SUPPLIER-RELATIONSHIP MANAGEMENT, COMPETITIVE ADVANTAGE AND FIRM PERFORMANCE IN THE SERVICE INDUSTRY: A CONCEPTUAL STUDY

This conceptual paper sought to study the relationship among supplier relationship management, competitive advantage and firm performance. The study reviewed literature related to these three variables. Several databases concerning the fields were used to acquire relevant literature on the topic. Methods to conduct future research were also highlighted. The literature reviewed discovered supplier relationship management had a relationship with firm performance although not quite significant but had a stronger influence on competitive advantage. However, competitive advantage appeared most influential as it had a direct relationship with firm performance. Conclusions drawn from the literature are that hotels can improve their performance and survival by having a competitive edge over their competitors. And to achieve this competitive advantage, hotels need to have a collaborative relationship with their suppliers. This conceptual paper ends with recommendations for future research to test whether these variables have any empirical relationships, especially in the hospitality sector.