack of goal congruence, commitment, and trust between the manufacturer and its supplier are the major potential barriers to the SRM integration.