Effects of Supply Chain Visibility and Flexibility on Key Account Management Capability

Abstract

Academics and practitioners have increasingly been paying attention to key account management (KAM) capability. Most research on KAM has focused on KAM conceptualization and sales teams’ service provision and performance. The purpose of this study was to fill the research gap regarding the enhancement of KAM capability by using supply chain strategies. From the perspective of contract manufacturers, we proposed that supply chain strategies influence KAM capability. The various strategies in a supply chain include supplier development and improving supply chain visibility and flexibility. Studies have also suggested that KAM capability has a positive influence on relationship performance. A questionnaire survey was employed to gather information from managers in the electronics manufacturing industry to test the research model and hypotheses. The findings indicate that supply chain visibility and flexibility positively affected KAM capability, which had a positive effect on relationship performance. However, the direct effect of supplier development on KAM capability was nonsignificant.