Development of an integrative model for electronic vendor relationship management for improving technological innovation, social change and sustainability performance

Abstract

Vendor relationship management (VRM) is a software tool that helps to provide seamless connectivity between buyer and supplier. With the rapid development of information and communication technology (ICT) most firms have migrated to electronic VRM (EVRM) capability. Only a few studies have examined how EVRM can impact the dynamic B2B capability of firms that combine technological and social innovation in support of transitions and the achievement of business goals. There are also very few interdisciplinary studies using a range of performance matrices to explore the relationship between firms' dynamic B2B capabilities and their sustainability performance, mediated through their various sustainable growth opportunities. In this context, this study aims to develop an integrative model for B2B EVRM capability and firm sustainability. With the help of dynamic capability view (DCV) theory and related literature, a theoretical model is proposed. This model was later validated using the covariance-based structural equation modeling technique (CB-SEM), in considering 378 responses from Indian firms. The study has three main findings. First, EVRM capability significantly and positively impacts B2B dynamic relationship capability between the firm and the vendors. Second, B2B dynamic relationship management capability has a significant and positive impact on firms' sustainability performance mediated through the financial, environmental, and operational performance of the firm. And third, Environmental dynamism (ED) plays a significant role as a moderator, influencing B2B dynamic relationship management capability.