Strategic supplier relationships and operational performance of large manufacturing firms in Tanzania: does technological absorptive capacity matter?

Strategic supplier relationships (SSR) are recognised as a key driver of organisational operational efficiency. However, many large manufacturing firms struggle to achieve optimal operational performance (OP). This study examines the influence of SSR on OP in large manufacturing firms in Tanzania and assesses the moderating role of technological absorptive capacity (TAC). The study adopted a cross-sectional research design and used purposive sampling to select 223 respondents. The collected data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 4. The findings reveal significant positive relationships between SSR and OP, and between TAC and OP. In addition, TAC significantly moderated the SSR-OP relationship. These results indicate that improvements in SSR and TAC enhance OP. Furthermore, the moderating effect suggests that when SSR and TAC are effectively integrated, their combined influence on OP exceeds that of each factor operating independently. This study’s originality lies in examining TAC as a moderator between SSR and OP and in providing empirical evidence from an emerging-economy context. This study offers valuable insights for managers and policymakers to develop effective supplier relationship strategies and leverage technological capabilities to enhance the OP of large manufacturing firms.