Abstract
This paper aims to investigate how the overall implementation of SCM-related conditions within a firm affects its ability to do Key Supplier Relationship Management (KSRM) and to determine the importance of KSRM for the execution of SCM. A conceptual model is developed based on existing literature and proposes KSRM being a mediator between SCM conditions and execution. A survey of 174 managers representing different supply chain stages was used to test the model by variance-based structural equation modelling. The findings reveal that external SCM conditions directly affect the ability to do KSRM. Nevertheless, internal conditions show considerable indirect impact through external conditions and can thus be considered an indirect determinant. The ability to do KSRM in turn impacts the integration of business processes in terms of SCM execution, directly and substantially, highlighting the key role of KSRM in effective SCM. The empirical findings clearly indicate the need for supply chain managers to focus their collaboration down- but also upstream and for the development and maintenance of collaborative relationships by the focal firm with both customers and suppliers.