Resource allocation and supplier relationship management towards the performance of the manufacturing industry: Evidence from the paint manufacturing firms in Harare, Zimbabwe

Abstract

Resource and supplier relationship management continues to play a critical role in the efficiency of the supply chain and its competitive positioning. The current study sought to establish how the paint manufacturing industry’s performance is influenced by resource allocation (finance, human, physical, and information resources) and supplier relationship management (systematic collaboration, activities programs, and review meetings) and their ultimate contribution to organizational performance. The objectives of this study were to establish the effect of resource allocation on supplier relationship management and determine how supplier relationship management influences the performance of the paint manufacturing industry. Using a simple random sampling method, data were collected from 116 employees involved in the procurement process from 30 paint manufacturing firms in Harare. A questionnaire with Likert-type questions was distributed electronically to collect the data. This study established that there is a high inadequacy of resources to support the supplier relationship management system. A greater percentage of organizations (77.5%) employ procurement staff with the necessary qualifications and experience to manage the buyer–supplier relationship. The study further revealed that some organizations (98%) within the paint manufacturing industry do not have websites for supplier interaction due to limited financial resources, thereby impacting their supplier information resources. This study contributes to the existing body of knowledge by providing new insights into the need for sufficient resource-supplier relationship management, as it greatly contributes to the performance of the paint manufacturing sector.

Keywords:

• supplier relationship management
• resource allocation
• organisational performance
• Zimbabwe

Public Interest Statement

Resource and supplier relationship management continues to play a critical role in the efficiency of the supply chain and its competitive positioning. The current study sought to establish how the paint manufacturing industry’s performance is influenced by resource allocation and supplier relationship management and their ultimate contribution to organizational performance. The objectives of this study were to establish the effect of resource allocation on supplier relationship management and determine how supplier relationship management influences the performance of the paint manufacturing industry. This study established that there is a high inadequacy of resources to support the supplier relationship management system. This study contributes to the existing body of knowledge by providing new insights into the need for sufficient resources to be allocated supplier relationship management, as it greatly contributes to organisational performance.

1. Introduction

Supplier relationship management (SRM) continues to play a critical role in improving supply chain efficiency and competitive positioning (Chikazhe et al., 2023). Thus, it has become a vital tool for maintaining a competitive advantage on the global market (Dubey et al., 2019). International competition has pushed organisations to rethink their strategies by effectively integrating both their internal and external factors in order to achieve and maintain their competitive advantage (Islami & Topuzovska Latkovikj, 2022). In developing competitive strategies organizations have been prompted to establish strategic relationships with suppliers of critical goods and services (Dubey et al., 2019; Yehualaa, 2023). To maintain and strengthen their competitive advantage, it has become important for organizations to comprehensively understand the dynamics of the buyer–supplier relationship (Munyimi et al., 2018). Across the global market, the growing recognition of the importance of effectively managing supplier interactions has been acknowledged by the manufacturing sector hence the need to adequately resource the procurement function to effectively manage the buyer–supplier relationship (Kumar & Rahman, 2016; Yehualaa, 2023).

Effective implementation and maintenance of an SRM system require adequate resource allocation, including human, financial, physical, and information resources as organisations seek to maintain their competitive advantage (Islami, 2022). This has mandated organisations to institute various human resources management practices that include establishing an effective recruitment process, laying out skills training programs, providing employment security, providing incentives, employee participation, and performance appraisal (Islami, 2022). These practices would in turn contribute to organisational performance through, improved product quality, improved SRM, increased productivity, improved delivery times, and staff retention. Physical resources such as the ICT infrastructure provide an opportunity to organisations to interact with suppliers on the digital platform and enhance their effective supplier relationship management as information is shared in real-time (Yeniyurt et al., 2019. However, organizations must ensure that the ICT infrastructure is continually being upgraded in line with ever-evolving information and communication technology as they interact in the digital space (Kosmol et al., 2019).

Likewise, organisations ought to be prepared to fully digitalize and run mature advanced technologies for their procurement function (Flechsig et al., 2022). This preparedness consists of two main sections, one being upgrading of the IT infrastructure that has the capacity to integrate the various systems and the other being the IT human resource who have the skills to discharge both the technological and process aspects (Flechsig et al., 2022). The adoption of digital technologies presents several advantages to organisations as they enhance their information resources through the use of several technologies that include Artificial Intelligence (AI) and the Internet of Things (IoT) Moretto and Caniato (2021). This contributes to an effective SRM that will, in turn, have a positive impact on organisational performance as the interaction between the organisation and the suppliers is enhanced by the improved technology (Yeniyurt et al., 2019). It also presents an opportunity for future research on the level of adaption of these technologies in SRM including AI and IoT by firms in developing economies like Zimbabwe as they seek to improve the level of information resources.

The allocation of financial resources to SRM mirrors the level of commitment and support by senior management in the development and maintenance of an SRM system). This is developed from the realisation that organisations are no longer able to achieve organisational goals and objectives using their own internal capabilities but now need the involvement of suppliers to effectively meet the ever-changing customer demands as they strive to remain competitive on the global market (Dubey et al., 2019; Yehualaa, 2023). The efficient allocation of these financial resources by the procurement function to the various SRM activities that include, supplier selection process, supplier development, technological upgrade, human resource development, and physical resource investment is critical as these are competing activities with the same goal. Zimbabwe’s paint manufacturing industry is not spared, as the current economic challenges have seen organizations failing to allocate adequate resources to supplier relationship management as they fail to meet their committed obligations to their suppliers (Gumbo, 2019). Thus, the performance of paint manufacturing firms in Zimbabwe is seriously affected. Several studies have so far been carried out in various industries to try and solve related problems (Chari, 2016; Gumbo, 2019; Munyimi et al., 2018; Yehualaa, 2023). However, the effects of resource allocation on SRM have not been extensively explored in these studies, as earlier studies paid more attention to the potential benefits of the SRM without aligning the required resources to realize these benefits (Amoako-Gyampah et al., 2019; Butt et al., 2020; Oduro et al., 2020). The current study sought to close this gap by examining the effects of resource allocation (human, financial, information, and physical) on SRM and the ultimate contribution to organisational performance. Thus, the current study addresses these questions in an attempt to close the existing gap in the literature: RQ1: How does resource allocation influence supplier relationship management (SRM), RQ2: What is the effect of SRM on the performance of firms within the paint manufacturing industry? The remainder of this paper is organized as follows. Section 1 presents a literature review, while Section 2 presents the empirical studies and research hypothesis development. Section 3 covers the methodology, and Section 4 presents the findings and discussion. Finally, Section 5 presents the conclusions and implications.

2. Theoretical literature

2.1. Theories underpinning the study

Supplier relationship management is a well-structured approach to managing an organization’s interaction with its suppliers (Lyson & Farrington, 2020). This effective supplier interaction requires resources to contribute positively to organizational performance as well as to the supply chain (Wairu & Gitonga, 2018). This study is therefore underpinned by the resource-based theory that looks at how organisations allocate their limited resources to their various functions to achieve the organisational stated objectives (Hitt et al., 2016). The global market has demanded that organizations effectively allocate resources to remain competitive. For SRM to also contribute positively to organizational performance, adequate resources must be allocated at the strategic planning level (Hamza et al., 2016; Roshdi et al., 2022). The availability and effective allocation of these organizational resources to the SRM, including human, physical material, finance, and information resources, are critical for the organization’s success (Nthiwa & Muchemi, 2020). This study focuses on the four major resources that previous studies have proven to have an impact on the contribution of any organizational function to organizational performance: human, financial, physical material, and information resources (Chams & García-Blandón, 2019; Wairu & Gitonga, 2018

2.2. Supplier relationship management

SRM is an organizational strategy that deals with the relationship management between the organization and its suppliers of goods and services, and the strategy is driven by the procurement function (Lyson & Farrington, 2020). SRM is also defined as a critical asset for achieving a competitive advantage on the global market which has become very dynamic due to growing supply uncertainty, ever-changing customer demands, conflicts, and increased global competition (Oduro et al., 2020; Yehualaa, 2023).

Effective management of suppliers contributes to organisational performance, as it results in reduced business risk and enhanced product quality as suppliers deliver quality goods and services on time (Nimeh et al., 2018). Organisations seeking to establish strategic relationships with suppliers of critical goods and services to remain competitive on the global market (Amoako-Gyampah et al., 2019). The establishment of strategic relationships with suppliers demands that organizations avail adequate resources, including human, financial, physical, and information, to the procurement function to effectively manage the buyer–supplier relationship (Wairu & Gitonga, 2018). These resources are used in support of the SRM to establish systems within the procurement function such as the supplier quality management (SQM) system whose key elements include supplier selection, supplier development, and supplier integration (Jagtap et al., 2017). Suppliers should invest in collaborative relationships in the form of finance, time, and human capital, allowing mutual adoption, although the buying organization might invest more resources. For organisations to ensure that they engage reputable suppliers willing to establish a long-term relationship, there is a need for financial investment in the supplier selection process, as this reduces business risk and maximizes overall business performance (Taherdoost & Brard, 2019). The implications of supplier performance goes beyond organisational performance and affects the performance of the entire supply chain.

2.3. Human resource

This is a set of individuals who make up the organization’s workforce. The term can also be referred to as the sum of the labour capacity of workers in a particular workforce (Shi et al., 2021). Human resources are defined as the knowledge-based factors inherent in the organisation’s workforce (e.g., knowledge, experience, expertise, and intuition) (Diin Fitri et al., 2018). It is, therefore, the responsibility of the human resource function to ensure that the organisational success is delivered through people who possess the necessary skills and qualifications. In the current global economic environment, human resources have become a strategic resource, with the construction and development of human resource capacity being a critical strategic issue for the survival of any organization in the global arena (Hao, 2022).

In line with resource-based theory, which considers the allocation of limited resources by an organization, the procurement function as it is responsible for the organization’s SRM system also requires sufficient resources with personnel who possess the necessary skills and abilities to manage the buyer–supplier relationship effectively (Hamza et al., 2016; Hitt et al., 2016). Successful organizations facilitate training programs for procurement personnel to acquire the necessary skills to effectively manage suppliers (Hamza et al., 2016). The training requirements can be extended to the supplier’s personnel to appreciate the buyer–supplier relationship requirements. This requirement is in line with the United Nations 2030 Agenda for sustainable development, which consists of 17 sustainable development goals (SDGs) (United Nations, General Assembly, 2015). One of the economic dimensions of SDGs encourages organizations to employ a healthy and educated workforce that is proficient, productive, and proactive, who not only contributes to organizational competitiveness but also to society in general (Chams & García-Blandón, 2019).

2.4. Physical material resource

These are tangible resources easily observed in an organization and they include buildings, computer hardware, and vehicles (Diin Fitri et al., 2018). The procurement function requires the physical resources that support the SRM system, such as the latest computer hardware that enables important information exchange with suppliers (Hamza et al., 2016). Physical resources such as the ICT infrastructure provide an opportunity to organisations to interact with suppliers on the digital platform and enhance their effective supplier relationship management as information is shared in real-time (Yeniyurt et al., 2019. However, organizations must ensure that the ICT infrastructure is continually being upgraded in line with ever-evolving information and communication technology as they interact in the digital space (Kosmol et al., 2019). Other resources include vehicles used for supplier visits, adequate office space, and office furniture and equipment that allows procurement personnel to host suppliers in a friendly business environment (Wairu & Gitonga, 2018). These physical resources provide an image of the organization’s reputation and level of professionalism; therefore, the adequate allocation of these resources to SRM as viewed by resource-based theory will contribute to organizational performance.

2.5. Information resource

Information resources are the data and information used by the organization (Chikazhe et al., 2023). Information resources included websites, books, people, newspapers, and encyclopedias. The embedding of information technology (IT) in organisational supply chain processes can allow organisations to facilitate the development of much higher-order organisational capabilities, such as developing a very strong supplier relationship management system (Yeniyurt et al., 2019). The synergetic advantages achieved through IT advancement within the procurement function will contribute to the organization’s competitive advantage. The use of the latest sophisticated information resources in the organisation’s supplier relationship management will prove the organisation’s proactiveness in adopting and implementing the latest information technology solutions in the management of their supply chain issues, including the buyer–supplier relationship. This resonates with the requirements of resource-based theory that the effective allocation of limited resources to a function will contribute positively to organisational performance (Hitt, Xu, & Carnes, 2015). The development of software such as Vendor Relationship Management (VRM) has enabled organisations to effectively manage their buyer–supplier relationship. This can also be regarded as an organization’s innovation in managing suppliers. Effective information resources share information in real-time that will allow organisations to quickly adjust their operations in line with supply market changes and gain the desired competitive advantage ahead of other players on the market (Roushdy et al., 2015). Information is power for the effective management of suppliers, and the organization must have adequate information resources to contribute to its competitiveness (Khan & Siddiqui, 2018).

2.6. Financial resource

Financial resources are monies at the organisation’s disposal that management can use to fund its investments, capital, and current operations, which can be in the form of cash, operating profit, earnings, or loan facilities from financial institutions (Diin Fitri et al., 2018). Organisations require resources to invest in the latest information and communication technology (ICT) tools such as Supplier Quality Management (SQM) systems used to manage suppliers effectively (Kaondera et al., 2023). Supplier development is an SRM activity that requires financial resources to assist suppliers in investing in assets that improve the quality of goods and services they deliver to the organisation, as well as the potential increase in the volume of supply that would ensure an uninterrupted supply of goods and services, as highlighted by resource-based theory (Hitt, Xu, & Carnes, 2015; Tukimin et al., 2019).

The buying organisation requires financial resources to facilitate the training of both the procurement personnel and the supplier personnel if the training services are to be outsourced (Jagtap et al., 2017). Part of the SRM process requires a procurement function (or a selected team that might include personnel from Procurement, Quality Assurance, Engineering, Production, Human resources, and finance) to visit suppliers to carry out supplier audits, which require funding to produce the desired results (Tukimin et al., 2019)

While previous literature has highlighted the various resources needed to support SRM and organisational performance, the adequacy of these resources has not been extensively examined; hence, the current study seeks to close this gap by examining the effect of resource allocation on SRM and its ultimate contribution to organisational performance in the paint manufacturing industry.

2.7. Organisational performance

The success of any organisation is measured by its ability to achieve set goals and objectives (Chikazhe et al., 2023). Gaura et al. (2021) defined organisational performance as the comparison of achieved goals and objectives and the set goals and objectives. Gumbo (2019) viewed organisational performance as not only concerned with the satisfaction of primary stakeholders through profitability but, also with other stakeholders that included, customers, suppliers, government, the environment, and the society in general.

The organisational performance measurement is thus, classified into financial and non-financial indicators and these indicators analyse the extent to which the set organisational goals and objectives are met within a given period which can either be short term or long term (Yehualaa, 2023). These financial indicators include cash flow position, return on investment (ROI) shareholder value, and stock turnover (Kaondera et al., 2023). While non-financial indicators include, customer satisfaction, product quality, corporate social responsibility (CSR), market share, and employee satisfaction (Rucha & Abdallah, 2017). Suppliers are critical stakeholders whose performance has a direct effect on organisational performance (Wairu & Gitonga, 2018). The contribution of suppliers to organisational performance has both financial and non-financial implications. Financial in the sense that poor deliveries will affect the organisation’s revenue inflows as a result of end product unavailability and non-financial as market share is lost due to customer service dissatisfaction on lack of product unavailability or delivery of poor quality products to the market as a result of raw material quality (Hitt et al., 2016). Hence, the need to adequately resource the procurement function to effectively manage the buyer–supplier relationship.

3. Empirical literature and research hypotheses development

As embedded in the United Nations 2030 Agenda for Sustainable Development, organisations are encouraged to employ a workforce that is healthy, educated, productive, and proactive (Chams & García-Blandón, 2019). Hao (2022), in his research on the optimal allocation of human resources, concluded that human resource allocation plays a critical role in the management of various organisational systems, including the SRM, and their ultimate contribution to organisational performance. Islami (2021) in his study on the mediation role of human resource management practices’ effect on organisational performance in supply chain management highlighted that human resources did have a positive effect on organisational performance through supply chain management practices that included SRM. While Hamza et al. (2016) in their study on Awassa Textile Share Company also concluded the effect that the level of human resource allocation to the procurement function did influence the implementation of various systems within the function that also included the SRM system. Kirai and Kwasira (2016), based on the Kenyan Pipe Industry, concurred with Hamza et al. (2016) on the fact that human resources contribute to the effective discharge of duty by the procurement function, which also includes SRM. Based on the above, it can be proposed that

H1.

Human resources positively influence SRM.

In their study, Hamza et al. (2016) highlighted that the procurement function requires physical resources, such as the latest ICT hardware and software, to share important information in real-time with suppliers as they effectively implement the SRM system. Tseng (2014) highlighted that the availability of internal physical resources contributes to effective supplier management. Physical resource as concluded by Diin Fitri et al. (2018) in their study concluded that physical resource does have a positive effect on the contribution of a firm’s various functions to OP. Thus, we propose the following hypotheses:

H2.

Physical recourses have a positive role on SRM.

In their study on information technology resources, Yeniyurt et al. (2019) highlighted that information resources are a key driver of business performance. In their study of the Korean construction industry, Woo et al. (2016) concluded that for managers to clearly understand the buyer–supplier relationship and be able to manage it effectively, there was a need to consider information sharing. Wairu and Gitonga (2018) stated that information resources contributed to SRM, as suppliers were able to share information critical for the strengthening of their buyer–supplier relationship. Khan and Siddiqui (2018) again in their study highlighted that access to adequate information resources contributed to the effective SRM as suppliers shared vital information that aided the organisation’s competitive positioning. In their study, Roushdy et al. (2015) concluded that information resources allowed open channels of communication between organisations and their suppliers thereby strengthening the SRM system as they gained closer cooperation with their suppliers. In their study on Robotics Process Automation in purchasing and supply management, Flechsig et al. (2022) emphasised the need for organisations to adopt advanced technologies such as Artificial Intelligence, that will facilitate the development of effective SRM systems. Considering the conclusions of earlier studies, it can be hypothesized that:

H3.

Information resources have a positive role on SRM.

Diin Fitri et al. (2018) concluded that financial resources at the disposal of management are used to fund their operations to improve their organisational performance. Tukimin et al. (2019) in their study highlighted that organizations must ensure an uninterrupted supply of goods and services, and financial resources must be available to support supplier development programs, which is a critical element of SRM. Moretto and Caniato (2021) in their study, “Can Supply chain finance help mitigate the financial disruption brought by COVID–19” concluded that financial resources were vital to SRM as organizations required funding to support their suppliers during crisis periods such as the COVID-19 pandemic. The study based on oil and gas mega projects in Malaysia again concluded that the limited financial resources allocated to the procurement process had an impact on SRM (Roshdi et al., 2022). Considering the above conclusions made by earlier studies, the following can be hypothesized:

H4.

Financial resources have a positive effect on SRM.

Previous studies have confirmed the positive effect of SRM on OP (Butt et al., 2020; Dubey et al., 2019; Kumar & Rahman, 2016; Memia, 2018; Yehualaa, 2023). Based on their study of audit firms in Nairobi Kenya, Nthiwa and Muchemi (2020) concluded that adequate resources must be allocated to the SRM system to contribute effectively to the OP. In their study of firms in Ghana, Amoako-Gyampah et al. (2019) highlighted that SRM influenced OP. In their study on Indian firms, Chatterjee et al. (2023) concluded that SRM did affect organizational performance. While the majority of the studies reviewed on SRM affirmed the positive effect of SRM on organisational performance. The study by Milambo and Phiri (2019) on the Zambian aircraft industry revealed that an inadequately resourced SRM had a negative effect on organisational performance as suppliers failed to deliver on time. Based on the above conclusions it is hypothesized that:

H5.

SRM has a positive effect on Organisational performance.

3.1. Conceptual framework

Based on the discussions above, the following conceptual framework is proposed with SRM and organizational performance as the dependent variables and resource allocation as the independent variable. A structural equation was used to test the hypotheses indicated in the conceptual framework shown in Figure 1.

Figure 1. The conceptual framework for the study.

Source: Authors (2023)

4. Methodology

This study adopted a cross-sectional survey design, and the study population consisted of managerial employees involved in the procurement process from 30 firms in the paint manufacturing sector in Harare, Zimbabwe. The cross-sectional survey was adopted to enhance the variability and generality of the collected data from employees in the paint manufacturing sector (Chikazhe et al., 2023; Oduro et al., 2020). It also drew participants from large packaging printing manufacturing firms as well as Small-to-Medium Enterprises (SMEs) thereby cutting across the whole sector. The data was collected between April 2023 and May 2023. RAOSOFT sample size calculator was used to calculate the sample size of 139 participants from a total estimated population of employees 215 involved in the procurement process of firms in the paint manufacturing industry. The paint manufacturing industry in Harare, Zimbabwe was selected for the study as it is part of the construction industry that has remained very active in the turbulent economic environment. The majority of paint manufacturing firms operate in Harare the capital city of Zimbabwe. A simple random sampling method was used to select participants from paint-manufacturing firms operating in Harare.

A structured questionnaire with Likert-type questions ranging from 1 (strongly disagree) to 5 (strongly agree) was used to collect data for this study. The research questions were developed by the researcher and guided by the literature (see Table 1). The questionnaire was electronically distributed to participants via email, and this allowed the respondents to complete the questionnaires during their own free time as such was more convenient to respondents. A cover letter on the questionnaire highlighted the non-disclosure of participants’ identity as well as their voluntary participation in the study, assuring the confidentiality of their responses. The questionnaire was structured with three main sections namely Supplier Relationship Management (SRM), Resource Allocation with four sub-sections of Finance Resources (FRA), Human Resources (HRA), Physical Resources (PRA), Information Resources (ICT), and the third being Organisational Performance (ORG). The five-point Likert-type scale ranging from 1: “Strongly Disagree to 5: Strongly Agree” was used to measure all items.

Table 1. Research instrument

Supplier Relationship Management		Sources
SRM1	The procurement department has a systematic collaboration program in place.	Jagtap et al. (2017); Lyson and Farrington (2020); Wairu and Gitonga (2018)
SRM2	A clear joint activities program is in place with suppliers
SRM3	The current level of resource allocation to Supplier Relationship Management (SRM) has supported SRM to positively contribute to the Organisation’s performance.
SRM4	Regular business review meetings are held with suppliers as a way of cementing our relationships.
Resource Allocation
Finance Resource
FRA1	There is a clear budget allocation to support the Supplier relationship management system.	Diin Fitri et al. (2018); Kaondera et al. (2023);
FRA2	Adequate financial resources are availed for use in the supplier selection process.
FRA3	Funds are allocated to support the supplier development programs.
FRA4	Financial resources are available to support the procurement function training needs.
Human Resources
HRA1	Personnel in the procurement function do have the necessary qualifications and experience to manage the supplier relationship	Shi et al. (2021); Hamza et al. (2016); Hao (2022)
HRA2	The Procurement department has adequate human resources to manage the buyer–supplier relationship.
HRA3	Human resources development programs are available to the procurement personal
HRA4	The technical personnel do assist suppliers with technical information and training.
Physical Resources
PRA1	Adequate office space is available for the Procurement department to host suppliers.	Wairu and Gitonga (2018)
PRA2	The current Information Technology infrastructure supports Supplier Relationship Management.
PRA3	Adequate vehicles are allocated to the Procurement Function to support supplier relationship management
Information Resources
ICT1	The procurement function has access to information resources that aid the effective management of suppliers.	Chatterjee et al. (2023); Chikazhe et al. (2023); Hitt et al. (2016)
ICT2	ICT has allowed easy access to supplier information critical for the strategic decision-making process.
ICT3	Investment in new ICT systems has improved communication with our suppliers.
ICT4	The organisation does have a website that is supplier interactive (e.g. suppliers can access orders through the website).
ORGANISATIONAL PERFORMANCE
ORG1	The quality of service offered by the organisation is acceptable.	Chikazhe et al. (2023); Lyson and Farrington (2020); Nimeh et al. (2018)
ORG2	Comparison of actual achievements against set goals shows positive results.
ORG3	The organisation’s periodic financial statement shows positive results
ORG4	The organisation meets targeted sales.

Source: Authors (2023)

Table 1 contains details of the research instrument, which is classified into research variables. These variables were adopted from previous studies as indicated in Table 1 as the study seeks to address the research objective and answer the research questions (RQ1: How does resource allocation influence supplier relationship management (SRM)? RQ2: What is the effect of supplier relationship management on the performance of firms within the paint manufacturing industry?).

Table 2 provides statistics for the responses of those who participated in the study.

Table 2. Response rate

Distributed Questionnaires	Returned	Not returned	Response rate
139	116	23	83.45%

Source: Authors (2023)

A total of 139 questionnaires were distributed and 116 were returned giving a response rate of 83.45%. This was considered a satisfactory response rate adequate for analysis, as supported by Cooper (2016), who stated that a response rate of 57% and above was considered satisfactory. Table 3 provides an analysis of the demographic profiles.

Table 3. Demographic profile

Characteristics	Variable	Frequency	Percentage
Age	21–30 years	6	5.2
	31–40 years	36	31.0
	41–50 years	52	44.8
	Above 50 years	22	19
Gender	Male	97	83.6
	Female	19	16.4
Professional Qualification	Certificate	0	0
	Diploma	46	39.7
	Degree	52	44.8
	Masters	18	15.5
	Doctorate	0	0
Position	Buyer	41	35.3
	Procurement Manager	27	23.3
	Procurement Director	15	12.9
	Managing Director	25	21.6
	Chief Executive Officer	8	6.9
Working Experience	Below	6	5.2
	6–10 years	45	38.8
	11–15 years	20	17.2
	16–20 years	14	12.1
	<21 years	31	26.7

Authors (2023)

Table 3 shows the profiles of the participants. In this study, most respondents 75.8% were aged between 31 and 50 years, while males were dominant (83.6%). A greater percentage (60.3%) of the respondents held at least a first degree, with 64.7% occupying a senior management position, while 56.0% of the respondents had more than 10 years of working experience. The respondents’ profiles indicated a blended pool (age, gender, qualification, experience, and position), which provided the study with balanced views.

4.1. Scale validation

An exploratory factor analysis was used to validate the research instrument. Reliability test, convergent, and discriminate validity were part of the scale validation process. To determine sampling adequacy, the study used the Kaiser–Meyer–Olkin measure and Bartlett’s test of sphericity. Table 4 presents the sampling adequacy results.

Table 4. Sampling adequacy

KMO and Bartlett’s Test
Kaiser–Meyer–Olkin Measure of Sampling Adequacy		.729
Bartlett’s Test of Sphericity	Approx. Chi-Square	593.014
	df	78
	Sig.	.000

Source: Authors (2023)

The results confirmed the sampling adequacy at KMO .729, where the minimum acceptable was set at KMO .600 and Bartlett’s test of sphericity was p < 0.000, where the minimum requirement was set to be significant at p < 0.05, with 76.544% of the total variance explained by the data (Gorsuch, 2013).

A reliability test was conducted using SPSS V24. Table 5 shows the average reliability statistics for this study.

Table 5. Reliability test

Variable	Cronbach’s Alpha	No of Items
Financial Resources	.703	4
Human resources	.812	4
Physical Resources	.883	3
Information Resources	.822	4
Organisational Performance	.816	4
Supplier Relationship Management	.729	4

Source: Authors (2023)

The reliability of the research instrument indicates that the coefficient for all variables surpassed the minimum requirement of .6 as highlighted by Saunders et al. (2012). Validity was measured using convergent and discriminant tests. Table 6 shows the convergent test results.

Table 6. Convergent validity test results

Construct	Item	Standard factor Loading	Individual Item reliability	Cronbach’s Alpha	Composite reliability
Supplier relationship management	SRM1	0.6720	0.624	0.672	0.674
	SRM2	0.9110	0.887
	SRM3	0.9000	0.839
	SRM4	0.8810	0.812
Finance Resource	FRA1	0.7490	0.568	0.838	0.833
	FRA2	0.9350	0.904
	FRA3	0.8980	0.695
	FRA4	0.8120	0.794
Human Resource	HRA1	0.8520	0.587	0.660	0.663
	HRA2	0.7430	0.653
	HRA3	0.9580	0.804
	HRA4	0.8680	0.805
Physical Resource	PRA1	0.8140	0.687	0.774	0.765
	PRA2	0.8660	0.798
	PRA3	0.9580	0.804
Information Resource	ICT1	0.7850	0.746	0.675	0.686
	ICT2	0.7170	0.533
	ICT3	0.6220	0.529
	ICT4	0.6890	0.526
Organisational Performance	ORG1	0.7200	0.529	0.637	0.646
	ORG2	0.6660	0.536
	ORG3	0.7630	0.611
	ORG4	0.6940	0.651

Source: Authors (2023)

The results in Table 4 for standard factor loading, individual item reliability, and Cronbach’s alpha indicate that minimum conditions were met with standard factor loading within items being larger than 0.5 (McQuitty & Wolf, 2013), while reliability and Cronbach’s alpha were above 0.6 (Saunders et al., 2012).

For discriminant testing, the average variance extracted was compared with the squared inter-construct correlations. Desciminant test results met minimum conditions, as all average variances extracted were above squared inter-construct correlations, as recommended by McQuitty and Wolf (2013).

5. Findings and discussions

5.1. Supplier relationship management

Table 7 provides descriptive statistics for the six variables, namely SRM—supplier relationship management, FRA—finance resource, HRA—human resource, PRA—physical resource, ICT—information resource, and ORG—organisational performance.

Table 7. Descriptive statistics

	N	Minimum	Maximum	Mean		Std. Deviation
Variables	Statistic	Statistic	Statistic	Statistic	Std. Error	Statistic
SRM1	116	1	5	4.04	.137	.957
SRM2	116	1	5	3.04	.189	1.322
SRM3	116	1	5	3.04	.175	1.224
SRM4	116	1	5	3.45	.178	1.243
Mean				3.393	0.170	1.187
FRA1	116	1	4	2.31	.131	.918
FRA2	116	1	5	2.94	.190	1.329
FRA3	116	1	4	3.02	.147	1.031
FRA4	116	1	5	2.86	.218	1.528
Mean				2.783	0.172	1.202
HRA1	116	1	5	4.04	.151	1.060
HRA2	116	1	5	3.63	.151	1.055
HRA3	116	1	5	3.71	.187	1.307
HRA4	116	1	5	3.20	.172	1.207
Mean				3.645	0.165	1.157
PRA1	116	1	5	3.61	.142	.996
PRA2	116	1	5	3.08	.193	1.351
PRA3	116	1	5	3.71	.187	1.307
Mean				3.467	0.174	1.218
ICT1	116	1	5	3.69	.131	.918
ICT2	116	1	5	3.92	.120	.838
ICT3	116	1	5	4.04	.116	.815
ICT4	116	1	4	1.80	.077	.539
Mean				3.363	0.111	0.778
ORG1	116	2	5	4.04	.105	.735
ORG2	116	2	5	3.86	.113	.791
ORG3	116	2	5	3.96	.097	.676
ORG4	116	1	5	3.61	.123	.862
Mean				3.868	0.110	0.766

Source: Authors (2023).

5.2. SRM systems

The average statistical mean shown in Table 7 of SRM (3.393) confirms the presence of SRM systems within the manufacturing industry, indicating growing recognition by firms to establish such systems. The development of an effective SRM system enables organisations to build trust with their suppliers by realizing sustainability within the buyer–supplier relationship (Kosmol et al., 2019). This finding also supports the findings of Munyimi et al. (2018), who concluded that a well-managed buyer–supplier relationship positively contributed to organisational performance. Again, the results show moderate resource allocation to the supplier section process, as indicated by an average standard deviation of 1.187. As highlighted by Taherdoost and Brard (2019), organisations allocate resources to supplier selection, as selected suppliers have a direct impact on organisational performance as well as the performance of the whole supply chain. Bai and Sarkis (2016) in their study emphasized the need for organisations to adequately resource their supplier development programs for suppliers to contribute positively to organisational performance, indicating a moderate presence of a supplier development program within the paint manufacturing industry. These finding points to the need for senior management to adopt a servant leadership style approach as they execute the SRM activities. A servant leader will consider the needs of others before their own needs (Ruiz-Palomino et al., 2021). The allocation of resources to supplier selection and development will not only be considering the benefits to the organisational performance but also to the organisational performance of the supplier which will however ultimately contribute to the organisation’s performance in the long-term. The collaborative approach of the servant leadership provides an opportunity for developing a long-term buyer–supplier relationship (Zoghbi-Manrique de Lara & Ruiz-Palomino, 2019). The establishment of these long-term collaborative relationships through servant leadership, will open communication channels that allows information sharing and knowledge transfer, giving suppliers a sense of shared ownership to the organisation’s achievements as they share their innovative ideas (Ruiz-Palomino et al., 2021).

5.3. Financial resources

Table 7 shows a low mean for FRA (2.783) with a std deviation of 1.202 for financial resource allocation to SRM, as other organisations did not have a clear budget to support the SRM system financial resource allocation to supplier selection. This finding resonates with the study on the Zambian aviation industry by Milambo and Phiri (2019), who concluded that the inadequacy of resources to support the SRM system proved costly to the Zambian aviation industry, as the industry faced a serious shortage of aircraft spares as suppliers failed to deliver on time. These findings also concur with the study by Gumbo (2019) on the Zimbabwe beverage industry, which had a negative impact on supplier relationship management. The findings are also an indication of the organisations in the paint industry’s organisational readiness to commit resources to the SRM system. The findings are again an indication of the use of cost leadership style by senior management in the paint manafacturing industry which is a direct response to the current economic enviroment (Ruiz-Palomino et al., 2013).

5.4. Human resources

The research findings in Table 7 show that the average procurement personnel (HRA mean of 3.645 and a standard deviation of 1.157) had the necessary qualifications and experience to oversee the SRM system. This is in line with a previous study by Hamza et al. (2016), who heightened the need for the procurement function to be sufficiently resourced with personnel who possess the required skills and abilities to manage the SRM system. These skills also entail upholding both professional and business ethical values when interacting with suppliers (Yamin, 2020). These ethical values are basically business moral principles that gives an image of the organisation’s professionalism to both the internal and external stakeholders (Ruiz-Palomino et al., 2013). The study findings are supported by literature (Islami, 2021) on the mediation effect of human resources management (HRM) practices on organisational performance being supported by supply chain management practices. It highlights the interaction of HRM practices and SCM practices that also include SRM as it provides and supports human resources to SCM that possess the skills and qualifications to manage the buyer–supplier relationship. This is also supported by the United Nations Sustainable Development Goals, which encourages organisations to employ a healthy and qualified workforce (United Nations, General Assembly, 2015). Organisations must therefore, not only consider the economic and financial aspects of human resources but should also consider other human resources objectives that include employee satisifaction, and community welfare (Ruiz-Palomino et al., 2013). Thus, the ethical consideration of management to SRM should present a more humanistic and holistic organisational vision (Ruiz-Palomino et al., 2013). To achieve this senior management again need to adopt the servent leadership style as the main forecast of servent leadership is on differentiation through employee empowerment and collaboration (Ruiz-Palomino et al., 2021). Though, this is in contrast to the cost leadership style whose main objective is to rein cost in order to improve the bottom line figures. The servent leadership style is an ethics rooted leadership approach that strengthens individual employees social capital (network) which extends to the entire organisational social capital that also extends to the external stakeholder that include suppliers (Zoghbi-Manrique de Lara & Ruiz-Palomino, 2019). The adoption of the two leadership styles (servant and ethical) by organisations provides an opportunity for further research on the contribution of the two leadership styles to SRM resource allocation.

5.5. Physical resources

The study findings indicated in Table 7 show an average mean of 3.467 and a standard deviation of 1.218 on PRA, showing a moderate physical resource allocation to the procurement function to support the SRM system. These findings are supported by studies by Hamza et al. (2016) and Wairu and Gitonga (2018) who emphasized the need for organisations to adequately resource the procurement function with physical resources such as computer hardware for their effective contribution to organizational performance. Kosmol et al. (2019) also emphasised the fact that organisations should invest in ICT infrastructure that supports the establishment SRM system that positively contribute to organisational performance. The study results indicate that more needs to be done by firms in the paint manufacturing industry to provide physical resources to the procurement function to enable it to effectively manage suppliers through the development of SRM systems. As discussed earlier the adpotion of servent leadership style assists in the allocation of adequate physical resources to the procurement function in order for it to effectively manage the buyer–supplier relationship (Zoghbi-Manrique de Lara & Ruiz-Palomino, 2019). The servent leadership provides an ethical approach as resources are allocated to the various organisatonal functions objectively (Ruiz-Palomino et al., 2021). However, these physical resources should be in line with current market trends, and organisations should be prepared to keep up with market developments. It is however also acknowledged that some of these physical resources if not the majority of them are shared resources with other departments in the organisations.

5.6. Information resources

The results in Table 7 on information resources showed a moderately high level of access to information by the procurement function that aided their effective supplier management, with an ICT mean of 3.363 and a standard deviation of .778. The findings again show the non-availability of websites that are supplier interactive, as indicated by a very low statistical mean of 1.8 and a standard deviation of .539 (ICT4). According to Roushdy et al. (2015), inadequate availability of information resources will have a negative effect on information sharing, thereby affecting the organisation’s competitive advantage, as they will have limited access to supply market information in real-time. However, these study findings fall short of previous studies by Yeniyurt et al. (2019) and Flechsig et al. (2022) where investment in information technology (IT) to support the information resource facilitated the development of a high-order organisational capability that included the establishment of an effective SRM system that positively contributed to organisational performance. It might also be a fact that the findings are an indication of the results of the three dimensions as highlighted by Kosmol et al. (2019) that influence the decision of organisations to adopt ICT systems and these include technological readiness, organisational readiness, and environmental readiness. It thus proves that the level of readiness by organisations in the paint manufacturing industry to adopt new technologies that support the buyer–supplier relationship is still very low as shown by the low mean on the availability of supplier interactive websites.

5.7. Organisational performance

As shown in Table 7, the results obtained by the study display a high level of organisational performance with an average mean of 3.868 and a standard deviation of .766. The comparison of the organisational performance against the set target was also high with a mean of 3.86 and a standard deviation of .791 (ORG2), thus confirming previous studies by Chikazhe et al. (2023) and Kaondera et al. (2023), who highlighted that organisational performance is the comparison of actual organisational achievements against intended output (Mharidzo et al., 2022). The periodic financial result again proved to be high, with a statistical mean of 3.96 (ORG3) supporting the effective use of financial indicators as an objective instrument to measure organisational performance (Gaura et al., 2021). However, the achievement of the set sales target was moderately high, with a mean of 3.61 and a standard deviation of .862. The present result fulfills the research objective of examining the resource allocation adequacy to SRM and the contribution to organisational performance as the means are indicative of the level of resource allocation. These mean values also supported the hypothesis test described below.

5.8. Hypotheses testing

SPSS V24 was used to test all research hypotheses. Table 8 indicates the results for hypotheses H₁-H₅.

Table 8. Hypothesis testing

Hypothesis	Hypothesised Relationship	SRW	CR	Remark
H1	Human resources positively influences SRM	.281	3.696***	Supported
H2	Physical recourses have a positive role on SRM	.298	5.093***	Supported
H3	Information resources have a positive role on SRM	.341	7.581***	Supported
H4	Financial resources have a positive effect on SRM	.215	3.004***	Supported
H5	SRM has a positive effect on Organisational performance	.389	8.219***	Supported

Notes: SRW = standardized regression weight, CR = critical ratio, *** = significant at p < 0.001.Source: Authors (2023).

Results in Table 8 show that hypotheses H₁–H₅ were all supported.

6. Conclusions and implications

The main objective of this study was to establish how resource allocation to develop and maintain a supplier relationship management (SRM) system can enable the SRM to contribute to the organisational performance of firms within the paint manufacturing industry in Zimbabwe. Based on these findings, the following conclusions were drawn:

The study findings show that most organisations within the paint manufacturing industry have an SRM system in place. However, limited resources are allocated to SRM in most organizations, posing a potential business risk of engaging suppliers who are not competent enough to contribute positively to organisational performance.

The study results also indicate a moderate adequacy of the information resources that support SRM systems, posing a need for the paint manufacturing industry to avail resources to the ICT infrastructure, as 98% of the respondents confirmed the unavailability of organizations’ websites that are supplier interactive.

Likewise, the study results show that there is no clear financial budget to support the SRM, meaning resources to support the system are also limited, resulting in the SRM not contributing to organizational performance at the expected levels.

The results show that procurement personnel within the paint manufacturing industry possess the necessary qualifications and experience to manage the buyer–supplier relationship. Their efforts are hindered by the lack of support from other resources, such as financial and physical resources, which enables them to discharge their duties at the highest level.

With the above conclusions that highlight the level of resource allocation in SRM, the current study further contributes to the existing body of knowledge on supplier relationship management, as it examines the effect of resource allocation on supplier relationship management and its ultimate contribution to organisational performance. This provides new insights into senior management within the manufacturing industry on the need to allocate adequate resources, including human, financial, physical, and information, to SRM to positively contribute to organisational performance.

6.1. Implication to theory

Previous studies on SRM agree on the contributions of the buyer–supplier relationship to organisational performance (Chari, 2016; Chatterjee et al., 2023; Dubey et al., 2019; Milambo & Phiri, 2019). The study established that the adequacy of resource allocation to SRM contributes to organisational performance. This is supported by earlier studies by Gumbo (2019), Milambo and Phiri (2019), Butt et al. (2020), Moretto and Caniato (2021), and Roshdi et al. (2022), which confirmed the effect of resource allocation on the SRM and its contribution to organisational performance. Moreover, the study resonates with resource-based theory, which states that the performance of any function within an organisation is determined by the level of resource allocation (Hitt et al., 2016). The study thus further contributes to the existing body of knowledge on SRM, as it explores the level of resource allocation to SRM systems and the ultimate contribution to organisational performance. The study results indicate the need for organisations to adequately resource the procurement function in support of the SRM system for it to positively contribute to organisational performance.

6.2. Implication to management

This study was motivated by the need to explore why SRM in the Zimbabwe industry does not seem to contribute positively to organisational performance. While firms in the paint manufacturing industry affirmed the presence of an SRM system, no evidence was available for its contribution to organisational performance. The finding and subsequent conclusion of this study provide an insight for managers not only in the paint manufacturing industry but also the whole of the manufacturing industry in Zimbabwe on the effects of the level of resource allocation to the SRM system and provides an opportunity for managers and organisational policymakers to rethink and review their resource allocation on the SRM at strategic level. These resources include human, financial, physical, and informational resources. Managers are encouraged to effectively allocate resources at the strategic level to enable the SRM to positively contribute to organisational performance as suppliers improve their service delivery level. Moreover, management within the paint manufacturing sector is recommended to ensure that the procurement department collaborates systematically with suppliers. A clear joint activities program must be implemented with suppliers to improve relationships. Regular business review meetings are also encouraged with suppliers to complement our relationships.

As highlighted in resource-based theory, adequate resource allocation to various organisational functions will enable the functions to effectively contribute to organizational performance. Thus, based on the finding that resource allocation positively influences SRM, management is advised to have a clear budget allocation to support SRM. Adequate financial resources must be available for use in supplier selection. Sufficient funds must be allocated to support the supplier development programs. Additionally, financial resources must be available to support the procurement function and training needs for all employees involved. Management has to ensure that personnel in the procurement function have the necessary qualifications and experience to manage supplier relationships. In addition, management should ensure adequate human resources to manage the buyer–supplier relationship, the availability of human resources development programs, adequate office space for the procurement department, and adequate vehicles allocated to the procurement function to support supplier relationship management.

Management of the paint manufacturing sector is also encouraged to ensure that both parties will commit themselves to the relationship to ensure that they contribute to the profitability of each organisation through the establishment of a long-term collaborative relationship. However, it should be noted that the adequacy of resources depends on the size of the organization.

6.3. Limitations

The current study was based on the paint manufacturing industry, as the majority of firms are concentrated in the capital city of Harare Zimbabwe; therefore, they are not geographically representative of other industries in other cities. The study was carried out within a short period and only 83.45% of the participants were able to return their questionnaires, posing a potential bias due to the limited research period. However, these limitations provide opportunities for further studies on resource allocation to the SRM in other Zimbabwe industries, including the agricultural and personal care manufacturing sectors, as well as in other countries within the SADC region and other developing countries beyond the region. While the researcher had assumed that the technological developments and the Internet of Things would have enabled the organisation to effectively interact with suppliers on their website, 98% of the respondents confirmed the unavailability of websites that are supplier interactive, posing another opportunity for further studies on the manufacturing sector embracing the Internet of Things in support of the SRM.

Disclosure statement

No potential conflict of interest was reported by the authors.

Supplementary material

Supplemental data for this article can be accessed online at https://doi.org/10.1080/23311975.2023.2286003.

Additional information

Notes on contributors

Emmanuel T. Denhere

Emmanuel T. Denhere holds a MSc. in Supply Chain Management and full member of CIPS with 28 years of Supply Chain experience in the private sector. Area of research interest include Supply Chain Management and Supplier Relationship Management.

Lovemore Chikazhe

Lovemore Chikazhe holds a Doctor of Philosophy in Marketing and is a lecturer at Chinhoyi University of Technology (CUT), Zimbabwe. He has authored numerous peer-reviewed journal articles with other renowned publishers and much of his research is quantitative in nature. Focus areas are Services Marketing, Strategic Marketing Management and Business Management.

James Kanyepe

James Kanyepe holds a PhD in Supply Chain Management. He is an academic, researcher and consultant. He is currently a Lecturer in the Department of Management at University of Botswana. His research area of interest is supply chain management.