Small-to medium-sized manufacturers in supply chains : Development of effective customer relationships and growth

This thesis details a study into the role of Small- to Medium- sized Manufacturers (SMMs) in supply chains and how this may affect SMMs' growth potential. The study draws upon a variety of research streams including Supply Chain Management, Industrial Marketing, and the literature on factors that affect firm growth. The objectives of the study are to: identify relationship management activities employed by SMMs and investigate the links between relationship management activities, critical dimensions of customer relationships and growth potential To this end, a series of semi-structured interviews with a set of SMMs and a large-scale mail survey of SMMs are conducted. Data collected through the mail survey are analysed using a variety of statistical techniques including factor analysis, multiple regression analysis and cluster analysis. Study findings indicate that SMMs who are problem- solvers and increase their own share of value added in the supply chain can develop stronger customer relationships. SMMs can influence the strength of customer relationships to a greater extent than the fairness of customer relationships. The study proposes a relationship-oriented typology of SMMs based on how they define their business and how they shape their customer base. The growth comparison among SMM types suggests that SMMs who develop a balanced portfolio of customer relationships - by developing good working relationships while avoiding excessive dependence on any customer - realise higher growth potential.