Environmental Uncertainty and Strategic Supply Management: A Resource Dependence Perspective and Performance Implications

Abstract

SUMMARY Environmental uncertainty plays a crucial role in the implementation of strategic supply management initiatives. The current study adopts the resource dependence theory to explain the direct effect of supply chain uncertainties on strategic supply management, operationalized as a second‐order construct comprising strategic purchasing, long‐term relationship orientation, interfirm communication, cross‐organizational teams and supplier integration. Using structural equation modeling, the 200‐firm sample provided evidence that strategic supply management is driven by supply and technology uncertainty. Demand uncertainty, on the other hand, was not found to have a significant impact on strategic supply management. Findings further support the link between strategic supply management and the performance of both buying and supplying firms.